MABS at a Glance

Each participant bank receives focused attention and support, which includes the following:

• Staff Selection Guidelines
• MIS Performance Monitoring Guidelines & Report Formats
• Senior Management and Microfinance Unit (MFU) Staff Exposure Training
• Annual Action Plans (in collaboration and with the support of the Participant Bank’s MFU staff)
• Market Survey Report (in collaboration and with the support of the Participant Bank’s MFU staff)
• Business Plan Projections and excel spreadsheet program (in collaboration with the Participant Bank’s MFU staff)
• Micro Loan Concept Paper (in collaboration with the Participant Bank’s MFU staff)
• Operations and Procedures Manual with electronic copies (in collaboration with the Participant Bank’s MFU staff)
• MFU In-house Training Workshop, including sessions on Cashflow Lending and Zero Tolerance Towards Delinquency
• Intensive Training for Supervisors and MFU staff
• Quarterly Performance Monitoring and Action Plan Updates

By the end of MABS work with the client bank, the following will have occurred:

• Development or enhancement of microfinance products, practices, and procedures that follow best practice principles;
• Implementation of a profitable microfinance line of business;
• Implementation of a profitable microfinance line of business;
• Development of the capacity not only to manage the microfinance operation, but to continually expand it.

The general pattern of the MABS approach is to build up and then phase out the level of dedicated technical assistance and training.

MSP consultants work with the participating rural bank to:

• Prepare the microfinance technical assistance plan and TA package;
• Conduct orientation sessions with management and microfinance staff;
• Train the microfinance unit (MFU) of the bank;
• Conduct market research in areas identified by the bank as possible target areas;
• Identify and assess new or existing microfinance markets;
• Review existing microfinance operating systems and procedures;
• If applicable, assist in the development of new microfinance products and related promotion activities;
• Create and develop the microfinance manual of operations and policy guidelines;
• Assist the bank to launch and market their microfinance product;
• Monitor the microfinance activities of the bank’s Microfinance Unit;
• Review product profitability and competitiveness;
• Conduct other enhancement training for bank management and microfinance staff;
• Monitor the performance of microfinance products, particularly those products assisted by MABS;
• Rigorously monitor the quality of the loan portfolio and provide guidance on loan portfolio management and collections;
• Indoctrinate within the bank management and staff a culture of “zero tolerance” for past due loans;
• Advise the client bank about scheduled training, workshops, seminars to be attended;
• Identify other training needs in support of the microfinance activities of the client bank;
• Formulate a staff productivity incentive scheme;
• Coach and guide bank management and the microfinance staff in the implementation of the MABS best practice microfinance technology.