Microfinance, the provision of financial services to the poor, has emerged as one of the promising pathways out of poverty. But how can the people living far from the pathway access microfinance? This case study addresses this question by looking at how an innovative microfinance bank in Africa, Opportunity International Bank of Malawi (OIBM) is exploring alternative delivery approaches and tailored products that appeal to the rural population who have been excluded by the high cost access to the mainstream financial sector. It is experimenting with mobile banking services using armoured trucks equipped with smart card technology, value chain interventions, weather-indexed insurance and savings accounts. Initial evidence indicates that these have the potential to reduce risk, cost and improve access to financial services for those whom microfinance has found difficult to reach. However, the analysis suggests there are inherent challenges that need to be addressed if these successes are to continue.

CGAP (2006) CGAP Agricultural Microfinance Case Study, http://www.cgap.org/docs/AMCasestudy_04.pdf http://www.cgap.org/docs/AMCasestudy_04.pdf

Coetzee, G., Kabbucho, K. and Njema, A. (2003) Taking Banking Services to the People: Equity's Mobile Banking Unit, Microsave, Nairobi.

Cracknell, D. (2004) ‘Electronic banking for the poor — panacea, potential and pitfalls,’ Small Enterprise Development, 15(4).

Hirschland, M. (2003) ‘Serving Small Rural Depositors: Proximity, Innovations and Trade-Offs’, paper presented at ‘Paving the Way Forward: An International Conference on Best Practice in Rural Finance’, Washington DC, 2-4 June 2003.

Honohan, P. and Beck, T. (2007) Making Finance Work for Africa, World Bank, Washington DC.

Ivatury, G. (2006) Using Technology to Build Inclusive Financial Systems, Focus Note 32, CGAP, Washington D.C.

Johnson, S., Malkamaki, M. and Wanjau, K. (2005) ‘Tackling the frontiers of microfinance in Kenya: The role of decentralised services’, Small Enterprise Development, 16(3).

Pearson, R. V. and Kilfoil, C. (2007) ‘Dowa Emergency Cash Transfer Wider Opportunities Evaluation and Recommendations. Solid Lessons and a Promising Vision’, DECT Wider Opportunities Report - Final, v. 01, Concern Worldwide and DFID, Malawi.

Sanchez de Carmona (2007) Financing Business in Malawi, UNDP Growing Sustainable Business, United Nations Development Programme: Malawi. August 2007.

UNCDF (2007) ‘UNCDF and partners to provide $6 million boost to microfinance in Malawi’, www.uncdf.org/english/news_and_events/newsfiles/20070620_malawi.php www.uncdf.org/english/news_and_events/newsfiles/20070620_malawi.php

World Bank (2003) Rural Financial Services: Implementing the Bank's Strategy to Reach the Rural Poor, World Bank, Washington DC.

CGAP (2006) CGAP Agricultural Microfinance Case Study, http://www.cgap.org/docs/AMCasestudy_04.pdf http://www.cgap.org/docs/AMCasestudy_04.pdf

Coetzee, G., Kabbucho, K. and Njema, A. (2003) Taking Banking Services to the People: Equity's Mobile Banking Unit, Microsave, Nairobi.

Cracknell, D. (2004) ‘Electronic banking for the poor — panacea, potential and pitfalls,’ Small Enterprise Development, 15(4).

Hirschland, M. (2003) ‘Serving Small Rural Depositors: Proximity, Innovations and Trade-Offs’, paper presented at ‘Paving the Way Forward: An International Conference on Best Practice in Rural Finance’, Washington DC, 2-4 June 2003.

Honohan, P. and Beck, T. (2007) Making Finance Work for Africa, World Bank, Washington DC.

Ivatury, G. (2006) Using Technology to Build Inclusive Financial Systems, Focus Note 32, CGAP, Washington D.C.

Johnson, S., Malkamaki, M. and Wanjau, K. (2005) ‘Tackling the frontiers of microfinance in Kenya: The role of decentralised services’, Small Enterprise Development, 16(3).

Pearson, R. V. and Kilfoil, C. (2007) ‘Dowa Emergency Cash Transfer Wider Opportunities Evaluation and Recommendations. Solid Lessons and a Promising Vision’, DECT Wider Opportunities Report - Final, v. 01, Concern Worldwide and DFID, Malawi.

Sanchez de Carmona (2007) Financing Business in Malawi, UNDP Growing Sustainable Business, United Nations Development Programme: Malawi. August 2007.

