Feizal, a Indian "diarist" in Portfolios of the Poor, is featured in The Financial Express. "This is the story of Feizal, a resident of Uttar Pradesh. He sells aluminum pots, his son works as a tailor’s apprentice and his wife and daughters roll bidis. Between them, they earn about Rs 2,000 a month to feed a family of 10. Interestingly, despite the seemingly hand-to-mouth existence, they also manage to save for one daughter’s wedding. Once, when Feizal fractured his thigh bone, not only did he cough up almost two-thirds of the family’s income for treatment, but he was also rendered jobless for eight months. The illness ate into his savings and pushed him to borrow from friends and neighbours. But as the researchers of Portfolios of the Poor–How the World’s Poor Live on $2 a Day observed, “the family’s financial networth deteriorated, but did not turn negative”. Feizal comes across as the perfect target for a micro-insurance health product. Except, how easy will it be to convince him to pay small premiums to buy an insurance cover to guard him in case such misfortune strikes again?" For more on Feizal and how his experience provides important insight into microinsurance conversation, go here.

Melinda Gates contributes a blog post to The Huffington Post. In it she writes, “I recommend this book to anyone who has interest in improving the lives of the poor.” Read the full post here.

Jonathan Morduch shares results from Portfolios of thr Poor, and discusses how businesses and philanthropies choosing socially sound investments are making a big difference in the world.

A New York Time article asks, What is the "fair" interest rate for microloans?

The fracas over preserving the field’s saintly aura centers on the question of how much interest and profit is acceptable, and what constitutes exploitation. The noisy interest rate fight has even attracted Congressional scrutiny, with the House Financial Services Committee holding hearings this year focused in part on whether some microcredit institutions are scamming the poor.

In this article on the growing attention being given to the importance of access to savings services, FAI Director and Lead Researcher Sendhil Mullainathan discusses some of the difficulties of saving. 

"Sendhil Mullainathan, a Harvard economist, points out that there is often a big gap between what people say they’d like to save and what they end up saving. Saving, he argues, is often “what didn’t happen”—the accumulation of decisions not to consume. Consumption, by contrast, is an active decision to buy something."

The Financial Access Initiative's "Half the World is Unbanked" research is cited by Representative Dan Maffei at the January 27, 2010, State of Global Microfinance Congressional Hearing before the U.S. House of Representatives. His testimony starts at minute 19:25.

The same research was also cited in testimony by Susy Cheston of Opportunity International (see page 6).

Jonathan Morduch tells stories from the financial diaries research behind Portfolios of the Poor.

Click here and use CTRL+F to search for "Morduch".

Nicholas Kristof of the New York Times invites microfinance researchers Abhijit Banerjee, Esther Duflo and Dean Karlan weigh in on the idea that microcredit is delivering exactly what a successful new financial product is supposed to deliver.

Check out a new review of Portfolios of the Poor: How the World's Poor Live on $2 a Day in Science Magazine.

Microloans have brought credit to millions of poor people shunned by the conventional banking system. But now commercial financial institutions are jumping on the microlending bandwagon. BBC’s Peter Day wonders if a microloan bubble is about to burst.

FAI Director, Dean Karlan, and SafeSave founder, Stuart Rutherford, weigh in on the conversation. SafeSave, a small microfinance organization offering savings and loans products to people in Dhaka’s slums, is featured in the BBC Program.

To read the article.

To listen to the podcast.

In this week’s Financial Times, Columnist Tim Harford addresses the recent backlash against microfinance. He cites three randomized controlled trials (RCT) unveiled in 2009 that yielded conflicting results.  The RCTs referenced were: a credit-scoring computer program in Manila by FAI Director Dean Karlan and Jonathan Zinman; a more traditional lending operation in India by researchers from MIT; and a microsavings scheme in rural Kenya.  David Roodman challenges us to be more realistic about our expectations of microfinance suggesting: “Suppose microfinance is not having much average impact on poverty, but is giving millions of people a modicum of greater control over their lives … is that so bad?”

The full article can be found here:

A reflection on what the newest impact studies mean for microfinance, and how Portfolios of the Poor can help us understand how the poor live their financial lives.

Two recent studies show how a gentle reminder via text can increase bank savings.

Dean Karlan, Sendhil Mullainathan, Jonathan Zinman and Mary McConnell found that bank customers randomly selected to receive reminders to save via text saved 6 percent more than individuals who did not, and were 3 percent more likely to reach their savings goals by the end of the savings program.

Read the full article here.

A new global estimate reveals that 2.5 billion adults worldwide do not have a savings or credit account with either a traditional (regulated bank) or alternative financial institution (such as a microfinance institution). Nearly 90% of the financially un-served live in Asia, Africa, the Middle East and Latin America.

