Savings safer with MFIs: Gregory Chen (CGAP)

Microfinance Focus.

Gregory Chen (Regional Coordinator, CGAP) observes that relevant policy needs to evolve as quickly as the microfinance sector. “Today’s policies reflect the thoughts and practices of the past. Policies today should be scripted so that they support future growth,” he explained while indicating that the Government was moving in a positive direction.

The subject of policy led easily into the slow-pace of the development of a business correspondent model for MFIs. “The key thing to keep in mind is relative risk: will MFIs, as business correspondents provide a safer alternative to the saving options currently available to the poor?” he points out.