Amna Naveed

 Females Career Path in Microfinance Sector FINCA Microfinance Bank 2017 CASE STUDY Amna Naveed- Abstract We need to make use of the real potential of females present in Pakistan. They are the ones who will be found equally working in the fields with the male population. They are working shoulder to shoulder in the corporate world, handling tasks and reaching objectives similar to males of our society. There is a dire need to recognize the power of the female. They are not just experts while managing the household chores; they are equally capable outside their house to conquer the world. We cannot ignore the females; 48.7 percent of our economy and expect it grow in double digits. They must be provided with all the relevant knowledge, necessary education to make them feel confident. To survive and thrive in the world, right training must be given to present their true potential. To include female in the movement of financial inclusion by Securities & Exchange Commission of Pakistan (SECP), we need to provide them with what they want. We believe hiring females and making them do task equal to men add to the female participation in the labor force. Moreover, they will be able to negotiate with such women who don’t feel comfortable talking to the male. Female hirees will travel to suburban areas of Pakistan and influence other to be an active citizen by opening an account at FINCA to boost economy of Pakistan. Our females will able to reach such places nd areas where we couldn’t before. We are hiring females to enter market where are competitors are not present yet, this will give us an edge and increase our customer base. Contents Abstract2 Introduction4 Microfinance Sector Introduction4 FINCA Background6 Loans6 Savings7 Financial services7 SWOT Analysis - Industry and FINCA Microfinance bank9 SWOT Analysis Microfinance Industry9 Strengths9 Weakness9 Opportunities10 Threats10 FINCA SWOT Analysis11 Strengths11 Weakness11 Opportunities12 Female Participation and their importance in workforce13 Female run business in Regions13 New products to offer16 Business Model FINCA19 Hiring Strategy20 Challenges and Constraints22 Recommendation23 Introduction In this real world where 7.6 billion people reside, males dominate the society with a share of 50.4% in the world population whereas the female population is nearly equal, which is 49.6%. When it is about the most populated countries in the world, it stands at number six. With a population of nearly 200 million, it is following an increasing trend. Moreover, it is expected to exceed 300 million by 2050. When we segment the population in Pakistan between males and female, males are leading with a presence of 51.3% in total population, and there are 48.7% women in Pakistan. For the betterment of the economy, both the gender must work together to shift Pakistan from a developing to developing the country. The male workforce is much larger than the females yet the females actively participating are not lesser to them in any field or industry. They have the same potential as men around the globe yet they are not equally recognized as men in the job market. Pakistan’s economy is currently growing with flourishing agriculture, manufacturing, industrial and services sector. The country witnessed a 4.7 percent growth rate, highest amongst the previous eight years in comparison to 4.9 percent in 20115. The ongoing CPEC projects with China are proving to be helpful for different industries. The massive inflow investments are boosting various sectors. Microfinance Sector Introduction The economy of Pakistan is growing with the help of developments in various sectors. May giants have entered the industrial sector and adding to the economy. Apparel manufacturing is Pakistan's largest industries, and exports are flourishing in this sector. Among others, the microfinance industry is continuously growing over the years. The outreach turnover is successfully in double digits. Every individual plays an important in the economy, irrespective of the gender and we must try to accommodate both sexes for the country to flourish and meet desired targets. The thought behind is to provide small-scale loans to deserving candidates especially females who have a current operational business or want to expand their existing business. As a result, the females and small-scale industry will have success to financial services. The idea initiated by Dr. Akhtar Hameed Khan was proposed during the 1960s, but it was not until 1990s it became a major hit and gained momentum. The first-ever microfinance NGO with the name of ”Kashf Foundation” came into existence. The microfinance sector can be categorized into three broad categories, which consist of Microfinance Institutions (MFIs), Microfinance Banks (MFBs) and Rural Support Programmes (RSPs). Besides, the majority of active borrowers are present in Microfinance Banks. Surprisingly, they are the ones who are more focused on male borrowers. Microfinance sector was previously targeting females on a larger scale leading to the majority of women borrowers. However, the concentration has now moved to males over the last five years as we can see the decline in women borrowers. The women borrowers dropped to 54 percent in the year 2016 form 63 percent in 20122. In order to change and add more females to the borrowers base government and institutions are working together. National Financial Inclusion Strategy (NFIS) by the Securities & Exchange Commission