CGAP senior advisor Richard Rosenberg weighs in on the microcredit debate.  He cites indicators outside of income generation to assess the success of microloans, such as helping households to meet consumption needs, access reliable credit and savings mechanisms, and cope with poverty, not only to emerge from it.  Mr. Rosenberg looks to research from Portfolios of the Poor to expand on this message:

“These other benefits are described compellingly in the brilliant new book Portfolios of the Poor by Daryl Collins et al., which gives a high-resolution picture of how low-income households actually use financial services, based on hundreds of 18-month-long financial diaries in three countries.  Portfolios points out that the problem with being poor is not just that income is low, but also that it tends to be uneven and vulnerable to disruption.”

For the full blog post, please visit:

The enduring repercussions of the US subprime-lending market have caused many to worry about the possibility of a similar microfinance ‘bubble.’  FAI Director Jonathan Morduch discusses the issue in this week’s MoneyWeek.

"The Economist quotes academic Jonathan Morduch as predicting that there may well be localised failures among microcredit firms as a result of overheating. But "I don't see any evidence at all for something like a global bubble"."

Read the full article here:

Adam Fleisher from Zocalo reviews Portfolios of the Poor
“The authors of Portfolios of the Poor went looking for the answers. Dissatisfied with existing brief cursory surveys or simple data collection exercises on poverty, they undertook a series of in-depth studies. Interviewing poor households in Bangladesh, India, and South Africa at least twice a month over the course of a year, the authors constructed “financial diaries” of how these families live on their meager incomes.”  Read the full review here:

The Boston Globe asks Dean Karlan what the latest impact studies tell us about microfinance.

Read the full article here.

FAI Managing Director Jonathan Morduch was quoted in a TIME Magazine article about the reasons for slow take-up of microinsurance in the developing world.  Morduch refers to findings of the book he co-authored, Portfolios of the Poor, which sheds light on the complex financial lives of the world's poor.

Read the full article here.

A recent Wall Street Journal article by Suyash Rai and Sona Varma draws on research from Portfolios of the Poor as the authors strive to understand power of finance to transform the lives of the poor.

Read the full article here.

The September/October issue of Microfinance Insights features a book review of Portfolios of the Poor and an interview with authors Jonathan Morduch and Orlanda Ruthven.

Read the review here.

Read the interview here.

Dean Karlan stresses the need for more microfinance impact studies in a recent New York Times article.

Read the full article here.

Foreign Policy Magazine featured an article by FAI Managing Director Jonathan Morduch called "What the World's Poorest Can Teach Us About Money Management." In the article, Morduch discusses the book he co-authored, Portfolios of the Poor, and what it reveals about the surprisingly complex financial lives of the world's poor.

Read the full article here.

Dean Karlan talks to BBC World about new results from the Philippines that raise questions about the effectiveness of microcredit in reducing poverty.

Listen to the full story here.

Read the new research paper here.

FAI Director Sendhil Mullainathan appeared as a witness in the recent Senate Banking Committee meeting “Creating a Consumer Financial Protection Agency: A Cornerstone of America’s New Economic Foundation”.

For more information and to watch the hearing live, click here (Mullainathan appears in the video at minute 151:45).

Newsweek correspondent Mac Margolis examines a new microfinance study by FAI Managing Director Jonathan Morduch and Center for Global Development Research Fellow David Roodman.  The authors of The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence take a closer look at the quality and conclusions of influential research on microfinance.

Read the Newsweek review here

Read the working paper here

FAI Director Dean Karlan's recent study on the impact of business and entrepreneurship training on microfinance clients is featured in the New York Times.  The study finds that training leads to better business practices and increased revenues and profits among clients, and increased repayment and client retention rates for the microfinance institution. The New York Times article can be found here.

The paper, "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," can be found here.

Carlos Lozada from the Washington Post reviewed Portfolios of the Poor today. The review describes Portfolios as a valuable departure from the rhetoric of global poverty.

"As the economists rumble, however, the poor get on with the messy business of living. On this, two new books chart a refreshingly distinct path. "Portfolios of the Poor and The Beautiful Tree avoid the big picture and zoom in on the basics of daily poverty, exploring how poor families manage their money and educate their children. Their conclusions leave room for hope, based less on trust in big answers than on faith in human ingenuity."

Read the full review here:

Jonathan Morduch discusses the need for microcredit beyond microenterprise.

Jonathan Morduch talks about the success of ASA in Bangladesh.

