Dear ERCM2024 Participants,
Two months after the conclusion of our conference in Bergamo, we would like to thank you all once again for accepting our invitation to attend the event, for contributing with your presentations, enlivening the discussions, and enriching the social interactions during the three intense days of the conference. We also extend our gratitude to everyone who expressed their satisfaction directly to us or on social media.
When we agreed to host the conference, we knew we were taking on an important challenge and a responsibility towards the scientific community and all of you. We did our best to succeed. Your feedback and understanding are the greatest rewards for the work we put in over the past months.
We hope to keep the interaction between us alive to share experiences, ideas, and research projects, and to continually enrich the community of researchers passionate about microfinance and inclusive finance.
In the specific section of this website dedicated to the post-conference, you can find the following documents:
– photos from the three days
– the list of participants
– materials related to the plenary presentations or summaries of the talks
Thank you all once again, and let’s stay in touch!
Opening messages
Plenary Sessions
Photos: courtesy of Dario D’Adda, Photographer – Bergamo
First Plenary Session – Monday, 24th June 2024
Title: Whether Finance…? Lessons from a Journey Along its Borders
Presenter: Professor Claudio Gonzáles-Vega, Ohio State University (USA)
Panelists: Professor Annette Krauss, University of Zurich; Professor Marc Labie, University of Mons
Chair: Professor Laura Viganò, Director, CESC, University of Bergamo
The opening plenary of the 8th ERCM (European Research Conference on Microfinance), led by Professor Claudio Gonzáles-Vega, explored the timeless question: Does finance matter? Over two centuries of research have examined this issue, and Gonzáles-Vega approached it from both macroeconomic and microeconomic perspectives, offering insights into finance’s evolving role in economic growth.
On the macro level, Gonzáles-Vega highlighted how research has reached a broad consensus on the positive link between financial development and economic growth. He noted that finance plays various roles in this process, making it a complex but essential driver of economic progress. The discussion also revisited the “debt-intermediation” perspective from the late 1960s, which emphasized the role of financial intermediaries in improving resource efficiency and reducing transaction costs, rather than merely substituting for capital accumulation.
On the microeconomic front, Gonzáles-Vega delved into the impact of financial services—particularly microfinance—on poverty alleviation. He underscored that while finance is crucial for economic growth, it is especially significant for the poor and vulnerable, helping them manage risk and improve income security. However, Gonzáles-Vega warned that poor policy decisions, such as imposing interest rate ceilings, can backfire, leading to financial exclusion and higher costs.
Drawing on past research at Ohio State University, he emphasized that finance should be used to solve financial problems, not as a tool for addressing non-financial issues. Innovation and appropriate financial technologies, rather than government mandates, are key to overcoming market failures and ensuring finance plays its role in development.
Second Plenary Session – Tuesday, 25th June 2024
Title: Inclusive Finance for Social Transformation
Presenter: Craig Churchill, Chief, Social Finance Programme, ILO
Panelists: Professor Aakanksha Gaur, SDA Bocconi School of Management; Professor Arvind Ashta, Burgundy School of Business
Chair: Philippe Guichandut, Grameen Crédit Agricole
The plenary session underscored the increasingly crucial role that financial institutions, the development community, and academia must play in driving both economic and social progress. Craig Churchill delivered an insightful presentation, arguing that financial institutions are uniquely positioned to advance not only economic growth but also broader social goals like promoting social justice, decent work, and equitable development. He stressed that, while profitability remains essential for the sustainability of these institutions, there is often a strong business case for pursuing social objectives alongside financial returns.
Churchill identified five key areas where financial institutions can significantly contribute to social transformation, beginning with the need to extend services to underserved populations. He emphasized that targeting women’s microenterprises, refugees, and youth—segments often excluded from formal financial systems—could not only enhance financial inclusion but also foster economic empowerment in marginalized communities. He highlighted that when financial institutions invest in these groups, they tap into a vast, underutilized market that, when supported, can contribute to wider economic development.
The second area focused on occupational safety and health, illustrating how financial services can directly improve working conditions. Churchill proposed that by providing loans or other financial products tailored to safety measures, institutions could incentivize investments in safer work environments, particularly in high-risk sectors. This approach not only safeguards workers but also enhances productivity and reduces operational risks for businesses.
Churchill also tackled the pressing issue of child labour, pointing out that financial institutions have the tools to mitigate this risk by developing products aimed at securing children’s futures. Education savings accounts and insurance products, he argued, could provide families with the financial security needed to prioritize education over child labour, helping to break the cycle of poverty and underachievement.
