Credit Reporting at the Base of the Pyramid : Key Issues and Success Factors

Lyman, Timothy ; Lythgoe, Tony ; Miller, Margaret ; Reille, Xavier ; Sankaranarayan, Shalini

International Finance Corporation and CGAP, Washington, DC

关键词: ACCESS TO CREDIT;    ACCESS TO FINANCE;    ACCESS TO LOANS;    ACCESSIBILITY;    ACCURATE INFORMATION;   

RP-ID  :  68097

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Over the past five years, themicrocredit sector has experienced unprecedented growth. Thenumber of borrowers served by microfinance institutions(MFIs) has increased threefold to reach 120 million clients,according to MIX estimates as of December 2009 and by otherestimates the number may be as high 190 million (MicrocreditSummit Campaign 2011). In large markets, such as Mexico andSouth Africa, commercial banks and consumer lendingcompanies have expanded their activities to includemicrofinance for low-income households. Unfortunately, thegrowth of microcredit is not always sustainable. Some iconicmarkets, such as India and Bosnia Herzegovina, areexperiencing large-scale credit crises, and they are notalone. The deterioration in the quality of MFI loanportfolios can be attributed to several factors. Some fastgrowing MFIs have outgrown their risk management systems andcontrols. These weaknesses have often been exacerbated byhigh staff turnover, leading to a further erosion of creditdiscipline. Rapid growth has also been focused in narrowgeographies, which in turn affected borrower repaymentincentives and behaviors. This report takes a fresh look atthe state of credit reporting at the base of the pyramid.The data and analysis for this paper are drawn fromInternational Finance Corporation (IFC) and ConsultativeGroup to Assist the Poorest (CGAP) market intelligence oncredit reporting systems. the lessons learned for effectivecredit reporting at the base of the pyramid and identifieskey success factors as well as common challenges.