Monthly Archives: August 2010

IDEO launches OpenIDEO an online platform where we can design, collaborate and create solutions and social good

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Earlier this month, IDEO, the leading global design consultancy launched OpenIDEO, a collaborative platform to design and create solutions to the world’s toughest challenges. This platform is cool. It starts with a big question (the challenge that needs a creative solution) and uses the design process; brainstorming, conceptualizing and evaluating to create with the online community innovative solutions. A very interesting point is that anyone that collaborates can get recognized accordingly to one’s contribution. OpenIDEO kicked off with Jamie Oliver’s challenge “How can we raise kid’s awareness on the benefits of fresh food so they can make better choices?” so tackling obesity. The second challenge is “How to increase the availability of affordable learning tools and services for students in the developing world?” by Enterterprising Schools, a project of Grey Matters Capital. It reminded me a lot of Ashoka’s Changemakers in that it crowdsources ideas/proposals and let the online community collaborate to create solutions. OpenIDEO is making it easier for everyone to become a changemaker!

Introduction to OpenIDEO / OpenIDEO.com from IDEO on Vimeo.

Turbulent month in the microfinance world: Death of BANEX and the successful IPO of SKS

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This month we have seen the death of a large microfinance institution BANEX (formerly Findesa), once the leading Nicaraguan MFI was forced into liquidation by the Nicaraguan Banking Superintendant (NBS) after defaulting on its creditors. Findesa was founded in 2002 had a spectacular growth and a remarkable track record til early 2008. They were granted the banking licence in September 2008 and changed its name to BANEX. The portfolio quality of Nicaraguan MFIs deteriorated very quickly in the past 2 years due to 1)the negative impact of the global financial crisis especially seen by the decline of remittances from Nicaraguans working in the USA, and 2) the “no pay movement” in the north and central parts of the country. Furthermore, Banex was hit by its product mix with high exposure to small and medium enterprises and high concentration in livestock loans. According to the national newspaper, NBS stated that all 3000 depositors of Banex were paid back in full. For more information please read David Roodman’s excellent writeup and the short note from Microrate
The good news. The long awaited IPO of SKS Microfinance took place and the shares made an impressive debut on the Bombay and National Stock Exchange of India on Aug 16th. The IPO was over 13 times subscribed and the shares closed the first day with an 11% premium. The valuations are much higher than Compartamos and the topic of MFIs going public is actively debated as industry players are divided in their views.