The Association of Micro Finance Institutions West Bengal along with its memberMFIs and knowledge partner KPMG hosted the 4th Eastern India Microfinance Summit 2018.The summit titled “Microfinance: Going Digital While Retaining the Human Touch”.The purpose of the summit was to actively engage key stakeholders in discussions relevant to current and future aspects of financial inclusion.
The discussions had focus on some themes.The MFIs had typically been growing through increase in rural penetration and expansion to more geographics.It was on the rise in North, East, Central region in addition to Northeast India which underpenetrated.
The MFIs which converted to small finance bank through wider product offerings on the liability as well as the asset sides.They also extending their presence for increase overall size and volumes of loans.The MFIs attracted investors interest leading to a spurt in M&A and PE activities when the growth had significant.
They were evaluating geographical expansion and product portfolio expansion to cross-sell with mutual funds and insurance as they were investing in technology and was looking for alliances with Fintech.All initiatives would depend on environment, development and management or operational risks.
At an overall level the regulatory framework need to balance accross different types of players who are currently offering microfinance.They are known to us as Banks, SFBs, NBFC-MFIs, NGOs, Bcs etc.
They had also discussed to understand the microfinance ibdustry nationally as well in Eastern India Perspective.They had taken a look about the current scenario, public sector banks with many complications such as bad loans,increasing rate of frauds.
They had also discussed about the role of MFIs to catalyze the rural economy through requisite financing.In West Bengal the industry will directly employ at least 27000 people from low income families with the educational qualification.
Their moto is tu creat a huge micro entrepreneurship in the state which will help 7.5 million women from the underprivileged segment.They also want some government help to proactive and provide safeguards in the issuance of trade license,shop and establishment registration and other processes.
It is hopeful that with the help of the summit we can understand the value and drawbacks of the industries and keep valuable precaution for it.It will also help to make some job offerings to the rural areas.