UNDERSTANDING MICROFINANCE OPERATIONS DEPARTMENT (MFB/2024/14)

Microfinance is the provision of financial services to the unbanked active poor in the society. Most of these active poor are intuitively entrepreneurial but have no access to the most important factor of production which is Capital and associated services which can leverage their entrepreneurialism.

Central Bank of Nigeria defines Microfinance as provision of “Financial services to the poor who are traditionally not served by the conventional financial institutions”. In the opinion of the bank, robust economic growth cannot be achieved without putting in place well focused programmes that increase access of the poor and low income earners to the factors of production especially credit.

To fill this gap, a major strategic initiative of the Bank is the provision for the establishment of Microfinance Bank in the Microfinance Policy, Regulatory and Supervisory Framework which was launched by the Federal Government on 15^th December, 2005.

A major Department in a typical Microfinance Bank that enlists the active poor and low income earners in the Bank’s Programme in the form of Clientele is the Operations Department. This Department services most of the day-to-day financial needs of the customer.

The staff of this department must be well trained to deliver the required financial services of the clients and make serving the customers a delightful experience.

TRAINING OBJECTIVES

At the end of the Training, participants should be able to:

1. Identify the functions of operations Department in particular, and other Departments in general;
2. Apply Prudential guidelines while serving the customers;
3. Observe the principle of Know-Your- Customers in the course of their duties;
4. Deliver their duties politely, honestly and in the way that will delight the customers; and
5. Project and protect the reputation of their banks.