8th Eastern India Microfinance Summit 2024 On 22nd of February 2024

At Biswa Bangla Convention Centre, HIDCO, New Town, Kolkata Organized by: Association of Microfinance Institutions – West Bengal AMFI-WB

In Association with: MFIN & Sa-Dhan

Knowledge Partner: M2i

“Empowering The Poor: Microfinance as a Catalyst for Sustainable Development”

Introduction: Microfinance is widely recognized as a powerful tool, contributing to and propelling towards achieving sustainable development goals. Its multifaceted roles encompass some of the key aspects instrumental in fostering sustainable development. Through financial inclusion, microfinance democratizes access to capital, empowering marginalized communities and amplifying economic participation. It contributes to poverty alleviation, offering avenues for entrepreneurship and job creation. Microfinance also champions gender equality by providing women with access to financial services. As a catalyst for change, microfinance intertwines financial empowerment with social empowerment, paving the way towards a more inclusive and sustainable future. This year's session is expected to be attended by the MFIs practitioners, regulators and funders to discuss most pertinent issues facing the sector.

Inaugural session

The Inaugural Session of the 8th Eastern India Microfinance Summit 2024, will deliberate upon the following key issues relevant to the theme of the Summit, “Empowering Futures: Microfinance as a Catalyst for Sustainable Development”. The dignitaries will dwell upon the following key questions

  • Which are the most important dimensions of the Sustainable Development Goals (SDGs) which Microfinance impacts.
  • What strategies the MFIs can adopt to enhance their role in the Sustainable Development Goals.
  • What new innovations are required in microfinance delivery models to ensure that it remains relevant in the changing regulatory, socio-economic and technological paradigm.
  • In what ways can microfinance programs be tailored to address the unique needs and challenges faced by women, ensuring gender equality and empowerment?
  • How can technology be leveraged to expand the reach and effectiveness of microfinance initiatives, making them more accessible and inclusive?

Session 1: WE-LEAD – A Transformative project for women entrepreneurship

Enhancing livelihood security for the poor and their households stands as a top priority for development agencies, including the government, particularly in developing countries like India. Access to finance, need-based training in entrepreneurship, and skill-building can significantly contribute to promoting, expanding, and sustaining livelihood opportunities for the poor. Recognizing this importance, SIDBI has launched its "Women Entrepreneurship- Livelihood Enhancement and Development (WE-LEAD)” program in the state of West Bengal with Association of Micro Financial Institutions – West Bengal (AMFI-WB) as the implementing partner. The primary objective is to promote and strengthen entrepreneurship among women Self Help Group/Joint Liability Group members in six districts (South 24 Parganas, Howrah, Bankura, Birbhum, Nadia, and South Dinajpur) of West Bengal. As outlined, AMFI-WB collaborates with its Member MFIs to implement the program in these six districts, three of which are Aspirational Districts in West Bengal.

Session 2: Strategies for Scaling from Group Lending to Individual Micro-Enterprise Loans

As the demand for larger micro-enterprise loans grows, the imperative to shift from group lending to individual models in microfinance becomes evident. This requires several changes in the way microfinance institutions operate and the way stakeholders support these institutions. From redefining operational frameworks and staff training to modifying risk management frameworks, this transition demands a comprehensive approach. This will also require access to capital to enable the MFIs to expand this portfolio. Panelists in this session will discuss the following key issues.

  • How does promotion of microenterprises loans lead to contribution to the SDG1 (No Poverty), and SDG 8 (Decent work and Economic Growth)?
  • How can microfinance institutions strategically adapt their operational models to facilitate a smooth transition from group lending to individual micro-enterprise loans?
  • What training programs and capacity-building initiatives are essential for MFI staff to effectively manage the shift towards individual lending and navigate the increased complexities?
  • In transitioning to individual loans, how can MFIs balance the need for increased risk management without compromising their commitment to financial inclusion and accessibility?
  • What role does technology play in supporting the scalability of individual micro-enterprise loans, and how can it be harnessed to streamline processes and enhance efficiency?
  • Addressing the capital requirements, how can MFIs ensure sustainable access to funds during this transition, and what innovative financial mechanisms can be explored to meet evolving market demands?

Session 3: Traversing the new regulatory framework for Microfinance - experience of the MFIs so far

In the wake of the Reserve Bank of India's 2022 new regulatory framework for Microfinance, the sector has undergone significant operational adjustments. This new framework, garnering widespread stakeholder approval, introduces uniform regulations for diverse entities and establishes an equitable landscape for Microfinance Institutions (MFIs) in comparison to banks. While fostering a level playing field, the framework mandates additional scrutiny in loan appraisal and pricing. Boards of the MFIs now shoulder a significant role in determining loan costs and appraisal mechanisms. The new regulatory framework also underscores the critical role of self-regulatory organizations in upholding market integrity and ensuring responsible financial practices.

  • How have Microfinance Institutions adjusted their operational strategies and structures to align with the new regulatory framework introduced by the Reserve Bank of India in 2022?
  • In the context of uniform regulations, how can Microfinance Institutions strike a balance between adhering to regulatory provisions and maintaining flexibility to cater to diverse regional needs?
  • What specific challenges and opportunities have arisen for MFIs in implementing the additional requirements for loan appraisal and pricing, and how have boards navigated these complexities?
  • How can Microfinance Institutions effectively balance the diverse array of credit products, ensuring they meet the varied needs of clients?
  • How can boards of Microfinance Institutions proactively adopt responsible roles in the decision-making process regarding loan pricing, ensuring fair practices while meeting financial sustainability objectives?
  • Considering the role of self-regulatory organizations, what mechanisms and best practices can be implemented to uphold market hygiene and ensure ethical conduct.

