SPBD Microfinance Holdings (Singapore) Pte. Ltd.

The Singapore-based holding company serves as a regional microfinance platform to develop a network of for-profit microfinance institutions (NBFI – Non-Bank Financial Institutions) throughout the broader Pacific, all of which could ultimately transform into commercial banking entities in the intermediate to long-term. The SPBD operational model used in Samoa, Tonga, Fiji, Solomon Islands, and Vanuatu will be applied with all the necessary adaptations to local business environments. Countries currently being considered are: American Samoa, Marshall Islands, Timor Leste, Kiribati, Federated States of Micronesia, Philippines and Indonesia.

With the holding company at the center of the SPBD Microfinance Network, it is easier to centralize the Treasury, Management Information Systems (MIS), and Human Resources (HR) functions, thereby allowing for smoother and more cost effective operations.

Advantages

1. A centralized treasury function for the network lets SPBD:
   • More easily raise capital than a single MFI
   • Allocate the capital efficiently to each member MFI as they require it
   • Reduce the need for capital management expertise in each MFI
2. A new centralized Management Information System (MIS) allows for significant growth of the company. The cost of this vastly improved MIS system is more easily borne by the linked SPBD Microfinance Network and is entirely unaffordable to SPBD as presently structured.
3. Human Resource enrichment – Cross training opportunities are available for SPBD Microfinance Network staff across the region due to the creation of a linked network. Employees in Samoa have opportunities across the broader region and significantly more career upside. The staff of all organizations benefit from the sharing of resources.

As a regional platform, SPBD Holdings is used for the sharing of best practices, cross-training of staff, and replication of successful innovations and new products. Investee institutions are encouraged to reach financial sustainability as fast as possible, while benefiting from the knowledge gained by the holding company in other markets. Over the roll-out period, the progressive build-up of institutional capacity at the holdings level helps reach higher efficiency levels throughout the investee network.