ShoreBank International supporting Faten on credit scoring

ShoreBank International is helping Palestine for Credit and Development or Faten, Palestine’s largest MFI, to incorporate a credit scoring module in its management information system that will eventually enable it to reduce credit risk and process loans disbursement more rapidly. AED and ESAF have also worked with Faten on its strategic and business planning, which envisions commercial borrowing to cover more than 50 percent of its future portfolio needs.

Click here to read the CGAP MENA Update May 2011.

Experts help boost mobile banking in emerging markets

CHARLOTTESVILLE, Va., May 27, 2011 /PRNewswire-USNewswire/ -- Mobile phone ownership is commonplace all over the world. A ubiquitous symbol of modernity, these communication devices are now a platform for providing financial services to underserved populations.

Darden School of Business Professor Frank Warnock and Batten Institute Fellow Veronica Cacdac Warnock have joined ShoreBank International (SBI) in their efforts to assist two new mobile banking companies achieve the goal of increased access to financial services for those outside the banking mainstream in Bangladesh and Pakistan.

The team, whose participation is funded through SBI's $16.9 million grant from the Bill and Melinda Gates Foundation, will design a structure for evaluating the businesses and their progress toward the goal of financial inclusion for poor and underserved populations in the two countries.

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Azerbaijani non-bank credit organization improves conditions on auto-loans

Azerbaijan, Baku, April 25

The Azerbaijani non-bank credit organization TBC Kredit has improved the conditions for auto loans.

"One can buy any car, new or used, on a credit with no initial payment and insurance, if the loan term is up to 3 years," the company said.The maximum loan amount is 50,000 manat for five years. The annual interest rate is 18-19 percent.

TBC Kredit has operated in Azerbaijan since 1999. About 75 percent of the company is owned by the leading Georgian TBC Bank and 25 percent by ShoreBank International Ltd.

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Can microenterprise clients afford MFIs high interest rates in Pakistan?

Microfinance Focus April 19, 2011: A recent study commissioned by Pakistan Microfinance Network titled ‘Estimating micro businesses’ ability to pay’ attempts to assess the ability of micro-businesses to pay interest rates charged by microfinance providers (MFPs) in Pakistan. The findings of this report have been researched by ShoreBank International Limited – Pakistan (SBI-P).

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Grants versus investment for social enterprises

On the whole, the less money you get through grants, the more respected you are as a social entrepreneur. But in the grants versus investment session at Skoll there was a general acceptance that grants were perfectly fine as part of the funding mix. Finding those grants is an issue, but judging by discussions, social entrepreneurs and some investors would like to see grants become an essential part of investment packages, particularly in getting businesses to the investment/equity stage.

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