Non-Financial Emergency Services to MFI Clients

In the immediate aftermath of a rapid-onset natural disaster—such as a flood, earthquake, or hurricane—field-based microfinance institutions (MFIs) are often the first to discover communities without homes, clean water, food, or shelter. Under those conditions, some MFIs temporarily provide emergency relief activities to clients or larger communities, with the goal of saving lives and protecting health. This technical brief outlines why, when, and how MFIs engage in relief activities without downgrading their credibility as a financial institution in the eyes of current and potential customers. It provides specific cases of MFI relief activities, drawing from the well-documented efforts following the 1998 flood in Bangladesh.

This brief is one in a series of five Microenterprise Best Practices (MBP) Technical Briefs focused on MFI response to rapid-onset natural disasters. These briefs discuss the potential interventions and actions that MFIs could undertake in the aftermath of a disaster, based on the experiences of MFIs from Hurricane Mitch and the Bangladesh flood.