Start of the 1970s, after the emergence of microfinance, lending to the poor shift from informal sources (eg moneylenders) on official sources. The Grameen Bank (Grameen) led this change, mainly because of its Chief Executive Officer (CEO) and its innovative micro-credit model. On the basis of the CEO Rich understanding of on-the-ground realities, he began to experiment and change the business model for microfinance institutions, which was largely dominated in recent years in Bangladesh, … Read more »

Start of the 1970s, after the emergence of microfinance, lending to the poor shift from informal sources (eg moneylenders) on official sources. The Grameen Bank (Grameen) led this change, mainly because of its Chief Executive Officer (CEO) and its innovative micro-credit model. On the basis of the CEO Rich understanding of on-the-ground realities, he began to experiment and change the business model for microfinance institutions, which was largely dominated in recent years in Bangladesh, a few large players. As a result of some very interesting and insightful experiments that had been performed, the microfinance landscape has changed the way banking services for the poor have been modeled, not only in Bangladesh but all over the world. The profile case, a situation in which Baring Private Equity Partners India, one of the largest private equity player in the emerging countries, was looking to invest in high-growth, profitable microfinance industry of South Asia.This to understand the case to support the student’s credit-oriented needs of the poor and their perspective on money management, hunger, investment and savings. Students should appreciate how an innovative business model can be developed by combining a deep understanding of the local context, with conceptual thinking. The case vouches strongly for the development of sustainable solutions that require both financial viability and sensitivity to the conditions of the poor. The most important point to be highlighted on the microfinance landscape that the entrepreneurial model, to be socially focused business focused change. Previously most of the players were the microfinance arena as not-for-profit venture, but many for-profit organizations have now entered this sector
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from
Ram Kumar Kakani,
Munish Thakur
Source: Ivey Publishing
23 pages.
Release Date: 16 September 2009. Prod #: 909M52-PDF-ENG
Baring Private Equity Partners India Limited: Banking services for the poor in Bangladesh HBR case solution