Bangladesh is the birth-place of microfinance and this is recognized all over the world.

In the early stage, microfinance was not known to the world properly and it was thought that poverty reduction through microfinance would be a dream in future. But, later on, it has proven to be the most successful method of poverty reduction as well as empowerment.

Different organizations of the world, working in this sector, became aware of the success of a few Bangladeshi institutions and became interested in replicating the model. They proposed to get consultants from the successful NGO/MFIs as both the concept and the model were new to them.

ASA provides Technical Assistance (TA) to other organizations through assistance in replicating ASA Model. ASA’s senior officials are seconded there to assist the respective organization in replicating the model. They provide technical assistance in different ways through establishing and operating model branches as well as upgrading the existing branches. Side by side they also provide necessary training to the staff to implement the program in a quick and sustainable way.

 

ASA has been providing Technical Assistance (TA), since 1993, to the NGO/MFIs of different countries as a microfinance consultant. In 1993, it provided TA to Cambodia under an agreement with HEKS, Switzerland. In 1994, it started working with Save the Children (USA) and provided TA to Jordan, Ethiopia and other countries. Observing the astonishing success of ASA Model, UNDP, later on, selected ASA as the International Technical Service Provider (ITSP) through an international bidding in 1998 under the Micro Start Project and ASA started to provide TA in different NGO/MFIs of Nigeria and the Philippines. One of those projects, at that time, was declared as the best in the world. ASA also provides TA to the NGOs/MFIs of different countries through bilateral agreement. KASHF (Pakistan), BINA SWADAYA (Indonesia), SIDBI (India) etc. have taken ASA’s Technical Assistance (TA) under this agreement. It has already provided NGO/MFIs of more than 15 countries around the globe with technical assistance for their quick and sustainable development. A considerable number of visitors and trainees also visit ASA every year with a view to acquiring knowledge about implementation of ASA programs and activities.

ASA has provided the following countries with TA

• Laos
• Cambodia
• Tajikistan
• Jordan
• Ethiopia
• Myanmar
• Afghanistan
• Peru
• Mauritius
• Indonesia
• Yemen
• India
• Pakistan
• Sri Lanka
• Nigeria
• Philippine
• Vietnam

Characteristics of ASA’s TA services

• ASA delivers both on-site and off-site assistance
• ASA staff takes part in directly in implementing programs and helping build local capacity
• ASA offers professional expertise on cost-efficiency and on fast scaling with simple operational policies and procedures while remaining focused on low-income households. Branches become financially sustainable within one year; institutions reach self-sustainability within 3-5 years.
• ASA methodology rewards individual deference in providing services. Thus ASA does not follow a group liability model where good clients are penalized by other clients’ bad behavior.
• ASA requires decentralized branches to adhere to the policies and procedures outlined in its stream-lined manual, thus ensuring quick service and close monitoring throughout the institution.
• ASA TA drastically reduces overhead at middle to head office levels.
• ASA TA reduces repayment delinquency and systematizes accountability for all tiers of the institution.
• ASA TA targets financial viability with borrowed funds/capital.
• ASA TA demands transparency at all levels of operation.
• ASA TA implements viable strategy and cost-efficiency into the institution.
• ASA TA helps an institution start simply and grow rapidly.
• ASA TA relies on simplified and standardized service procedures, minimizing decision-based errors made by less experienced staff. It also adheres to quick, streamlined problem-solving in the field.

ASA’s broad TA experience covers the following fields

• Institutional development
• Planning
• Operational procedure (locality & client selection, group formation, disbursement & collection)
• Necessary training to the staff and to the trainer
• Establishing new model branches and upgrading the existing branches
• Overall management (member, staff, office, etc.)
• Decentralization
• Developing working manual
• Accounting & record keeping
• Finance & MIS
• FIS & RLF
• Auditing and monitoring
• Human Resource development
• Designing appropriate microfinance products
• Tailor made software for individual clients

ASA’s TA projects prove its success in maximizing MFIs’ potential for efficiency and scale

ASA breeds new generations of MF leaders and successful organizations for large outreach and impact. Some examples are included below.

MFI	COUNTRY	YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5
Bandhan	India	2,029 (2002-03)	9,282 (2003-04)	51,586 (2204-05)	176,063 (2205-06)	517,758 (2006-07)
LAPO	Nigeria	4,849 (Dec’99)	15,484, (Sept’02)	43,699 (Dec’05)	88,006 (Dec’ 06)	130,979 (Dec’070
Life Bank	Philippines	8,025 (Jan’03)	28,319 (June’04)		54,770 (June’06)	100,042 (July’07)
CARD	Philippines	33,718 (Jan’03)	71,562 (June’04)			186,016 (Feb’07)
Lak Jaya Microfinance Ltd	Sri Lanka				2,453 (Mar’06)	16,454 (Nov’07)

ASA also assisted 40 MFIs in 17 countries on request; MFIs that experienced growth after receiving limited TA from ASA through exposure visits and strategic advice include:

MFI	COUNTRY	YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5
Kashf	Pakistan	15 (1996)	?	59,418 (Dec’03)	76,170 (Dec’05)	164,391 (Mar’07)
MBK	Indonesia		3,274 (Dec’04)	12,335 (Dec’05)	27,978 (Dec’06)	41,136 (June’07)

A total of 54 MFIs in 17 countries have received ASA’s technical assistance services.