Thank you for Social Finance Vibe 2024

We’ve wrapped up an incredible 2 days of Social Finance Vibe filled with insights, inspiration and collaboration. From speakers and sponsors to attendees, we extend our gratitude for your invaluable support and active participation.

Social Finance Vibe 2024 Highlights:

• Over 400 attendees from 70+ countries
• 26 sessions and over 60 expert speakers
• Two organizations honored in the Green Recognition Ceremony: Faer (Romania), Credal (Belgium)
• Inspiring talks by keynote speakers: Andriana Sukova (Deputy Director General of DG Employment at the European Commission), Timothy Ogden (Managing Director at the Financial Access Initiative at New York University’s Wagner School of Public Service)and Archil Bakuradze (Chairman of JSC MFO Crystal and MFC Council Chairman).
• Focus on 3 key themes: social economy, client diversity and exploration of megatrends

Recordings of all sessions will be available on our website soon.

Thank you for helping make Social Finance Vibe 2024 special. We’re grateful for the opportunity to learn, connect and strengthen the visibility of the social economy and microfinance sectors with you.

We look forward to seeing you at future events.

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them. 

Microfinance for Youth Entrepreneurship Campaign 2024

The Microfinance Centre (MFC) is committed to ensuring equal opportunities for young people to start their own businesses and is launching the Microfinance for Youth Entrepreneurship Campaign 2024. Together with its partners, MFC aims to spotlight the essential role of the microfinance sector in empowering young entrepreneurs. This campaign will share key insights from the recent publication Missing Entrepreneurs 2023 and highlight success stories from various microfinance institutions across Europe.

Through this initiative, MFC will expand its reach to engage microfinance stakeholders and underscore the sector’s critical role in supporting youth entrepreneurship. According to Missing Entrepreneurs 2023, around 40% of young people in the EU, aged 15 to 30, aspire to be self-employed. However, barriers such as limited entrepreneurial skills, constrained networking opportunities, and restricted access to finance continue to hinder young people’s ability to start businesses or become self-employed, despite increased support.

Ewa Bankowska, MFC Deputy Director, stated: The Microfinance Centre and its partners have supported the ‘missing entrepreneurs’ for over 2 years. By sharing success stories and building awareness, we advocate for microfinance as a vital bridge for young entrepreneurs facing financial barriers. Last year’s campaign highlighted the role of microfinance in supporting female entrepreneurship and this year, we’re focusing on youth. Notably, 89% of European MFIs already finance young entrepreneurs’ ventures. Our mission is to boost young entrepreneurship internationally through microfinancing.

The Missing Entrepreneurs 2023 is the seventh edition in a series of biennial reports examining how government policies can release untapped entrepreneurial potential from under-represented parts of the population of impactful entrepreneurs, including women, youth, seniors, the unemployed, immigrants and people with disabilities.

Participating organizations include:

• 3Bank
• Prima Finantare
• Microinvest
• Vitas30
• Partner
• Fondi Besa
• Microsmart
• Mi-Bospo
• AMFI
• FedInvest
• EKI
• NOA
• BCR Social Finance IFN
• Moznosti
• Agro and Social Fund
• AMA
• Kredo

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them. 

The Missing Entrepreneurs 2023 is the seventh edition in a series of biennial reports examining how government policies can release untapped entrepreneurial potential from under-represented parts of the population of impactful entrepreneurs, including women, youth, seniors, the unemployed, immigrants and people with disabilities. It offers comparative data on the entrepreneurship activities and the barriers faced by each group across OECD and European Union countries. It takes a deep dive into the effectiveness of youth entrepreneurship schemes and the design of welfare bridge schemes for business creation by job seekers. It also contains country profiles for each of the 27 EU Member States showing the major recent trends in diversity in entrepreneurship and the current state and evolution of policy for each country.

Borrow Wisely Campaign 2024

How much is safe to borrow? What will I really pay for a loan? Can I spot legal pitfalls? How do I avoid losing money? These are the essential questions at the heart of the Borrow Wisely campaign. This year marks the 10th edition of this international financial education initiative, led by the Microfinance Center (MFC) in partnership with 14 organizations across Europe. The campaign aims to help clients borrow money safely, avoid over-indebtedness, and build a trustworthy reputation for the microfinance sector.

What is the “Borrow Wisely” Campaign?

