Microfinance in Online Space: A Visual Analysis of Kiva.org

The purpose of the paper: The paper aims to analyze the impact that digitization has in the development of rural microfinance. We want to underline that the rural micro financing comprise to provide a range of financial services such as savings, credit, payments and insurance for individuals, households and businesses (both agricultural and non-agricultural) in rural areas. On this topic, I have a previous research like \"Microfinance, active factor in the social and financial inclusion\" which deals whit the fact that we are in the midst of the biggest revolution in information and communication in history. I also mention my paper about \"The role of microfinance in sustainable rural development\" where I say, among others, that the social inclusion and financial progress are the results of digitization trend of the financial sector with a major impact on financial and non-banking institutions. Creating new distribution models (networks of external agents, banks without branch network), the emergence of new opportunities for customer access and management of back-office are just some of the challenges that microfinance sector has passed through on a continue process of innovation and adaptation and last, but least, I mention another personal work, Financing instruments in eradicating poverty, where I discuss about the agricultural cooperative like an autonomous association with an unlimited number of members with variable capital, which operate economic, technical and social n the private interests of its members. The present work, like the previous ones, have both, the theoretical and practical component, by presenting examples of best practice. They also are based on personal experience gained in over 10 years of activity in the field of rural areas development. Key results: The main findings and recommendations are summarized as follows: the stage of development and the complexity of microfinance as globally action decisively influence the variables of financial management, the terms of their specific problems and the nature of our solutions;each type of space defines the microfinance need targeted on specific financial situation of the one in need of microfinance, prompting the objectives, issues and means of action. Value: Microfinance is estimated that, depending on the complexity of the activities funded, must achieve optimal combination of funding sources and presented their destination, having as a final objective the socio-economic development of small business. More orientation microfinance in Romania think should be in agreement with the 4Ps of Agenda 2030 \"People; Planet; Prosperity; Peace?.

Communication & Social Change, 1, 63-88., 2013

Using theoretical frameworks from Appadurai, (1990); Nakamura, (2008); and Gajjala and Birzescu, (2010), this study employs visual analysis to examine the communication processes used in acquiring loans for people of low socio-economic status in developing countries. Images and narratives on online microfinance site, kiva.org, were examined in this study. The results suggest that though online microfinance through web 2.0 communication technologies is helping the poor, by providing people who otherwise would not have access to loan products with financial services, many of the so-called “poorest of the poor” do not have direct access to global communication tools used to represent them on sites such as kiva. This study suggests that the representation of borrowers from developing countries is riddled with representational issues. Keywords: Kiva, microfinance, globalization, digital media, social change

The International Journal of Business & Management, 2019

Impact of ICT on Human Resources and Socio-Cultural Perspectives of Microfinance Organizations 1. Introduction Studies on organizational performance suggest that the strategic use of human resources of an organization is one of the most important determinates of organizational success (Som, 2008). In general, human resources in service organizations are considered as one of the critical success factors than that of modern manufacturing organizations (Premkumer, 1992). Microfinance is a 'semi-formal' financial service in between the services of formal financial organizations and local moneylenders, which provides financial services to the economically and socially marginalized unbanked community (World Bank, 1997). It provides collateral-free micro-financial services to the people live in poverty. The services are provided at their doorsteps with intense monitoring and supervisory mechanisms involving human resources who are directly bound to each target people at their community level. In that way, microfinance providing organizations are human resources intensive service organizations, and the organizational success largely depends on the performance of the employees working there. However, sustainable performance is a function of a set of factors internal to the performer, and the material and socio-cultural contexts within which the performance occurs (Seyal et al., 2000).As an unexplored area, this paper identifies the impacts of using ICT on human resources and socio-cultural perspectives of microfinance organizations in Bangladesh that may help practitioners of microfinance management, and may contribute to the Human Resource Management (HRM) and Organizational Behavior (OB) knowledge domains. 2. An Overview of Microfinance and Structure of Microfinance Organizations Microfinance is a development program that provides small amounts of collateral-free credit to the people in poverty. The overall belief behind the concept of microfinance is that, using these credits, the borrowers are able to create self-employments and be able to come out of vicious cycle of poverty (Yunus and Jolis, 1998). Smith (1776) asserted, 'Money, says the proverb, makes money. When you have got a little, it is often easy to get more. The great difficult thing is to get that little' (p. 111). Microfinance intervention is designed to provide this 'little capital' as a 'micro-credit' to the people who are economically and socially marginalized in the community. Besides providing credits, microfinance services include micro savings, micro insurance and a process of social development so that the borrowing households can come out of poverty in a sustainable way. Because of the claimed contributions of this development intervention, the microfinance sector has been recognized with world famous awards including the Nobel Peace Prize for 2006, and the United Nations proclaimed 2005 as the 'year of microcredit'. However, antithesis about the contributions of microfinance is also there (

In this paper we have attempted to shed light on what makes development happen from those determinants that enable microfinance work as an effective tool to eradicate poverty. The effectiveness of such instrument in the generation of wealth to the poorest class demand overcoming the minimalist approach that condemns its practices to a mere provision of microfinancial services. This hypothesis will be analytically and empirically proven assuming human development as a cause and not only as an outcome of the microfinance success. To such end, two regression lines were designed where variables such as education, health and food security proved to be explanatory determinant to explain income behaviour for those beneficiaries of the microfinance programs.