of Pakistan (SECP) is a beneficial and significant step towards female financial inclusion. By the year 2020, NFIS aims to provide easy access to finance to 20 percent of the female adult population. MFBs like FINCA are working hard to achieve the target. They aim to introduce new female-focused products to attract the right customer. FINCA Background FINCA is a global organization of microfinance operating in 22 countries and five continents. FINCA microfinance bank, Pakistan is a public listed company which is in existence since 2008. With headquarters in Washington, it marked its presence with a mission to alleviate poverty in Pakistan. We are achieving targets by providing financial services to the world lowest middle class so they can improve their standard of living. We are making an effort to reach such individuals who are either financially excluded or have no access to banking services within their traditional markets. Deposits are the primary source of funding for FINCA Microfinance Bank. We are continuously improving; our performance has increase which is reflected by growing market share, sustained asset quality and improved profitability providing impetus to the internal capital generation of the bank. Our microcredit portfolio is increasing faster than peer microfinance banks. The bank reached a market share of 11.4 percent in end-FY16 as compared to 9.8 percent in FY15. Moreover, due to a diversification of agricultural, livestock and enterprise loans, the average loan size has increased. The deposit base has increased from 6.1 b to 11.1b. With significant improvement in asset base, FINCA reported a profit of Rs. 630.9m during FY16. FINCA provides an internationally level banking experience to its customers in Pakistan. The state of the art products, client services, and payment solutions are designed with specialized care for individuals like you, who are in need and waiting for the right opportunity to score a place in the market. The bank offers a variety of loans, savings account options and financial services, to improve its customer base. Loans After rigorous research and conducting a successful pilot, FINCA  Microfinance Bank Ltd offers a variety of loan products specifically designed for individuals running micro, small and medium enterprises. FINCA Karobari Karza -"FINCA Karobari Karza is the premier lending product of FINCA Microfinance Bank Limited" FINCA Izaafi Karza - "A customized product designed to meet the urgent financial needs of existing FINCA Karobari Karza customers" FINCA Kashtkar Karza - "A tailored lending product customized just for the farmers of Pakistan" FINCA Maweshi Karza - "A unique lending product which is customized to meet the needs of Livestock farmers" FINCA Sunehri Karza - "You can meet your urgent cash needs with your own gold, which is secure with us" Savings FINCA offers a complete suite of products combined with competitive profit rates and convenient banking. Our available staff is fully equipped to assist you in your every banking and financial requirement. Tahafuz Term Deposit - "For a prosperous life, all you need is a Tahafuz Term Deposit Account" Mohafiz Term Deposit - "Retirement is not the end of your dreams, it’s just another milestone" Rozana Munafa - "FINCA Microfinance Bank offers Rozana Munafa, a brilliant opportunity for you to save meaningfully" Sahulat Current Account - "Sahulat Current Account is the best choice for business development" Aitemad Bachat Account - "Saving is essential for a prosperous future. That’s why Aitemad Bachat Account is the best choice for you!" Asaan Account - "Aasan account eliminates transactional and balance requirements, making it easier to maintain your relationship with us" Financial services FINCA services are what that distinguishes it amongst other MFBs in the microfinance industry. Our products are unique and suit the style of our customers. SimSim Mobile Wallet: Sign up for SimSim, Pakistan’s first digital one-minute current account and enjoy the power of real-time and free payments for everything. SimSim also offers Interbank Money Transfer (IBFT) to instantly receive from and send money to any bank account. IBFT Facility: Transfer funds instantly between all 1Link member banks within a matter of seconds. The facility can be used 24/7 using any FINCA ATM. ATM Facility gives you access to over 11,500 ATM’s across Pakistan, and convenience of accessing your funds anytime, anywhere 24/7. Online Facility gives you the convenience of using your funds anywhere in Pakistan. Personalized Cheque Book is just the start of a warm relationship with FINCA. OTC Bill Payment enables you to pay all your utility bills at any of the FINCA branches. Call Center is working 24/7, with qualified staff always present to assist you with all of your queries. Instant SMS Alerts: FINCA clients receive instant SMS alerts on every transaction. Home Remittance Service: You can receive money from anywhere in the world sent via XPress Money from all our branches throughout Pakistan. FINCA is fully funded by our depositors and we are completely debt-free. We are her for customers and our success is dedicated to our customers. SWOT Analysis - Industry and FINCA Microfinance bank A microfinance ecosystem is evolving in Pakistan. Professionals are working hard and motivated to produce technology mix products to suit the needs of the current generation. Higher risks associated with the greater amount of load gave rise to micro-loans