The “Borrow Wisely” campaign promotes global client protection standards. Led annually by the Microfinance Center and its partners − responsible lenders committed to building a trustworthy microfinance sector − the campaign seeks to educate clients on borrowing wisely and avoiding the pitfalls of excessive debt.

Empowering Borrowers to Make Informed Choices

The campaign’s goal is to help clients understand that the power to borrow wisely is in their hands. By asking the right questions, borrowers can avoid the risks of over-indebtedness and make well-informed decisions about how much they can safely borrow.

Why Microfinance Institutions Join Forces

For over 30 years, microfinance institutions have been committed to protecting their clients by promoting responsible borrowing practices. This campaign reinforces the importance of client protection, helping to prevent over-indebtedness and empowering clients to make informed financial decisions. By working together, microfinance institutions ensure they continue to serve their clients effectively while upholding international standards for responsible lending.

What We Do

The campaign reaches out to clients and potential clients of microfinance institutions through posters, leaflets, brochures and social media communicating the importance of borrowing wisely. A simple “pre-loan” checklist of questions helps ensure that clients borrow within safe and responsible limits.

Ewa Bankowska, MFC Deputy Director, said: Microfinance acknowledges its partners for their dedication to promoting the Borrow Wisely Campaign and achieving significant results over the years. Last year alone, we reached an audience of approximately 2,423,487 individuals through a blend of online and traditional communication methods. At the Microfinance Center, collaboration is key, and together with our 14 partners, we are making a more substantial impact in promoting responsible borrowing practices.

Campaign Partners 2024:

• Prima Finantare, Moldova
• Microinvest. Moldova
• Vitas, Romania
• Partner,  Bosnia and Herzegovina
• Fondi Besa, Albania
• Mi-Bospo, Bosnia and Herzegovina
• AMFI, Bosnia and Herzegovina
• FED Invest, Albania
• EKI, Bosnia and Herzegovina
• IUTE, Albania
• NOA, Albania
• Microsmart, Greece
• Horizonti, Macedonia
• Moznosti, Macedonia
• Agro & Social Fund, Albania
• The Albanian Microfinance Association, Albania
• Kredo, Albania

Celebrating the Resounding Success of the 26th MFC Annual Conference Through Remarkable Images

The Microfinance Centre (MFC) is proud to announce the resounding success of the 26th MFC Annual Conference Embracing Diversity for Inclusive Finance. Held on May 14-15, 2024, in Cracow, Poland, the event gathered approximately 400+ participants from 39 countries, creating a dynamic atmosphere for insightful dialogue and networking.

The conference attracted the microfinance providers from 127 microfinance and social enterprise finance providers, 12 microfinance national associations, 28 investors, 13 consultancies, 9 policymakers and regulators, and 5 IT & digital services providers.

Attendees highlighted key aspects of the event: 64% valued meeting potential business partners, 61% found the sessions highly informative, and 71% appreciated the relevance of the sessions to their work and the professionalism of the speakers. Furthermore, 89% of participants felt they had ample time to engage with other participants, leading to numerous significant connections and discussions (*).

The conference featured a diverse array of sessions addressing pressing issues in microfinance. Participants engaged in thought-provoking conversations led by industry experts and thought leaders, exploring topics such as pathways to inclusive finance, innovative approaches to climate change, leveraging technology for greater financial inclusion, ESG reporting as a catalyst for microfinance transformation and the intersection of finance and social impact. Sessions underscored microfinance’s role in empowering vulnerable entrepreneurs, navigating trends in inclusive finance, and harnessing artificial intelligence for diverse and inclusive microfinance.

The Microfinance Center had privilege of hosting distinguished speakers and moderators, including Cristina Dumitrescu from European Investment Fund (Luxembourg), Surjit Chana from Beneficial State Bank (United States), Florian Ott from Erste Group Bank AG (Germany), Elvina Garayeva from Incofin Investment Management (Belgium), Brigitte Fellahi-Brognaux from European Commission, DG EMPL  (Belgium), and many more esteemed experts (the full list of speakers is on:  www.2024mfc.org). Their insightful presentations and expertise greatly enriched the conference.

During the conference, MFC hosted a landmark roundtable with representatives from the National Banks of Armenia, Georgia, Kyrgyzstan, Tajikistan, and Uzbekistan, alongside delegates from the Asian Development Bank (ADB) and International Finance Corporation (IFC). Participants deliberated on strategies to promote sustainable growth in the microfinance industry, with a focus on financial stability and consumer protection. Regulators discussed addressing challenges within their respective countries, while ADB and IFC representatives shared their extensive experiences, offering valuable advice on regulatory frameworks.

