Financial Services

Financial Services Working Group Description

Established: 2005

Goal

The Financial Services Working Group (FSWG) consists of advisors and managers in practitioner network organizations who are experts in finance and operations management of microfinance programs. FSWG seeks to set and promote performance standards and benchmarks for the microfinance industry and develop products designed to help SEEP members and partners meet these standards. To accomplish this goal, the Working Group cooperates with donors, rating agencies, regulators, and other interested parties in setting standards by sharing our collective expertise, monitoring our members' work, and promoting our members’ interests. To help our members and their partners reach and maintain high standards, FSWG commissions reports, develops learning materials, publishes manuals, and sponsors training events and other learning venues to provide current and relevant information to the SEEP membership.

Objectives

• Increase financial management skills of SEEP members and partners.
• Develop tools and training materials for members.
• Set and promote industry standards in financial performance and performance monitoring.
• Promote awareness of new developments in financial products and management in microfinance institutions (MFIs).

Current Activities

• Training courses on Measuring Performance of Microfinance Institutions. A Framework for Financial Reporting, Analysis, and Monitoring and the FRAME tool. 
• Administering the AMAP Microfinance Standards Project
• Developing a template for a Microfinance Financial Administration Manual.
• Progress note on Managing Foreign Currency Risk

Accomplishments

• Developed Microenterprise Credit Programs: Projecting Financial Viability, a computer model and manual for projecting and analyzing cost implications of credit and savings programs designs.
• Conducted workshop with Tufts University (in cooperation with USAID/GEMINI), providing advanced training in design and management of credit programs focused on sustainability and scale-up. The 65 participants included field and headquarters management staff.
• Produced Financial Services for the Poor: Working Towards Sustainability and Scale-Up, a facilitator’s manual documenting training methodology and materials used at the Tufts workshop.
• Conducted three U.S. Tools and Techniques workshops providing technical training in designing for viability, subsector analysis, and management information systems.
• Conducted three International Tools and Techniques workshops in Asia, Africa, and Latin America. These workshops provided training to approximately 50 people per region in the following technical areas:viability analysis and planning, management information systems, measuring and monitoring delinquency.o Setting interest rates and subsector analysis and planning.
• Completed the Performance Monitoring Systems Project, evaluating the effectiveness of on and off-site performance monitoring tools and techniques used by international microfinance networks.
• As a member of the roundtable on microfinance standards, co-developed Glossary of Financial Terms, defining more than 40 common terms used in financial services programs.• Reviewed and edited Disclosure Guidelines for Financial Reporting by Microfinance Institutions, a 2002 publication of the Consultative Group to Assist the Poorest (CGAP).
• Provided extensive edits to CGAP Financial Disclosure Guidelines.
• Development of four day training on the SEEP Framework for reporting, analysis and monitoring and accompanying training materials.
• Development of the SEEP FRAME, an Excel-based tool for reporting, analysis and monitoring.
• Started SEEP Progress Note Series.

Publications

·        Top 5 Recommendations and Strategies for Minimizing MFIs’ Foreign Exchange Risk, SEEP Progress Note (unpublished), 2005.

·        Measuring Performance of Microfinance Institutions, A Framework for Reporting, Analysis and Monitoring, March 2005.

·        Conflict and Post-Conflict Environments: Ten Short Lessons to Make Microfinance Work, SEEP Progress Note No 5, 2004.

·        Financial Performance Monitoring: A Guide for Board Members of Microfinance Institutions, 2003.

·        Glossary of Financial Terms, Ratios, and Adjustments for Microfinance Institutions, with CGAP et al.,2003.

·        “How Do International Networks Manage Grants, Investments, and Loans to Their Partners and Affiliates?” Focus Note , 2003.

·        “SEEP’s Financial Services Working Group Performance Monitoring Project,” 2000.

·        “Financial Ratio Analysis of Microfinance Institutions,” with Calmeadow, 1995.Information Systems for Microenterprise Development Programs, with USAID/GEMINI.