PATMIR (Project of Technical Assistance for Rural Microfinance) began in Mexico as an initiative aimed at expanding outreach of financial services to the rural poor in a sustainable manner. Using international technical assistance, three primary methodologies were employed in 34 cooperatives: i.) creating new cooperatives, ii.) strengthening existing cooperatives, and iii.) encouraging existing institutions to expand into underserved areas. Various outreach indicators, including two composite measures, were calculated to compare across institutions. In general, new and expanding cooperatives attained better depth of outreach than the strengthened institutions. While it is true that some of the smaller subsidized institutions have nearly all of their clients meeting the prototypical PATMIR outreach standards, it is important to recognize that larger institutions can and do serve the same segment of marginalized clients in addition to their middle and upper income clients. This strategy has advantages in that it allows for portfolio diversification, liquidity management, economies of scale, and financial viability. There does appear to be a trade-off between many measures of outreach and sustainability. A higher dependence on subsidies is correlated with better depth of outreach, smaller loan and deposit sizes, and lower staff productivity. Not surprisingly, institutions trying to serve a large, rural area per branch have impressive depth of outreach and lower average loan sizes. However, these institutions have a greater reliance on subsidies, lower staff productivity, and higher transaction costs for clients in the form of travel time. There was no clear winner among methodologies as certain cooperatives from each category achieved both outreach and sustainability. New institutions have strong outreach indicators and are making strides to becoming sustainable. However, there is a large start-up cost in time, training, and resources. Existing institutions start with potentially significant scale, but face ingrained corporate culture that can impede necessary changes. To the extent that the management is committed to attaining a deeper outreach and the new portfolio is cost effective, more existing institutions will be inclined to serve marginalized groups.

(2007). Contrasting methodologies for expanding microfinance outreach to the rural poor: trade-offs and lessons from Mexico's Patmir Project [journal article - articolo]. In SAVINGS AND DEVELOPMENT. Retrieved from http://hdl.handle.net/10446/27391

Contrasting methodologies for expanding microfinance outreach to the rural poor: trade-offs and lessons from Mexico's Patmir Project

2007-01-01

Abstract

PATMIR (Project of Technical Assistance for Rural Microfinance) began in Mexico as an initiative aimed at expanding outreach of financial services to the rural poor in a sustainable manner. Using international technical assistance, three primary methodologies were employed in 34 cooperatives: i.) creating new cooperatives, ii.) strengthening existing cooperatives, and iii.) encouraging existing institutions to expand into underserved areas. Various outreach indicators, including two composite measures, were calculated to compare across institutions. In general, new and expanding cooperatives attained better depth of outreach than the strengthened institutions. While it is true that some of the smaller subsidized institutions have nearly all of their clients meeting the prototypical PATMIR outreach standards, it is important to recognize that larger institutions can and do serve the same segment of marginalized clients in addition to their middle and upper income clients. This strategy has advantages in that it allows for portfolio diversification, liquidity management, economies of scale, and financial viability. There does appear to be a trade-off between many measures of outreach and sustainability. A higher dependence on subsidies is correlated with better depth of outreach, smaller loan and deposit sizes, and lower staff productivity. Not surprisingly, institutions trying to serve a large, rural area per branch have impressive depth of outreach and lower average loan sizes. However, these institutions have a greater reliance on subsidies, lower staff productivity, and higher transaction costs for clients in the form of travel time. There was no clear winner among methodologies as certain cooperatives from each category achieved both outreach and sustainability. New institutions have strong outreach indicators and are making strides to becoming sustainable. However, there is a large start-up cost in time, training, and resources. Existing institutions start with potentially significant scale, but face ingrained corporate culture that can impede necessary changes. To the extent that the management is committed to attaining a deeper outreach and the new portfolio is cost effective, more existing institutions will be inclined to serve marginalized groups.
articolo
2007
Le projet PATMIR visait à l’expansion de l’outreach des services financiers tout en tenant compte de la rentabilité pour les ruraux pauvres. Trois méthodologies principales ont été adoptées sur 34 coopératives : 1) la création de nouvelles coopératives, 2) le renforcement des coopératives existantes, 3) l’encouragement des institutions à s’étendre dans les zones rurales. Une analyse à travers différents indicateurs de couverture – dont certains composés – démontre que les deux premières stratégies donnent des résultats meilleurs que la troisième. Les institutions plus petites ont un portefeuille concentré sur les clients typiques du PATMIR mais les plus grandes ajoutent le segment des clients marginaux aux autres segments, opérant ainsi une diversification du portefeuille, une meilleure gestion de la liquidité avec un meilleur équilibre financier. Les mesures de la couverture et de l’équilibre économique/financier montrent des contreparties. La dépendance aux subventions est corrélée avec la profondeur de la couverture, des montants plus petits et une baisse productivité du personnel. Si les institutions servent des zones rurales très larges, les clients doivent supporter des coûts de transactions élevés. Il n’existe pas une méthodologie supérieure parce que certaines coopératives ont atteint la couverture et, en même temps, l’équilibre économique et financier. Les institutions nouvelles ont une couverture importante du territoire et se rapprochent vite de la rentabilité mais doivent supporter des coûts initiaux. Les institutions existantes doivent lutter contre les résistances internes aux changements. Là où la direction est dédiée à élargir l’outreach et il y a une couverture efficace des coûts pour le nouveau portefeuille, de plus en plus les institutions existantes se lanceront vers les groupes marginaux.
Paxton, Julia
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/27391
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