UN Capital Development Fund

MicroLead Expansion Myanmar

Overview, lesson learned, key-takeaways
and future applications
Feisal Hussain
Senior Regional Technical Advisor
UNCDF
29 November 2016

UN Capital Development Fund

UNCDF is the UNs capital investment agency for the worlds 48 least
developed countries.
UNCDF offers last mile finance models that unlock public and private
resources, especially at the domestic level, contributing to SDGs, especially
SDG 1 and SDG 17.
UNCDFs financing models work through two channels:
financial inclusion that expands the opportunities for individuals,
households, and small businesses to participate in the local economy,
providing them with the tools they need to climb out of poverty and
manage their financial lives; and
by showing how localized investments through fiscal
decentralization, innovative municipal finance, and structured project
finance can drive public and private funding that underpins local
economic expansion and sustainable development

MicroLead/MicroLead Expansion

MicroLead Expansion Myanmar

WHY?

Source: Myanmar Financial Diaries

SAVINGS ARE THE MOST IMPORTANT FINANCIALTOOL

But Myanmar population does not have the opportunity to save in cash:
individuals tend to save in the form of lands, gold ornaments and other
non-cash form

MicroLead Expansion Myanmar

SAVINGS METHODS
Total %

Savings in a secret place at home

16

Savings in livestock

11

Savings in jewellery/gold

10

Savings with someone in household/family

who keeps it safe for you

Savings in a savings group

Saving at another state owned bank

Savings in kind

Saving at microfinance institution

Saving at a private domestic bank

Savings with someone in community who

keeps it safe for you

Saving with a Cooperative

0.4

Source: FinScope Myanmar 2013

Savings methods

MicroLead Expansion Myanmar

UNCDF RESPONSE?
MicroLead Expansion Myanmar
Programme Development

Increase sustainable
access to financial products
with a focus on savings
mobilization, to more than
100,000 low-income clients,
at least half of whom are
women and half of whom
reside in rural areas

Paul Luchtenburg, UNCDF

MicroLead Expansion Myanmar

4 years (2014-2017)
1 donor
3 partners
4 divisions and 1 State
115,000 clients
49 branches and 34 cooperatives

MicroLead Expansion Myanmar

HOW?

LEVERAGE

Market-leaders
role in
expanding retail
services based
on proven
business models

Market-leaders
role in shaping
norms in
underserved
markets to
boost market
development

Market leaders
capacity to
attract investors
for capitalizing
or refinancing
lending
portfolios

MicroLead Expansion Myanmar

CHALLENGES?

Building Supervisory Capacity

Deepening Market Understanding

Engaging and Equipping FSPs

Raising Awareness and Action

MicroLead/MicroLead Expansion
CHALLENGES FACED BY PARTNERS
Legal and
partners

Central Bank approval/license

Partnerships with MNOs or service providers

Market &
Product

Client adoption and usage of the DFS channel

Literacy issues and Uptake by women

Distribution

Agent liquidity issues

Adaptation of distribution strategy to the new channel

Technical /
IT

Integration MIS/POS/phones
Connectivity

Internal
organization

Financials

Staff motivation and adoption

Viable business case

MicroLead Expansion Myanmar

WHATS
NEXT?
How can we work with you, the
regulators and other relevant
stakeholders to develop a strategic
approach able to address all these
challenges?

UN Capital Development Fund

THANK YOU