In recent years, the microfinance sector in India has had considerable success in enabling neglected populations to participate in the economy. These gains now need to be consolidated. In order to facilitate and scale up the creation of MFIs regardless of the stage of their evolution, ICICI Bank has set up the MFI Incubator . Its prime objective is to create a support system which will act as a one-stop shop for all the requirements of an MFI at various stages of its growth.

A specialised emerging MFI team will identify organisations and individuals who can take up microfinance as a viable business. It will also create new channels and models for the delivery of financial services and for the development of a network of consultants. The team is also working to ensure a supply of jobs in the sector by working with microfinancejobs.com.

The incubator will provide a holistic suite of services ranging from equity provision to technical support. Collaborations with three venture capital funds, the Bellwether Microfinance Fund, Aavishkar Goodwell Fund and the Lok Capital Fund have been initiated to offer seed capital to emerging MFIs. ICICI Bank has also tied up with Intellecap, a group specialising in providing intellectual inputs to new ventures. Intellecap will work together with MFIs to create a franchisee model, which will incorporate a host of successful elements employed by the latter.

New MFIs will now be able to tap into the entrepreneurial resources and experiences of successful MFIs to overcome the problems of start up, growth and risk capital. Intellecap will specifically develop a comprehensive franchisee package based on the systems and processes of the chosen MFI franchisor.