Past Projects

The following is just a sample of assignments carried out by Microfinance Strategy. Since the onset of the financial crisis in 2008, Microfinance Startegy has executed (or is executing) a number of projects to assist banks and microfinance institutions in their crisis management efforts, in particular relating to credit risk and delinquency management. Several projects are located in Eastern Europe, Russia and Central Asia - while others assignments have been further afield in Latin America and Southwest Asia.

Finance in Motion (FIM)

Advisory work for the development and set-up of a Fund for micro, small and medium enterprises in the Middle East and North Africa (MENA) region – Africa, 2011
Assignment was carried out on behalf of the new (not yet operational) fund for micro, small and medium enterprise in the Middle East and North Africa (MENA) region – market assessment to estimate the overall investment potential of the local micro and SME finance sector, including segmentation of the market and prioritization of different types of financial instruments with a view to the specific requirements of the region (e.g. Islamic Finance).

Kreditanstalt für Wiederaufbau (KfW)

Development of business plan and valuation for post-merger integration of MFI and a commercial bank – Eastern Europe, 2011
Development of cost-benefit model for the different post-merger integration scenarios between the MFI and the bank; preparation of the business plan, financial model and operational plan for the bank and MFI; design of the consolidated financial statements for the two entities; valuation of the two businesses and the consolidated group.

European Bank for Reconstruction and Development (EBRD)

Development of the business strategy for transformation of a financial institution into a bank – Eastern Europe, 2010-2011
Review of the bank’s competencies and capabilities, competitive analysis, market positioning; evaluation of legal framework and external factors; design of the business strategy and implementation plan.

Private Investor

Institutional strengthening for a regional microfinance institution – Russian Federation, 2010-2011
Turnaround of operations in a regional microfinance institution, strengthening management capacity – providing interim management support; improvements in credit risk management and bad debt collection functions; development of internal control tools and mechanisms.

Kreditanstalt für Wiederaufbau (KfW)

Due Diligence of Leading National Microfinance Group – Latin America, 2010
Due diligence of a complex group of microfinance institutions, consisting of several direct lenders and an overarching refinancing structure, including financial analysis; loan portfolio analysis; evaluation of business strategy, corporate governance, human resources and organisational structure; market and competitive analysis; assessment of the social and economic impact of the existing KfW credit line.

Private Commercial Bank

Evaluation of SME loan operations of leading commercial bank – Central Asia, 2010
Strategy consulting project for one of the largest commercial banks in the region, including: evaluation of underwriting methodology and loan collection practices; review of the SME loan portfolio; brief analysis of the bank’s positioning in the SME market; and development of initial recommendations for a restructuring plan and longer-term growth strategy.

European Fund for Southeast Europe (EFSE)

Consulting services in credit risk and delinquency management for leading rural MFI, including crisis management and loan portfolio restructuring – Eastern Europe, 2009-2010
Analysis of root causes of high delinquency; reengineering of credit risk management and loan collection (including the design of delinquency policies and an arrears committee); establishment of a risk management unit; establishment of fraud management procedures; review of corporate and competitive strategy; development of risk procedure and risk management reports; recommendations regarding development of MIS reports to allow for appropriate risk management and loan portfolio tracking; and training of credit staff and branch managers.

European Fund for Southeast Europe (EFSE)

Reengineering of SME lending operations for a specialised MSME bank – Eastern Europe, 2009-2010
Analysis of root causes of high delinquency; strategic audit of the bank’s competencies and capabilities; evaluation of competitive strategy; assistance in the reorganisation of micro and SME credit operations; redesign of credit methodology for all enterprise lending, including both micro and SME; review and reengineering of credit risk management and loan collection (including bad loan management); training of credit staff; introduction of new collection procedures and credit practices; and creation of a delinquency management policy.

Private International Investment Group

Development of Business Plan for the establishment of a greenfield commercial bank providing MSE and (home-collected) retail loans – Russian Federation, 2009
Market review and competitive analysis; design of business strategy and roll-out plan; development of operating model; financial modelling and development of financial projections; and preparation of business plan document.

Kreditanstalt für Wiederaufbau (KfW)

Advising a commercial bank to develop and implement a sustainable SME strategy, including the restructuring of existing SME lending operations – Russian Federation, 2008-2009
Review of corporate, retail and SME lending strategies; organisation and shift of strategic focus to SME lending; reengineering of SME lending methodology and processes to improve credit risk management and facilitate growth; selection and training of credit staff and branch managers; redesign of existing loan products and development of new products; implementation of a new credit technology; redesign of organizational structure; establishment and staffing of new Credit Risk Department.

Kreditanstalt für Wiederaufbau (KfW)

Report on the Mortgage Finance Industry in Russia – Russian Federation, 2008
Analysis of the mortgage finance industry and market in Russia; market overview, including the effects of the sub-prime loan crisis; overview of main players, structure of original loans and product offerings; assessment of financing demand and opportunities for its growth and development.

Global Microfinance Group (GMG)

Establishment and development of a greenfield MFI – Latin America, 2004 to date
Design and establishment of greenfield microfinance institution, including the establishment of lending operations (credit methodology, operating model, incentive systems, policies and procedures, credit process, loan collection, information systems, and so on); recruitment and training of staff; implementation of proprietary credit information system of GMG; senior management roles.

European Fund for Southeast Europe (EFSE)

Consulting services in support of the transformation of a leading MFI into a regulated commercial bank – Eastern Europe, 2009
Gap analysis for transformation with special emphasis on organisational, legal and financial aspects; feasibility check including development of strategy and action plan for transformation; assistance in the elaboration of business plan.

Kreditanstalt für Wiederaufbau (KfW)

Due diligence of two leading MFIs in the process of transformation into regulated microfinance banks – Southwest Asia, 2007-2009
Due diligence of the existing operations and evaluation of the transformation business plan to facilitate equity investment in two leading microfinance organisations seeking to transform into regulated microfinance banks; development of recommendations as to technical assistance requirements of transformation for one of the MFIs; advice on investment structuring.

Kreditanstalt für Wiederaufbau (KfW)

Analysis and design of financing vehicle for MFIs in the context of the German Governemnt's Financial Cooperation programme – Southwest Asia, 2008
Evaluation of regulatory and legal framework; interviews of main market players, potential funders, local investment banks and the Governor and other officials of the beneficiary country’s State Bank; review of existing sources of financing and estimate of potential demand for additional funding by existing microfinance institutions; analysis of potential alternatives to satisfy this unmet demand; and preliminary design of a commercially viable refinancing mechanism for the beneficiary country’s microfinance sector.

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