Transcript Way forward - e-MFP

The business case of investing
in women’s economic
empowerment
Roshaneh Zafar, Founder and Managing Kashf
Foundation
Content
 Evidence of Investing in women
 Barriers to Women’s Economic Participation
 Kashf Rationale and Background
 The Kashf Gender friendly/Pro Women Financial Model
 Economic Mainstreaming
 Challenges of Inclusive Financial services
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Business case of Investing in Women
 Low participation of women in the economy has a high loss for
families and societies
• Annual GDP loss of 0.7%
 Low participation of women in the economy creates high
dependency within families
• 2:1 ratio per individual
 Low participation of women in the economy creates lost
opportunities
• 70% of the world’s poor are women (feminization of
poverty)
Source: World Bank
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Barriers to Women’s Participation
 Limits on Mobility and lack of access to markets
 Crowding out in terms of access to resources
 Wage discrimination
 Triple burden and lack of access to time saving technologies
 Social norms that play down value of women’s time
 Perceptions of women being repository of family honour
 Concentration in a few sectors (sewing, embroidery)
 Lack of access to financial services
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Rationale for Establishing Kashf Foundation
 Women matter
 Women can be active economic agents
 Poor households are bankable
 Poverty is a growing concern in Pakistan
 Specialised MF can work in the Pakistani context
 An MFI targeting poor women can be sustainable
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Kashf Achievements
 Founded in 1996 as the first specialised MFI in Pakistan
 Targeted women from low income urban communities
 Designed effective pro-poor pro-women products and services
 Strong learning approach
 First MFI to achieve financial sustainability (2003)
 Pioneering effort of raising US$ 36 million from commercial
sources (2007)
 Trendsetter in terms of rating (JCRVIS-BBB-)
 3rd largest MFI in Pakistan (Current outreach 288,000 clients)
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Outreach
Active clients
350,000
250,000
Cumulative
Outreach: 850,000
businesses
200,000
US$210 million
disbursed
300,000
150,000
135,797
100,000
50,000
-
319,684
295,396 288,076
75,520
63,325
59,418
15,706
913 3,4067,221
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Sep'2009
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Change, Power, Choice
 Change
• Developing a sense of self worth
• Valuing women’s economic contribution/value of time
 Power
• Enhancing bargaining position within the household
• Improving/Impacting inter-spousal relationships
 Choice
• Having the right to control one’s life
• Being able to choose a better life for one’s children
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The Kashf Pro Women Approach
 Economic Leverage
 Through developing and
designing women friendly
financial services and products
 Enhanced bargaining position
 Through a women friendly
delivery methodology (relying
on associative strength)
 Transformation
 Through a sustainable, cost
effective, best practice
institution that focuses on
women. Ensuring gender equity
at all levels (Board,
Management, Field, Clients)
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Economic Leverage
 Products
 Principles of Product Design
• General Loan
• No collateral
• Emergency Loan
• No male guarantors
• Life Insurance
• Simple documentation
• Home Improvement Loan
• Accessibility
• Health Insurance
• Overcoming literacy
constraints and mobility
barriers
• Women specific factors
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.Rationale for Establishing Kashf MF Bank
 Economic mainstreaming
 Deposit led institution (scalability)
 Full suite of services (especially deposits for women
clients)
 Access to resources (moving beyond debt led models)
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Designing Pro Women Savings
 Market Segmentation Exercise
 2 Market segments: poverty saving
upto Rs 1,500/$22 and the other
segment saving upto Rs 5,000/$73
 Women were the primary savers
 Demand Analysis
 Using informal sources
 Saving for life cycle events
(marriages, home construction)
 Commitment Savings (3-8
years)/Goal Oriented
 Product Design
 Rs 500-5000/month ($7-$73)
 Pension Savings (Old Age)
 Voluntary/Demand Driven
 Co-branded
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Savings Outcomes
Active Depositors
27,893
30,000
24,470
Depositors
25,000
20,000
21,520
19,125
16,186
15,000
10,000
5,000
0
May
June
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July
August
Sept
Challenges
 Greater number of women use the loans themselves
 Greater number of women have control over the income they
generate
 Greater number of women are able to graduate to larger loan
sizes (tranform their businesses)
 Greater of number of women are able to control/mitigate the
drudgery of their lives (double burden)
 Greater number of men value the income women bring into
their homes
 Greater variety of products are available that are pro women
with the right policies
 Greater depth of deposit products that are affordable,
convenient and accessible
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Saima Muhammed Featured in NYT 2009
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