Kashf Foundation

“…building a prosperous world with financial services for all”
Kashf Foundation began effective microfinance provision in 1996. A research team studied the implications of a microfinance programme during the action research phase (1996–1998) that would target women from low-income communities and would offer pro-women and pro-poor products. Essential challenges included building trust in relevant communities, convincing clients to start saving with Kashf, organizing women in groups and helping them understand  XXXX rules and conditions, and designing appropriate programmes and efficient delivery methods XXXX.
 Kashf Foundation focused on efficient and reliable branch management systems in the growth phase 1999–2001. Improvements in loan officer-level procedures and policies were made, and an appropriate branch structure was established. The majority of this strategy was adopted from ASA, Bangladesh, and the group methodology was replicated from the Grameen Bank. Thus, learning from well-established microfinance institutions (MFIs) has led to many achievements for the organization. Market surveys and area research were conducted before the establishment of the branches to access the total outreach, which in turn affects the sustainability of the programme. The organization was able to set up ten branches and reach out to 3,604 clients.
The period 2001–2004 saw a maintained high growth rate and a zero-tolerance policy against delinquency. Mechanisms to improve credit assessment tools were introduced, and staff was trained in delinquency management. Ensuring client satisfaction was given top priority in order to avoid attrition; research was conducted to understand client needs and demands. Kashf was the first MFI in Pakistan to introduce a microinsurance product; this covers the death risk of clients by insuring the entire loan balance. Funeral benefits were also included in the product. Improvements were made in the cash management and disbursement processes, and bank deposits were introduced.
Kashf aims to continue helping the poor by focusing on poverty lending and expanding and opening new branches. The organization places a great deal of emphasis on research and innovation to introduce new products that low-income communities desire. Currently, Kashf offers a general loan, an emergency loan, a business surmaya loan, savings and withdrawal services, insurance, and capacity-building and training to its clients. Leadership trainings, reproductive health sessions, and gender trainings are also held to socially empower the poor.
Kashf currently has 35 branches with 2,877 centres which cater to 71,000 clients from the urban, semi-urban, and rural areas of The Punjab. The extent to which Kashf has served its customers can be gauged by the fact that the cumulative disbursed general loan had amounted to PKR 1.9 billion, and the cumulative emergency loan to PKR 275 million by the end of July 2005. Programmes are consolidated by improvements being made in cash management and liquidity indicators at all levels. Emphasis is also given to productivity and staff capacity. As the table below shows, active clients per staff member and active clients per loan officer have been rising for the past two years.
The key to Kashf’s success lies in the fact that it is not a static organization. Even after its achievements, it is dynamic and continues to grow. Active research and innovation is encouraged at all levels to move towards unexplored horizons.

Performance Indicator (The MIX)