Women’s World Banking works to ensure that microfinance institutions are providing services tailored to the needs of women that are affordable, convenient and sustainable.

What is Microfinance?Microfinanceisthepracticeofprovidingfinancialservicestolow-incomeclientswhoaretypicallyexcludedfromtheformalbankingsector.Theseproductstypicallyincludesmallloans,sometimesasmodestas$100,topeopletostartabusiness.Customersaccesstheseservicesthroughfinancialorganizationscalledmicrofinance institutions(MFIs)andusetheloansindifferentways:somepur-chaseabicycletotransportvegetablestoamarket,orusethemoneytobuyfertilizerfortheircrops,orasewingmachinetostartatailoringbusinessbutincreasinglysavingsaccountsandinsuranceproductsareoffered.However,theyallhaveonegoal:tomakeadecentlivingandsupporttheirfamilies’basicneeds.Manyareabletosendtheirchildrentoschoolforthefirsttime,allowallfamilymemberstoeatthreemealsadayormakeseeminglysmallhomeimprovementsthatcanactu-allyhaveasignificanteffectonthehealthandwell-beingofahouseholdsuchasre-placingamudfloorwithacementfloor.

Why Women and Microfinance?Theinitialmotivationformicrofinanceroughly30yearsagowas,toagreatextent,genderneutral.ThepioneeringMFIssoughttoprovidecredittopooren-trepreneurswhohadnoassetstopledgeascollateraland,consequently,weredeniedaccesstocapitalbytheformalbankingsector.Itquicklyemerged,how-ever,thatwomenentrepreneursinvestedtheprofitsfromtheirbusinessesinwaysthatwouldhavealonger-lasting,moreprofoundimpactonthelivesoftheirfamiliesandcommunities.Thewomanentrepreneurasthegatewaytohouseholdsecuritybecameafundamentalpremiseofthemicrofinancebusinessmodelandthesuccessofmicrofinanceasapovertyalleviationtool.

ExpertiseWomen’sWorldBankingisaglobalnetworkcomprisedof39leadingmicro-financeinstitutionsfrom27countries.Thenetworkmembersarediverseingeography,sizeandstructurebutunitedinthefirmbeliefthatmicrofinancemustremaincommittedtowomenasclients,innovatorsandleaders.WWBworkswiththeseinstitutionstodesignfinancialproductsandservicesthatfulfillwomen’sneedswhiledemonstratingthesustainabilityandsocialimpactofservingwomen.Byprovidinginnovativeap-proachesthatwecanreplicateandscalewecanprovethatinvestinginwomendirectlycanbebothprofitable,“provingthebusinesscase,”andgeneratepositivesocialbenefits.Byinvestinginwomenweproduceamultipliereffectonthewell-beingoftheirhouseholdsandcom-munities.WWBworkswithmicrofinanceinstitutionsto:

• Create innovative financial products includingcredit,savingsandinsur-anceandworkswithpartnerstobringtheseproductstoscale.Wedothisthroughunderstandingthefinancialneedsofwomenandthencreatingproductstofitthoseneeds.Bydesigningtailoredproductsandusingmarketinganddeliverytechniquesnotcurrentlyusedinmicro-finance,weseektogivewomennotonlyaccesstofinancialservices,butalsocontrolovertheirassets.

• Provide institution-strengthening services to support microfinance in-stitutions,includinggenderdiversityinitiatives,andfinancialtrainingandsupport.

• Develop principled, visionary lead-ers and meritocratic organizationsthroughitsCenterforMicrofinanceLeadership;and

• Share knowledge and innovationbyprovidingnetworkmembersoppor-tunitiestoexchangebestpracticeswithothermicrofinanceleaders.

WWB is the only global network focused on women

24 million clients served by the WWB network

82% women clients

5.9 billion outstanding loan portfolio

2.6 billion savings

Sumitra, a mother of two children, lives with her husband in Ahmedabad, the largest city in the state of Gujarat. Nearly half the population lives in low-income settlements or “chawls”- one-room row houses- in unhygienic and dilapidated conditions. Sumitra runs a bottle cap recycling business. In India, the majority of soft drinks are packaged in glass bottles with metal caps. Several years ago, Sumitra began roaming the streets collecting discarded caps which could be sold to middlemen, who, using a specialized machine, straighten the caps and sell them back to soda manufacturers, such as Coca-Cola, Pepsi and some popular local brands.

Four years ago, Sumitra joined one of the self-help groups in her modest housing settlement, and was encouraged to expand her business. Sumitra received a loan of 50,000 (US $1,240) rupees to cover the cost of six bottle cap straightening machines (one for her, and each of her five employees) plus working capital for the business. This enabled her to straighten the caps herself and sell the straightened caps to the manufacturer. Sumitra’s profitable business has enabled her to greatly improve the living conditions of her family and those of her employees. The business has literally been a life-saver for Sumitra’s family. Sumitra’s husband became ill during the flood epidemic that accompanied a 2006 monsoon and was in desperate need of medication. Without her income, Sumitra would not have been able to afford the medicines that saved her husband’s life. The business has also enabled Sumitra to finance her daughter’s education. Sumitra’s daughter is now in her first year in college, studying finance.

