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sofi From small credit to microfinance or how to develop financial diversity Slide 2 From small credit to microfinance Brigitte Maas (DMI, Germany) Udo Bauer (Nordhand, City of Dortmund) Christian Baier (Socius, Berlin) Christophe Guene (SOFI, Brussels) Berlin, 27 April 2007 Slide 3 sofi The vicious circle ! Strong selection Control & process High cost (High risk) Stronger selection More control & process Loss of reputation Higher costs (increase of credit ceilings) Higher risk Lower outreach = Process control system Low institutional risk Legitimacy through procedures Low output Slide 4 sofi The virtuous circle ? High access Open process High trust Low cost Low risk High (social) innovation = Outcome target system Legitimacy through efficiency High institutional uncertainty High (quality) output Slide 5 sofi Forms of Social Capital Mutual Trust, Friendship, Dependencies, Beliefs, Values, Information, Know-how, Solidarity, Confidence...... anything that binds people to each other The Challenge: how to detect it, how to build on it, how to nurture it ? Slide 6 sofi sofi money & banking for Society Rue de Cureghem, 41-43 B-1000 Brussels, Belgium Tel +32-(0)2-762 14 31 contact@sofi.be www.sofi.be