Microfinance institutions incurring rising costs: MIX Report

Microfinance Focus, Dec. 4, 2009: The Microfinance Information Exchange, Inc., (MIX) a business information and data services provider for the global microfinance industry, announced the release of its latest data set, the 2008 MFI Benchmarks.
The benchmarks cover financial and performance data from 1084 MFIs (microfinance institutions) throughout Asia, Africa, the Middle East, Eastern Europe and Latin America for calendar year 2008.
“This data set documents the beginning of a challenging time for many microfinance providers. By the end of 2008, MFI growth rates had already begun to slow, leaving MFIs faced with higher operating costs,” stated Blaine Stephens, COO and director of analysis at the Microfinance Information Exchange, Inc. (MIX). “Rising costs likely reflect two factors. Increasing portfolio arrears in a number of markets shifts the focus of MFI staff from making productive new loans to instead following up with current clients to encourage payment. At the same time, slower growth leaves many MFIs with an excess in personnel, having staffed up for continued growth.”

MIX produces MFI Benchmarks annually using a peer group framework that draws on the full data set of MFIs who have voluntarily contributed data. The benchmarks reflect median values.

MIX is a non-profit company founded by CGAP (the Consultative Group to Assist the Poor) and sponsored by CGAP, the Citi Foundation, Deutsche Bank Americas Foundation, Omidyar Network, IFAD (International Fund for Agricultural Development), Bill & Melinda Gates Foundation, and others.

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