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...

The financial crisis has decreased the opportunities of small businesses to acquire financing through conventional financial actors, such as commercial banks. This credit constraint is partly the reason for the emergence of new alternatives of financing, in addition to the spreading opportunities for communication and secure financial transfer through Internet. One of the most interesting venue...

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,...