and the microfinance industry. Microfinance industry faces a number of changes are better than the traditional banks in many ways. SWOT Analysis Microfinance Industry Strengths Diversified product range as per the need of customer is a benefit Provision of a smaller amount of loan to people in need to start their own business and cater need of family Provides the need of lower-middle-class population who are usually neglected by traditional banks Can disperse loan on a lesser value of security of loan rather than asking for a land or a car like traditional banks An MFB have a higher recovery rate than traditional banking sector, the loan dispersed is smaller in quantity thus recovered more easily on lesser number of installments Improvements in portfolio quality by strengthening internal controls and systems along with working on capacity building Weakness Low profitability of bank due to lack of suitable strategy to grow business Management and the team, if not have share goals than the MFIs and MFBs can suffer and might give rise to office politics Gender imbalance at the board level is a concern, as we find more males than females, in spite of the fact both are equally capable Customer base is male-oriented thus women are not empowered affecting the balance of economy of Pakistan Opportunities Scaling up to finance small enterprises, a new segment but also provide opportunities for returning clients that have graduated beyond the micro-enterprise level. Innovating and developing branchless banking mechanism will lead increase and secure access to formal finance, including microfinance services by providers. The Microfinance Credit Information Bureau (MF-CIB) will help target low-income clients, leading to increased number of customers. Once developed, Pakistan Microfinance Investment Company (PMIC) under The Pakistan Poverty Alleviation Fund (PPAF), access to microcredit will be made easy Investing and using artificial intelligence to find new areas and segments to target for improved performance of the sector Tapping into other sectors and encouraging other to take microloans. Women empowerment, through microfinance a female can start her own small business and contribute to the economy Threats The Pakistani political interface is challenging with feudal exploiting the poor people thus microfinance industry suffers A layman possess low level of knowledge regarding microfinance and products Facing credit risk, which can increase due to irresponsible lending practices influenced by competition and inadequate market information which may affect the sector as the whole? The current state of law and order is a major concern for residents and experts leading to hindrance of people to take loans Increased competition, new entrants in the market with a better marketing strategy might steal a few customers from already established giants in microfinance sector Religious Norms create a barrier for women to work and serve the nation equal to men High illiteracy rate, especially high among female population create a barrier for female to enter the job market Lack of Mobility, we are restricted or under the influence of somebody that restrain from giving 100 percent FINCA SWOT Analysis We are innovating and updating our products for our customers. However, for doing that we have to go through a long process and face many challenges. Strengths Introducing female-focused products to encourage female empowerment with easy access to finance Global experience in the microfinance sector through its various subsidiaries Smart Certified– a testament to the organizations’ focus on client centricity and responsible practices thus better and improve customer protection Pakistan's first free mobile wallet, SimSim is introduced by FINCA, digitalizing the currency through branchless banking Personalised products as per the need of the client with detailed application process to make the person aware of products specification High amount of deposits and continuation of existing clients into next loan cycles, on which FINCA proudly rely Increase in micro credit portfolio is faster than peer microfinance banks Structured and detailed loan payback system Receiver of the certificate for customer rights’ satisfaction Weakness High overheads for the bank are high as compared to the turnover Difficult to find the right and qualified candidate from the pool of applications, due to education barrier for females Less or no female at board or managerial level to understand the needs of female clients Small amount of liquid assets at FINCA, they amount to 31.8% of the total Deposit & Borrowings A lower scale or weak marketing strategy to attract new clients to avail services Low capital/cash at hand to start a campaign for a new product Lesser variety of products than competitors in the MFI Government regulators putting restrictions and rules on operating mechanism in the Microfinance Industry Opportunities Hiring more females than males to have a gender-balanced workforce Conducting training programs with the help of training institutions to empower women to add to the economy Scaling up to finance small enterprises, a new segment but also provide opportunities for returning clients that have graduated beyond the micro-enterprise level. Encourage entrepreneurs by having an incubation center at FINCA to guarantee return on investment Developing consultancy firms or partner with existing ones to guide and assist people how to spend efficiently