Microfinance operations in Myanmar only started in late 1990s with the UNPD Human Development Initiative Program however the microfinance business law which legalizes and regulates the existing microfinance operations was enacted only in November 2011. Licenses have been conferred to the majority of the MFIs by the end of October 2014. Microfinance Delta International Co.,Ltd is a Joint Venture Company which was granted a MFI license in August 2015 and license No is (0247/2015).
Key factors contribute to MIFIDA’s sustainable business and growth
- Experienced management team and JV partner Management team former experience with: Pact Global Microfinance Myanmar, Fullerton Finance, Woori Finance, LOLC, etc.
- JV partner (Gojo) former experience with: World Bank, UNDP, Goldman Sachs, Morgan Stanley, Mckinsey & Company, AT Kearney, Roland Berger, Deloitte, etc.
Outstanding portfolio quality based on weekly collection
- NPL 0.03%: weekly collection allows stable collection as small repayment amounts are manageable by clients.
- Repayment amounts are smaller compared to biweekly or monthly collection schemes.
- MIFIDA is one of the 4 MFIs in top 20 that is solely based on a weekly collection scheme. Most MFIs operate with monthly/biweekly schemes.
- Weekly meetings allow close monitoring of clients’ business and financial situation, leading to swift actions when required.
People management capability
- Low staff turnover rate (2018: 9.6%) due to MIFIDA methodology allowing staff to work under stress-free environment (appropriate workload and low delinquency)
- MIFIDA has been swiftly hiring new staff based on the popularity of management team