Enhancing resilience, particularly in vulnerable populations, was another focal point. Churchill discussed how a blend of savings, loans, and insurance products could help families and small businesses weather economic shocks, such as illness, natural disasters, or job loss. This comprehensive approach to financial services not only protects individuals and businesses from falling into deeper poverty but also supports long-term economic stability and growth.
Lastly, Churchill advocated for the formalization of informal enterprises. He explained that by offering services such as business accounts and record-keeping assistance, financial institutions can help informal businesses transition into the formal economy. This formalization process opens up new opportunities for businesses to grow, access capital, and contribute more effectively to economic development while benefiting from legal protections and regulatory oversight.
The session highlighted the vital importance of collaboration across sectors. Churchill emphasized that meaningful progress in financial inclusion and social impact requires an evidence-based approach, rooted in partnerships between financial institutions, policymakers, and researchers. This collaborative model ensures that initiatives are both scalable and sustainable, ultimately driving deeper social transformation while meeting the financial needs of diverse populations.
Photos: courtesy of Dario D’Adda, Photographer – Bergamo
Photos: courtesy of Dario D’Adda, Photographer – Bergamo
Third Plenary Session – Tuesday, 25th June 2024
Title: Research-Based Practice in Financial Inclusion
Panelists: Sam Mendelson, e-MFP; Matilde Bauwin, ADA; Professor Aurélie Larquemin, University of Bath; Aldo Moauro, Microfinanza Rating
Chair: Professor Olga Biosca, Glasgow Caledonian University
The third plenary session of the ERCM edition emphasized the critical role of research in addressing current challenges and shaping strategies within the microfinance sector. The discussion highlighted the need for robust support systems from governments, donors, and development finance institutions to ensure the resilience of financial institutions, especially microfinance institutions (MFIs). As global economic recovery remains uncertain, the sector must adopt human-centered approaches to enhance clients’ financial well-being and align services with their long-term goals.
Sam Mendelson (e-MFP) presented findings from the Financial Inclusion Compass 2024, a survey of 149 respondents across 63 countries. The survey revealed significant disparities between the perspectives of financial service providers and other stakeholders on trends like fraud prevention, climate change adaptation, and gender mainstreaming. It also identified gaps in client protection and suggested a need for broader diversification beyond credit-focused models, questioning the current definitions of ‘microfinance’ and ‘financial inclusion.’
Mathilde Bauwin (ADA) highlighted MFIs’ evolving focus on achieving economic, social, and environmental impacts. She shared findings from projects studied with the Luxembourg Institute of Science and Technology (LIST), which demonstrated how MFIs contribute to climate change mitigation through solar and energy-efficient solutions. Bauwin emphasized the importance of interdisciplinary research and accessible communication to bridge gaps between field organizations and researchers.
Aurélie Larquemin (University of Bath) shifted the focus to financial health, advocating for a move from merely providing services to enhancing clients’ overall well-being. She outlined dimensions of financial health—security, resilience, control, and freedom—and urged financial service providers (FSPs) to adopt human-centered design and tailor services to meet clients’ unique needs. This approach, Larquemin argued, can improve product uptake, customer retention, and financial performance, benefiting both clients and institutions.
Aldo Moauro (Microfinanza Rating) noted a concerning slowdown in MFI portfolio growth, especially in smaller institutions and those in Africa. He called for blended financing approaches to rebuild portfolios and emphasized the need for digital innovations to reduce costs and enhance scalability. Without these changes, the sector risks reduced lending capacity, increased reliance on informal finance, and slower economic recovery.
In summary, the session underscored the need for a reimagined approach to financial inclusion, focusing on resilience, innovation, and client-centric services. Collaboration among practitioners, researchers, and policymakers is essential to navigate economic uncertainties and ensure the microfinance sector remains a vital tool for economic empowerment and sustainable development.
Fourth Plenary Session – Wednesday, 26th June 2024
Title: Enhancing Oversight through Suptech Applications
Presenters: Dr. Kalliopi Letsiou, University of Cambridge; Dr. Simone Di Castri, University of Cambridge
Discussant: Max Nino-Zarazua, PhD, Independent Consultant
Chair: Professor Manuela Geranio, University of Bergamo
In the final plenary session of this ERCM edition, Simone Di Castri and Kalliopi Letsiou from the Cambridge SupTech Lab at the University of Cambridge explored how Supervisory Technology (SupTech) is enhancing financial supervision and promoting financial inclusion.
