Expanding Gender Diversity in Microfinance
by Oi Yen Lam, Chief Blogger
As the final piece in our microfinance series, we speak with Elizabeth Lynch, Manager of the Center for Microfinance Leadership at Women’s World Banking (WWB). WWB seeks to alleviate global poverty by expanding the economic assets, participation and power of the poor, especially women, through a global network of 40 microfinance providers and banks serving 24 million microentrepreneurs across 28 countries.
In her current role, Elizabeth is responsible for the delivery of the Center’s executive education programs and organizational development projects. Her focus is on building WWB’s organizational support for gender diversity practice, by collaborating with microfinance institutions to identify and address barriers that prevent employees from having equal opportunities to excel. Prior to WWB, Elizabeth has worked for the Antitrust Division of the U.S. Department of Justice, as a program evaluator for the Government of Benin and as a consultant in Thailand for the Open Society Institute.
How did you enter this specific area of microfinance?
I have always been interested in international development and poverty alleviation. After completing my Masters in International Affairs at Columbia University, I joined WWB. Microfinance appealed strongly to me because it had both an international scope as well as a focus on development at the community level.
At WWB, a core principle is our commitment to women leadership. As the microfinance industry becomes increasingly competitive and professionalized, some microfinance institutions (MFIs) are experiencing a decrease in the presence of women on their staff and leadership teams. Our goal is to transform the industry’s approach to gender diversity from a ‘nice to have’ to a requirement necessary for sustainable growth. At the Center for Microfinance Leadership, we recruit high-level women leaders at MFIs to participate in our executive education programs jointly designed with the Wharton Business School. We also collaborate with MFIs to establish policies and strengthen their commitment towards ensuring equal opportunity for their staff and leadership.
What can MFIs do to promote equal opportunity and gender diversity?
Basic actions and the creative use of resources can have a strong impact, especially when they are in line with the culture and focus of the organization. The most fundamental step begins with a positive change in organizational culture, which is initiated and sustained by the attitude and behaviors of the leadership and staff. One of the most effective actions an MFI can take is to influence attitudes through programs such as gender awareness training. A practical example of supporting the needs of women staff in microfinance is the provision of nighttime transportation allowances for female staff of Indian MFIs. The standard travel allowance for all field staff in most Indian MFIs covers the cost of public transportation. Women who are required to travel home late face security concerns, particularly on public transport. The provision of a nighttime travel allowance for women means they are able to afford private taxis, ensuring a higher degree of security.
More importantly, MFI leaders have to first embody the change they seek in order to ensure the success of their equal opportunity initiatives. At Kashf Foundation, a Pakistan-based MFI, the CEO was determined to create a distinctive organizational culture based on equal opportunity and meritocracy. She pursued this by hiring and supporting managers who believed in the same cause, which proved especially effective in a hierarchical context where people adopt cues from their supervisors and leaders.
What are the most challenging and exciting aspects of your work?
One of my biggest challenges is competing for the attention of MFI leaders. Oftentimes, their time and attention are absorbed by pressing priorities such as tightening financial regulations, growing competition and financial performance issues. I address this by helping them to understand that equal opportunity and gender diversity are catalysts for their organization’s growth from both the business and mission perspectives. Not only do the outcomes help improve the MFI’s reputation as an attractive employer and a mission-focused organization, these practices also help empower staff and create a stronger bond with microfinance clients.
At the same time, it is a humbling experience to work in an industry with so many visionary leaders. Every day brings a new lesson in good leadership. I love the idea of bringing a new concept to leaders who are champions for doing good in the world, and assist them in expanding their missions and visions.
Can you share resources for our readers who are interested in learning more?
CGAP (Consultative Group to Assist the Poor) is the World Bank’s microfinance gateway and a great resource for facts and detailed information.
Portfolios of the Poor: How the World's Poor Live on $2 a Day tackles the fundamental question of how the poor in Bangladesh, India and South Africa make ends meet by developing surprisingly complex "financial portfolios" of formal and informal tools.
I have been traveling to India frequently for work, so The Mughal Empire has been wonderful in helping understand the scope of India’s wonderful history and culture.