Upload
slidary
View
70
Download
0
Embed Size (px)
DESCRIPTION
The analysis of European and Italian microcredit markets
Citation preview
Microcredito
• Banco Popolare became a Group on 1 July 2007 with the merger of Banco Popolare di Verona e Novara and the Banca Popolare Italiana
• One of the largest five Italian Bank Groups • Group of local banks
• 2,000 branches, 200,000 shareholders and more than 20,000 employees • It operates throughout Italy • Three key values: proximity, ethics, and quality services
Banco Popolare
Serving family and business customers, creating stable and lasting value for partners, shareholders and local territories.— Carlo Fratta Pasini, President of the board of directors
2
Definition by the European Commission
3
microloan
business personal
< 25 000 EUR support development
of self-employment and microenterprises
< 25 000 EUR cover personal costs(rent, emergencies,
education)
Source: Annual Report 2012 Microbank
Attractiveness of microcredit
4
corporate social responsibility
reputation, brand image
profitability long-term relationship
Estimate European and Italian market sizes !
Analyze the most diffused patterns and identify the best practices
Objectives of the work
5
Quantitative research: reports and websites Qualitative research: interviews to microcredit institutions !
Selection of five different models
‣ Italy’s leading microfinanceinstitutions ‣ Spain’s leading microfinance
institution ‣Global player in microfinance
6
Methodology
Reports consideredEuropean Microfinance
Network, 20127° Rapporto sul
microcredito in Italia, 2012
Ente Nazionale per il Microcredito, 2013
Report of Microcredit in Bergamo by Caritas, 2012
Microcredit market
8Sources: Bending et al. 2012, Pp. 9; Ente Nazionale per il Microcredito; 2013, Pp 11
0
175
350
525
700
Amount (million of euro)
63
368
680
Western EuropeEastern EuropeItaly
0
30000
60000
90000
120000
Number
7167
119519
84561
Patterns in microcredits
Business model #1
Bank Non-profit institution Customers
10
Business model #1
Bank Non-profit institution Customers
11
funding
Business model #1
Bank Non-profit institution Customers
12
funding supply microcredit
Business model #1
Bank Non-profit institution Customers
13
funding supply microcredit
supportguarantee
Non-profit institution
Business model #1 - Conditions
non-profit institution
14
• Selection • Evaluation • Advisory • Services
guarantee moderate interest rates
%
Business model #2
Bank Customers
15
supply microcredit
professionals
issue microcredit
credit risk management
refunding
Business model #2 - Conditions
high administrative costs
16
moral guarantee high interest rates
%
Comparison
administrative costs
17
interest rate%
Model #1 Model #2
network
default rate
moderate
low
partners
high
high
high
own
very low
• Business model
‣ Short-term: partnerships
‣ Long-term: in-house program
• Guarantee
• Interest rates
• Cost deduction
Recommendations
18