on their business Introduce more female-oriented products to increase the female lenders base Taking part in the revolutionary goal of SBP of a vision of serving 50 million customers by 2020 Investing in females businesses, where the founder is the female for women empowerment and women inclusion. Threats FINCA possess a lower liquidity cushion as compared to other banks, which might lead to losing a few clients Lack of Mobility, we are restricted or under the influence of somebody that restrain from giving 100 percent The mindset about sales job of the people still revolves around men, i.e., female is not good for it, and it is a man’s job Females are not allowed by in-laws to work after marriage, a threat to the job market for qualified candidates Rural area residents not aware of the concept of micro-financing, thus living under the below the poverty line Other MFBs due to availability of resources might reach such areas earlier than FINCA to gain clients Female Participation and their importance in workforce While looking at the population, female make up to nearly 50 percent; they are a critical part of Pakistan’s economy. Interestingly, 25 percent is involved in labor. Yet, 89.67 percent of them don’t own a bank account against their name in any bank in Pakistan. Only 11 percent is banked. Out of which, 6.8% have a Current account/checking account while 3.96 percent have Savings account / PLS Savings Account. The majority responded that the reason to open an account was to save money while a few said they wanted a loan for a doing business. Coming to the borrowing side, there are only 25% female borrowers in the MFBs. The reason being, s client base is skewed towards male borrowers. However, MFIs and RSPs are focused on females with having more than 70 percent female borrowers. That accounts for a total of 54% female borrowers in the microfinance sector. Most importantly, to note here, the statistics explained are only of those females who are banked in Pakistan. Female run business in Regions FINCA has successfully marked its dominance in 13 regions of Pakistan. With capable representative present in each area, we are operating and providing opportunities to various individuals males and females all over the regions. We have multiple success stories and are proud f them. These are the individuals who would recommend FINCA to their friends and families and opt for another cycle of the loan. In Bhawalnagar area, our FINCA Karobari Karza – Basic is the most famous one amongst our services. We are successfully providing loans to 1248 females, and 182 of them have acquired our services more than once. 58 percent of the women are running their own business in this area. They are running their own business from home in the form of providing essential dairy products by taking FINCA Maweshi Karza, or they are running a small home business by acquiring FINCA Karobari Kara. There is quite a few agriculturist present in the area where most are involved in farming business and using our FINCA Kashtkar Karza product. In Bahawalpur area, we are fulfilling the needs of 1248 females by providing them with micro-loans. Mostly females are either agriculturist or running their own business and benefitting from relevant services of FINCA. Our most famous product for agriculturists is FINCA Kashtkar Karza with 23% of them successfully operating. In addition, 29% of business females are using FINCA Karobari Karza. 1154 females are using FINCA’s services in Central Region Faisalabad. Interestingly, most of the users are self-employed and opted for FINCA Karobari Karza. Utility services are the second most famous profession, where 21% females are mostly using FINCA Karobari Karza. They are successfully operating all over the region with successful payment being made on a regular basis. In Central Region Lahore – I, 863 out of 1561 females are self-employed while using our FINCA Karobari Karza. Successfully completing one loan cycle, they have opted for acquiring loans more than once. Utility services are the second famous profession here. These females are successfully managing their small setup and providing their services all over the region. The self-employed ones are wither working as a freelance for online projects or doing volunteer work. They have emerged into embroiders, knitters, jewelry makers, pottery makers or gift hamper generators. Coming to Central Region Lahore – II, females who are self-employed (48%) are making use of FINCA Karobari Karza. They are generating quite a good income by working as freelancers for online and other home-based projects. Females have also considerably emerged as embroiderers, home-based chefs, party, and family get together caterers, jewelry makers, and home-based customised gift makers. Then there come those who are involved in livestock (23%) and using FINCA Maweshi Karza. In Gujranwala Area, FINCA is again catering self-employed female, and they account for 60% of the females who are using our services. Second famous category of professions is the Business female who are mostly using our FINCA Karobari Karza product. And, we can also find quite a few female agriculturists in the area mainly using FINCA Kashtkar Karza product. Females are involved in providing cricket accessories. Women are involved in fashion designing courses and making it a profession. Freelancing is also a significant field where women are efficiently working. In Gujrat Zone, 1278 females are operating