Microfinance as a tool has emerged as one having the potential to have effective role in empowering rural people and their security related issues. Under this, with the help of banking services loan facility is provided to the lower income individuals and groups and also to the unemployed rural mass who do not have access to these financial services. In every model there are bound to be some limitations that to in the initial stages. Keeping aside the same, if we look into the other side (positive side), there is definitely the role of micro-finance that cannot be undermined. In the present paper we have tried to understand whether the micro finance institutions have contributed for the development of the economy and more specifically in the rural and underprivileged areas. The objective of the study is to find out various variables which are reflected through the microfinance initiatives. It is found in the various studies, that the presence of these institutions in the rural area has been already felt by the people that area.

2013

It has been commonly acknowledged that in order to reach the target clienteles with loans at attractive terms and conditions, an appropriate technology for delivering financial services must be developed. Next to this, current developments in microfinance industry encourage MFIs to offer wide-ranging services within a multiservice portfolio including microsavings, microinsurance, remittances, mobile banking etc. One of the main pillars of this trend has become MFIs increasing interest in the expansion into the savings market to reach more poor clients as well as to lower costs by attracting presumably cheaper deposits. Joint services are tailored to better meet needs of the poor and aim at building sustainable financial systems and establishing closer and long-term relationship with clients. Furthermore, the rapid evolution of microfinance has generated another essential and closely related trend: commercialization. The focus of this dissertation is on three emerging issues associat...

2016

The concept of microfinance in Europe occurred in the 1800s when they developed several microfinance institutions in rural and poor urban areas. Microfinance represents that type of funding directed towards the real needs of the customer with the ultimate aim needs its (well-being) and not profit microfinance institution (credit cooperatives, NGOs, NBFIs, credit unions, popular banks, etc.). In the current context of sustainable development, microfinance is an active tool in fighting poverty worldwide top as the financing instrument closest to meeting the needs of the poor. Currently result of the numerous challenges facing them, we are witnessing a new assignment of the concept of microfinance from structure products of microfinance, continuing with mode planning(distribution), it's for those in need (micro-finance digitization of M-Pesa system as),promote and how innovative users of information and not least microfinance cost (price). However compose 4Ps of marketing mix micro...

2006

Artan rekabetle tanimlanan modern ekonomi, makro ve mikro olcekle bakildiginda, finansal kurumlar ve mikrofinans kurumlari gibi kalkinmayi artirici kurumlara ihtiyac duymaktadir. Kurumsal bir yenilik olarak microfinansin baslangici 20. yuzyilda 1980’lerin baslaridir ve “mikrofinans devrimi” terimi ilk kez 1993’de kullanilmistir. Mikrofinans genis olcude kucuk krediler saglamak, guvenli ve uygun rekabetci finansal kurumlar araciligiyla fakir insanlara kucuk sermayeler saglamak olarak anlasilmistir. Bu sayede dusuk gelirli bir cok insane ekonomik aktiviteye dahil olmak ve gelistirmekle kendi durumlarini duzeltme imkanina kavusmustur.

This report focuses on the contemporary field of microfinance in Peru and Bolivia, two countries that have well-developed and rapidly growing microfinance sectors, and whose microfinance institutions (MFIs) serve as models for the rest of Latin America and even the global microfinance community. While much research in this broad field emphasizes the perspective of the recipients of microfinance, this work primarily focuses on the qualitative perspective of MFI management, attempting to understand the rationale behind particular organizational choices. One of the most commonly asked questions in the field of microfinance is how can practitioners find the balance between financial viability and living up to current industry standards, while not losing sight of the original development goals of microfinance. Research studies have demonstrated a lack of significant social impacts resulting from pure microcredit; these results suggest that microfinance should incorporate social interventions if it wants to serve as a tool that works towards accomplishing development milestones such as the Millennium Development Goals. To answer these questions, this report compares a variety of MFI management perspectives on two major topics: the types of services offered to clients, and the relationship between financial sustainability and social impact in their organizations. The qualitative data collected from interviews with microfinance managers and experts, as well as supplementary quantitative and qualitative data from academic and practitioner- based literature suggest that the integrated approach has the potential to achieve the balance between enhancing MFIs' ability to both bring about authentic and comprehensive social impact and to allow these entities be solid and financially viable. Thus, I ultimately argue that the integrated model of service delivery, in the appropriate contexts, is highly valid and should be expanded upon in the field of microfinance.

Microfinance achieves financial inclusion to the poor population stimulating the creation of sources of income and employment. Banco Compartamos, is an institution that has more market share and has more than 20 years providing financial services to their specific sector of the population. This is the organization modeled. It is important to analyze the social responsibility towards society itself. It's important to analyze the social responsibility base on the society. This document aim shows that microfinance work on social responsibility to the poverty serving. To reach the objective analysis of the change in the number of people in poverty on the variation in the number of microfinance clients nationwide was conducted. With which it was concluded that these organizations fulfill their main objective, which is to benefit the people of the base of the pyramid in Mexico Las microfinancieras logran una inclusión financiera a la población de la parte más ancha de la pirámide favoreciendo la creación de fuentes de ingreso y trabajo. Compartamos Banco, al ser la institución que más participación tiene en el mercado y tener más de 20 años prestando servicios financieros para su sector específico de la población es la organización que se toma como modelo. Es importante analizar la responsabilidad social de la misma respecto a la sociedad. Este documento pretende mostrar si las microfinancieras trabajan con responsabilidad social hacia la población a la cual benefician con sus servicios. Para llegar al objetivo se realizó el análisis sobre la variación del número de personas en pobreza sobre la variación del número de clientes de las microfinancieras a nivel nacional. Con lo cual se llegó a la conclusión que este tipo de organizaciones cumplen con su objetivo principal, que es beneficiar a las personas de la base de la pirámide en México.