Riskebiz Microfinance Fund and Microinsurance Technical Services Facility



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Reducing the Risk of Risky Business
Who are we?
Riskebiz is a microfinance investment firm and a technology services company. We provide capital and technologies to microfinance institutions (MFIs).
What is microfinance?
Microfinance is the provision of financial services to low-income clients, including consumers and the self-employed, who traditionally lack access to banking and related services.
What are microfinance institutions (MFIs)?
A microfinance institution (MFI) is an organization that provides financial services to entrepreneurs in emerging economies.
What do we do? Riskebiz manages a microfinance venture capital fund and provides technical assistance to microfinance institutions. Our technical assistance services include: Leveraging XBRL for investment transparency and efficiency; Selection and setup of management information software (MIS); Integration of mobile money transfer (MIS) solutions; Implementation of microinsurance schemes. Who do we work with? We work with tier 2 and tier 3 microfinance institutions. We also work extensively with technology providers, microfinance funds, insurance companies and social entrepreneurs.

For MFIs Riskebiz makes equity investments in small microfinance institutions in developing countries. In addition to providing capital, we provide MFIs with technical assistance to: Improve their efficiency; Extend their reach; Enhance their transparency; Boost their social impact; Increase their profitability. For MFI Clients By helping small MFIs achieve their financial and social objectives, Riskebiz hopes to benefit individuals who have limited access to financial services by providing them with: Easier and safer access to financial services; Lower interest rates for loans; Access to savings and insurance products; Enhanced economic activity.
Our Investment Philosophy and Strategy We believe that social impact today is correlated with profitability tomorrow. MFI valuations are not maximized by simply increasing the size of a loan portfolio, especially when it comes at the expense of weak underwriting. This approach jeopardizes the financial stability of microfinance institutions which in turn negatively impacts their valuations. As a venture capital fund making equity investments, we are looking to work with MFIs to maximize their social impact, as this will most effectively translate into superior financial returns for MFI shareholders through strong, sustainable growth. Our investment strategy focuses on social return. It begins with an analysis of a MFIs existing operations, looking for ways to help MFIs to: Reduce interest rates charged to borrowers; Accept deposits and allow for client savings; Increase revenue by offering microinsurance products; Provide timely and accurate financial reports for shareholders. To execute this strategy we use an effective combination of technology, corporate governance and insurance. The efficiencies gained through the use of MIS software and cost savings achieved by facilitating mobile payments can significantly reduce operating costs, savings which can then be passed on to borrowers in the form of lower interest rates. Microinsurance products offer an additional source of revenue for MFIs, while at the same time improving the risk profile of certain borrowers thus enabling them to more safely secure larger loans and provide security for both the borrower and lender. Maximizing the social return ensures that clients grow with MFIs, not only out of poverty, but into the ranks of a new middle class.

Recent News Riskebiz Microfinance Fund profiled in Arvind Ashta's article on Microfinance Focus entitled "How can technology co-create value for Microfinance investors?" It is often considered that a country is poor because it is poor and that exogenous capital is required to break the vicious circle of poverty. Within a country, the poor may need this exogenous capital: “Nobody gives the poor the first dollar,” says Muhammad Yunus, the Nobel Peace Prize winner. Part of the reason lies in their lack of human capital and the inability to use technology, part of the reason lies in asymmetric information keeping banks from lending to them, and part of the reason lies in the small transaction size leading to high transaction costs. Yunus foresaw that the poor could get together in groups and thus allow MFIs to overcome asymmetric information without actually getting the information... Continue Reading >> For Investors If you are an Accredited Investor and wish to find out more information about participating in our fund, please register with us for online access to our investor section.