Simone Di Castri highlighted the systemic and operational challenges within financial supervision and the transformative role of SupTech. He traced the evolution of SupTech to the growing complexity of global financial systems, underscored by the 2008 financial crisis and the recent disruptions of 2023. These events exposed the limitations of manual and fragmented supervisory approaches, which struggled to keep up with rapid changes. Advances in data science and technology now provide financial authorities with powerful tools to analyze large datasets, detect patterns, and identify anomalies that traditional methods might miss. The expanding scope of supervisory mandates—encompassing areas like prudential supervision, market conduct, and cybersecurity—has intensified the need for more effective supervisory mechanisms.
Di Castri explained that SupTech improves efficiency by automating data collection and validation, thus reducing manual workloads and accelerating supervisory processes. SupTech applications enhance data accuracy, refine risk assessments, and enable predictive analytics for proactive supervision. As previously underserved populations gain access to formal financial services, SupTech’s role in modernizing supervisory tools is crucial. It helps manage risks related to product suitability, mis-selling, and service standards, thereby contributing to the stability and resilience of the financial system.
However, Di Castri also addressed key challenges facing SupTech:
– Capacity Constraints: Supervisory agencies often face resource limitations and the growing presence of small, lightly regulated firms like FinTech’s and cryptocurrency exchanges, creating a tension between the need for innovation and the capacity for effective supervision.
– Discrepancy in Supervision Quality: There is a notable gap in supervision quality between non-bank deposit-taking institutions and commercial banks. Outdated data and infrequent inspections impede effective risk management in the former group.
Following Di Castri, Kalliopi Letsiou focused on SupTech’s benefits for microfinance institutions (MFIs) and financial inclusion. She emphasized the practical implementations of SupTech and the necessity for formal strategies and capacity building to fully leverage its potential. According to the “State of SupTech 2023” report, SupTech tools, including AI and machine learning, significantly improve data collection, streamline risk assessments, and support regulatory compliance for MFIs. Despite 81% of financial authorities engaging in SupTech initiatives, only 9% have formal strategies, highlighting a need for more structured approaches.
Letsiou discussed how SupTech addresses challenges faced by MFIs, such as regulatory compliance and consumer protection. By integrating traditional and alternative data sources, SupTech provides better insights into consumer behavior and market trends. Collecting sex-disaggregated data is crucial for effective oversight and creating tailored financial products. She presented case studies, including an AI-powered chatbot and integrated case management systems, which demonstrate how SupTech enhances consumer protection and complaint resolution. Letsiou stressed the importance of strategic investments and capacity building to overcome barriers like limited resources and cultural resistance. She envisioned a future with increased automation, improved data quality, and enhanced consumer protection, leading to a more resilient and inclusive financial ecosystem.
In summary, both panelists underscored the significance of SupTech from different angles: Di Castri highlighted its broader regulatory efficiency and capacity issues, while Letsiou focused on its practical applications within the microfinance sector. Their insights collectively illustrate how SupTech is poised to reshape financial supervision and foster greater financial inclusion.
Photos: courtesy of Dario D’Adda, Photographer – Bergamo
Photos: courtesy of Dario D’Adda, Photographer – Bergamo
Best Graduate Paper Award – Monday, 24th June 2024.
NOMINEES: Patrick Murhula Cubaka (1st Place Award)
Armande Nabami Mahabi (2nd Place Award)
PRESENTED BY: Dr Joana Afonso, e-MFP
PANELISTS: Professor Alfredo Burlando, University of Oregon and Professor Roy Marshland, University of Agder
CHAIR: Professor Davide Castellani, University of Bergamo
At this year’s European Conference on Microfinance, the Best Graduate Paper Award was presented to two exceptional researchers whose work stood out for its innovative approach and contribution to the field.
The first prize was awarded to Patrick Murhula Cubaka from the University of Mons for his paper titled “Does Size Really Matter? Membership and Performance of Financial Cooperatives.” Cubaka’s paper explores how the size of a financial cooperative’s membership affects its performance, particularly in terms of financial sustainability and loan portfolio quality. Using data from 177 financial cooperatives (FinCoops) across 38 developing countries, the study demonstrates that while larger membership does not diminish portfolio quality, it does slightly reduce Operational Self-Sufficiency (OSS) and return on assets. The findings, however, suggest that this decrease in OSS is tied to larger cooperatives offering more favourable financial terms, like lower interest rates on loans, rather than reflecting any underlying financial weakness.
