Certificate in Microfinance and Development (CMD) Course

Course Overview:

The Certificate in Microfinance and Development (CMD) is one of the cutting-edge courses that IDF offers for knowledge & appropriate skills development and capacity building for the growing practitioners of the microfinance sector.

IDF is the forerunner in offering Certificate Courses in Bangladesh where national and international participants get the theoretical understanding and practical experiences on the current dynamics of inclusive finance vis-à-vis microfinance through classroom sessions, hands-on training, case studies, exposure visits, and intensive supervised course work at their institution.This course will provide an in-depth understanding of the challenges and processes required to build business capability for the personnel of the microfinance industry. It is pertinent to be mentioned that a group of practitioners has developed this certificate program with proven experiences in the microfinance sector who were directly involved in piloting and implementing Grameen model, senior faculty members of Bangladesh Institute of Bank Management, leading practitioners of BRAC (the largest NGO of the world) and the Institute for Inclusive Finance and Development.

This course will help unlock participants’ critical insights into business potentials to enhance the capability to serve the organization more professionally.

Learning Outcomes:

On successful completion of the Certificate in Microfinance and Development (CMD), the participants will be able to:

  • DESCRIBE the origin and recent developments of microfinance in Bangladesh and global context.

  • INTERPRET various microfinance models and financial products successfully applied in Bangladesh and other SAARC countries.

  • PREPARE financial statements compliant with International Financial Reporting Standards vis-à-vis regulator and funding organization.

  • EXPLAIN risk management framework, best practices, tools & techniques, and major risks of MFIs.

  • CALCULATE profitability & sustainability, liquidity & solvency in microfinance programs applying different KPIs (Key Performance Indicators).

  • DETECT early signals to avert losses due to nonperforming assets of microfinance operations amid COVID19.

  • DEFINE the best composition of asset-liability management to reduce risk in financial

  • IDENTIFY the indicators for monitoring and evaluation to measure the impact and success of MFIs

  • DESCRIBE best practices in terms of good governance, structure, and role of governing bodies.

  • DEVELOP networking with the reputed microfinance organizations to share the good practices, like Grameen Bank, BRAC, PKSF, BIBM, IDF ,etc.

Who Should Attend:

The course has been designed for the microfinance practitioners (mid-level to the senior-level staff of MFIs, who are responsible for program management, coordination, and supervision, are the target participants) working in the field and also for aspiring entrant who wants to develop a career in microfinance.

Why Should You Attend:

  • Excellent, comprehensive, and detail hands-on updated materials

  • Course delivered by experienced industry practitioners from home and abroad

  • Intensive field work in the reputed MFIs

  • Structured to meet the needs of the microfinance industry

  • knowledge hub to get current updates/achievements in the microfinance industry

Course Modalities :

This online certificate course comprises five modules to be completed within four months. Three months (72 hrs. at participant’s pace, especially on the weekends) will be on theories, practices, cases, and home tasks, followed by one-month exhaustive fieldwork on the given assignment at their organization, project to be selected in consultation with the respective participants’ supervisors.

Module 1: Poverty Dynamics and Microfinance (PDM)

This module encompasses the theory of poverty dynamics, microfinance models, and development aspects. Upon completing this course, the participants will be able to explain different aspects of financial inclusion models, microfinance, poverty, and development issues of the country. They will also be able to identify the evolution and practices of microfinance in Bangladesh, India, Nepal, Myanmar, Bhutan, Pakistan through different real cases and will be able to get a broader insight. This module helps the participants visualize the scopes and challenges of inclusive finance vis-à-vis encourages them to build a career in the vibrant microfinance sector.

Key Note of the Course:

  • Dynamics of poverty

  • Different aspects of poverty and development issues

  • The historical context of microfinance

  • Poverty and Grameen microfinance model

  • Sustainable and inclusive microfinance program in Bangladesh and cases of southeast Asian countries

  • Issues, challenges, and future directions of the microfinance sectorand role of practitioners in making decisions.