The roundtable concluded with a commitment to ongoing knowledge sharing and policy discussions aimed at fostering a supportive regulatory environment. A subsequent networking lunch furthered opportunities for dialogue and collaboration, including additional representatives from Bosnia and Herzegovina, Kosovo, and national microfinance associations.

The MFC Annual Conference provides a unique opportunity to establish new partnerships between funders and social finance providers. Each year, we are happy to welcome new stakeholders joining the MFC family – remarked Archil Bakuradze, MFC Council Chairman and Chair of the Supervisory Board at JSC MFO Crystal, Georgia.

Ewa Bańkowska, MFC Deputy Director emphasized:  The microfinance sector continues to diversify by welcoming new types of financial providers, funders, but most importantly by expanding the outreach to vulnerable groups such as migrants or social enterprises. The diverse and dynamic interactions during the conference underscored the importance of embracing diversity to achieve financial inclusivity.

The conference was generously supported by sponsors: European Investment Fund (EIF),  responsAbility Investments AG, Bank Gospodarstwa Krajowego, BlueOrchard, Frankfurt School of Finance & Management, Finance in Motion, The European Fund for Southeast Europe (EFSE) and partners:  Agents for Impact GmbH, Accion, Aspekt, Incofin, Triple Jump, Polish Bank Association, CGAP’s FinDev Gateway.

See more remarkable images from the Annual Conference

About Microfinance Centre (MFC):  

The MFC is a social finance network that champions fairness, inclusion, equality, and responsible service. It unites over 130 organizations across 36 countries in Europe and Central Asia, collectively delivering responsible microfinance services to nearly 2,000,000 low-income clients. Together with our members – microfinance, financial cooperative systems, social finance banks, social investors, academic institutions, national and international support organizations and networks – we seek to make financial services work effectively for people, communities and the planet by embracing sustainability good practices and standards, sharing knowledge, advocacy and networking in the region of Europe and Central Asia.

END

Contact Information:

Joanna Sosnowska-Orynska, Communications Coordinator at MFC

Email: joanna.sosnowska@mfc.org.pl

(*) According to evaluation survey results

Watch SIFTA Webinar: AI powered solutions for SEFPs – Responsible AI, Machine Learning and Practical Use Cases for Microfinance and Social Finance Institutions

Our Experts

Andre Kravchenko – Senior Vice President of Business Development at HES FinTech

Andre Kravchenko is the Senior Vice President of Business Development at HES FinTech. In this role, Andre is responsible for the development of strategic partnerships in the financial services ecosystem, working with legacy and fintech lending institutions on driving digital transformation, innovation and financial inclusion, powered by AI and Machine Learning. Andre is also the Head of Fintech Capital Solutions Advisory at HES FinTech, bringing over a decade worth of debt and equity capital markets experience and extensive transactional track record in the impact investment space.

Gift Mahubo – Senior Director, Operations and Technology, Accion Advisory

Gift Mahubo manages the delivery of data-centered and tech-enabled services to our global partners. Gift joined Accion in 2011 and brings more than 20 years of experience working in the areas of technology, digital strategy, process automation and digital product implementation. Prior to joining the organization, he served as Chief Information Officer for Accion partner Accion Microfinance Bank. Gift holds an MBA from National University of Science and Technology, Zimbabwe and a degree in electronic engineering, and is certified in IT governance, information security, auditing, compliance and project management.

Mark Rudak – Machine Learning Product Owner, GiniMachine

Mark Rudak holds the position of Machine Learning Product Owner at HES Fintech, where he plays a key role in the planning and development of a cutting-edge machine learning-based platform – GiniMachine, a no-code AI solution for Data Driven Decisioning.
With a deep understanding of the industry landscape, Mark is a driving force behind the transition towards responsible deployment of AI and strategic utilization of alternative data sources.

Our partners

Watch SIFTA Webinar: How to analyze social enterprises – Demystifying Financing Social Enterprise: Analysis, Risks & Rewards

Our Experts

Teresa Zagrodzka – senior expert in the field of financing social enterprises as well as being a professional advisor and trainer for the NGOs sector.

