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Financial Analysis

The financial analysis course starts with understanding basic financial statements and using prescribed chart of accounts for microfinance institutions and the government. The heart of the course is the method for adjusting financial statements to account for subsidies, donations, inflation and adequate loan loss provisioning. Recognizing these adjustments to the financial statement reveals the true financial performance of an MFI. International, local and best practice financial standards are used to determine the quality of the financial performance. These include the PEARLS Monitoring System, COOP-PESOS, EAGLE, Microfinance Standards to all Types of Philippine MFIs, and CAMELS Rating System. Areas for financial analysis include efficiency, portfolio quality, profitability and financial structure. To account for an MFI’s social mission, a discussion on effectiveness is presented.

Market-Based Financial Product Design and Development

The financial product design and development course uses market-based or demand-led approaches. The financial product design and development framework outlines research methodologies using participatory rapid appraisal techniques to determine the needs of the market; assess institutional readiness for product development; and assess competitive advantage of product prototypes. The course extends the whole process of product design and development that involves assembling the product development team, design process, product costing and pricing, pilot testing, product launch and commercialization. The course highlights the presentation of SEDPI market research results conducted to several microfinance institutions all over the Philippines. The market research results shows how the Philippine microfinance industry has evolved in the last three years. Participants will be presented with an actual case of a microfinance institution in its journey towards defining its niche and eventually succeeding in the market.

Delinquency Management

Delinquency is one of the major challenges that microfinance institutions face. The course enables participants to understand delinquency by tracing its causes and costs. To hasten appreciation of delinquency, it offers various perspectives on delinquency from the vantage point of the borrowers and the microfinance institution. Participants will also be taught on how to measure delinquency using international standards. The course prescribes report formats integrated in the MFI’s information system to track important information for decision-making. The delinquency management course emphasizes both preventive and curative strategies. Preventive delinquency management strategies include financial shields or prudent financial management practices; growth strategy; and delinquency prevention techniques in microfinance methodologies. Curative delinquency management strategies include prioritizing delinquency management measures; remedial management and litigation; crafting incentives system to reduce delinquency; establishing the delinquency task force; loan administration strategies to delinquency management; and crafting delinquency management plan. One of the highlights of the course is the principles and methods of collection. The course will also present research results of the most common delinquency problems that MFIs face, and how successful MFIs have addressed these problems.

Fundamentals and Methodologies of Microfinance

The course offers more than the basics of microfinance. It introduces the concept of the microfinance triad – savings, loans and investments. The course offers a deeper understanding of the fundamentals and principles of microfinance coupled with an appreciation of various microfinance methodologies – Group/Solidarity Lending, Village Banking and Individual Lending. The course provides the characteristics of microfinance clients and determines the impact of microfinance to poor. Actual impact assessment results will be shared during the course. Aside from the appreciation of various microfinance methodologies, the course also tackles traditional and innovative microfinance products and services – loans, savings, microinsurance and remittances. The course will end with a discussion on challenges, issues, trends and future opportunities in the microfinance industry.