Expanding Islamic Microfinance in Azerbaijan: The case for industry coordination to serve new client segments

by Diana Dezso and Jhale Hajiyeva in 2014

Summary

In an effort to meet increasing client demand for Islamic microfinance products in Azerbaijan, a broad group of diverse stakeholders led by the Azerbaijan Microfinance Association (AMFA) is working to enact legislation and build the capacity of financial service providers to deliver these products. By mid-2015, it is expected that both the legal framework and the requisite support services will be in place to enable wide access to Islamic microfinance, thereby enhancing overall financial inclusion in Azerbaijan.

This article is the first in a series developed by SEEP with support from Citi Microfinance titled Spotlight on Financial Inclusion Leaders. The series profiles selected microfinance associations, showcasing the ways in which they are supporting their members and meeting the challenges of value-added growth in financial inclusion. These associations are leaders in implementing innovative and locally-responsive approaches to financial inclusion. Their work is having a clear and measured impact on the lives of their clients, and their experiences bring valuable new knowledge to the industry at large.

EXPLORE ALL ARTICLES IN THE SERIES:

• Summary – Microfinance Associations: Roles and new leadership opportunities
• I – Expanding Islamic Microfinance in Azerbaijan: The case for industry coordination to serve new client segments
• II (English) – Expanding E-Money Services in Peru: Reaching unbanked clients and advancing financial inclusion
• II (Español) – Expansión de los servicios de dinero electrónico en Perú: Alcance de clientes sin acceso a servicios bancarios y avance de la inclusión financiera
• III (English) – The Advance of Mobile Banking in Ecuador: Leveraging shared, industry-wide infrastructure for rural financial inclusion
• III (Español) – La banca móvil para la inclusión financiera en las áreas rurales de Ecuador: Utilizando una infraestructura compartida y la banca móvil para toda la industria
• IV – Inclusive Finance for Low Cost Private Schools in Pakistan: Serving a new client segment with sector-specific strategies