Working together on
microfinance and microinsurance
microfinance and microinsurance
His first assignment as a BRS volunteer took Juan Guldentops, a KBC Group employee in Bulgaria, to Ecuador. The question of whether that was also his first introduction to Latin America elicits a smile from him. "Actually, it wasn't. But I don't remember much about that first time. That was when I was born in Venezuela." Juan was one and a half when his parents returned to Belgium. His only tangible memory of that time is his first name. An useful leg-up in his contacts with the Ecuadorians, it would turn out.
"The request for me to go to Ecuador for a few days for BRS to support savings and credit cooperatives in their lending process came from Philip Marek of the BRS Institute. As a former colleague and good friend, he knows my experience in that field. And he remembered that I once took Spanish lessons. That Spanish needed brushing up, but otherwise I was immediately enthusiastic. I love sharing my expertise. And also my knowledge of micro business in Bulgaria - not quite the same as microfinance, but there are similarities - would certainly come in handy.
We left with several BRS employees and volunteers. I worked in tandem with Pieter Vanwildemeersch, a KBC-colleague with perfect Spanish on whom I could lean.
First, we visited Hermes Gaibor, a relatively young and small microfinance organization. Their concrete question was: how do we ensure that our clients repay their loans on time?
The answer to that question begins with the process of awarding credits. How do you do that? And to whom? To gain insight into that, we sat down with management and the credit team and talked with a customer. With the lenders, we then delved deeper into the steps they go through when applying for credit. Very tangibly, through role-play with fictitious customers. Based on this, Pieter and I made recommendations. For example, to profile their clients and tailor the credit approval process accordingly. With a customer who has been repaying his loans nicely on time for five years, you don't have to go through the same steps as with a first application. And you also charge him different rates.
The second cooperative we visited, San Antonio, has been around longer and their lending process is more elaborate. Our contribution was therefore more modest. But here, too, we suggested that the profile of their clients be more extensive, both for risk management and from a commercial standpoint.
BRS's approach to such support is entirely in keeping with my own style as an expat abroad. I don't go to Bulgaria with the attitude of an omniscient Belgian and tell them how to go about it. I do explain why I think certain things work better this way or that. In Ecuador we also made recommendations based on our experience. They choose for themselves if and how they will work with these recommendations. For me that is obvious.
This first experience as a BRS volunteer was fascinating and educational. Fun t oo, although it was anything but a vacation. And very definitely interesting!
What I found most fascinating were the meetings with clients. Through them you discover the broader context, how people live and work. And that microcredit really helps them move forward. Like, for example, the meeting with cocoa farmer Alfredo, who had been a member of the San Antonio cooperative for eight years. Thanks to an extra credit of 400 euros, he was able to have his plantation better pruned and maintained.
And is there anything better than hearing a farmer tell you about his work or a farm manager tell you about his business? I always find it a pleasure to listen to that. Whether in Belgium, in Bulgaria or in Ecuador: people are proud of their work I Their company - no matter how small - Is their child. When they tel about it, it is with love.
Of all the experiences in Ecuador, that was the most wonderful for me!"