Leila Seradj at the New America Foundation offers a few words about the new book Portfolios of the Poor: How the World's Poor Live on $2 a Day, and the lessons those of us in the U.S. can learn from the poor households featured in the book.

A new feature in the Economist highlights the research and stories behind Portfolios of the Poor: How the World's Poor Live on $2 a Day, recognizing that poor families lead active financial lives not despite being poor, but because of it.

Jonathan Morduch discusses how meaningful and inclusive financial reform can help expand access to those who need it most and create a new vision for microfinace.

IPA researchers Dean Karlan and Jonathan Zinman discuss how government policy can help borrowers seeking small scale loans by improving the "choice architecture" or the way information about those loans is presented, allowing consumers to make the decision about what kind of loan will work for them.

A susu could be one of the safest places to park your money these days. FAI Managing Director Jonathan Morduch talks about how people are using these informal savings clubs to keep their money safe during the economic downturn.

The FT's Tim Harford writes about a new book co-authored by FAI Managing Director Jonathan Morduch, Portfolios of the Poor: How the World's Poor Live on $2 a Day. "The trouble with living on two dollars a day," writes Harford, "is that you don’t actually get two dollars a day. One day you might get five, then nothing for the next three days. Income is unpredictable. Outgoings, too, are irregular. Emergencies crop up. Under the circumstances, the most basic financial product, such as an easy-access savings account, would be invaluable. We know about this thanks to a new study by Daryl Collins, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven, detailed in their forthcoming book, Portfolios of the Poor. "

Read the full article here.

Portfolios of the Poor will be available in June 2009 from Princeton University Press.

As the microfinance sector passes the 150 million customer mark for the first time, an intense debate continues over the movement towards greater commericalization of an arena once led by nonprofits. "Microfinance Meets the Market," just published in the Journal of Economic Perspectives, furthers this debate, presenting new research from FAI Managing Director Jonathan Morduch and Robert Cull and Asli Demirguc-Kunt of the World Bank that reveals complementary paths to a successful expansion of the microfinance industry.

FAI Managing Director Jonathan Morduch talks to U.S. Banker about the potential for domestic entrepreneurship and microfinance for the cover story, “Is Microfinance Ready For Its Next Big Leap?”

Nicholas Kristof weighs in on how Portfolios of the Poor has influence his thoughts on the importance of microsavings.

FAI Managing Director Jonathan Morduch discusses the growth and future of microfinance as the sector matures.

FAI Managing Director Jonathan Morduch publishes a new paper that examines loan usage and creditworthiness of borrowers in Indonesia. Click here to read the full paper.

Innovations for Poverty Action, Financial Access Initiative, and Yale University hosted a microfinance conference on October 17-18, 2008, bringing together leading researchers to present latest findings from field research.  The conference included panels on Credit Product Design, Microfinance and Entrepreneurship, Returns to Capital, Financial Literacy, Credit Impact, Savings, and Risk Mitigation.

FAI Managing Director Jonathan Morduch talks to NPR's Marketplace about domestic microfinance.

To listen to the full interview - Marketplace

FAI Director Jonathan Morduch weighs in on Grameen Bank's arrival in Queens, NY, and the challenges and opportunities it will face.

To read the full article - The National

To read the full article - New York Times

While celebrities, particularly Hollywood celebrities, continue to play an important role in philanthropy, the nature of their role is changing. Stars like Natalie Portman are now playing an active role in the cause of their choice. Portman has become a leading advocate of microfinance and serves as FINCA's Ambassador.

Christina Barrineau talks about the impact of Portman's engagement on the image of microfinance in the latest New York Times Magazine article on "The Celebrity Solution".

The same issue features FAI Director Dean Karlan's work on philanthropy in the US (What Makes People Give?)

To read the full article - NYT Magazine

Related Projects:
Effect of Matching Ratios on Charitable Giving in the United States

FAI Directors Dean Karlan and Sendhil Mullainathan discuss microfinance product design, randomized trials and the best available economic theory to find out exactly what works and why.

To read the full article - Real Clear Markets

Charge 80% per year on a loan in the U.S. and you're called a usurer. Charge 80% per year on a loan in Latin America or Africa and you can be a poverty-alleviation charity. IPA examines whether poor consumers are better off when they can borrow from regulated financial institutions, even at "excessive" rates.

Related Projects:
Estimating the Impact of Small Consumer Loans on the Working Poor in South Africa

FAI Directors Dean Karlan and Sendhil Mullainathan in the Hindu Business Line

To read the full article - Hindu Business Line

Related Projects:
Business Education for Microcredit Clients in Peru
Interest Rates and Consumer Credit in South Africa
Impact of Group versus Individual Liability in the Philippines