29/01/2013 23:10:40 PM
Overview of M7 Network(Views: 2859)History
M7 microfinance network ranks the third among the biggest microfinance organizations in Vietnam, being after CEP (Capital Aid fund for employment of the poor) of the Ho Chi Minh city's Labor Union, and TYM fund of the Vietnam Women’s Union.
The network was established in July 5th 2006, including 7 credit-savings programs which were in different provinces and managed by the local women’s unions. These programs had the same models in providing microfinance services as well as same clientele (low-income and poor women, the ethnic minorities).
From 1993 to 2003, these 7 programs had operated with the funds of Vietnam ActionAid (AAV). In 2003, AAV transferred all the remaining funds for program’s management. From then, all these 7 programs gradually completed the organizational structure, and chose the Social fund model as an intermediary step in the process of becoming professional MFIs.
In July 2006, these 7 programs decided to gather and form a united M7 network. The member organizations have the same kind of organizational structure, follow the same regulations and policies, provide alike products and services…They exchanged information or data through the email or telephone systems.
Representatives from 7 programs holding hands to show the solidarity and commitment on the foundation day of the network.
Up to present, the total number of clients is about 39,000 members (2012).
Relationship between CFRC and M7:
CFRC is the 8th member of M7 network and its main responsibilities are:
- Technical support and monitoring body for M7network.
+ The software now running among M7network is technically assisted by CFRC. If there are any arisen problems or difficulties with the software, then the staffs from member organizations will get the assistance from CFRC
+ The monthly financial data of the network is collected and analyzed by CFRC.
+ Acting as the monitoring/supervising for the whole network’s operation.
- Fund-raising for the network, coordinating for the development of M7 in general and for each member organizations in particular.
1. Transforming at least three member organizations into licensed MFIs.
2. 100% full-time staff.
3. Applying high-technique.
4. Diversifying fund mobilization.
5. Cooperating with other social funds to expand the coverage of performing areas.
Main upcoming activities:
1. Transforming into licensed, independent and professional MFIs.
2. Conducting advanced training courses.
3. Setting up general regulations for the whole M7.
4. Standardizing internal control statutes.
5. Reinforcing supervision through the network.
6. Diversifying fund mobilization.
7. Searching for the appropriate legal ground in order to legalize M7MPA.