Sumitra, Client of Friends of Women’s World Banking, India

WWB > > > Microfinance Institutions

Women Clients

families & Communities

Helping Women Build a Financial Safety Net Microfinance is about much more than credit, and has the capacity to help more than en-trepreneurs. WWB’s research confirms that the key economic priorities for poor women—to a far greater extent than for men—continue to be health care, the education of their children, and housing. All MFI clients, but particularly women, seek a safe place to save the assets they have created and the means to protect them from catastrophic loss. WWB helps MFIs move away from a strictly credit-led approach toward providing a broader array of financial products and services, including savings and insurance that help the poor build financial safety nets. The key to success for the MFIs of the future will be offering financial products and services that are designed to meet clients’ needs, motivations and desires.

Products that Work for Women Products such as microinsurance can help families access healthcare and protect assets. In April 2010, Women’s World Banking helped its network member Microfund for Women (MFW) in Jordan launch The Caregiver Policy (Ri’aya in Arabic), a first-of its kind insurance product designed specifically for women that helps them cope with the financial bur-dens associated with a medical emergency, including childbirth. In partnership with Zurich Financial Services Group and Jordanian insurance company Al Amara, Women’s World Banking is making this innovative insurance product available to MFW’s 52,000 borrowers, 97 percent of whom are women.

To get coverage, clients pay a nominal monthly premium with their loan repayment and receive coverage equivalent to around US $14 dollars for each night they stay in the hospital to cover incidental expenses associated with hospitalization, including medical fees, lost-income, and childcare. Unlike the majority of microfinance products available, the Caregiver health insurance covers all hospital visits related to pregnancy. The results of the pilot have been outstanding, and have demon strated that the product is meeting women’s unique health needs.

MissionWomen’s World Banking’s mission is to expand the economic assets, participation and power of low-income women and their households by helping them access financial services, knowledge and markets.

VisionWomen’s World Banking’s vision is that one day all women will be able to build a secure financial future for themselves and their households.

Women’s World Banking8 West 40th Street, 9th FloorNew York, NY 10018Tel. (212) 768-8513Fax. (212) 768-8519www.womensworldbanking.org

LATIN AMERICA AND THE CARRIBEAN

BOLIVIA• FundaciónBolivianaparaelDesarrollo

delaMujer(FUNBODEM)

BRAZIL• BancodaFamília

CHILE• SantanderBanefe

COLOMBIA• FundacióndelaMujerBucaramanga• FundaciónMundoMujer(FMM)

Popayán• BancoWWBS.A.

DOMINICAN REPUBLIC• BancoADOPEM

MEXICO• FinComún

PARAGUAY• InterfisaFinanciera

PERU• CajaMunicipaldeAhorroyCréditode

Arequipa(CMACArequipa)• BancodelaMicroempresa(Mibanco)

AFRICA

BÉNIN• AssociationpourlaPromotionet

l’AppuiauDéveloppementdesMicro-Entreprises(PADME)

BURUNDI• CaisseCoopératived’Epargneetde

CréditMutuel(CECM)

ETHIOPIA• PovertyEradication&CommunityEm-

powerment(PEACE)

THE GAMBIA• GambiaWomen’sFinanceAssociation

(GAWFA)

GHANA• Women’sWorldBankingGhana

KENYA• EquityBank• KenyaWomenFinanceTrust(KWFT)

UGANDA• FinanceTrust

MIDDLE EAST AND NORTH AFRICA

EGYPT• LeadFoundation

JORDAN• MicrofundforWomen(MFW)

MOROCCO• AssociationAlAmana

TUNISIA• endainter-arabe

EUROPE

BOSNIA AND HERZEGOVINA• MI-BOSPO

RUSSIA• Women’sMicrofinanceNetwork(WMN)

ASIA

BANGLADESH• ASA• DeltaLifeInsuranceCompany,Ltd.• ShaktiFoundationforDisadvantaged

Women

INDIA• FriendsofWomen’sWorldBanking-

India(FWWB)• SEWABank• SHAREMicrofinance• SpandanaSphoortyFinancialLimited• UjjivanFinancialServicesPvtLtd.

MONGOLIA• XacBank

PAKISTAN• KashfFoundation/KashfMicrofinance

Bank

THE WOMEN’S WORLD BANKING NETWORK

PHILIPPINES• CARDBank• NegrosWomenforTomorrowFounda-

tion(NWTF)

SRI LANKA• WomenDevelopmentFederation(WDF)• SarvodayaEconomicEnterprises

DevelopmentServices(SEEDS)