cooperatives and rural financial development
DESCRIPTION
Cooperatives and Rural Financial Development. Hans Groeneveld SVP Cooperative and Sustainable Business Rabobank Nederland 15 November 2012. Rural population in developing and emerging countries classified by available level of rural finance. Source: estimations by Rabobank. - PowerPoint PPT PresentationTRANSCRIPT
[email protected] www.e-mfp.eu
Cooperatives and Rural Financial Development
Hans Groeneveld
SVP Cooperative and Sustainable Business
Rabobank Nederland
15 November 2012
[email protected] www.e-mfp.eu
Lack of basic financial services
60%
Basic financial services20%
Extended financial services 10%
Full financial services
10%
Rural population in developing and emerging countries classified by available level of rural finance
Source: estimations by Rabobank
[email protected] www.e-mfp.eu
Financial players
[email protected] www.e-mfp.eu
Standalone formalSACCO
Informal group
Time
SACCO network
Rabobank Nederland
(Credit led) MFI network
Bank (licensed)
Players and phases in rural financial development
[email protected] www.e-mfp.eu
From access to finance to access to financial services Skipping traditional development stages: technological
innovations Overbanked in terms of institutions, underbanked in terms of
products Broadening of product range: structured products, warehouse
receipt financing, supply chain financing structures Consolidation of credit union type of institutions into banks
with cooperative characteristics
Recent developments
[email protected] www.e-mfp.eu
Cooperative beliefs of Rabobank
3. Connecting with society: community as shareholder
- Locally rooted- Dialogue with many – local – stakeholders- Social goals- ‘Co-operative dividend’- Sustainable business
4. Connecting with each other:Network organisation
- Local meetings- Local boards of supervisors- Knowledge and information sharing- Virtual communities
2. Connecting with the future:Long term focus
- Long term relationships- In good and bad times- Future proof products- Solid enterprise- Innovations
Vision:
Together WE achieve more
1. Connecting with the customer:Customer’s interests first
- Corporate governance with members- Influence and say- Close (physical and virtual)
[email protected] www.e-mfp.eu
Determinants for successful and viable cooperatives
[email protected] www.e-mfp.eu
Peru: access to producer finance (Norandino) Ecuador: financial inclusion for the lower segments of the F&A sector
(COOPAC San Jose) India: linking the poor to the formal financial sector (BWDA, Tamil
Nadu) Uganda: the added value of an APEX organization (UCCFS) Brazil: the importance of partnerships for APEX organizations (Sicredi) Rwanda: commercial bank with cooperative characteristics and
background (Banque Populaire du Rwanda) Tanzania: a broad retail bank with a focus on rural finance (NMB)
MINORITY STAKES!!
Rabobank cases
[email protected] www.e-mfp.eu
Economic motives must be guiding principles No universal recipe: cooperative banks are not always
solution Quick development of players: scale, APEX, new products,
new technologies To ensure long-term focus by financial institutions on rural
areas, both rural and urban clients should be represented in their corporate governance
Concluding considerations
[email protected] www.e-mfp.eu
Thank you for your attention!