MABS
Microfinance Basics Course
MABS Technical Resource Specialists
Training and Accreditation Program
Introduction
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Human resource is one of the most important
assets of an organization.
Qualified and well-trained staff is key to
achieving the goals and objectives of an
organization.
What is training?
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Organized learning designed to properly equip
people in their jobs and improve their
performance.
Intervention aimed at developing or enhancing
knowledge, attitudes and skills (KAS) in a
particular area.
Training can be done either in a classroom
and/or through actual field experience with a
mentor.
Why train?
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To improve performance at individual, unit and over all
bank level.
To upgrade the skills/competencies of individuals to
enable them to undertake new jobs effectively
To contribute to an individual’s personal growth
We train because there is a deficiency or
an expected deficiency due to changes in
plans, personnel or policies & procedures.
Why focus on account officers?
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Account officers are a vital link between the
bank and its target-clientele – the
microentrepreneurs.
Account officers have the crucial task of
generating, evaluating, recommending and
monitoring loan accounts.
Account officers are therefore the bank’s profitgenerating centers.
The Microfinance Basics Course
Objectives:
 Make the account officers fully understand their
role, duties and responsibilities in the
microfinance loan process
 Explain the role of rural banks as financial
intermediaries and as microfinance providers
 Explain why MF best practices and principles are
important to incorporate in microfinance product
design.
The Microfinance Basics Course
Objectives:
 Evaluate if a loan applicant can qualify for a
microfinance loan based on the client eligibility
criteria set by the bank
 Evaluate if a loan applicant can qualify for a loan
on the basis of an analysis of character and
reputation as a borrower
 Evaluate if a loan applicant can demonstrate
capacity-to-pay on the basis of existing business
activity as reflected in the cash flow
The Microfinance Basics Course
 Understand the basic concepts of zero tolerance
against delinquency ;know and apply the ways to
prevent and remedy delinquency
The Microfinance Basics Course
Participants:
New and old account officers, senior account
officers for promotion as MFU supervisors,
and would-be credit committee members
The Microfinance Basics Course
Learning Modules:
 The Role of the Account Officers in the
Microfinance Loan Process
 Basic Concepts of Financial Intermediation
and Microfinance
 Microfinance Best Practice and Principles
 Client Selection using Character & Risk
(CIBI) and Repayment (Cash Flow) Analysis
 Zero Tolerance against Delinquency
The Microfinance Basics Course
Duration: In-house Training
Ideally four (4) days, delivered within a 4week period or a span of one month (i.e. all
Fridays or Saturdays of a month)
The Microfinance Basic Course Training Design:
Flow and Methodologies
First Module
Second Module
First Part
Second Module
Second Part
Third Module
Training Component
Classroom Training on
Basic Concepts of
Financial
Intermediation and
Microfinance, MF Best
Practices and
Principles, Bank’s MF
Loan Product Policies
and Procedures
Classroom Training on
Client Selection with
focus on
Character/Risk
Analysis
Classroom Training on
Client Selection with
Focus on Repayment
Capacity (Cash Flow)
Analysis
Classroom Training on
Zero Tolerance
against Delinquency
Field Application
Field Observation
Field Observation and
Application
Field Observation and
Application
Field Observation
Monitoring &
Evaluation
Assessment &
Debriefing
Assessment &
Debriefing
Assessment &
Debriefing
Assessment &
Debriefing
Expected
Output/Results
Trainee’s narrative
report on Results of
Field Observation
Training Evaluation
Form
Trainee submits
accomplished CIBI
forms done on clients
of Senior AO
Training Evaluation
Form
Trainee submits
accomplished Cash
Flow
Form/Worksheets
done on clients of
Senior AO
Training Evaluation
Form
Trainee submits
narrative report on
Field Experience
doing delinquency
management with a
Senior AO
When to Conduct the Microfinance
Basics Course
• The complete Microfinance Basics Course must
be given to all newly-hired account officers
– The training must be given to the trainee- AO during
his/her first month in the bank
• Deliver the training course on a per module
basis within a 4-week period.
Classroom
Application
Diagnostic
Correction
Evaluating Effectiveness of
Training Course
Evaluation of the training program is necessary to yield
information both for the trainor and the trainee.
Trainor
Trainee
indicates whether stated
objectives are met or not
indicates that progress is
being made or not
highlights unclear points
help to diagnose strengths
and difficulties
identifies trainees
experiencing difficulty
improves or enhances
teaching strategy
helps distinguish relevant
from irrelevant points
gives knowledge of results
Evaluating Effectiveness of
Training Course
Measures of Training Effectiveness
Level 1: Satisfaction
- measures how the participants liked the
course content, method of training
delivery, training materials, method of
facilitation
Level 2: Learnings
- measures changes in core knowledge
(improvement or deterioration as a result
of undergoing the training course)
Evaluating Effectiveness of
Training Course
Measures of Training Effectiveness
Level 3: Change in Behavior
- measures how the participants actually
apply techniques learned during the
training in actual operation
Level 4: Return on Investment
- measures return on training investment
by the bank in the form of improved
outreach and portfolio quality – ergo,
increased profitability and sustainability
of microfinance operations