Managing Growth of Microfinance Institutions: ASA Bangladesh – Single-minded growth

• by Stuart Rutherford, Graham Wright and S K Sinha
• Feb 1, 2008
• 1 min
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This paper reviews the difficulties faced by rapidly-growing MFIs and examine how they can be addressed. It aims to provide nascent MFIs with an understanding of the problems they are likely to face and the solutions they might try.

This paper is a part of a series of studies undertaken to review the difficulties faced by rapidly-growing MFIs and to examine how they were addressed. It is hoped that this will provide nascent MFIs with a rich understanding of the sort of problems they are likely to face and the range of solutions they might try.

ASA’s growth has taken place over the period during when microcredit service was being rolled out by an increasing number of MFIs to most of the villages and slums of Bangladesh. Besides Grameen and BRAC, no other organisation has ridden the tide of Bangladeshi microcredit as successfully as ASA. This paper describes some of the ingredients of that success – highlighting the key issues faced and strategies adopted by ASA. The paper starts with a statistical review of ASA’s growth and ends with some commentary on what the future may hold.