Risk Challenge Micro 2016: Micromarkets. Macroscopes

The first specialized forum for microfinance organizations the Risk Challenge Micro 2016: Micromarkets. Macroscopes took place in Almaty on the May 15, 2016.  The forum was organized by the First Credit Bureau with support of “Damu” Entrepreneurship Development Fund” JSC, National Chamber of Entrepreneurs “Atameken”, Akimat of Almaty, Kazakhstan Association of FinTech organizations (specialized association for Internet-lenders) and others partners.

It bears reminding that starting from January 01, 2016 microfinance organizations (MFO) activity is regulated; this has caused certain organizational changes within MFOs driven by new requirements.

Ruslan Omarov, First Credit Bureau (Kazakhstan), CEO: «MFO segment is experiencing active development in the credit market of our country.  This is why we indicate it as the target segment in terms of both quality of information providing in the form of credit histories, and as a large share of clientele as target segment for value added products and services.  Considering competition with the State credit bureau, the MFO forum facilitated clear positioning of the FCB among these market players as a partner, advisor and assistant in terms of organizing quality credit business»

Having analyzed the trends, we now realize that the MFO product portfolio will experience significant changes in 2016- 2017.  Main driving force to such changes will be competition with commercial banks and rising quantity of new market players – online lending companies.  The low entrance barrier and simultaneous appearance of several big players will create certain turmoil in the market; however we already observe 45% average monthly market growth.  We forecast appearance of more that 10 online lending platforms in 2016 that can easily occupy their business segment – loans up to 500-700 USD.

Ruslan Omarov, First Credit Bureau (Kazakhstan), CEO: «Pay-day-loans segment is one of the most dynamic markets that we target.  Low risk management level, relatively large client flows caused by tightening of credit policy requirements by banks make this market segment attractive for business development.  We anticipate becoming the main scoring products provider in this segment by the end of 2016.»

Extensive specialized venue the Risk Challenge Micro 2016: Micromarkets. Macroscopes gathered more than 150 attendees, and allowed to raise important issues and set new development trend for the sector.  The forum highlighted such topics as state support and financing, MFO activity and risk management tools efficiency assessment, new business and technology trends.

As a result of the forum the FCB signed 19 service contracts, including some regional companies located in different cities of Kazakhstan.  It gave a significant push in the area of credit scoring, generated more than 15 media references about the forum, and facilitated establishing contact with main state companies in the MFO financing segment.