successfully by using our various products and services. Where 720 (56%) of them are self-employed, and most of them are using FINCA Karobari Karza. Then there are those who are involved in livestock profession and successfully operating by using FINCA Maweshi Karza. Whereas, quite a few females are managing their own business in the zone by using our two products; FINCA Karobari Karza and FINCA Sunehri Karza (FSK). Women are becoming home-based chefs and managing parties by providing home-based food to people around the facility. They are entering the textile industry after taking courses of textile/fashion designing. They are using their skill of art and crafts to make money. In Multan region, self-employed and livestock are the two top professions the females are involved in. Self Employed (29%) females are using FINCA Karobari Karza, and the ones involved in livestock (21%) are using FINCA Maweshi Karza. Self-employed women are working in arts and crafts and fulfilling needs of their customer. They are producing decorative handicrafts and making it as their source of income. They are also making Home-based Livestock feed with a small setup. Coming to the North Region Islamabad, mostly females are business females and using our FINCA Karobari Karza product. Whereas, the second most popular profession found is Tailor, where they were operating by using our FINCA Karobari Karza. This is the reason why we came across various emerging designers from Islamabad. And, there are also those in this region who are involved in livestock and are self-employed. They are happy and successfully operating with their clients. In Pakpattan Zone, 1664 of the females are using FINCA’s services. We mostly came across those females who are managing their own business and using our FINCA Karobari Karza to work smoothly. And there are also such females who are self-employed (33%) and operating their own business with the help of our money by taking FINCA Karobari Karza and FINCA Maweshi Karza. They are training to become Surveyor. They are also becoming house service providers either full or part-time to utilize the time they have. Also, most of them work in the factory to earn on day to day basis. While operating in Rahimyar Khan Area, out of 747 females, 469 are self-employed. They are conducting their own business, serving their clients while using our FINCA Karobari Karza product and FINCA Maweshi Karza product. Also, agriculturist is the second famous category here with mostly using FINCA Kashtkar Karza and FINCA Maweshi Karza. In Sargodha Zone, the self-employed females are ahead of others, while the second famous profession is livestock. Self-employed females account for 53% of all females in the region who are acquiring our services. They are mostly using FINCA Karobari Karza, FINCA Maweshi Karza and FINCA Sunehri Karza (FSK). And those involved in livestock, they have opted for FINCA Maweshi Karza and FINCA Sunehri Karza (FSK). Many are factory workers along with working in fruits fields. Females are taking vocational training to learn metalwork, art and crafts and home-based services to others. A total of 1400 females are taking loans from FINCA in South Region Karachi. Surprisingly, 93% are self-employed and using our FINCA Karobari Karza product. We can see those whose profession is Maal Mawaishi or are working as a tailor in the region. They are working as women drivers to add to the workforce. They are providing organic foods and other stuff to people in need. Talking on an overall note, FINCA is catering 16423 females in 13 different regions of Pakistan. Our network is all over Pakistan with a trustworthy relationship with our females clients. 46% of the clients are self-employed. Doing their own endeavors successfully where 20% of them are our repetitive customers. The second most famous category is business females who account for 23% of the total female clients. Among these females, FINCA Karobari Karza (64%) is the most famous product which helps them in the smooth running of their business. Out of nearly 10000 female clients who opted for FINCA Karobari Karza, more than 2000 opted for taking the loan from FINCA again. FINCA Maweshi Karza is the second famous product among our female clients. New products to offer FINCA has a track record of establishing itself in places where there is a need of microfinance. So we will now enter the market with new products to cater new customer demand increase our customer base. For the places we are already in, we have a future plan to introduce more targeted and customised loans so that people in need can efficiently utilize our services. In the Bahawalnagar Area where people are doing their own business, we can offer short-term loans and medium time deposit loans. This will help the micro-entrepreneurs to face the failures if any occurs while they are managing business transactions. Emergency loans will help the farmers to suffer the loss in case of a bad crop. Medium time deposits will help the business women to cater to small business matters, like renovation and also if they need some extra cash to help pay their children fees, FINCA will help in every possible way. The people working for the betterment of area can use our funds transfers and cheque facility to send their money home. In Bahawalpur Area, Agriculturist can benefit from emergency loans if their crop is not up to the mark. Females are also successfully running their business thus medium loans, and longer-term