She headed the Social Economy department in TISE – Polish microfinance institution which implemented pilot program: preferential loans for social enterprises in Poland, then continued with the developed financial instruments for these entities also in other countries: Slovakia, Slovenia, Croatia, Hungary.  As an expert, trainer and adviser she participated in the project creating the social enterprises’ support ecosystem in North Macedonia in terms of reinforcement already existing entities, encouraging potential partners to finance them (including loans, donations, contracts).

In the role of MB member or financial director she was and still is in charge of finance management in few organizations that run economic activity.

She wrote many articles and publications on finance management, basic accountancy for non-accountants, dedicated to NGO managers. She is also co-author of manual on an innovative social impact bonds concept, report on financial sources for innovative projects in Poland or several reports on the Macedonian social entrepreneurship needs, condition and development directions.

Beata Biela – Advocacy Manager.

Beata has professional experience both in social economy sector and in business entities. She worked in TISE within social economy division both in grating loans to social economy entities and in Social Venture Capital. Before that she worked in Caritas Somalia in Africa, at Finance Commission of Caritas Internationalis in Rome, PAH. In the past, she worked in business entities like PKN Orlen (capital investments), PKP (capital group controlling), Pfeifer&Langen – previously BSO Polska (controlling and business development), Ernst&Young (due diligence, corporate finance, audit). She graduated from Warsaw School of Economics in the line of Finance and Banking as well as Management and Marketing. She also completed postgraduate studies of Geopolitics and Geostrategy, Global Development, MBA. She is a CFA charterholder.

Our partners

Watch SIFTA Webinar: How to give employees constructive feedback

Our Experts

Bożena Olszewska, Servant Leadership trainer, coach and emphatic communication trainer

Bożena for over 15 years has been practicing the use of modern forms of education such as coaching, career counselling, Career Compass and behavioral style profiling. 
She supports people and organizations in following and discovering direction and empowering strategies that flow from their values and needs. 
Throughout her career, she has been in charge of distribution, developing contractor networks and sourcing new markets in Europe, Asia and the USA. At the same time, she led groups and teams in non profit organizations. She also supports artistic communities, aimed at the personal development of artists. 

Our partners

Early Bird Registration Closes Soon for MFC 26th Annual Conference Embracing Diversity for Inclusive Finance 

Don’t miss out on this exclusive opportunity! Early Bird Registration for the upcoming MFC 26th Annual Conference Embracing Diversity for Inclusive Finance is open until March 31, 2024. Secure your spot today and take advantage of special rates!

Why Attend? 

• Network and partner with industry leaders. 
• Discover how microfinance empowers diverse communities, including migrants, farmers, and women. 
• Engage in skill development discussions aligned with the European Year of Skills initiative. 
• Attend inspiring talks and actively contribute to shaping the future of microfinance. 

 

Captivating Cracow in Poland 

Cracow, known as Poland’s cultural capital, sets the stage for this transformative conference. Immerse yourself in its rich history, vibrant atmosphere, and captivating architecture from different ages. Experience the thriving arts scene and indulge in the region’s culinary delights. Cracow effortlessly combines old-world charm with a modern vibe, offering an ideal backdrop where tradition and progress converge. 

Join us in Cracow for this impactful conference, where we collectively advance microfinance, foster social and economic development, and embrace the power of diversity. 

Early Bird Registration closes soon! 

Secure your spot today and unlock access to exclusive rates. https://2024mfc.org/ 

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them. 

FEBEA and MFC Join Forces to Strengthen Microfinance and Ethical Finance in Europe

Microfinance Centre (MFC) and European Federation of Ethical and Alternative Banks (FEBEA) are thrilled to announce their strategic partnership, aimed at advancing the cause of microfinance and ethical finance in Europe. This collaboration will focus on policy and advocacy activities, communication, and events to promote these vital tools for the development of the Social Economy in Europe. 

By actively engaging in EU policy discussions, working together on European Financial Instruments, and addressing common challenges in relationships with European Institutions and stakeholders, FEBEA and MFC seek to create a stronger and more unified voice for microfinance and ethical finance within Europe. 

As two leading organizations in their respective fields, FEBEA and MFC bring extensive expertise and networks that will greatly benefit their customer bases and the wider community. This partnership will provide an opportunity to drive positive change, foster innovation, and strengthen the impact of microfinance and ethical finance on social and economic development. 

As part of this collaboration, FEBEA and MFC have established a framework partnership agreement, outlining their shared objectives and areas of cooperation. This agreement will serve as a solid foundation for their joint efforts and ensure a coordinated approach towards achieving their common goals. 

