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Calculating & Analyzing Microcredit Prices: From Confusion to Clarity

by on Sep 11, 2013  |  posted in Uncategorized  |  0 Comments
Are you confused about what microfinance prices mean, how they are calculated, or what determines a “fair” price? If so, then you should attend the upcoming training on “Calculating and Analyzing Microcredit Prices: From Confusion to Clarity” to better understand the main constituents of pricing and the relevance of the cost curve in understanding microcredit prices in any given context.  MicroFinance Transparency’s CEO, Chuck Waterfield, will be conducting this one-day training on Monday, November 4th 2013 from 9:00 am to 5:00 pm at the Sheraton Pentagon City Hotel in Arlington, Virginia, USA,  which is being hosted by SEEP as part of the 2013 SEEP Annual Conference pre-conference training sessions. MicroFinance Transparency (MFTransparency), the microfinance industry leader in pricing transparency, has recently celebrated the fifth anniversary of its founding on July 28th 2008 at the MicroCredit Summit in Bali, Indonesia.  It’s worthy to mention that the decision to establish MFTransparency grew out of a plenary meeting at the 2007 SEEP Conference, where attendees identified non-transparent pricing as the top concern related to profits and IPOs. Since its establishment, MFTransparency has been the only initiative addressing the issue of transparency of microfinance product pricing at depth. Over the past five years, MFTransparency has collected, analyzed, and disclosed pricing data from more than 500 MFIs in 29 different countries.  The organization has also produced and disseminated educational materials and tools to a vast range of stakeholders (including a universal consumer pricing education package).  There are currently 67 useful resources that can also be downloaded directly from the Resource Center on the MFTransparency website.  In addition, MFTransparency has hosted and participated in over 50 educational workshops and trained hundreds of representatives from microfinance institutions, meso-level support organizations, investment companies, donor agencies, and regulatory bodies at workshops and conferences around the world. The training session organized at the 2013 SEEP Conference will aim at educating participants of the different options that exist to calculate prices of microcredit products. The training will specifically introduce the different calculation formulas for disclosing microcredit prices (APR, EIR, etc.), the pros and cons of applying the different formulas and circumstances that may influence choosing one over the other, and provide examples of when and where the different formulas are used in the industry and the implications on price disclosure for each.  The training will also illustrate, using real-life cases, how MFIs take advantage of “loopholes” in regulation to apply “tricks” that manipulate true pricing disclosure.  Participants will learn the best practices for pricing calculation in the industry today and will have an opportunity to calculate true prices themselves first hand.  Finally, participants will be engaged in a discussion of how legislation can promote or hinder transparent pricing (with examples from different regions). This training will particularly benefit from the recent launch of three important outputs by MFTransparency.  One of which is the new pricing data platform on the MFTransparency website, that presents refreshed in-depth pricing data from different microfinance markets around the world.  Some new analysis features have been embedded into the Pricing Data Platform which will be used throughout the training.  In addition, the newly released Truth in Lending Tables (TILT) provide never-seen-before data points and enables for multi-dimensional analysis of pricing like never before.  These tables will be used in the training to feature some interesting data and reveal new learning regarding pricing in some countries.  The TILT has also been used to produce analytical Country Pricing Reports (CPRs) for some Sub-Saharan African countries, and these reports will be made available for trainees in electronic format during the training. For any inquiries about the content of this training you can contact: info@mftransparency.org. For all inquiries   related to registration, please contact: annualconference@seepnetwork.org.  To register directly for this training please click here.

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