Lynne Patterson - APEC Women Leaders Network

Mission of Pro MujerPro Mujer is a women's development organization thatprovides Latin America’s poorest women with themeans to build livelihoods for themselves and futures fortheir families through microfinance, business training,and healthcare support.What Makes Pro Mujer Different:• Serves the very poor• Focuses on women• Integrates credit withhuman development services2

A Track Record of Success• 5 microfinance institutions: Argentina, Bolivia, Mexico, Nicaraguaand Peru• $140 million in loans expected to be disbursed in 2008• Average loan balance: $225• Currently serves 193,000 clients and approximately 965,000children and extended family members• Loan portfolio at risk of default is less than 1%• $14 million in client savings accountsAt December 31, 20073

Pro Mujer Clients• Are primarily women• Age between 36-44• Live on less than $2 a day• Majority have not completedprimary education• Don’t qualify for credit and savingsaccounts from financial i institutions• Work primarily as vendors in theinformal sector• Have limited access to health services4

Our Integrated Services ModelCommunalBank• Groups of 18 to 28 women• Women guarantee eachother’s loans• 99% of clients repaytheir loans on timeHealthcare•Education/Awareness/Tests•Links to affordable healthcare:– Pre- and post- natal care– PAP smears & breast exams–Vaccinations–DentalMicrofinance•Access to credit,savings accounts, insurance•Business training sessions:–Business plan development–How to use creditSocial Development•Address domestic violence•Promote women’s rights•Develop leadership skills•Strengthen family relations•Social networking5

¿Why integrated services?• HealthMain causes of payment defaults– Illness– Death– Natural disasters• Training– Target population with limited access to education– Some clients start a business for the first time– Tools to improve planning and administration of their businesses– New skills to diversify their businesses• Human Development– Self-esteem– Social support network– Mutual learning6

Advantages of Offering Integrated Services• Ability to reach very low income segment• Tool to maintain excellent portfolio quality• Reduced transaction costs to clients (more thanone service per visit)• Client loyalty• Maximization of use of infrastructure (network ofbranches ba es/ focal centers) tes)7

Portfolio Quality through CrisisPortfolio Quality (Past Due Loans/Gross Portfolio)40%35%30%25%20%15%FassilEco FuturoAgro CapitalBancosolFortalezaFIEBanco Los AndesProdemPro Mujer Bolivia10%5%0%1999 2000 2001 2002 2003 2004 2005 2006 20078

Strong Portfolio Quality throughout the NetworkPro Mujer Portfolio at Risk vs. Benchmark by CountryDecember 20065.0%4.5%4.0%3.5%3.3%3.0%2.9%3.0%2.0%2.4%2.5% Pro Mujer2.0%Benchmark MIX1.5%1.2%1.0%0.5%03% 0.3% 0.2%0.0%0.2%0.0%Bolivia Nicaragua Peru Mexico Argentina9

Sustainability and ProfitabilityPro Mujer Return on Assets vs. Benchmark by Country200614.0%13.2%12.0%10.2%10.0%8.0%6.8%6.0%4.40% 4.20%4.0%30% 3.0%2.0%2.30%2.0%0.0%Bolivia Nicaragua Peru Mexico ArgentinaPro MujerBenchmark MIXPMA ROA < 0%Menos de 2 años de operaciones.Hacia el punto de equilibrio.10

Pro Mujer is more than a microfinance pioneer. No otherinstitution so successfully delivers programs thatmeaningfully improve the health and livelihoods of very poorwomen… By staying true to their values, Pro Mujer hascreated an innovative, integrated approach that is replicableand poised to become a new industry standard.Jonathan Murdoch, Professor of Public Policy and EconomicsAt New York University’s s Wagner School, and co-author ofThe Economics of Microfinance11