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Human Resource Requirements for Micro-finance Industry_ Strong

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					           HR for Microfinance:
         Scope, demand, outlook
               Presented by:

     A         Dr. Sankar Datta, Dean Livelihood School
               Academic Confluence@Hyderabad,
               Katriya Hotel and Towers, 19 Feb. 2009


Presentation
 MF Industry has Grown …
 140

 120

 100

 80

 60

 40

 20

   -
            1999             2002              2004            2006

   O/S with Customers in Bn USD            No.Active Borrower in Mn
   Estimated No. of Staff (in 10,000)      No. of Customer/Staff

Registering 30-40% growth p.a. except in C/ Staff
                               The Livelihood School
 MF to support livelihoods
Micro-finance emerged to meet the
requirements of additional funds for
livelihood supporting activities of poor,
who had no savings, so no capital
And not to tap the market at the
bottom of the pyramid
   Which assumes some surplus with them to
    buy financial services

                  The Livelihood School
 So has requirement of HR…
MF is HR intensive to deliver
   In multiple installment
   Of small value
   With multiple transactions
   At dispersed locations, with poor infrastructure
   At door-step to minimize transaction cost
Poor people engage very actively
   Provide collateral substitute, Appraise their peers
   Management of their funds, their institution
   Identify, Set-up & Manage their livelihood activities

                       The Livelihood School
 The HR Requirement
Industry requires 150 thousand people
every year
With diverse skills
   Capacity for Investment of Credit into
    Appropriate Livelihood
   Financial : Appraisal, Delinquency, Fund
   People: Managing Groups, their Capacity Building
In a new area of knowledge
With limited margin to pay competitive
salaries with mainstream finance sector
                      The Livelihood School
 Efforts in HR development
Mainstream Educational Institutions
offering Micro-finance Courses
   University of Pretoria
   Colorado State University
   COADY International Institute
Micro-finance Investor Promoted MF
Training Institutions
   Bankers Institute for Rural Development
    (BIRD)
   Bankakademie International
                    The Livelihood School
 Efforts in HR development
Technical Support Service Provider
Institutions
   EDA Rural Systems
Micro-finance Training Institutions/
Divisions promoted by MFIs
   Tata Dhan Academy,
   Grameen Bank's International Program
    Department
Network Institutions Offering Programs
                  The Livelihood School
 Learning from Mainstream Finance
Bankers promoted IIFB in 1928
   With representations of major public and private
    banks, of RBI and Indian Banks' Association, along
    with Academic Institutions: IIMA, XLRI, ICFAI
   Offered courses: Necessary for promotion
Insurance made qualification compulsory by
law
   Set up Institute of Actuaries - London (In July 1884, the
    Institute of Actuaries was granted a Royal Charter)
   Actuarial Society Of India, renamed Institute of
    Actuaries of India
   Many private training institutions accredited
                                The Livelihood School
 What we need to do in MF
Recognize that HR is critical
Look at inadequacy of current effort at three
levels
   Numbers
   Levels of Participants
   Content of these programs
Bring together different stake holders
Agree on some basic minimum competency
required for micro-finance

                     The Livelihood School
What we need to do in MF
    Set up system of delivery and quality
    control with three pronged strategy:
     Senior Level: Higher focus on building livelihood
      focus
     Middle Level: Promote private training
      initiatives, with strict quality control
     Lower level: Mainstream University Education
    MFIs start valuing such CB effort and
    signaling them

                       The Livelihood School

				
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