loans will help them. A future-oriented woman having big plans might start off on a small scale but for going big, she will require the cash for the longer term. Due to the heat situation in this region, pitching insurance plans is a good idea. They will have the finance to do face the emergency issues while we can increase our customer base. The workers can use our funds transfers and cheque facility to send their money home. Entrepreneurs are emerging in Faisalabad zone as various females are undergoing training sessions. Demand or short time deposits would help those who have sufficient capital to start a business but in order to perform an exhibition or social obligation, she requires money. The ones doing business will require medium loans and longer-term loans. Lahore Region I is a significant market for FINCA, we can provide pension plans or long time deposits to the residents to fulfill their needs. With people working until a later age, our pension plan service will facilitate their needs. Demand and short time deposits will help them when they face emergencies. Whereas, long-term loans will help them build a house or purchase any asset to live life with ease. Lahore Region II is one active area. Thus we can introduce short-term loans and emergency loans to make people cater to life emergencies, necessities and another field. Long-term loans will also prove to be beneficial as people can make long-term plans by using our facility. They can build a house or buy a car or motorbike to suit their everyday life. People with the busy life can benefit from pension plans, to help them when they need cash the most. For the business category in Gujranwala Area, we can provide offer short-term loans and medium time deposit loans to help them have a source of cash for the smooth working of the business. Long-term loans will help them make a good setup for their business. Gujrat zone, self-employed are using our services the most thus a short-term loan, and medium-term loan will help them get the necessary equipment. People are involved with livestock. Thus this will also help them with managing livestock. Medium time deposits will benefit them for getting the essential treatment done to their animal. Multan Region females are self-employed or doing business. If there is need to expand to a larger scale than we can provide them with the long-term loan so they can establish their setup with a stable source of income. With females involved in Maal Mawaishi and livestock, medium-term loans will help them get stability in life. Also, insurance plans will help traders to deal with unforeseen situations. There are also many people who want to transfer money to friends and family living in another region, fund transfer and cheques facility will help them do their transactions without trouble. We will find Tailors in Islamabad regions, short-term loans will be best for them to but required machinery and equipment for their business. This is the city where developments never end. Thus long-term loans will help them to build a house, buy considerable assets for business. Our retirement plans will benefit those who prefer for self-insurance or want a home upgrade at a later stage. People are also involved in Maal Mawaishi and livestock business. Thus medium-term loans will help them grow it. People travel to areas like Pakpattan Zone to work for the betterment of the area. Thus fund transfer and cheques facility will facilitate their need to transfer money. For the self-employed, we can provide them long-term loans to expand their current business. For the agriculturist, emergency loans will help them in the time when the crop is bad or no up to the mark. And, long-term loans will help them establish an irrigation system. People who are providing dairy products can make use of our demand or short time deposit loan; this will be a kind of food security for them. In Rahimyar Khan Area, there are not much profession but the ones we are catering to, FINCA can provide more products in order to give them the opportunity to expand. For the purpose, long-term loans will prove to be the best solution. The ones who are involved in stitching accessories, short-term loans will help them but the office machinery or equipment. For emergency situations, they can use our emergency loans. They can also opt for the insurance plan for a better and safer living. In Sargodha Zone we have a low customer base we must expand. To expand we need to offer long-term loans to self-employed to feel them secured and help them grow their business. The ones involved in livestock, they can benefit from medium time deposits to take care of their animals. Emergency loans will help them in case their animals get a disease. The working class, when need to transfer money can use our Fund Transfers and Cheque facility for an easy transaction. Karachi region is undergoing significant developments. Thus long-term loans will help the entrepreneurs to grow their business. With most of the females as self-employed, long-term loans will be one of the best services to offer. Maal Mawaishi females can opt for short-term loans that will help them grow with their cattle. Emergency loans will help with the immediate situation due to the law and order situation in Karachi. This is not the end, due to people involved in the different profession in different areas, every profession can benefit from our service. We will cater them as per their profile and need. A few professions