Both organizations are excited about the opportunities this partnership will bring and are committed to working together to drive positive change and support the growth of microfinance and ethical finance in Europe. 

About Microfinance Centre (MFC):  

A social finance network that promotes fairness, inclusion, equality and responsible service. MFC unites over 120 organisations across 36 countries of Europe, Central Asia, who together deliver responsible microfinance services to almost 2,000,000 low-income clients. 

About FEBEA – European Federation of Ethical and Alternative Banks and Financiers: 

A non-profit association based in Brussels gathering 33 members whose aim is to finance social and solidarity economy (SSE) and projects with social, environmental and cultural value in 17 European countries, serving more than 700,000 people. Its objective is to support the exchange of experiences and promote cooperation between social economy and social finance practitioners. 

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them. 

Setting up financial instruments supporting migrant integration.

Practical guide part 1

This fi-compass practical guide aims to assist Asylum, Migration, and Integration Fund (AMIF) Managing Authorities and other stakeholders as they begin exploring the use of financial instruments to support third-country nationals’ integration in the EU. It explains how shared management financial instruments work and who can benefit from their support. The guide covers advantages of using financial instruments, implementation options, opportunities to combine grants and financial instruments, key stakeholders’ roles and responsibilities and well as key milestones in the financial instrument lifecycle.

Read the publication

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them. 

Watch Webinar: MFC and Tech to the Rescue

As you may already know, MFC and Tech To The Rescue (TTTR) – a global platform that connects nonprofits with tech companies – have established a cooperation in August this year. The goal of this cooperation is to assist and support MFC Members in their digital transformation to help them achieve their mission and vision more effectively and efficiently.

As part of this cooperation, we are inviting you to a webinar on how MFC Members can benefit from TTTR collaboration systems.

During this webinar, you will learn about:

• What are TTTR’s goals, who are TTTR’s partners
• What is the nonprofit organization journey with TTTR- process explanation of how to register and submit a project and what the crucial elements of well-written projects are
• Examples of solutions and available technologies.
• Q&A session

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them. 

Green Index 3.0: case studies for each Essential Practice

Read the case studies which illustrate how the Green Index framework can be useful to the institutions looking for learning about good practices in green inclusive finance and willing to share their own good practices.

The “Green Essential Practices Case Studies Series” highlights the experience of Financial Service Providers (FSPs) with good practices in the 8 key areas identified in the Green Index 3.0. The Case studies under this series offer practical examples of how an FSP developed its practices to inspire and facilitate the journey of others.

The 8 Green Essential Practices (EPs) provide a roadmap for FSPs to maximise their green impact:

EP1: Define their environmental strategy	Assilassimé Solidarité (Togo)      Chamroeun (Cambodia)
EP2: Implement their environmental strategy	Fortune Credit (Kenya)      Fundación Génesis Empresarial (Guatemala)
EP3: Identify client or portfolio-level environmental risks and opportunities	COMUBA (Benin)      Bancamia (Colombia)
EP4: Identify institutional-level environmental risks and opportunities	Tamweelcom (Jordan)      CACMU (Equador)
EP5: Manage client or portfolio-level environmental risks and opportunities	Caurie MF (Senegal)      Muktinath (Nepal)
EP6: Manage institutional-level environmental risks and opportunities	RENACA (Benin)      Banfondesa (Dominican Republic)
EP7: Offer green financial products and services	Pula (Global)      Annapurna (India)
EP8: Offer green non-financial products and services	ASKI (Philippines)

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them. 

Improving the Economic Integration of Refugees: What Can We Learn for the Future?

In November we delivered the session at European Microfinance Week, sharing MFC experience and network perspective at providing financial inclusion for refugees.

In this session, the panellists discussed the results and key learnings gained from different experiences in providing financial and non-financial services to refugees. They presented the big picture as well as individual and practical experiences and discussed the take-aways for the future. During the session, participants learnt from:

• Council of Europe Development Bank (CEB) supporting refugee and migrant integration since 1965. Recently, it has expanded its microfinance operations, implementing innovative programs such as PAMFI. Refugees and Internally Displaced Persons (IDPs) are one of the focus groups for CEB investments.

• Frankfurt School of Finance & Management: Through the FOSTER – Empowering the Private Sector to Foster Social and Economic Cohesion in Türkiye project, Frankfurt School supporting MSMEs and job creation in regions affected by the Syrian refugee crisis.