Module 2: Microfinance Operations and Management (MOP)

This module provides a holistic overview of microfinance operations and management. Upon completion of this module, the participants will develop a capacity to explain the microfinance delivery mechanism; assess enterprises and identify the appropriate borrower; identify various risks in microfinance and their controlling mechanisms; identify the causes and consequences of delinquency and explain the various ways of delinquency and non-performing asset management, etc. Further, the participants get the scope of broadening their skills to build competence for ensuring the organization’s operational sustainability.

Key Note of the Course:

  • Selecting appropriate savings and lending methodology

  • Microfinance product design and development

  • Borrower selection, assessing MSMEs, loan processing, disbursement, and realization

  • Causes and consequences of delinquency and non-performing asset

  • Risk management strategies (credit risk, operational risk, liquidity risk, etc.)

  • Detecting and preventing the risk of frauds in microfinance

  • Building clients’ satisfaction and fidelity in microfinance

Module 3: Financial Analysis and Management in Microfinance (FAMM)

The module provides a holistic approach to Financial Analysis as a means of early signaling techniques to avert loss due to delinquency/NPA (Non-performing Asset) and adopting appropriate decisions regarding microfinance operations. In this module, the participants get acquainted with the key techniques of financial statement analysis and developing a microfinance business plan, interpretation of Key Performance Indicators (KPI) for assessing viability and financial sustainability of MFI. This module also includes the discussion on the ideal scenario of asset-liability management and budgeting. With this module, the participants will have a solid knowledge of the contemporary issues of financial management in terms of microfinance operations.

Key Note of the Course:

  • Financial analysis/interpreting financial statements of microfinance to detect early signals

  • Preparing financial statements following the International Financial Reporting Standards as per the demand of regulator/funding organization

  • Key Performance Indicators (KPI)/ratio analysis of microfinance program to assess the operational and financial sustainability

     

  • Asset-liability management to address the financial risks of MFIs.

  • Preparing microfinance business plans for practitioners’ own organizations

Module 4: Governance and Regulations in Microfinance (GRM)

This module covers regulatory and governance aspects of microfinance from Bangladesh and a global perspective. It also aims at shedding light on the role of regulations in guiding microfinance programs, government policy and legal framework regarding microfinance in Bangladesh, and examples of other countries. The participants will be able to explain the appropriate governance structure and role of different governing bodies and gain the ability to identify internal control enabling elements in an MFI, and explain monitoring and supervisory compliance’s.

Key Note of the Course:

  • Concept and analytical framework of good governance for MFI

  • Appropriate governance structure and role of governing bodies

  • Review of best practices of governance in MFI

  • Evolution of regulations in Bangladesh

  • MRA ACT, rules and regulations for MFIs in Bangladesh

  • Regulatory practices in different countries

  • Case studies on governance structure and internal operations of MFIs

Module 5: Monitoring and Evaluation of Microfinance Program (MEMP)

This module has been designed to ensure effective monitoring and evaluation of microfinance programs. The course will assist in the development of practical knowledge on monitoring and evaluation of microfinance programs. The participants will also learn the ways to design an effective monitoring and evaluation system and to apply this in their own organizations to ensure long-term sustainability.

Key Note of the Course:

  • Conceptual framework of ‘Monitoring and Evaluation (M&E)

  • Theory of change and key techniques of designing the log frame

  • Result based monitoring approach

  • Setting the appropriate indicators to measure the activity, output, and impact.

  • Concept of KPI ( Key Performance Indicators) and its relevancy in monitoring and evaluation

  • Implement monitoring mechanism and MIS within the program

  • Develop monitoring checklist and items to be considered in the preparation of monitoring formats

  • Different use of monitoring tools including a questionnaire survey, focus group discussion (FGD), Interview, PRA, qualitative/quantitative methods, etc. particularly in the microfinance program

  • Techniques of preparing M&E report of the microfinance program