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Citigroup Inc. (NYSE: C)
September 05, 2007
Citi, FDC & BWTP Promote Partnerships & Best Practices to Expand Microfinance Reach in Indonesia
Jakarta – A new regional microfinance program by Citi, the Foundation for Development Cooperation (FDC) and the Banking with the Poor Network (BWTP) was rolled out in Jakarta today with a half-day symposium to share international and local best practices in establishing partnerships between microfinance institutions (MFIs), regulators, donors and private enterprises. Such public-private partnerships and strategic alliances will help to expand the reach and range of microfinance services delivered to the poor in Indonesia.
Following the symposium, a two and a half day training workshop will be held for 35 microfinance practitioners from across Indonesia. The workshop is designed to develop the knowledge and skills needed to create partnerships with different organizations to increase their collective capacity to reach and deliver basic financial services to disadvantaged communities. Potential MFI partners could include government bodies, other non-profit organizations (NGOs) or private sector companies such as retailers, telecom operators and large financial institutions. The workshop will also share industry best practices related to the development of new microfinance products such as insurance and pensions, and educational materials.
Peter B. Eliot, Citi Country Officer, Indonesia, emphasized the importance of the symposium and training workshop, said: "Citi is committed to strengthening the microfinance industry and helping the poor lift themselves out of poverty. In Indonesia, while the availability of microfinance is growing, there is still a considerable unmet demand. Developing sustainable partnerships between microfinance providers and relevant parties is key to expanding the range of microfinance products and services available and reach more people in poor and rural areas."
Craig Wilson, Executive Director, FDC, said: "This program builds on Citi's existing strong support of microfinance in the region and the BWTP's greater involvement in Asia. Importantly, this program helps to take microfinance into new territory. New partnerships within the microfinance industry will help introduce new technology such as mobile phone banking and diversified products. Partnerships can also help improve social service delivery, for example, financial literacy or community education, helping poor beneficiaries to make better choices."
Chandula Abeywickrema, Managing Director of Sri Lanka's Hatton National Bank and Chairman of the BWTP Network, said: "There is growing awareness of the benefits that microfinance partnerships can produce. It can broaden the range of services available to the poor. Microfinance institutions often have excellent access to poor clients in remote places. By entering into partnerships with others they can help increase their clients' access to services and have a meaningful impact on their livelihoods."
The symposium and workshop are part of a US$570,000 grant given by the Citi Foundation to FDC and BWTP earlier this year to expand the provision of microfinance services across ten Asian countries including India, Indonesia, Philippines, Sri Lanka and Vietnam. The two-year program is focused on promoting public-private partnerships and industry best practices to help Asian MFIs build their capacity to reach more microfinance clients. Similar workshops have already been held in Colombo, Sri Lanka, and New Delhi, India.
By the end of 2007, an international training manual on microfinance sector partnerships will be produced which will capture all the knowledge and skills delivered at the various workshops around Asia. This will be translated into multiple languages, including Indonesian, for free distribution to members of the BWTP Network and others who may be interested in applying new skills and approaches to the development of partnerships for microfinance providers.
As part of the Citi, FDC and BWTP regional microfinance program, the second Asia Microfinance Forum will be held in Hanoi, Vietnam on August 27-29, 2008. This follows the successful inaugural Asia Microfinance Forum held in Beijing in 2006, and plans to bring together over 250 local and international delegates from banks, regulatory bodies and microfinance networks to promote constructive dialogue, connect potential partners from the private and public sectors, and showcase international best practices to benefit the Asia microfinance sector.
FDC has an established record and commitment to improving the outreach and efficiency of financial services to the poor. The BWTP Network is the leading pan-Asia microfinance network with a diverse and inclusive membership of stakeholders involved in the financing, regulation and delivery of microfinance to the poor.
Citi supports the microfinance sector through a combination of philanthropic and commercial initiatives. Citi is one of the world's largest donors to the microfinance sector, granting some US$32 million to support microfinance programs and organizations in more than 50 countries. In Asia alone, the Citi Foundation has committed more than US$13 million in grants for microfinance related programs since 1997.
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Citi
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citi's trademark red arc include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citi.com
Citi Foundation
The Citi Foundation supports organizations that help people improve their lives, businesses to grow, and communities to prosper around the world. The Citi Foundation focuses its grants primarily in three areas: financial education, educating the next generation, and building communities and entrepreneurs. Additional information can be found at http://www.citigroupfoundation.com/.
The Foundation for Development Cooperation (FDC)
The Foundation for Development Cooperation is an independent, not-for-profit international development organization, based in Brisbane, Australia. It has extensive regional activities and its early work in microfinance led to the creation of the BWTP Network in 1997. In relation to microfinance, FDC has undertaken in-depth studies on policy, regulatory frameworks, the roles of central and commercial banks, and capacity building. With Citi Foundation sponsorship, FDC and BWTP organized the "Pan-Asia Forum on Capacity Building for Microfinance in Crisis Situations" in Colombo, Sri Lanka in June 2005, and the first Asia Microfinance Forum "Partnerships and Innovations: Increasing the impact of Microfinance in Asia" in Beijing, China in March 2006.
Additional information may be found at www.fdc.org.au
Banking With the Poor (BWTP)
BWTP is an expanding network of some 30-plus national policy institutions, commercial banks and NGOs from 10 countries in Asia. Its objective is to support the development of the microfinance sector in the Asia region. BWTP members include ASA (Bangladesh), Credit Development Forum (Bangladesh), Janata Bank (Bangladesh), PKSF (Bangladesh), Shakti Foundation (Bangladesh), Sajida Foundation (Bangladesh), Swanirvar Bangladesh, PKSF (Bangladesh), Bandhan (India), BWDA (India), Canara Bank (India), Friends of Women's World Banking (India), MYRADA (India), NABARD (India), Vysya Bank (India), Bank Rakyat Indonesia (Indonesia), Bina Swadaya (Indonesia), PPSW - Center for Women's Resources Development (Indonesia), Dian Mandiri Foundation (Indonesia), Rural Microfinance Development Centre (Nepal), Swabalamban Bikas Bank (Nepal), First Microfinance Bank Ltd (Pakistan), ASKI (Philippines), KMBI (Philippines), TSPI Development Corporation (Philippines), Bangko Sentral ng Pilipinas (Philippines), Hatton National Bank (Sri Lanka), Lakjaya (Sri Lanka), SANASA Development Bank (Sri Lanka), SEEDS (Sri Lanka), and Small Enterprise Development Company (Thailand). Additional information may be found at www.bwtp.org