• The Microfinance Centre: MFC presented findings from its research on the provision of business development services (BDS) to Ukrainian female refugees and shared reflections on the challenges faced by these refugees to access finance.

• PerMicro: a leading microfinance institution from Italy, Permicro contributed to the discussion with its practical experience in providing financial and non-financial services to refugees, including the implementation of the PAMFI project.

View Agenda

The Study Visit to Banca Ethica

The study visit to Banca Etica on November 15, 2024, provided an insightful exploration of the bank’s innovative approach to social finance and digital transformation. Participants from Italy, Bulgaria and Sweden engaged in detailed sessions on Banca Etica’s mission, digitalization journey and ESG evaluation processes, showcasing the bank’s commitment to sustainable and ethical banking.

Hands-on presentations highlighted the efficiency of the virtual branch network and client onboarding systems, as well as strategies for credit risk assessment. The event concluded with a collaborative discussion on lessons learned and opportunities for future cooperation in advancing socially responsible finance practices.

We would like to thank the experts from Banca Etica:

• A. Celoni, Credit office
• T. Rondinella, Impact Office
• A. Ruschi, C.A.R.E. office
• M. T. Farfaglia, C.A.R.E. office
• S. Grillo, Institutional Marketing office
• G. Giuglietti, General Director, Head of the International Development Office

As long as employees from Banca Etica, who assisted in organizing this event:

• C. Franco, International Development Office
• P. Saini,  International Development Office

Furthermore participants:

• Luca Fabbrini, Credit Manager, Artigiancredito
• Filomena Tangi, Credit Manager’s Assistant, Artigiancredito
• Rodrigo Garay, CEO, Ponture
• Nikolay Draganov, Manager Strategic Planning, Maritza Invest
• Grzegorz Galusek, Moderator, MFC
• Chiara Alberani, Translator

CEE Social Economy Forum in Vienna

CEE Social Economy Forum took place on 8^th November at the premises of Erste Group in Vienna, Austria. For the first time, this forum gathered policymakers, European Social Fund Plus (ESF+) managing authorities, national promotional banks, microfinance and social finance providers, impact investors, and experts from the EC, EIB Group, and Council of Europe Development Bank to discuss the future of the social economy in Central and Eastern Europe (CEE).  

MFC was one of the co-organisers together with the European Commission (EC), Directorate-General for Employment, Social Affairs and Inclusion (DG EMPL), the European Investment Bank (EIB) Advisory Services Department for fi-compass, Erste Group, European Microfinance Network, FEBEA and Impact Europe. 

The panels focused on the state of social economy in CEE, financial instruments for social economy, bridging social policy gap through leveraging microfinance for inclusive growth in CEE and the roe of impact investors in driving social entrepreneurship growth in the CEE Region. 

The forum enabled exchange, networking and collaboration among the various social economy stakeholders and supported the sector development through better understanding its needs and potential solutions. 

We would like to thank our members who were the speakers and participants for their contribution! MFC was represented by Ewa Bańkowska, Deputy Director and Beata Biela, Advocacy Manager. 

Unlocking EU Support for Microfinance and Social Economy

As part of the SIFTA program, on October 29th, during the annual Finance Social Vibe conference, a session titled Navigating EU Instruments and Programmes for Microfinance and the Social Economy took place. It was one of four sessions under SIFTA brand.

During the session, financial service providers, microfinance practitioners, as well as creditors and investors, received an update on various EU instruments and programs designed to support microfinance and social enterprise finance providers.

The session also included recent updates on existing and planned initiatives from DG Employment, the European Investment Bank (EIB), the European Investment Fund (EIF), and the Council of Europe Development Bank (CEB).

Additionally, Banca Etica shared insights on support received from the EIB, which includes funds aimed at empowering women-led small businesses, supporting projects in cohesion regions, and enhancing services and economic opportunities for refugees. Furthermore, the EIB will provide Banca Etica with technical assistance through financial backing from the InvestEU Advisory Hub.

The recording of the session will be avaiable soon on our website!  

How to develop Greek market?

How to develop Greek market?

