Credit scoring systems are currently in common use by numerous financial institutions worldwide. However, credit scoring with the microfinance industry is a relatively recent application, and no model which employs a non-parametric statistical technique has yet, to the best of our knowledge, been published. This lack is surprising since the implementation of credit scoring should contribute tow...

Despite a dearth of theoretical studies, there is widespread perception that microfinance is an enormously useful tool for economic development. However, an increasing number of households in lesser developed countries are facing the same debt squeeze as those in the developed world, but are less able to manage debt responsibilities. The consequences are much more dramatic for LDC households be...

Much of the literature on microfinance performance has concentrated on the effects of institution-specific practices, but there have been comparatively few attempts to analyze how the broader economic environment affects the performance of microfinance institutions (MFIs). Drawing on the work of Ahlin and Lin (2006), who find that numerous macroeconomic indicators affect MFI performance, this p...

to emerge in the Philippines. After being in the wholesale microfinance lending business for two years, BanKO (which is licensed as a savings and thrift bank) was ready to jump into retail microfinance by using the mobile phone as its main channel. With years of experience at Bank of the Philippine Islands (BPI), Chief Executive Officer (CEO) Teresita Tan knew all too well the high cost of bran...

Small Enterprise Development Vol.15 No.4 This article examines what types of electronic banking technology are open to microfinance institutions. It then proceeds to examine how various electronic products might be attractive to poor customers in terms of improved accessibility, affordability and ease of use. From the financial institution’s point of view, the functionality of electronic cards,...

Ties between individuals on a social network can represent different dimensions of interactions, and the spreading of information and innovations on these networks could potentially be driven by some dimensions more than by others. In this paper we investigate this issue by studying the diffusion of microfinance within rural India villages and accounting for the whole multilayer structure of th...

We apply the non-parametric, unconditional, hyperbolic order- quantile estimator to appraise the relative efficiency of Microfinance Institutions in Africa in terms of outreach. Our purpose is to verify if these institutions, which must constantly try to strike a compromise between their social role and financial sustainability are operationally efficient. Using data on African MFIs extracted ...

In this paper we provide an analysis of credit risk management and the use of credit scoring among European MFIs. With this aim, we designed and sent a survey to the full set of known MFIs operating in Eastern and Western Europe. 58 MFIs completed the survey. We observe that the European microfinance industry has already dedicated substantial effort to risk management, noting that more than hal...

I n this study we designed to test the remarkable repayment performance of Akhuwat in Pakistan; the most successful Islamic Microfinance Institution (IMFI), which offers interest-free loans in order to improve the quality of life and alleviate poverty. The model of Akhuwat is based on Muakhaat (brotherhood) and Qard-e-Hasan (offering financial assi...

Wide agreement about the goal of microfinance—to improve the welfare of the poor—has not led to wide agreement about how best to achieve that goal. To aid discussion, I propose a framework for outreach—the social benefits of microfinance—in terms of six aspects: worth, cost, depth, breadth, length, and scope. The framework encompasses both the poverty approach to microfinance and the self-susta...