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Credit Suisse Global Diversity and Inclusion Cocktail Reception
Microfinance is becoming an increasingly popular investment target for the private sector, but the global financial crisis was posing challenges, according to Ms. María Otero, President and CEO of ACCION International.
Speaking at the annual Credit Suisse Global Diversity and Inclusion Cocktail reception, on the sidelines of the Asian Investment Conference, Ms. Otero said microfinance first got its start in 1973, in Recife, Brazil, when ACCION was brainstorming its next community development project. They decided to try providing tiny loans to poor people who were operating small businesses on the streets of these urban slums.
“The impact was immediate and apparent,” said Ms Otero. “Not only did these ‘micro-entrepreneurs’ pay the loans back on time, but they were also dignified by them. They found a new and incredible confidence in their own ability to succeed.”
ACCION International is one of Credit Suisse’s global strategic partners in microfinance, and is one of the oldest non-governmental organizations operating in this area. It is counted amongst the leaders in this field.
ACCION worked to perfect a lending methodology that would allow clients to invest and pay them back, and at the same time fuel the growth of the institution itself. ACCION International loans today average just US$900 to its customers in 25 countries—and begin as low as US$18. Ninety-seven percent of them have been repaid.
“Today there is an estimated 150 million people worldwide now served by microfinance,” said Ms Otero.
Still, there is plenty of work ahead. Microfinance today reaches only 10 to 20 percent of an estimated 750 million to 1 billion people who could benefit from it, provided they had access. To help bridge that gap, ACCION actively advocates the investment potential of microfinance among the private sector.
“Today, microfinance is a compelling investment for the private sector,” said Ms. Otero, adding that a growing number of privately managed funds invest in start-up operations or Microfinance Investment Vehicles (MIVs).
“Many of their investors are individuals who want to see social as well as financial returns.” She said there are now 54 significant donor and investor funders of microfinance.
However, she did note that: "the challenge is liquidity." She said the current financial crisis affected ACCION International, as it did financial institutions around the world. "This will be one of the factors that will effect microfinance."
The cocktail reception was also opened by Niki Kesoglou, Director of Diversity & Inclusion APAC, where she introduced the guest speakers including a successful female junior professional Jennifer Theunissen, Vice President, Asset Management division, who talked about her career path so far.
“There are a lot of opportunities within Credit Suisse if you make them available to yourself,” she said. “All these experiences have empowered me for the future, and I encourage everyone to take advantage of what is on offer and seize all opportunities.”
Asia Pacific CEO Kai Nargolwala also spoke at the event, saying it was an important demonstration of Credit Suisse’s commitment to diversity and inclusion, and an important theme for him personally.
“In a global business environment, employee diversity is crucial in gaining a competitive advantage,” he said. “What a great demonstration from both Jennifer and Maria of how providing choices and empowering people can lead to innovation and opportunities that improve both organisations and communities at large.”
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Day 2: Photo Album
