Micro & Consumer Finance

MicroMasters Program

Level:

Beginner/
Intermediate

Duration:

160 hours

Effort:

4-6 Hours weekly

Language:

Arabic/English

Price:

£ 2250

Why Micro & Consumer Finance MicroMasters?

In recent years, financial inclusion in emerging markets has been a focal point of attention. Big focus on the importance of delivering efficient microfinance products to the mass majority of the under-privileged and low-income populations. The course helps you in understanding the major issues in microfinance practices. Given the sizeable number of people engaged in SMEs in the world who lack access to financial services, a thorough understanding of the sustainability and growth is needed.

This course will identify, explain and discuss the role of microfinance institutions in socio-economic development, review how these institutions are regulated and unravel some of the myths that have hindered their operations for many decades with a view of unveiling their potential for growth and development.

Consumer financial markets are booming with innovations and fintech startups from Bitcoin and new payments technologies, to peer-to-peer lending like Lending Club, to financial advising startups like Betterment, to innovative products to solve the problems of the aging population of the developed world, to insurance and financial products to facilitate growth in developing markets.

We will cover consumer financial products related to credit, investment, and transactions. We start with how people make financial decisions, including both rational and behavioral models, and then turn to how financial products and markets are designed to serve the needs of consumers and/or to make profits. The course also touches on the funding of lending to households and the design and risks of financial products backed by mortgages, credit cards, or student loans, as well as the rapidly-evolving institutions and regulatory structure affecting the financial industry serving households.

Who is this program for?

Syllabus

  • Introduction. 
  • The global ecosystem involved in financial inclusion.
  • Trends and current practices in various international markets.
  • The nature of Microfinance.
  • The demand for microfinance.
  • The supply of microfinance.
  • Products and services in microfinance.
  • A new Taxonomy in Microfinance.
  • Microfinance and ethical finance.
  • Financial Services.
  • Product Development process.
  • Non-Financial Services.
  • New frontiers in microfinance Services.
  • The business analytics and predictive modelling in the microfinance industry.
  • A single platform that would digitally deliver your entire financial services portfolio.
  • Digital customer acquisition and onboarding process across multiple channels.
  • A fully automated loan application workflow.
  • Digital loan disbursements and loan repayment across multiple channels.
  • Enablement of limitless added value digital services.
  • Utilize Agency Banking and Management technology to establish the network of agents.
  • Reduce all required internal and external integration timelines to mere days utilizing dynamic integration framework technology.
  • The role of preventive audit and risk-management practices in mitigating overall risks involved in various processes in the microfinance industry.
  • Risk Management in Microfinance: identification, assessment, mitigation of risk.
  • The Business Risk.
  • Financial Risks.
  • Process Risks.
  • Reasons for a process approach.
  • Microfinance Processes.
  • The process of microcredit.
  • Process related risks.
  • Control Typologies.
  • The incentive system.
  • Performance Evaluation models for MFI.
  • Important credit risk models like Merton’s model, the Moody’s KMV model, Credit Metrics™, and Credit Risk Plus™.
  • The basics of Credit Default Swaps (CDS).
  • What stress-testing is and why it is useful.
  • Regulation, supervision, and Microfinance.
  • Determinants for regulating microfinance.
  • Key variables for microfinance regulation.
  • Which instrument to adopt?
  • KYC. 
  • Introduction to Consumer Loans.
  • Laws and Regulations Affecting Consumer Loans.
  • Interests. 
  • Applying for a Consumer Loan.
  • Loan Underwriting.
  • Establishing and Perfecting Security Interest.
  • Document Preparations and Loan Closing.
  • Servicing Consumer Loans.
  • Loan Collections and Consumer Bankruptcy.
  • Components of the consumer installment credit market.
  • Credit report.
  • Credit score.
  • Sustainability and Outreach.
  • Sustainability –how to reach it.
  • Outreach – How to select the beneficiaries.
  • The microfinance Dilemma.
  • The policies for improving sustainability.
  • Economic development and inclusive growth.
  • Impact of Microfinance in achieving Sustainable Development Goals.
  • Microfinance and (case study).
  • Consumer finance and (case study).

Key Programme Takeaways

  • Concepts and principles of microfinance.

  • Identify issues that hinder the success of microfinance and consumer finance.

  • Explain to a group of would-be operators of microenterprises and small businesses the significant components of microfinance such as financial instruments and lending methodologies, performance evaluation and management, and preparing financial statements.

  • Appraise the state of microfinance in their respective country; and recommend positive approaches that will facilitate the poor's access to financial services.

  • Learn about the risk categories and mitigation of risks in micro finance business and institutions.

Your Learning Journey

The first week is orientation week. During this week you will be introduced to the other participants in the class from across the world and you will learn about the track details, materials, assignments, and final project.

On other weeks, you have learning goals set for the week. The goals would include the online interactive lectures and completing the assignments. All assignments need to be submitted within one week.

The programme features weekly live online sessions with industry practitioners who are available to help you clarify your doubts pertaining to the content. Assignments are graded by the program faculty.

Discussion boards are an integral part of each module and provide a forum where participants can interact, share ideas, and ask questions.

Live webinars with Everest Business School provide opportunity for additional instruction as well as Q&A sessions for the group.

The Programme Support team will follow up over emails and phone calls with learners who are unable to submit their assignments on time or have any other concerns during the learning journey till sending the MicroMasters’ final grade.