UNCDF (2007) ‘UNCDF and partners to provide $6 million boost to microfinance in Malawi’, www.uncdf.org/english/news_and_events/newsfiles/20070620_malawi.php www.uncdf.org/english/news_and_events/newsfiles/20070620_malawi.php

World Bank (2003) Rural Financial Services: Implementing the Bank's Strategy to Reach the Rural Poor, World Bank, Washington DC.

CGAP (2006) CGAP Agricultural Microfinance Case Study, http://www.cgap.org/docs/AMCasestudy_04.pdf http://www.cgap.org/docs/AMCasestudy_04.pdf

Coetzee, G., Kabbucho, K. and Njema, A. (2003) Taking Banking Services to the People: Equity's Mobile Banking Unit, Microsave, Nairobi.

Cracknell, D. (2004) ‘Electronic banking for the poor — panacea, potential and pitfalls,’ Small Enterprise Development, 15(4).

Hirschland, M. (2003) ‘Serving Small Rural Depositors: Proximity, Innovations and Trade-Offs’, paper presented at ‘Paving the Way Forward: An International Conference on Best Practice in Rural Finance’, Washington DC, 2-4 June 2003.

Honohan, P. and Beck, T. (2007) Making Finance Work for Africa, World Bank, Washington DC.

Ivatury, G. (2006) Using Technology to Build Inclusive Financial Systems, Focus Note 32, CGAP, Washington D.C.

Johnson, S., Malkamaki, M. and Wanjau, K. (2005) ‘Tackling the frontiers of microfinance in Kenya: The role of decentralised services’, Small Enterprise Development, 16(3).

Pearson, R. V. and Kilfoil, C. (2007) ‘Dowa Emergency Cash Transfer Wider Opportunities Evaluation and Recommendations. Solid Lessons and a Promising Vision’, DECT Wider Opportunities Report - Final, v. 01, Concern Worldwide and DFID, Malawi.

Sanchez de Carmona (2007) Financing Business in Malawi, UNDP Growing Sustainable Business, United Nations Development Programme: Malawi. August 2007.

UNCDF (2007) ‘UNCDF and partners to provide $6 million boost to microfinance in Malawi’, www.uncdf.org/english/news_and_events/newsfiles/20070620_malawi.php www.uncdf.org/english/news_and_events/newsfiles/20070620_malawi.php

World Bank (2003) Rural Financial Services: Implementing the Bank's Strategy to Reach the Rural Poor, World Bank, Washington DC.

CGAP (2006) CGAP Agricultural Microfinance Case Study, http://www.cgap.org/docs/AMCasestudy_04.pdf http://www.cgap.org/docs/AMCasestudy_04.pdf

Coetzee, G., Kabbucho, K. and Njema, A. (2003) Taking Banking Services to the People: Equity's Mobile Banking Unit, Microsave, Nairobi.

Cracknell, D. (2004) ‘Electronic banking for the poor — panacea, potential and pitfalls,’ Small Enterprise Development, 15(4).

Hirschland, M. (2003) ‘Serving Small Rural Depositors: Proximity, Innovations and Trade-Offs’, paper presented at ‘Paving the Way Forward: An International Conference on Best Practice in Rural Finance’, Washington DC, 2-4 June 2003.

Honohan, P. and Beck, T. (2007) Making Finance Work for Africa, World Bank, Washington DC.

Ivatury, G. (2006) Using Technology to Build Inclusive Financial Systems, Focus Note 32, CGAP, Washington D.C.

Johnson, S., Malkamaki, M. and Wanjau, K. (2005) ‘Tackling the frontiers of microfinance in Kenya: The role of decentralised services’, Small Enterprise Development, 16(3).

Pearson, R. V. and Kilfoil, C. (2007) ‘Dowa Emergency Cash Transfer Wider Opportunities Evaluation and Recommendations. Solid Lessons and a Promising Vision’, DECT Wider Opportunities Report - Final, v. 01, Concern Worldwide and DFID, Malawi.

Sanchez de Carmona (2007) Financing Business in Malawi, UNDP Growing Sustainable Business, United Nations Development Programme: Malawi. August 2007.

UNCDF (2007) ‘UNCDF and partners to provide $6 million boost to microfinance in Malawi’, www.uncdf.org/english/news_and_events/newsfiles/20070620_malawi.php www.uncdf.org/english/news_and_events/newsfiles/20070620_malawi.php

World Bank (2003) Rural Financial Services: Implementing the Bank's Strategy to Reach the Rural Poor, World Bank, Washington DC.