MABS Microfinance Basics Course MABS Technical Resource Specialists Training and Accreditation Program

MABS Microfinance Basics Course

MABS Technical Resource SpecialistsMABS Technical Resource Specialists

Training and Accreditation ProgramTraining and Accreditation Program

Introduction

• Human resource is one of the most important assets of an organization.

• Qualified and well-trained staff is key to achieving the goals and objectives of an organization.

What is training?

• Organized learning designed to properly equip people in their jobs and improve their performance.

• Intervention aimed at developing or enhancing knowledge, attitudes and skills (KAS) in a particular area.

• Training can be done either in a classroom and/or through actual field experience with a mentor.

Why train?

• To improve performance at individual, unit and over all bank level.

• To upgrade the skills/competencies of individuals to enable them to undertake new jobs effectively

• To contribute to an individual’s personal growth

We train because there is a deficiency or an expected deficiency due to changes in plans, personnel or policies & procedures.

Why focus on account officers?

• Account officers are a vital link between the bank and its target-clientele – the microentrepreneurs.

• Account officers have the crucial task of generating, evaluating, recommending and monitoring loan accounts.

• Account officers are therefore the bank’s profit-generating centers.

The Microfinance Basics Course

Objectives: Make the account officers fully understand

their role, duties and responsibilities in the microfinance loan process

Explain the role of rural banks as financial intermediaries and as microfinance providers

Explain why MF best practices and principles are important to incorporate in microfinance product design.


Objectives: Evaluate if a loan applicant can qualify for

a microfinance loan based on the client eligibility criteria set by the bank

Evaluate if a loan applicant can qualify for a loan on the basis of an analysis of character and reputation as a borrower

Evaluate if a loan applicant can demonstrate capacity-to-pay on the basis of existing business activity as reflected in the cash flow


Understand the basic concepts of zero tolerance against delinquency ;know and apply the ways to prevent and remedy delinquency


Participants:

New and old account officers, senior account officers for promotion as MFU supervisors, and would-be credit committee members


Learning Modules:

The Role of the Account Officers in the Microfinance Loan Process

Basic Concepts of Financial Intermediation and Microfinance

Microfinance Best Practice and Principles Client Selection using Character & Risk

(CIBI) and Repayment (Cash Flow) Analysis Zero Tolerance against Delinquency


Duration: In-house Training

Ideally four (4) days, delivered within a 4-week period or a span of one month (i.e. all Fridays or Saturdays of a month)

The Microfinance Basic Course Training Design: Flow and Methodologies

First Module Second Module

First Part

Second Module

Second Part

Third Module

Training Component

Classroom Training on Basic Concepts of Financial Intermediation and Microfinance, MF Best Practices and Principles, Bank’s MF Loan Product Policies and Procedures

Classroom Training on Client Selection with focus on Character/Risk Analysis

Classroom Training on Client Selection with Focus on Repayment Capacity (Cash Flow) Analysis

Classroom Training on Zero Tolerance against Delinquency

Field Application Field Observation Field Observation and Application

Field Observation and Application

Field Observation

Monitoring & Evaluation

Assessment & Debriefing




Expected Output/Results

Trainee’s narrative report on Results of Field ObservationTraining Evaluation Form

Trainee submits accomplished CIBI forms done on clients of Senior AOTraining Evaluation Form

Trainee submits accomplished Cash Flow Form/Worksheets done on clients of Senior AOTraining Evaluation Form

Trainee submits narrative report on Field Experience doing delinquency management with a Senior AO

When to Conduct the Microfinance Basics Course

• The complete Microfinance Basics Course must be given to all newly-hired account officers– The training must be given to the trainee- AO during

his/her first month in the bank

• Deliver the training course on a per module basis within a 4-week period.

ClassroomClassroom ApplicationApplication DiagnosticDiagnostic CorrectionCorrection

Evaluating Effectiveness of Training Course

Evaluation of the training program is necessary to yield information both for the trainor and the trainee.

Trainor

indicates whether stated objectives are met or not

highlights unclear points

identifies trainees experiencing difficulty

improves or enhances teaching strategy

Trainee

indicates that progress is being made or not

help to diagnose strengths and difficulties

helps distinguish relevant from irrelevant points

gives knowledge of results


Measures of Training Effectiveness

Level 1: Satisfaction - measures how the participants liked the

course content, method of training delivery, training materials, method of facilitation

Level 2: Learnings - measures changes in core knowledge (improvement or deterioration as a result of undergoing the training course)


Measures of Training Effectiveness

Level 3: Change in Behavior - measures how the participants actually apply techniques learned during the training in actual operation

Level 4: Return on Investment - measures return on training investment by the bank in the form of improved outreach and portfolio quality – ergo, increased profitability and sustainability of microfinance operations

Documents

MABS Microfinance Basics Course MABS Technical Resource Specialists Training and Accreditation Program