are less in a region; there is a possibility that when we introduce new products, the one who is unbanked and doing business might come forward to avail our services. Ther will be some cases where the ones who are looking for a new dimension in the already established business will come forward to get the required money and help. There is need of new products, and FINCA must provide the new product to incorporate the increasing demand of entrepreneurs. Business Model FINCA FINCA Microfinance Bank is one of the leading Microfinance banks in Pakistan is booming due to its variety of products and services. Our customised products and services are not just beneficial for the person in need but prove to be best are their endeavours. We are launching a product exclusively for the female of Pakistan. This will not just help them financially grow but assist them to get some stability in their lives. This female-focused product is called “Niswaan Qarza.’ This will supposedly increase our female customer base. We will be providing loan amunt that starts from Pkr 20000 and till Pkr 1.5 lacs. The loan length can vary from 6 months, 12 months and 15 months. The product is expected to launch next year. This will help cater the neglected sector and we have high hopes for our product. We also propose a second model for efficient working of FINCA in order to achieve desired results. We will be hiring two female lending staff in our each branch. They will be given rigorous coaching sessions and in the field training which will empower them to make the right decision at the right time. Moreover, the problem of traveling alone will take place no more as they will always be working in pairs. This is to resolve the real world stigma that females cannot do a sales job for a company. These potential candidates will go to the field, conduct FINCA designed surveys, ask about the problems faced by females and influence them to get a micro-loan from FINCA which will ultimately increase our female customer base. They will have a travel companion which will make their dealings and work easy. Each and every time one can act as a backup for other. It will prove to be of great help for handling difficult situations and customers. In the field when they are in action they will not just have a colleague but a moral support which will help in successfully reaching targets. In both of the cases, the female pair travelling or the female agreeing on taking a loan from FINCA, females are the primary target. For the purpose, we require a budget of Rs. 25000 for hiring each candidate. The training is an important part of growth and is explained under training budget segment. In the male-dominated society, what we propose is to place at least one senior female person in the region. The capable female will act as the Regional Manager (RM) for the region FINCA actively operates. The person will have the authority to hire new female staff members in braches to empower women and reach our shared goal. She will identify new business opportunities to help FINCA make new customers. This opportunity will lead to the hiring of new potential female candidates to make female actively participate in the labour force. Hiring Strategy FINCA adopts a multi-channel approach to select the right candidate for the available pool. We always prefer capable females who are energetic and are ready to break the social norms. The females for the purpose will be acquired from various channels. We will be contacting various recruitment channels that include 1. Conducting Recruitment Drives 2. Advertisement in local newspaper and social media 3. Partner with recruitment and man power agencies 4. Job fairs 5. Consulting Kashf Foundation and other female focused NGOs By doing so, we will be able to hire the female who have relevant knowledge and qualification. Once the recruitment process is done, and the candidate is shortlisted for the position. We will not just directly let them enter the real market. They will undergo rigorous training by our representatives and our partner training centres. They include: 1. In house programs 2. Partnering with a. NIBAF b. SBP c. PMN These training centres will help in effective on boarding and capacity building of the females. The quality of the candidate will immensely increase after training and coaching sessions. The female will be provided with real-world scenarios to meet the targets that will be given in future. This will provide them with an essence of the real world. We will make every effort to get results from the female that are hired for the job. Methodology adopted for candidate training, placement and earning potential FINCA believes in hiring and training to boost the real potential of females in front of the world. We have a specialised plan that will first be considered as an orientation session for the hired women and will provide them exposure in the field they are about to enter. Later on, when they are given the real target, we believe they will be able to achieve those goals. Our training is what will ensure earning for FINCA. For the purpose of selling existing product and female-oriented product, FINCA will be hiring two female, working in pairs to gain profits after meeting targets. After going through the detailed process of hiring, the training phase will start. In the initial phase, there will be a dedicated technical training by qualified staff without any assigned targets. The investment on the two females will