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Myanmar’s Microfinance Sector Turns to Financial Data Analytics for Growth

In a significant development for Myanmar’s financial sector, the United Nations Capital Development Fund (UNCDF) has launched an initiative to provide technical support to Financial Service Providers (FSPs) in data usage. This move is expected to enhance service delivery to existing customers and enable the delivery of new products while maintaining a social focus.

A Growing Microfinance Sector

Despite being one of the fastest-growing microfinance sectors in ASEAN, Myanmar’s industry was previously unregulated until 2011 when the Microfinance Law was introduced. Today:

  • There are 166 registered organizations with microfinance activities.
  • A total of 1,989,743 customers are served.
  • The active loan outstanding is $247,304,100 as of July 2016.

UNCDF’s Involvement in Myanmar’s Microfinance Sector

UNCDF has been actively engaged in this sector since its inception and has provided:

  • Seed capital to successfully launch two Microfinance Institutions (MFIs) - Alliance and ASA.
  • A close working relationship with the Financial Regulation Department (FRD), providing extensive technical support in reviewing and drafting regulations.

The Need for Data Analytics

As the microfinance sector continues to grow, there is an increasing need for professional management and usage of client and financial data. UNCDF Myanmar has begun providing technical support to FSPs on data analytics, enabling them to:

  • Improve service delivery
  • Develop new products
  • Maintain a social focus

A Data Assessment at Alliance

In August 2016, UNCDF staff conducted a data assessment at Alliance, a leading MFI in the Mandalay region. The exercise involved:

  • Assessing the Management Information System (MIS)
  • Addressing gaps in data quality
  • Extracting and segmenting existing client data to identify potential areas for new product development with a particular focus on women empowerment

Looking Ahead

UNCDF Myanmar is excited to work with FSPs to strengthen their management and usage of client and financial data. This initiative has wide implications, leveraging other projects that UNCDF is undertaking in Myanmar, such as the Market Development Facility (MDF) fund which will provide debt financing to microfinance companies.

Contact Information

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