Capacity Building 

 

CapitalPlus Exchange, along with a partner private equity fund manager, Equator Capital Partners LLC, utilizes a ‘Capital Plus’ model, which combines investment financing and governance oversight with capacity building and peer learning opportunities. Exchange provides capacity building services to its partner banks through three main delivery mechanisms: Institutional Assessment, Onsite Consulting, and Knowledge Exchange and Peer Learning.

 

Institutional Assessment

 
Prior to a company receiving an investment by the company’s partner private equity company, Exchange conducts an in-depth needs assessment of the institution in order to develop a tailored capacity building plan with the bank. Due diligence for the investment is generally performed at the same time. During the assessment, Exchange interviews staff members, management, customers and other stakeholders on-site, while also reviewing and analyzing processes, products, financial documents and the strategic plan of the organization. The main elements of the capacity building plan, including prioritization of onsite work, are developed and agreed upon jointly with the client bank.

 

 

 Onsite Consulting

 

CapitalPlus Exchange provides capacity building resources to its partner MFIs and small business banks to develop and institutionalize improvements in key strategic and operational areas. Many of the institutions with which Exchange works experience challenges related to their rapid growth, in areas such as risk management, IT, and human resources capabilities. Improved processes and gains from efficiencies allow partner institutions to offer increased financial access to underserved rural and urban markets at scale on a sustainable basis through improved products and services, lower costs, or new delivery channels.
 
Technical services are provided by skilled local, regional and international experts in a variety of areas. Exchange works with each of its client institutions to oversee the quality of work completed by consultants and to assess the effectiveness of the capacity building services delivered. Capacity building areas include, but are not limited to:

 

  • Micro and small business lending methodologies
  • Risk management
  • Internal audit and controls
  • Human resource management
  • Operations strengthening
  • Deposit mobilization and other funding strategies
  • Strategic planning and financial projections
  • Board development and governance best practices
  • New product development and pricing strategies
  • Human resources
  • Management Information Systems (MIS) and conversions
  • Alternative delivery mechanisms and strategic partnerships
  • Portfolio management
  • Training and mentoring in order to develop in-house expertise

 

 

Regional Mentoring

 
An additional area of focus for Exchange is strengthening local and regional providers of technical services in Africa and Asia. Regional mentoring promotes sustainable technical assistance services for investees and other financial institutions on a more cost-effective basis. Exchange focuses on piloting different capacity building methodologies and sharing lessons on how to deliver capacity building / business services effectively to financial institutions serving poor and underserved entrepreneurs. Skill building is accomplished through training workshops, job shadowing opportunities, and other methods of knowledge transfer specifically designed for employees of the institution or regional consultants.