be Pkr 28000 (14000 * 2). This will be our initial investment, without any expectation of earnings. For the first three months, female trainees will be getting all the exposure required to enter the real world along with placement in the right area or region to achieve desired targets. After three months till six months, they will indeed enter the field with a senior member of the team. They will then master the skill of negotiations, learn the tactics of sales and know the entire process of closing a deal. However, there will no more investment along with no earnings for FINCA during these months. Since they have been in the market, they have practiced and have made some sales; there will be a refresher training session with them. This training will be 3-days long with the agenda to motivate them and give them the confidence of continue when they are in pairs in the field. After six months, they will be required to reach a target of Pkr 2.5 million within the time span of three months. For achieving this target, we will be investing Pkr-*2) on our female trainees. Again, after nine months, when they have reached the goal of making 2.5 sales, they will be given a higher target for the next three months. The female trainees will again be called for a refresher 3-days training session. This training will refresh all the skills and motivate them to work even harder to bring profits for FINCA. For the next three months, a target of 4 million will be assigned. These females will actively collaborate in pairs to achieve what they have signed up for. We will be expecting to gain 2% from the female workers working in pairs against our investment of Pkr-*2). As a summary, we have presented a plan for one year. The females working in pairs will be provided rigorous and practical training for eight days to achieve the target of Pkr 8 million in total against the investment of Pkr 112000. Furthermore, we will successfully be gaining Pkr 8.2 million. The 0.2 million will be FINCA’s profit for the year. Challenges and Constraints Sadly, most of the population in Pakistan is living below or on the poverty line. There are not many efforts done by the government and multi-national companies in Pakistan to eradicate poverty. Our motive and mission are “To alleviate poverty through lasting solutions that help people build assets, create jobs and raise their standard of living.” We are working hard to full our mission. However, with our efforts, we face numerous constraints. In our Islamic society, the female to female bond is stronger than any bond. Females felt more comfortable and secured while talking to a same-gender person rather than a male, regarding any topic of her personal and professional life. Our workforce is male orientated. Thus we need to incorporate the issue to resolve and hire more females to increase our sales. Hiring is not the issue, but we hardly find any capable and motivated female that is as per our set requirements. The women due to family pressure are discouraged to get the education and undergo training to make use of their skills. Either they are qualification is matriculation or would leave they're studied during under graduation, thus making it difficult for them to compete with overqualified males. Females if allowed to work, they face family restrictions for not working overtime either it cost their work or job. They are not allowed to travel for their job purpose. They are not allowed to travel to farthest areas of the city. Moreover, being in the Microfinance sector, we cannot charge high cannot charge the high rate of interest. It decreases our chances of having high profits from loans. Being a microcredit provider, expansion regarding loan amount cannot be done but regarding product and services and the region is a possibility. But again, that will require capital in the significant amount. Recommendation FINCA emerges really quick with a commendable market in Pakistan. Moreover, to maintain and grow FINCA Pakistan need to expand to new areas along with introducing new varieties of products to increase the customer base. FINCA must reach those areas where its competitors haven’t. We need to act fast before so we set the stage of microfinance in such areas to utilize the talent of those people who are being neglected by the community. Expand to areas that are near to the border so people can feel a resident of this country. Expand to Gilgit Baltistan so the residents of cities can be banked and provide for a living. When it comes to introducing new products, FINCA must provide to those in need not to jut who are capable of starting or expanding a business. We can introduce a product so that those who are in need of cash for their son/ daughter marriage. We can also help those salaried individuals who are being unpaid but need money to finance the education of their child or need money to full fill necessities of life. We need not just to add female but make them capable enough to sustain in the market confidently. This can be done by treating them equally to men and giving them tasks as per man no matter how robust or practical it is. It will prove to be good for her grooming. Furthermore, along with providing microfinance, we must collaborate with a consultancy firm to help the female entrepreneurs efficiently manage the loan and expand thei business. This will not just expand the vision of female but increase prospects of FINCA for on time payment of loan and increase females loan cycles.