Microfinance Practitioners Asked to Endorse Industry-Wide Consumer Protection Standards

NEW YORK--(EON: Enhanced Online News)--Promoting savings and consumer protection are the central issues in U.S. microfinance, according to the top industry researchers, investors, and practitioners who addressed more than 800 attendees at the 2011 Microfinance USA Conference on Monday, May 23. The annual conference, held on May 23 and 24 this year in New York, NY, is a leading platform for innovation and collaboration in the microfinance field.

“Microfinance is building momentum in the United States, and together we can determine the nature and success of this growth”

Conference hosts Opportunity Fund and Kiva, as well as ACCION International, highlighted the need for industry-wide consumer protection standards in microfinance and called on attendees to endorse the Smart Campaign, a global consumer protection initiative. “Microfinance is building momentum in the United States, and together we can determine the nature and success of this growth,” said Eric Weaver, Opportunity Fund founder and CEO. “This is our moment to ensure that the future of microfinance is an industry that does right by the consumer.”

“Adoption and adherence to [the Smart Campaign] principles will, I believe, significantly strengthen the microfinance industry and elevate it as a model of responsible banking around the world,” said Michael Schlein, president and CEO of ACCION International, which incubated the Smart Campaign.

Microfinance USA 2011 continues today, Tuesday May 24, 2011 with a discussion on the intersection of microfinance mission, profits and impact featuring Carlos Danel, Banco Compartamos; Felix Salmon, Reuters; and Adam Davidson, NPR’s Planet Money. Live streaming webcasts of select sessions are available at www.microfinanceusaconference.org/webcast.

The importance of savings in the future of microfinance was highlighted by Lisah Mensah of the Aspen Institute, who debunked the myth that low-income individuals simply do not have enough money to save. She was joined at the Monday morning plenary session by Dean Karlan, Professor of Economics at Yale University; Stephan Rasmussen, Technology Program Manager at the World Bank’s Consultative Group to Assist the Poor (CGAP); and Eric Weaver of Opportunity Fund. As Mr. Weaver noted, “low-income people can save. In fact, many want to save. We operate one of the largest microsavings programs in the country. We’ve enrolled 3,500 families who are saving $85 each per month. They’ve saved $5.3 million total—remarkable, given the annual household income of our clients is $25,000.”

“Savings is an essential pillar of financial inclusion,” said Bob Annibale, Global Director of Citi Microfinance and Community Development. "That's why we partner with microfinance institutions and municipalities to create innovative, scalable savings products, like the Kindergarten to College universal college savings program that Citi has established with the City of San Francisco. Working together, we can expand economic empowerment in the communities we serve."

In addition to commentary from industry experts, Microfinance USA 2011 offered participants unique opportunities to meet with microloan recipients in person at their places of business. On Monday, attendees met with Jorge Ayala, a client of ACCION USA, which is a member of the ACCION Network in the U.S. Mr. Ayala told of his struggle to find a loan to expand his business, the Puerto Rican restaurant La Fonda Boricua, and how ACCION USA ultimately provided the needed financial support. “With our [ACCION USA] loan, we’ve tripled the seating and doubled our sales,” said Mr. Ayala. “Now I’m able to host frequent art shows and musical performances accompanied by traditional, authentic Puerto Rican meals.”

“We hope that tour participants came away with a sense that microfinance is impacting lives all around them,” said Gina Harman, president and CEO of the ACCION Network in the U.S., also a conference host. “They are the local businesses that make our communities vibrant and unique.”

About Microfinance USA

Microfinance USA is the conference where the nation's leading microfinance champions exchange ideas and information that set the agenda for the future of the field. Conceived and produced by Opportunity Fund and now in its third year, Microfinance USA 2011 is hosted by Opportunity Fund, the ACCION U.S. Network and Kiva. Citi is the lead conference sponsor.

Conference blog at www.microfinanceusaconference.org/blog

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