As part of the SIFTA program, on October 15th, MFC and Neoklis Stamkos facilitated an onsite Greek workshop on “How to develop Greek market?” Throughout the event, participants engaged in comprehensive sessions examining the intersection of microfinance, artificial intelligence (AI), and environmental, social, and governance (ESG) principles. The workshop provided participants with insights into innovative credit scoring methodologies, diverse funding sources for Microfinance Institutions (MFIs), and the potential of AI to drive financial inclusion. The event concluded with a networking session, fostering connections among leaders and practitioners dedicated to advancing the microfinance landscape in Greece. The agenda featured presentations from distinguished experts in the Greek microfinance sector and detailed case studies from organizations such as Ginimashine, HDB, and Tiresias.

Leaders in the area of Green Inclusive Finance

On 30 Oct, during 4^th edition of MFC online conference Social Finance Vibe: Leadership and Diversity Microfinance Centre continued to recognize leaders in the area of Green Inclusive Finance in 2024. This initiative was launched by MFC to raise awareness of green good practices and reward those who are taking an extra mile and experiment in this field.  

This year MFC recognized two institutions:  

FAER from Romania as 2024 Leader in Sustainable Agriculture Innovation for pioneering sustainable farming practices through comprehensive training and innovative soil management initiatives. FAER encourages its agriculture clients to do the soil testing, in order to help farmers to apply the fertilizers in more precise way. They also organize study visits of their clients to promote the best practice in soil testing and sharing the benefits from good understanding the soil chemical composition. 

Credal from Belgium as 2024 Leader in Building Sustainable and Green Businesses as well as for introducing ESG score card in their credit analysis. The tool helps Credal to make faster decisions on eligibility and also assists with objective credit analysis of the new applications when it comes to considering such important factors as ecological footprint; zero waste; engagement in circular economy; use of organic, local and seasonal produce and short distribution channels.  

Congratulations to both recognized institutions!  

Microbalkans24: A Microfinance Conference Organized in Sarajevo

During 31 October – 1 November 2024, Pavol Kapsdorfer, MFC Network and Partnership Manager participated at the Microbalkans24, a first Western Balkan microfinance conference organized in Sarajevo, Bosnia and Herzegovina. He presented the position of the Balkan microfinance sector in the European microfinance market as well as MFC observed trends and developments of the microfinance sector.  Ewa Bankowska, MFC Deputy Director, participated online with her presentation on Borrow wisely campaign, recognizing the Balkan sector for ongoing commitment to social mission and their client’s ethical treatment, educating them and their families on how to borrow wisely.  

The conference brought together over 200 practitioners from the microcredit sector of the Western Balkans, as well as key stakeholders from the region and beyond, to discuss the most important topics shaping the future of the microfinance sector, including digitization, ESG initiatives with a focus on the energy transition and the role of women in the sector, and the indispensable regulatory framework.  

The importance of the conference has been also confirmed with the personal presence of Ms. Jasmina Selimovic, the Governor of Central Bank in Bosnia and Herzegovina, who addressed opening speech. She emphasized the significant role of the microfinance sector in Bosnia and Herzegovina and across the Western Balkans, which goes beyond financial assistance alone. Many families, especially in rural areas, depend on this access to finance to improve their living conditions, develop agricultural production, or start entrepreneurial activities that bring security and stability. Each approved microloan represents not only financial support, but also a message of trust, hope and opportunities. Governor Selimović also highlighted the importance of personalizing access to users and providing non-financial services, such as counseling and education, which is becoming a key element of the success of the microfinance sector. 

This event represented a key step towards the establishment of the Alliance of Microfinance Institutions for the Western Balkans, with the aim of improving the business environment and strengthening cooperation among microfinance institutions. During the event, a Memorandum of Understanding (MOU) between other MFC members, microfinance associations, from Western Balkan countries has been signed to formalize this important initiative.  

Special congratulations to Elma Zukic, President of Association of Microfinance Institutions in Bosnia and Herzegovina and her team for organizing successful event and coordinating the establishment of the Alliance. 

Innovative Solutions for Sustainable Microfinance: Azerbaijan Microfinance Association’s Conference

On October 23, 2024, our member Azerbaijan Micro-finance Association (AMFA) organized prestigous conference on the topic of “Innovative Solutions for Sustainable Microfinance”. The Chairman of the MFC Council, Archil Bakuradze, has been among those to address the opening speeches. He emphasized on Azerbaijan’s progress in promoting access to finance for micro and small entrepreneurs, farmers noting the high quality collaboration between public and private institutions.  

