Do Microfinance Opportunities Provide Anything Valuable?

Students are constantly working to distinguish themselves from their peers in order to land that coveted entry level position at an Investment Bank, conducting Equity Research or performing Private Wealth Management. Yet these individuals are all performing the same tasks just slightly better than one another. Why not take that motivation and apply to another aspect of finance that would make your application stand-out? Many options exist but I would like to point out just one: entry level positions at a microfinance institution in a developing county.

Before I begin let me make note, you will not be handling million dollar accounts, conducting investment research into large scale companies or earning large paychecks, if any for that matter. However, the work you will be conducting is equally as important, especially to those who are serving and should provide a unique work experience making your application more noticeable.

For those who are unfamiliar with microfinance institutions it is a provision of financial services providing loans, savings, insurance and training to those living in poverty. The industry was established by Muhammad Yunus in Bangladesh in the 1970s. Over the years, many new enterprises have entered the market allowing clients to effectively navigate their daily needs. The primary mission of microfinance continues to focus on those with the greatest needs, those who have been displaced, those in rural areas and those who traditional institutions continue to deem un-bankable.

Before, the Wall Street Oasis community dismisses this idea as an idealistic approach, understand this is a means to gain experience in a way that will distinguish yourself from your peers. However, I would not recommend applying for these positions if you have zero empathy to helping those most in need. Living in a third-world country for any amount of time will certainly make your life miserable if you are doing it solely as an application/resume booster. On the other hand, if you do find yourself seeking an alternative approach, there are three reasons this is a lucrative opportunity.

1) Travel- The most obvious reason is gaining firsthand international experience. You will gain direct experience in an emerging market allowing this opportunity to provide invaluable knowledge to your financial future.

2) Stamina/Discipline- All of as aware of the terrible working conditions research analysts and other young employees are expected to manage. Although, nothing will compare to living in a third world country free of any American amenities, working similarly long hours to your counterparts in the U.S. While I cannot attest for any employer, I would imagine they would look favorably upon this. Knowing if you can handle living in an Indian shanty town, you can probably handle anything assigned; assuming your financial knowledge is of equal merit.

3) Experience- As the majority of microfinance institutions seeking internships or entry level positions are new in overall terms, you will be given and expected to manage a greater deal of responsibility on your own. Demonstrating a level success as in within any job, will benefit you in the long run but knowing what are able to manage effectively on your own with little oversight will provide a level of self-assurance you did not have before.

Remember the size of the accounts you will be handling and/or conducting research on is far less compared to the U.S, but the services you are providing are arguably priceless, especially to the people you will be serving. While I am aware this option is not for everyone, but for those seeking something different I believe this is an option to explore.

What do the readers of WSO think of working at a microfinance institution?

 
enn_doubleu:
How available/easy-to-get are these opportunities?

Depends on how specific you want to be with location. If you are willing to accept an entry level position anywhere the world, then from my research you should be able to fine employment relatively easy.

“I am always saying "Glad to've met you" to somebody I'm not at all glad I met. If you want to stay alive, you have to say that stuff, though.” ― J.D. Salinger, The Catcher in the Rye
 
jntheriot504:
enn_doubleu:
How available/easy-to-get are these opportunities?

Depends on how specific you want to be with location. If you are willing to accept an entry level position anywhere the world, then from my research you should be able to fine employment relatively easy.

Interesting, are any of them paid? What are the requirements? Can they be very short term, like several weeks?

 

A lot of good questions above. Being that I do not have answers to all of them, next week's post will answer the questions above. I will also go further into depth about the additional opportunities micro-finance can provide.

“I am always saying "Glad to've met you" to somebody I'm not at all glad I met. If you want to stay alive, you have to say that stuff, though.” ― J.D. Salinger, The Catcher in the Rye
 

I spent 4 months in a developed African country while in college. I then was an S&T summer analyst at a top bank in NY and now work in S&T at another firm FT on the West Coast. In Africa I developed loan products for a growing MFI -- you certainly can get the opportunity to take charge of something real, as opposed to a vanilla PWM gig. Plus, it's a helluva lot more fun and exciting to go somewhere new -- the people you meet will be a great experience and you'll learn what the rest of the world is like.

Best of all, you will stick out.

 
Best Response

Happy to answer any PM's but for clarity for everyone, anyone seeking a microfinance internship or position need to be aware of a couple of things:

1) I wouldnt recommend 4-6 week internships. Although they may be available, you hardly have enough opportunity to fathom the process behind microfinance and how it works/doesnt work.

2) There are tons of opportunities around for remote internships, which offer significant experience and do not curtail your day-to-day. I held a recent position remotely whilst working full-time. It can be a hassle but definitely manageable. One example would be - http://www.microcapital.org/microfinance-internships/

3) The best positions are usually organisations solely devoted to microfinance. There are numerous companies out there that offer internships within microfinance when their main business/focus may be on various consulting services, etc. The work is kind of flawed in terms of what you gain from it.

4) Finally, the best place to start looking for position is http://www.microfinancegateway.org/p/site/m/jobs/ - they have tons of opportunities and links to organisations that may be useful.

Hope I didnt ruin your future post OP! Looking forward to reading it and happy to answer any other questions.

 
FinancialNoviceII:
Hope I didnt ruin your future post OP! Looking forward to reading it and happy to answer any other questions.

You certainly did not ruin my future post. Better to have information directly from someone with experience!

“I am always saying "Glad to've met you" to somebody I'm not at all glad I met. If you want to stay alive, you have to say that stuff, though.” ― J.D. Salinger, The Catcher in the Rye
 

I did a 1 month microfinance internship in India and I think it was enough to understand how it works, maybe not on an intricate systems level but definitely the overarching concepts. The internship was set up by my college and was, of course, unpaid (if you have to ask for compensation you probably shouldn't be doing it).

My advice is to be careful taking an extended position in the sector unless you are truly passionate about it. Remember not everyone working in microfinance gets to be Mohammad Yunus, at the end of the day it is a business environment and with no useful experience you might be pigeonholed into a back office desk job. Also, beware than not many people in western society actually know what microfinance is, so its use on your CV is limited to you being able to explain the significance of your experience in an interview. Finally don't expect it to be in any way useful to you once you are employed at any major western bank/firm, everything from processes to culture is drastically different. But the perspective is well worth it.

 

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