INITIATIVES CONSULTING

INITIATIVES CONSULTING

At the heart of MMI is our belief in sustainable, real-world social impact. By providing pro-bono consulting services to microfinance institutions (MFIs) and not-for-profits (NFPs) that promote financial inclusion, we aim to solve their organisational challenges and have a tangible impact on improving the lives of underprivileged communities. We empower students to catalyse meaningful change by using their business acumen to solve real-world problems and help our clients reach those most in need.

Background

We began offering pro-bono consulting services to underserved MFIs back in 2011. Since then, we have developed our organisational capacity, and have been able to offer advice on six projects annually, mainly operating in the Asia Pacific region. We have also completed projects in Africa and Latin America.

As of January 2024, we will have completed 54 projects across 13 countries. This includes Australia, Cambodia, Ghana, Uganda, Indonesia, Laos, Myanmar, Nepal, Peru, Philippines, Samoa, Timor Leste, and Vietnam.

We’re proud to have supported some amazing MFIs and other financial organisations that are doing fantastic work to support their communities. Ultimately, our goal is to help our clients scale their impact and achieve long-term sustainability. We’re happy to say that some clients have outgrown the need for our services and no longer require our help.

We exercise extreme caution in our work, and recognise that our clients themselves best understand their communities and their needs. Cultural context and mutual understanding is fundamental to the work we do.

Since our humble beginnings, we have developed capabilities in new areas, and have begun working with some fantastic not-for-profits. As an organisation, we feel it is important to keep working with smaller but agile organisations to help them scale their impact.

Our work is consistently produced by the brightest minds at the University of Melbourne, supported by the best in the industry. Check out our past work with Good Shepherd Microfinance that culminated in their Senate submission and the quotation of our research during the Senate hearing for buy-now pay-later services in December 2018.

Our Core Product Offerings

  • For a microfinance institution to evaluate its effectiveness and impact on clients, they need to formulate and implement a social impact survey.

    MMI is able to assist in both stages of developing a social impact survey, and is able to complete research into the effectiveness and appropriateness of surveys. 

    We qualitatively and quantitatively evaluate the social impact generated by microfinance institutions on the community. We also seek to assist in the implementation of strategies that allow them to identify and respond to the need of their clients.

  • For a microfinance institution, effectively managing credit risk is a critical determinant of their success or failure. Without it, microfinance institutions can become financially unviable.

    MMI is able to assist in streamlining and strengthening the approach to loan administration, and to ensure that microfinance institutions are able to continue serving the community with the greatest social impact.

    We provide detailed and comprehensive credit risk management policy review. We also seek to provide best-practice benchmarking and credit-scoring systems development to give clients a diverse array of insights and recommendations.

  • For a microfinance institution, expanding into new markets is an exciting opportunity with potential to further social impact in the community. Nonetheless, new markets can bring risks and give rise to unforeseen challenges.

    MMI is able to evaluate the viability of potential expansion, and ensure that our clients are able to have the most significant impact on communities in need.

    We provide extensive, impartial analysis of the costs and benefits arising from a potential expansion or new market entry. We also provide strategy and recommendations for any considered implementation.

  • For a microfinance institution, knowledge retention and regular attendance at training programs is a key challenge in achieving operational efficiency.

    MMI is able to assist in refining or reconstructing staff and borrower training programs to ensure these programs are effective as possible.

    We conduct academic and field research to determine key barriers to efficient operations and more effective training strategies that align with your organisation’s goals and target demographic.

  • For a microfinance institution, offering valuable services and products especially relevant to the target demographic is imperative with increasing competition between MFIs in some regions.

    MMI is able to assist in designing and evaluating micro-loan and micro-insurance products to help retain and attract new clients.

    We conduct market and academic research to analyse current trends and demand in the market, and analyse the effectiveness of existing products, to help develop products that are better suited to your organisation's goals and clients. 

  • Besides these core offerings, MMI remains open to projects in other areas, and are constantly honing and developing our capabilities. 

    Examples of previous projects that have ventured out of our traditional offerings include:

    • Microinsurance advisory report

    • Digitisation strategy for a peer-to-peer lending platform

    • Expansion of a pilot project in Peru

    • Gendered analysis of BNPL services

    We also offer consulting services in the following:

    • HR-focused consulting 

    • Business operations

Our timeline

Project Scoping: November/December

We formally begin scoping new projects for the following year. However, we do have many potential clients who approach us during the year, which we keep on file and reach out to during this time. We prioritise current clients, but do regularly take on new clients. We are limited by our capacity and unfortunately cannot take on all prospective clients. For 2022, we took on 6 projects.

During this time, we decide on our clients and work together to determine the project scope. We generally finalise all project contracts by the start of February at the latest in line with the university semester.

Phase 1: March to June

With our new consultants on board, each project team begins their preliminary research for their individual projects. We draw upon expertise we have developed since 2010, our dedicated industry mentors, and our extensive alumni network to devise a preliminary research or implementation plan.

Team co-leaders maintain regular contact with their client each week or fortnight, and are supported by their designated co-Vice President of Initiatives, who has MMI project experience and manages our projects throughout the year. They also receive training both in-house and from our industry partners.

Phase 2: June/July

Depending on the circumstances, our team may travel to the client country for 1-2 weeks during this period to conduct primary research and meet the client in person.

Alternatively, our teams can also rely on other methods of data collection, conducted in partnership with third-party organisations and/or with the client's assistance. This will be in conjunction with consistent client communication throughout the year via online channels.

Phase 3: July to October

During this time, our consultants collate and analyse the data collected, and work to provide feasible and practical recommendations to our client via a presentation or report.

October

We elect our new leadership team for the following year, and the process begins all over again. Our new co-Vice Presidents of Initiatives begin scoping projects in November and December.

Project Trips

With the aid of funding from sponsorships and University of Melbourne grants, some projects may include project trips. These trips will last for 1-2 weeks in the MFI’s home country. Typically, a full team of 5 consultants is sent with all expenses covered by MMI.

In 2023, two project trips were successfully undertaken in Laos and Indonesia. These trips provided a unique opportunity to meet clients face-to-face, evaluate business conditions in person and conduct primary data collection.

We truly believe that each project trip is an invaluable occasion to elevate the quality of our work and treat it with the necessary diligence and respect.

Get in touch.

If you’re a potential client looking to engage MMI’s services, please click here.

If you’re a student at the University of Melbourne and are keen to join us as a consultant, please click here.