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finance, and the microfinancial skills entailed in the MFI model (and in federations in the SHG
model) are every bit as sophisticated as any other kind of banking. However there continues
to remain a huge gap in the availability of skills. The CGAP modules used by EDA are the most
carefully prepared and comprehensive set of modules available for training purposes. Yet because
EDA uses high quality trainers who have to be paid the going market rate if they are to be
attracted and retained, affordability has been a problem for many smaller MFIs. 13 Hopefully
now that EDA is planning to identify regional partners, the quantum of skills training will
increase without a dilution in quality. 14
Perhaps the
most important
need however is
to integrate
class-room
based training
not only with
continuing onsite
mentoring
and handholding
over a
period but also
with pretraining
needs
assessment...
the issue here
however is
partly
financing...
the other issue
is the
availability of
the handholders
Perhaps the most important need however is to integrate class-room based training not only
with continuing on-site mentoring and hand-holding over a period but also with pre-training
needs assessment. An example of a TCB institution that has made this concept central to its
business model is MicroSave, as Box 6.2 describes. The issue here however is partly financing,
since few institutions can afford to pay the full cost of all three stages. The other issue is the
availability of the hand-holders.
SIDBI, and now the banks, and even the new crop of equity investors, are trying to address
both needs simultaneously. SIDBI has for some years now had a scheme to develop a team of
certified mentors to assist their partners out of the grant funding they package with their
loans. ICICI, as noted above, is in discussions with MicroSave, BASIX, and CARE-CASHE to
adopt this model. The private equity firms such as UNITUS, Lok Capital, Bellwether and MSDF
(see Chapter 8B) all have schemes to package equity with TA. Thus UNITUS has a tie-up with
ACCION to depute to some of its partners full time "resident advisors" for CB. 15 Finally, yet
another hopeful new development is the incipient emergence of relatively low cost private
microfinance consulting firms as hand-holders. 16
Training for field staff in the MFI model is undertaken almost entirely by the MFIs themselves,
mostly through on the job training under the supervision of field staff. The numbers entailed
are much larger at this level and it is by now well recognized that for some MFIs expanding the
fastest, the rate at which they can identify the right persons, train them, and then retain
them (once the new recruits find out how challenging the work is) is more of a constraint on
the rate of expansion than financing. 17 In addition, MFIs using the Grameen model have the
additional training task of training borrowers, administering the GRT, and so on. Some MFIs
such as SKS are hiring fresh recruits also for the branch manager level for their "horizontal"
expansion plans to new states, and training them in the same manner, rather than through the
usual, much slower, promotion process.
The SHG model
Using the same framework to analyze training needs under the the SHG model, the promoter,
CEO and senior managerial level in this case consist of senior NABARD and commercial bank
manager staff. Training needs here much greater awareness and sensitivity to the policy and
operational issues identified in Chapter 2. 18 Required too is what can be best described as
attitudinal training, in terms of the four-fold classification above. 19 The need for skills related
training such as that entailed in the MFI model is greatly minimized by the fact that bank
branches are already equipped with all the requisite skills as going financial concerns. The
main technical skills bankers need is in SHG appraisal and rating, although they need to be
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