Post on 21-Jun-2020
Microfinance Delta International
Company IntroductionSeptember 2016
Company overview
Company name
Microfinance Delta International Co., Ltd.
Former company established
September, 2013
JV company established
August, 2015
Business Provide microfinance for the unprivileged people in Myanmar
Business area
Have license to operate in 10 townships in Yangon region, and have already covered 6 townships as of now.
Management Taejun Shin(Chairman) U Myint Swe (Managing Director)
Key figures Basic information
As of September 2016KPIs
No.of Borrowers 13,359No.of Branches 5No. of staff 82Loan portfolio(MMK) 1,713,373,800NPL ratio 0.00%
OwnershipLocal shareholders 24.65%Gojo 75.35%
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Organization chart
Board of Directors
Internal Audit Department
Operation Department
IT Department
Finance
Department
HR & Admin Department
R&D
Department
Managing Director Directors Chairman
Assistant General Manager (Operation / Administration)
Regional Manager
Branch Manager
Assistant Branch Mgr
Accountant
Sr Loan Officer
Jr Loan Officer
IT Manager
Finance Manager
Sr accuntant
HR Assistant M&E Officer
U Myint Swe Taejun Shin
Admin Assistant
MIS Accountant
Jr accuntant
Social Performance Management
Committee
M&E Assistant
Finance Manager Assistant
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Vision and Mission & Strategic Positioning
Vision, Mission and Values
Vision Our vision is all low income people have the opportunities to achieve a life free from poverty with dignity and purpose. Mission Our mission is to assist the low income groups to improve their living condition through promotion of self-reliant micro-business opportunities and provision of access to small scale credit. Values Commitment to our clients and their transformation Humility, a spirit of serving in all what we do Integrity, a unity of transparency, accountability and consistency Fairness to serve all people regardless of race, faith and ethnicity
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Our positioning and key milestones
Positioning of MIFIDA We will be the best MFI in balancing social and economic objectives.
Social Milestones Key action items - Full application of CPP - Develop the best SPM report - Develop Beneficiary Welfare Fund - Staff gratuity fund - Provide clients insurance program Measurable milestones: - Keep clients turnover below 10% - Keep staff turnover below 5%
Economic Milestones - No. of clients: 30,000 by FY 2017/18 - ROA: 5% to 10% - PAR: less than 0.1% - Average loan size: 400,000 kyats - Area expansion
- Ayeyawardy (2017) - Mandalay (2018) - Kayin and Mon (2019)
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Methodology of MIFIDA
MIFIDA made a number of modifications to Grameen methodology so that the methodology suits to Myanmar’s specific context.
What we do
Strength of MIFIDA
Area selection
Staff visit the place and assess geographic accessibility, township profile, No. of villages, business opportunity for the people, No. of households, No. of low income households etc.
MIFIDA staff ask local community leaders to convene a meeting of the villagers U Myint Swe and the others make a presentation about MIFIDA
Clients form 5 members group, whose members should satisfy certain conditions (having permanent resident, the group members know well each other, mainly women, etc.)
Can hire branch managers and local staff are from local community
U Myint Swe, the Managing Director is the country’s best microfinance story teller enabling the clients be confident in MIFIDA
Group member requirements uniquely designed for screening
Rocket start of the business after opening the new branch and we avoid the over lapping problem in implementing area.
Twice the number of attendees apply for loan from MIFIDA (the attendees take their neighbors)
As clients carefully form the group by themselves, loan officers can minimize the cost for loan assessment
Promotion Group formation
MIFIDA Loan Operation
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What we do
Strength of MIFIDA
Disbursement
MMK 200,000 / 1 year loan for each of the group to be provided in the loan disbursement meeting in branches or places nearby
Clients get together in the center meeting to pay the money.
The clients can get MMK 100,000 additional loan after the six month; In the second cycle, the clients can get MMK 300,000 and 200,000 additional loan
Customized disbursement policy (paying at branch, paying in front of the other clients, etc.) to strengthen solidarity and transparency
Customized “non-stressful” weekly collection methodology to “Let the clients pay affordable money”
Gradual loan balance increase to let clients accustomed to the larger loan balance
Less fraud and skepticism among clients
No delinquency No stressful working environment for loan officers and thus low turnover
No delinquency and gradual improvement of profitability
Collection Next cycle
MIFIDA made a number of modifications to Grameen methodology so that the methodology suits to Myanmar’s specific context.
MIFIDA Loan Operation (continued)
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Product development
Microcredit Loan Product
We regularly survey clients’ demands and request to make them satisfied and at the same time, we take careful not to disburse loan size for the clients to keep the sustainable relationship between them and us.
Initial After 6 month TotalBusiness Loan1st Cycle 200,000 100,000 300,000
2nd Cycle 300,000 700,000 to 1,200,000 700,000 to 1,200,000General loan 300,000 200,000 500,000
500,000 to 1,000,000 500,000 to 1,000,000
3rd Cycle 400,000 700,000 to 1,700,000 1,100,000 to 2,100,000General loan 400,000 200,000 600,000Micro enterprise loan* 500,000 to 1,500,000 500,000 to 1,500,000
Other LoanEducation Loan 100,000 - 100,000Emergency Loan 100,000 - 100,000
* Micro enterprise loan is provided to clients whose business has relatively large growth potential
Micro enterprise loan*
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Review of the first 1 year
MIFIDA is growing rapidly because of the huge demand of the market and good operation methodology of MIFIDA
0 1,400 1,450 1,470 2,818 3,499 4,813
6,983
8,938 9,934
10,056 11,122
12,065 13,359
Sep. 2013, founded. The capital size was 100million MMK!
Key events since the establishment and total number of borrowers
August 2015,!Gojo invested 400K USD, and re-started as a JV company whose ratio between local and Gojo was 66.6%: 33.3%!
Dec.2015!Opened Branch3, and additional equity funding about 400million MMK from Gojo and local shareholder including new faces.!!
Feb.2016!Opened Branch4, and additional equity funding about 300million MMK!
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Change in the key figures in the last 1 year
10
55
82
Sep 15 Dec 15 Sep 16
170 581
1,713
Sep 15 Dec 15 Sep 16
1,470 4,813
13,359
Sep 15 Dec 15 Sep 16
183
184
326
Sep 15 Dec 15 Sep 16
Loan Portfolio (MMK million) Number of Staff
Clients / Loan Officer Number of Borrowers
10.0x 8.2x
9.1x 1.8x
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Break-down of the reason of growth
Market Potential
Funding
Recruiting (Organizational Capability)
Category Review of the last 1 year
• Steady economic growth prospect thanks to the market opening
• Less than 30% of the adults have access to financial service; huge growth prospect
• After forming JV with Gojo, MIFIDA had about $1 million funding so that it can grow rapidly.
• Experienced an unexpected stop of the further funding which hampered the growth
• MIFIDA succeeded in hiring new staff quickly to be poised to grow faster
• Since they have old colleagues in MIFIDA they easily fit in the new work place and the methodology
• MIFIDA methodology allows the staff to work under stress-free environment (appropriate workload and no delinquency)
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