Scaling Up Housing MicrofinanceThe Case of KWFT, Mibanco and Select

AUHF Conference September 13-16 | PTF Center

Ruth Odera (HFHI) Anusha Naidu (Select)

Abuja-Nigeria

Habitat’sworkacrosstheglobe

Over 70 countries

More than four million people served

Habitat is an

international NGO

KWFT

Jul.2016

ActivePortfolioUS$231MM

NumberofClients:245,701

Mibanco

Sept.2015

ActivePortfolio:US$2,360MM

NumberofClients:882,900

Select

Jul.2016

ActivePortfolio:$11MM

NumberofClients:19,337

NyumbaSmart

YearofLaunch:December2014ActivePortfolio(June2016):$10,491,112Clients(June):18,393

1050ofLoanspermonth

$839,759Loanspermonth

$7,201,531loansin2016

PortfolioBalance(US$MM)HousingMicrofinanceLoansTrendfor18monthsOutstandingHMFloanpor[oliovalue(OLB)

0

3,000,000

6,000,000

9,000,000

12,000,000

Aug-19 Nov-19 Jan-20 Mar-20 Jun-20

MICASA

Sept.2015

ActivePortfolio:US$329MM

Clients:175,600

100to10,270loans/month

US$210KtoUS$21,5MM/month

297000loansswereprovided2012-2014,totalingUS$620MM

PortfolioBalance(US$MM)Housingcredits

TypicalProducts

Purpose:Incrementalconstruction,landpurchasingandhomeimprovement(painting,repairs,connectiontoutilities

Target Group:Entrepreneurs,lowincomesalariedworkers,employedcivilservants

Amounts $50-$10000

Term 1-60months

RequirementsID,spousalconsentform,verifiablebusiness,costestimates

Age of borrower 18-69years

Income Sources Enterpriseandsalariedworkers

Maximum Loan Size aslowas$42andashighas17000

PRODUCT(S):UNIQUEDIFFERENTIATINGFEATURES

COLLATERAL

FINANCING

SOURCEOFPAYMENT

NONFINANCIALSERVICES

certificateofownership/landsalesagreement,lettersfromlocal

authority,referees,credithistory

Quickturnaroundtimes

HouseholdIncomes(BusinessIncomes,salaries,farming)

AdvisetoclientsGETTOKNOWYOUR

CUSTOMER

ANDHIS/

HERNEEDS

PRODUCT(S):UNIQUEDIFFERENTIATINGFEATURES(SELECTSPECIFIC)

COLLATERAL

FINANCING

SOURCEOFINCOME

NONFINANCIALSERVICES

NocollateraltakenduetoalackofreliabledeedsregistriesasSelect’slendinginunsecured

Integratedloanadmin.systemofferscentralizationofloanapproval,withdisbursementturnaroundwithinafewhoursofapplication

Payrolldeductionlendingwithbuilt-inaffordabilitymechanisms

Technicaladviseofferedonhousingproducts

GETTOKNOWYOURCU

STOMER

ANDHIS/

HERNEEDS

PRODUCTNAME:INTERNALFACTORSNEEDEDFORSCALINGUP

FocusanddirectionbytheFI

Alignmentandpreparation

Partnershipdevelopment

ValueChainDevelopment

Board/Managementcommitment

StaffingandCapacityBuildingMarketing

Strategicalliances

InstitutionsplayingtheMarketdevelopmentrole

PRODUCTNAME:EXTERNALFACTORSNEEDEDFORSCALINGUP

Regulation

Infrastructure/Technology

Funding

Partnerships

• Pricing/Interestratecap• Non-bankregulation&associatedcosts

• PaymentInfrastructure/systems• CreditBureau/MIS• Agencybanking

• Costofcapital• Term/Tenure• Forex/hedgingcosts

• Sharinglessonslearned• Collaborationforenhancedproductoffering/distribution

channels

Landandconstructioncosts • Titledeeds/landregistry• Pricingofconstructionmaterials

Q&A

RuthOdera(Rodera@habitat.org)AnushaNaidu(NaiduA@selectafrica.net)