Centre for Micro Finance (CMF)
IFMR Research - Chennai
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Centre for Microfinance
The Centre for Micro Finance (CMF) is a non-profit, non-partisan research
centre housed within the Institute for Financial Management and Research
in Chennai.
The mission of the Centre for Micro Finance is to improve the accessibility
and quality of financial services for the poor through rigorous research,
knowledge dissemination, and evidence-based policy outreach.
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Organization’s Approach
• Develops research ideas and research design to conduct studies using
rigorous methodology.
- Impact Evaluation using RCTs
- Short-term Policy Research
- Panel Studies
- Short-term research like a snapshot/ case-study
• Partners with key stakeholders in an effort to translate research/
evidence based results into Policy and Practice.
- Disseminating results through various publications and
in person meetings with key stakeholders
- Conducting conferences and Round-table discussions
• Conducts trainings and workshops for students and practitioners on
research tools and methodology.
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Partners
CMF engages with a wide variety of institutions to carry out its mission
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Implementation Partners: AIC, Bandhan, Hand-in-Hand, KGFS, Mann Deshi, Saath,
SEWA, Sonata, Spandana, and several others.
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Policy Research Partners: BIRD-NABARD, Ministry of Finance, CAB-RBI
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Institutional Research Partners: Harvard, MIT, IIM(C), Yale, IPA, J-PAL, RAND,
Wharton, Stanford, World Bank
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Principle Investigators: Abhijit Banerjee, Esther Duflo, Rohini Pande, Erica Field,
Shawn Cole, Jeremy Tobacman, Karna Basu, Santosh Anagol
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Principle Funders: Ford Foundation, 3ie, National Science Foundation, Gates
Foundation, USAID, AUSAID, DFID, World Bank, LSE, MIT
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Areas of Research
CMF undertakes quantitative and qualitative research in 4
broad areas. 25+ projects at various stages of development
are currently under way across the country. These areas are:
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Financial Inclusion
Livelihoods
Social Objectives
Regulation and Policy
WWW.CENTRE-FOR-MICROFINANCE.ORG/RESEARCH-PROJECTS
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Research Methodology?
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Methodology for Impact Studies
I. Estimate the Sample size
II. Identify the Sample
III. Conduct Baseline
IV. Randomize
V. Provide Intervention
VI. Observe
VII. Conduct Endline
VIII. Analyze
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Examples of Impact Studies
• Impact Evaluation of the self help group (SHG) model
• Impact Evaluation of KGFS Rural Bank model
• Value of Distributing Treated Bed Nets via microfinance
• Health Insurance Combined with Micro-credit
• Impact Evaluation of Rural Micro-credit and women's empowerment
• Avaaj Otalo: Investigating the impact of a mobile-based Agricultural
Extension Service
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Examples of Short Term Policy Research
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Understanding the uptake and willingness to pay for a bundled Social Security
Product (Study with Ministry of Finance-GoI and GIZ)
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Evaluation of Pudhu Vaazhvu (Skills Training Programme) of Government of
Tamil Nadu
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Mapping the performance of Livelihood Promotion Groups in the states of
Madhya Pradesh, Rajasthan and Tamil Nadu (World Bank and FAO)
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Understanding the Financial Viability of Business Correspondence Model and
Clients’ Perspective. (BIRD-NABARD)
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Analysis of the Performance of No-Frills Accounts (CAB-RBI)
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Case of Financial Literacy
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Push of Financial Inclusion
Particulars
Year ended Year ended
Mar 10
Mar 12
ProgressApril 10 Mar 12
No. of BCs/BC Agents Deployed
33042
96828
63786
Banking Outlets through Branches
21475
24701
3226
Banking Outlets through BCs
32684
120355
87671
Banking Outlets-Through other Modes
99
2478
2379
Total Banking Outlets
54258
147534
93276
No Frill A/Cs (No. in Millions)
49.33
103.21
53.88
Overdraft- No Frill A/Cs (No. in Millions)
0.13
1.52
1.39
BC- ICT Based A/Cs (No. in Millions)
12.54
52.07
39.53
EBT A/Cs-through BCs (No. in Millions)
7.48
21.76
14.28
KCC(No. in Millions)
17.63
22.34
4.71
GCC(No. in Millions)
.45
1.27
.82
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Other Initiatives
• Moving towards technology
• Intermediate Brick and Mortar banking structures
• Satellite offices in the form of
ultra small BC outlets
• Promoting Financial
Literacy
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Barriers to Financial Inclusion
• Access related like Distance, Documentation etc.
• Low Literacy Levels
• Lower comprehension of complex financial
landscape
• Inadequate trust on products and services
• Fear from technology
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Role of Financial Literacy
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Establishing need
Creating awareness and reducing information asymmetry
Building trust
Improvise decision making process
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Centre’s Role in Studying Financial Literacy
• RCTs (Experimental)
-Impact Evaluation of Savings Training on Microcredit Clients
in Rural India
-The effect of financial literacy training on personal financial
decision making
• Non-Experimental
-Impact of Financial Literacy when imparted to BC clients
• Qualitative
-Evaluation of Financial Literacy Training Programmes in India
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Results so far..
• Knowledge and awareness (about savings and insurance) of people
increases but behavioural impact has not been witnessed
• Demand driven recorded messages had good take up among farmers
• Reinforcing using Individual Counselling helps as people question
their decision making
• Trainees perceive a higher level of comprehension of financial
concepts
• “One size fits all” principle should not be used
• “Teachable moments” need to be exploited
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Results so far.. (Contd..)
• Usage of no-frills savings account by the treatment group significantly
increases in the post intervention period
• Pensions and Insurance, the topics of prime importance, are not
focused upon
• It is believed that complementing financial literacy with some
livelihood programme would increase the take up and influence of the
former
• List of all the best practices, innovative ways (like setting up a
financial literacy hub, use of recorded messages, daily tricks to save)
and relevant suggestions have been documented
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Results so far.. (Contd..)
• Illiterate people might not possess good numeracy skills
but they are good with money
• Complexity spoils it all
• Trust increases the up-take
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Scope of Collaboration with XIMB
• Academia
-Partners in Policy Based Action Research on Livelihood in
Chhattisgarh, Bihar and Tamil Nadu
-Principle Investigators on experimental and non-experimental
studies of CMF
• Curriculum
-Contribute in designing development related course curriculum
-Share case studies on livelihoods to be used in the courses
• Students
-Recruitment of potential Research Associates
-Providing training/ guest lectures in research tools & statistical
package (STATA)
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Thank you
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