Session 4: Supporting smaller MFIs through innovative funding choices and facilities

Smaller and localized Microfinance Institutions (MFIs) play a crucial role in fostering financial inclusion. These institutions directly cater to local communities, reaching clients often overlooked by larger counterparts. Notably, their repayment rates excel in challenging circumstances, showcasing resilience. Smaller MFIs exhibit flexibility, tailoring financial solutions to specific community needs, fostering trust and ensuring a personalized approach. Their close-knit nature encourages innovation, addressing unique challenges. Despite their significance, these MFIs struggle to secure funds from traditional sources, necessitating exploration of innovative funding avenues. Permitting them to accept deposits, with appropriate safeguards, could enhance sustainability and further empower these vital financial catalysts at the grassroots level.

  • Which of the SDGs can be impacted when we promote smaller MFIs? Promotion of smaller MFIs could potentially impact SDG 10 (Reduced inequality), SDG 1 (No Poverty) and SDG16 (Peace, Justice and Strong Institutions) significantly.
  • How can the unique advantages of smaller and localized Microfinance Institutions be leveraged to enhance financial inclusion on a broader scale?
  • The smaller MFIs face challenges in raising funds from traditional sources. What innovative funding mechanisms could be explored to ensure their sustainability and continued impact?

  • What safeguards and regulatory frameworks should be put in place to ensure the stability and integrity of these institutions while expanding their funding sources?
  • How can smaller Microfinance Institutions strengthen their institutional capacity to effectively respond to the dynamic financial needs of their local communities?
  • In expanding beyond income generation loans, what strategies can MFIs employ to promote awareness and uptake of products such as deposits, insurance, and pensions among their clientele?

Session 5: Journey through Digital Transformation in Microfinance and application of Personal Data Protection Act

In recent years, Microfinance Institutions (MFIs) have undergone a digital transformation, replacing traditional paperwork with digital tools like tablets and mobile phones. Substantial investments have been made to digitize operations, aiming for expense optimization and improved risk management. Transactions are now predominantly conducted through bank accounts, and electronic signatures validate documents. This has resulted in significant changes in the manner in which the clients of Microfinance Institutions transact with them. The key questions which will be deliberated upon by the participants in this session will include

  • How has the transition to digital operations impacted the overall client experience with Microfinance Institutions, and what positive outcomes have been observed?
  • Considering the emphasis on data protection under the Personal Data Protection Act, what measures have been implemented by MFIs to safeguard client data and financial transactions in the digital landscape?
  • In adopting digital tools, what challenges have MFIs encountered in ensuring equal accessibility for all clients, particularly those in remote or underserved areas?
  • How can MFIs effectively address any resistance or barriers faced by clients in adapting to digital transactions and electronic signatures?
  • In what ways have clients benefited from the optimization of expenses through digital means, and how can MFIs continue to enhance the client experience in the evolving digital era?
  • What role does financial literacy play in enhancing the well-being of clients, and how can MFIs integrate and optimize financial education services within their offerings?

Session 6: Power of networks: Sharing of Global Experience by practitioners

Microfinance initiatives worldwide strive to achieve diverse social goals, with each country adopting innovative practices that shape unique experiences. Exchange of these experiences across borders can foster a virtuous cycle of learning and improvement. By emphasizing shared insights, challenges and successes, the transformative potential of microfinance on a global scale is highlighted. This collaborative approach underscores the collective power of knowledge to drive microfinance towards heightened impact and inclusivity, navigating new frontiers in the pursuit of sustainable social development. In this session delegates from other countries will be invited to share their experiences. The key questions which will be highlighted in this session include

  • What has been the global experience of Microfinance in contributing to the Sustainable Development Goals (SDGs)?
  • How have diverse cultural contexts influenced the implementation of microfinance practices in different countries, and what lessons can be drawn from these variations?
  • In the pursuit of social goals, what innovative practices have proven successful in specific regions, and how can these experiences be adapted and shared globally?
  • What challenges have practitioners faced in implementing microfinance initiatives across borders, and how can a collaborative approach address these challenges more effectively?
  • How can the global sharing of experiences in microfinance contribute to the development of best practices and enhance the overall impact on communities?
  • In building a virtuous cycle of learning and improvement, what strategies can be employed to encourage continuous dialogue and knowledge exchange among microfinance practitioners from various countries?
  • In the context of social impact, how can MFIs measure and communicate the positive outcomes of their diversified product offerings on the broader social security and economic well-being of their clients and communities?

Target Audience/Participants and delegates

  • There will be around 400 Leaders and senior officials from MFIs (NGOs as well NBFCs, SFBs, BCs and Bank) who are operating in West Bengal, Odisha, Jharkhond, Bihar and North Eastern States. Expected over 60 MFIs from Eastern India.
  • Delegates from Bangladesh and Nepal
  • Banks, Regulators, Ratings Agencies,
  • Fintech, IT, Software Companies
  • Insurance Companies
  • Researchers, Scholars and Students
  • Energy Companies especially green energy providers and social enterprises
  • Mobile Banking/Core Banking Solution Providers
  • Industry association/network
  • Donor agencies/multilateral Institutions and International Agencies.
  • Consultancy firm
  • All stakeholders
  • A good number of Reporters from print and electronic media

Who Should Attend

  • Heads and executives from MFIs and BC Organizations
  • Heads and executives from state and national level MF industry associations/ networks/SROs
  • Senior Representation from the RBI (Expected)
  • General Managers, CGM, ED, MD from as many as 25 commercial and nationalized banks and financial institutions.
  • Heads and executives from insurance companies
  • Heads of rating institutions, software companies, consultancy firms
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