The event explored the current state of microfinance in Azerbaijan and compared it with global trends; examined how digital technologies are reshaping microfinance operations and service delivery; addressed the growing importance of data security in the digital microfinance landscape; discussed comprehensive approaches to identifying, assessing, and mitigating risks in microfinance operations and reviewed how investors contribute to expanding access to finance and shaping the financial inclusion ecosystem. 

Delegates concluded that microfinance plays an important role in socio-economic development by providing access to financial resources for micro businesses and micro entrepreneurs. However, traditional methods are sometimes not enough to create sustainable and effective microfinance solutions. In this regard, the application of innovative approaches has become a necessity. New technologies and innovative financial instruments have the potential to make the microfinance sector more inclusive and sustainable. The development of sustainable microfinance in Azerbaijan aims to increase financial accessibility for small businesses and individuals, as well as ensure their long-term sustainability. 

Big congratulations to the Jhale Hajiyeva, Executive director of AMFA for organizing succesful event!  

Combining ESF+ financial instruments with grants

This factsheet describes how ESF+ financial instruments can be combined with grants. By combining grants with financial instruments, managing authorities can address market failures, stimulate investment, and create more sustainable project pipelines that align with EU policy objectives. As social challenges can vary considerably among the typical target groups of the ESF+ support, the combination of grants and financial instruments allows for the design of flexible financial solutions tailored to final recipients’ needs and expectations and for calibration of the repayable form of support in line with expected revenues or savings. The factsheet describes the combination options available under the applicable regulatory framework and includes illustrative case studies from several EU Member States, such as Malta, Poland, Czechia, and Italy, which showcase how these combinations can effectively support self-employment, social enterprises, and educational initiatives.

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New Leadership and Modern Organizational Culture in Generational Work

Who is a Servant Leader? How to overcome challenges arising from generational differences? Why do teams today seek inspiring guides rather than dominant dictators? Why are managers learning to be servant leaders when control and accountability are still effective?

We aimed to answer these questions at the online workshop “Team Management: Leadership, Communication, Modern Organizational Culture Aligned with Labor Market Structure and Non-Material Motivation” that we co-organized in October in Warsaw for the Polish Loan Funds Association (Polski Związek Funduszy Pożyczkowych) as part of the SIFTA (Social Inclusive Finance Technical Assistance Programme).

Agenda workshop:

• Managing a Multi-Generational Team: How to overcome challenges arising from generational differences? Inclusive leadership within an organization.
• Modern Communication Tools for Teams: When should a manager shift from being a boss to a facilitator and active listener? A manager’s “toolkit.”
• Psychological Safety in Teams: Its impact on motivation and team effectiveness, including a case study.
• Modern Organizational Culture: Who are Ted Lasso and Max Goodwin from Netflix? Why do teams today seek inspiring guides rather than dominant dictators?
• The Role of Servant Leadership: Why are managers learning to be servant leaders when control and accountability are still effective?
• Balancing Leadership Perspectives: How to combine seemingly opposing perspectives—focusing on people versus business goals.
• What Motivates Your Team Today? The importance of organizational culture and a sense of purpose in fostering motivation.
• The Nomad, the Settler and the Shepherd: How do these archetypes relate to the modern role of a Servant Leader? Can insights from the world of shepherds guide us in building a conscious and responsible organization?

A special thank you to the expert and workshop leader – Magdalena Kamińska from Center of Servant Leadership Poland.

Magdalena Kamińska is the founder of the Center of Servant Leadership Poland and leads the training cooperative Big Call, promoting the concept of Servant Leadership. She designs experiences that foster leadership development in organizations. With over 20 years of experience managing sales, customer experience, and key account areas, she is well-versed in the dynamics of modern, self-managing teams.

At ING, she developed training teams for both retail networks and call centers, creating programs focused on Customer Experience standards and leadership skills. For 14 years, she served as a Director of the Retail Division and as a development coach. Since 2014, she has led her own coaching school. Currently, she lectures at Agile Leadership postgraduate studies at SWPS University and several other leadership programs.

Magdalena is a pioneer of Servant Leadership in Poland, inspiring various organizations to explore alternative work styles. She provides guidance on applying new leadership models within organizations. She has shared her insights through “Personel Plus,” Nienieodpowiedzialni.pl, and media outlets like Tok FM, Chilli Zet, Interia, Wprost Biznes, as well as conferences such as HR Expo, Finskills, IT Manager of Tomorrow, Warsaw IT Days, and even film festivals.