Did you say microfinance?

• Access to financial services: a necessity for meeting basic needs
• First-hand accounts: the benefits of increased access to financial services
• Microcredit and much more!

• In Togo, as in many developing countries, access to business loans is facilitated by microfinance institutions and actively contributes to increased individual empowerment and local economic development.

First-Hand Accounts:
The benefits of increased access to financial services

• Mexico: Financial services now accessible in rural and marginalized communities.
• Homeownership
• Making better use of the land.
• Schooling for children.
• Haiti: Our financial coop is a symbol of our community
• Mali: Uses Technology for Progress
• Mexico: The Credimujer program in Mexico: another step towards autonomy for women

Microcredit and much more!

It is well known that credit enables borrowers to carry out endeavours that can improve their lives considerably.

With microcredit, loan amounts are reduced and lending methods are adapted to accept the collateral and reimbursement capacity of disadvantaged clients, thus giving them access to financial resources, a valuable tool.

All Développement international Desjardins (DID) financial institution partners offer microcredit to their members, but as part of a service delivery package that is much larger and also includes savings products, access to convenience services (deposits and withdrawals), consumer credit (which in most cases is used to finance education), business loans, agricultural loans, housing loans, insurance, etc. These partners are responding to a multitude of needs and create significant development impact in the communities where they are active. The impact is produced by an increase in access to financial services on a sustainable basis.

Microfinance gives economically disadvantaged women and men access to financial services adapted to their needs.

First-Hand Accounts

Mexico: Financial services now accessible in rural and marginalized communities.

Creative solutions and strictly controlled operations by the financial cooperatives set up in 2003 by DID in marginalized rural areas of Chiapas, Huasteca and Puebla in Mexico have enabled these financial institutions to bring proper services to their poor and mainly indigenous clientele while simultaneously making progress towards a positive rate of return.

These institutions have 50,000 members, 71% of whom live in rural areas and 56% of whom are women. The financial cooperatives in Chiapas and Huasteca have already achieved financial self-sufficiency while the most recently established cooperative, located in the state of Puebla, is making steady progress in that direction.

Homeownership

Everyone wants to own their own home, no matter what country they live in. Moreover, everyone should have access to housing finance products adapted to their circumstances regardless of whether or not they receive a regular income. DID has multiplied its efforts in this area in recent years.

In India, Senegal and Burkina Faso, work has begun under the project to improve professionalism in housing finance. A study was carried out in each country on the overall housing finance environment and a survey was conducted with over 700 members of DID partner institutions in these countries. The data will be used to plan subsequent phases in the project.

Making better use of the land

In developing countries, over 80% of the population live in rural areas and draw their income from agriculture. Providing access to safe financial services adapted to the needs of these farmers is one of the best ways to reduce their vulnerability, improve living conditions and help achieve domestic self-sufficiency for food.

Schooling for children

One of the needs that community finance institutions strive to meet is helping send children to school. Parents do not always have funds readily available for registration fees and other expenses related to schooling for their children. Indeed, education is a key factor in the fight against poverty and the effort to improve living conditions.

That is why partner financial cooperatives in Haiti designed loans for schooling in collaboration with DID. Since this product was introduced in 2004, the Haitian financial cooperatives have made 1763 loans to help children attend classes without missing the start of classes, or even worse, having to wait for another year.

Haiti: Our financial coop is a symbol of our community

Génia Patrice has been a member of the Kotelam financial cooperative since 1989. At 83, she still cares for three other family members by working as a merchant. She feels that joining the coop was a major turning point in her life. « Ever since I became a member, the coop has been the only source of external financing for my business. In the past I often missed opportunities because I didn't have enough money. Thanks to the coop, I have learned to save for hard times and even to prepare for my own funeral. The coop has become a family to me. I get advice and a lot of support for my business. We have developed a sense of ownership. The coop belongs to us. The coop is my business, my property, my life. It is a symbol of our community! »

