BALANCE YOUR SHEETS - Microfinance Institution

// The Concept
SIMFI is a web based application which simulates a
microfinance market. It integrates all issues faced by
microfinance institution (MFI) managers in their daily
operations. The idea behind this innovative tool is to
provide rea­listic support for microfinance training by
putting theoretical microfinance knowledge into practise.
The SIMFI project has been launched as an innovative tool
to support microfinance financial and risk management
capacity building activities. The development of this simu­
lation software has been possible thanks to the collaboration
of the following three orga­nisations:
ADA is a Luxemburgish NGO specialised in
microfinance support activities. Since 15
years ADA shares its expertise with part­
ners all around the world with the aim of
promoting innovative tools enabling the
access of inclusive financial services to low
income populations.
www.microfinance.lu
SIMFI relies on a high degree of realism. This is achieved by
integrating the concept of competition into today’s micro­
finance principles.
Flexible, this application focuses on what MFIs face in
today’s environment:
»» Management orientations
»» Major risks
»» Key changes
ATTF is an organisation that manages
requests for training and consulting in
financial matters from countries that
have a proven need for the acquisition of
financial knowledge.
www.attf.lu
The participant is provided with:
»» An overview of main MFIs’ activities
»» An overview of how different areas of business
interact
»» The opportunity to face MFIs’ managing issues
// Target Audience
»»
»»
»»
»»
MFIs practitioners
Microfinance networks
Microfinance support organisations
Professionals looking to increase their microfinance
knowledge
»» Training institutions specialised in microfinance
»» Finance and management universities
Stachanov is a Dutch software engineering
company.
www.stachanov.com
// Contact:
For more information, please contact:
simfi@microfinance.lu / +352 45 68 68 40
- BALANCE YOUR SHEETS Microfinance Institution
Simulation Software
»» Highly educational tool supporting microfinance
training
»» Immersive and realistic experience
»» Based on the microfinance industry consensuses
and concepts
»» Interactive microfinance market simulation
»» Integrated concept of competition
»» Guides trainees by restricting the choice of
decisions
»» User friendly, intuitive interface with contextual
help for trainers and trainees
// Simulation of MFI
// In Practice
A market environment set by the trainer
SIMFI is a highly interactive simulation application
enabling the trainer, a microfinance knowledgeable
person, to set up a market environment, either fictitious
or based on existing markets characteristics. The goal is
to create a competitive environment where the partici­
pants are in direct competition with other microfinance
insti­tutions for the same clients.
Various parameters may change across the periods of
simu­lation:
»» economy indicators and country regulations
»» competitors (played or simulated)
»» unpredictable risks like natural disasters...
Trainees
MFI 8
...
// Key Features
MFI 2
Trainer
Market
Scenario
. Regulations
. Economy
. Competition
. Risks
. ...
MFI 1
Teams
The Participants
The simulation can be played by 1 to 8 teams of up to 3
persons. It runs over a maximum of 16 fictitious quarters
(4 years exercise).
How does it work?
The market environment is set by the trainer and goes
through a 7-stage set-up, from inflation rate to number
of background teams. A pre-esta­blished environment has
been defined in the simulation as a default scenario.
The “trainer interface” enables the instructor to:
»»
»»
»»
»»
»»
pilot the simulation
monitor the participants’ decisions
change institutional parameters (quarterly)
change market information parameters (quarterly)
restrict participants’ possibilities of decisions
The “trainee interface” enables participants to:
»» take decisions and keep track of previous ones
»» view the parameters set by the trainer (institution,
market information and other parameters)
»» monitor their portfolios
»» analyse their balance sheet, P&L statements
»» analyse ratios with a graphical interface
// Required configuration
The participant becomes an MFI manager
SIMFI is an exciting training environment that converts
micro­finance concepts into management decisions.
Parti­cipating teams will become MFIs. Using their
judgment and market analysis, the teams propose
financial products and take management decisions in
order to ma­nage the MFI in the most sustainable way.
Decisions can be made regarding product design, finan­
cial securities, funding, cost management and MFIs’
structure. Further objectives may be set by the trainer such as
keeping a low PaR (Portfolio at Risk), increasing loan officer
productivity, optimising market shares...
No special hardware or software is necessary. SIMFI is
accessible through an Internet connection and a standard
web browser.