Second place went to Armande Nabami Mahabi from the University of Agder for her paper, “Rotation and Gender Diversity in Supervision: Does This Matter for Women-Only Informal Financial Institutions?”, co-authored with Bert D’Espallier from KU Leuven and Roy Mersland from the University of Agder. This research examines how the rotation of field officers—who provide critical support to savings groups (SGs) in Mali, Burkina Faso, and Niger—impacts the performance of these groups, particularly the return on savings (ROS). The study reveals that rotating field officers can negatively affect group performance when trust and relationships are well-established, while changes in gender earlier in the group’s formation can improve outcomes by introducing diverse skills. This work provides valuable insights for practitioners regarding the timing and management of field officer rotations in such groups.
Parallel Sessions
Monday to Wednesday, 24th – 26th June 2024.
The 8th edition of the European Microfinance Research Conference showcased a vibrant array of parallel sessions that significantly enriched the event, fostering deep and impactful discussions on a wide range of topics. Held in Bergamo, the conference attracted presenters from across the globe, including North, Central, and South America, Africa, Asia, Oceania, and various European cities. This diverse representation contributed to a dynamic exchange of ideas and perspectives, enhancing the overall experience of the conference.
Photos: courtesy of Dario D’Adda, Photographer – Bergamo
First Day
Following the opening panel and the initial plenary session on Monday afternoon, June 24th, the conference embarked on its first round of parallel sessions. These sessions explored crucial themes such as microfinance governance, mission drift, women’s financial inclusion, and the intersection of green microfinance with sustainability.
Additional topics included outreach to underserved communities, self-regulation, digital financial services, and fintech innovations. This inaugural day featured 23 presentations from distinguished speakers, including academic representatives from Savitribai Phule Pune University in India, Tecnológico de Monterrey in Mexico, Mzumbe University, the University of Salford, the University of Burgundy, the University of Oregon, the University of Mons, the University of Agder, and the University of Zurich. Practitioners from Women’s World Banking also contributed valuable insights.
The breadth of topics and geographical diversity underscored the conference’s commitment to a comprehensive exploration of microfinance issues.
Second Day
The second day of the conference continued with a rich agenda of parallel sessions. The morning sessions featured 10 papers divided into three themes: “Microfinance in Times of Crisis,” “MFIs Social Performance,” and “Impact and ESG Investing.” These discussions provided a deep dive into how microfinance institutions (MFIs) adapt during crises, measure social performance, and engage with environmental, social, and governance (ESG) criteria.
The afternoon sessions comprised 7 research papers on topics such as “Elderly, Integration, and Aspirational Hope” and “Employee and Client Financial Wellbeing.” The final round of sessions for the day focused on “Entrepreneurship and Culture” and continued discussions on women’s financial outreach and services to underserved populations.
This day highlighted ongoing challenges and opportunities in various aspects of microfinance, reflecting the sector’s evolving landscape.
Third Day
The conference concluded with a final round of parallel sessions that addressed pressing issues such as access to credit and strategies for climate change adaptation and mitigation.
Eight papers presented on these topics provided valuable insights into how microfinance can respond to global environmental challenges while ensuring equitable access to financial resources.
This concluding day wrapped up the conference with a forward-looking perspective, emphasizing the need for innovative approaches to integrate climate resilience into microfinance practices.
Photos: courtesy of Dario D’Adda, Photographer – Bergamo
The parallel sessions throughout the conference offered a comprehensive exploration of contemporary issues in microfinance, providing a platform for global experts to share their research and practical experiences. The sessions not only showcased the depth of knowledge within the field but also underscored the importance of continued dialogue and collaboration to address the evolving challenges and opportunities in microfinance.
Social Events
Photos: courtesy of Dario D’Adda, Photographer – Bergamo
The social events of the 8th European Microfinance Research Conference provided memorable opportunities for delegates to network in culturally rich and historically significant settings. On the evening of June 24th, participants were warmly welcomed to Bergamo’s Upper Town (Città Alta) at a stunning historical site—a beautifully restored 15th-century church adorned with 13th-century frescoes in its chapel.
In this evocative atmosphere, delegates enjoyed a cocktail buffet dinner accompanied by a live performance of classical music by students from the Bergamo Music Conservatory Politecnico delle Arti “G. Donizetti – G. Carrara,” creating a harmonious blend of history and culture.
The following evening, on June 25th, the Conference Dinner took place at the Circolino Restaurant, located in Bergamo’s Upper Town. Housed in a building that once served as a monastery and later a prison, the venue provided a unique backdrop for delegates to try traditional Bergamo dishes.
The social events not only offered a taste of the region’s rich history and culinary heritage but also fostered informal conversations and connections among attendees, enriching the overall conference experience.