Edner Farina, another merchant, is also a member of the Kotelam cooperative and the father of twelve children. « Before joining Kotelam, my money was deposited at the Banque commerciale d'Haïti. It has been closed since 1990. When it closed I lost the balance in my account which has never been paid back, 5000 gourds. On three different occasions I had to borrow from moneylenders at annual rates of 300%. Now, thanks to the coop, I can get credit at an annual rate of 36% as well as control and organize my spending. I make withdrawals only to buy supplies and for specific family needs (loans for schooling is one example). The coop has provided much assistance. I am proud to be a member. I am entitled to vote and take part in decision making. The coop belongs to its members while banks are owned by shareholders. »

Through the development activities provided to its partners, DID has helped equip the Haitian ACCOPECH network so that it is able to expand operations and at the same time sustain the quality of its services and its loan portfolio. The members of the coops in this network now have better living conditions and a better work environment.

Haiti has been working in DID for over 10 years, making this its greatest single effort. Several experts from Quebec are in Haiti now. Learn more about DID projects in Haiti.

Mali Uses Technology for Progress

Early on September 20, Seydou Koné arrived at his savings and credit cooperative, the Caisse Djicoroni Para that is part of the Nyèsigiso network in Mali. A surprise was waiting for him. When he stepped up to the counter to make a deposit, he saw that the cashier, rather than leafing through the account sheets, was using what looked like a small pocket calculator to update his account. To his surprise the calculator turned out to be a computer!

« We can see every transaction in your accounts and all balances », explained Mamadou Djiré, the cashier. « This is a handheld computer called a Pocket PC running AMIO banking software, a portable application for data operations. And now, I will record your deposit safely and securely. »

Seydou Koné was a bit skeptical that the tiny calculator was in fact a computer able to display transactions and balances in his account. This was the first time he had seen it. But the cashier explained « Oh yes, our coop is now fully computerized using these little computers. Our work is a lot easier thanks to this technology. I have all the information here to serve you quickly and securely. »

While he was aware that technology is advancing around the world, Seydou Koné had not expected that Mali would take advantage of it so soon. Now he is proud that his coop, even if it does not have tremendous financial means, has been able to modernize its operations.

The Djicoroni Para savings and credit cooperative is the first pilot site in the Low Cost Technologies to Promote Economic Development of the Poorest Project financed by USAID (U.S. Agency for International Development) in Mali. Under this project, DID and its Malian partner, the Nyèsigiso network of savings and credit cooperatives, have developed and implemented AMIO software for cashiers on Pocket PCs. This software program is synchronized with SAF2000 banking software daily.

Learn more about ongoing DID projects in this country.

The Credimujer program in Mexico: another step towards autonomy for women

In the disadvantaged rural regions of Chiapas and Huasteca in Mexico, the two SERFIR microfinance institutions supported by DID have spared no effort to reach out to women. They have helped them build up their assets by setting up the Credimujer program to provide loans to women micro-entrepreneurs in the area. Focus groups were set up with these women for better understanding of their needs and to adapt the program properly. It was learned that the loans of 750 pesos to which they had access were insufficient and that the real need was for loans of up to 5000 pesos.

Since past experience has shown that the women generally have a highly responsible attitude towards loan reimbursement, it was possible to meet their need and to offer other advantageous conditions using the Credimujer program designed especially for them. The program offers lower interest rates, less rigid requirements and it was also agreed to drop the requirement that spouses sign for loans. All of these measures were major steps towards autonomy. They gave confidence to the women involved in the program. They were also pleased that a financial institution devoted so much attention to them.

Felipa Perez Hernández took part in the focus groups. Having lost her husband and living with her niece, she could not afford to stop working. At 74, despite being illiterate, she was able to obtain her first loan from SERFIR which also provided here with assistance. She used the funds to buy the materials she needed to start producing tamales on a small scale from her own kitchen. A second loan helped buy better equipment. Determined to succeed and assiduous in making her payments, Felipa is proud that she is still working and is seen as a woman entrepreneur. She says, « I'll keep working as long as God lets me! »

Learn more about ongoing DID projects in this country.