Our case study - the Blighty banking project

This is a more in-depth story of my own experience with regards to the Blighty banking Project. Hopefully you can be use his as a guide to refer to when planning your own bank. I say this in a confident manner because at the time of writing (March 2010) the project is going well. It is a success. It not only makes money for the loanees it also makes money for the bank. It is a viable business. A self sufficient organization. The loanees are making money and paying back their loans. In turn we lend to more people. So it is growing organically on its own. I realise that we will have many problems and issues in the future that may threaten this success's but there is no doubt at this moment in time it is working. Our 30 loanees are all committed members of the bank and are proud to be part of the project.

So what do you need to replicate the successful model?

• 1) Money. 4000 pounds (or the equivalent thereof) will do it. This means you can lend to 80 women/ new businesses (the equivalent of 50 pounds each)
• 2) Book. Read the book 'Banker to the Poor' by Dr Mohamed Yunus. This is a micro finance bible.
• 3) Help. A 'key local contact' is a great help. In my case it was Suneetha (and her husband Ratnam) without whom it would not have been possible to do so much. You can find your key contact by initially going to help out at a charity or an orphanage. You need to imbed yourself in your target area and find someone you trust.
• 4) Test. Try out lending some money to test the process.
• 5) Grow. To keep on growing until you have 100 loanees in your bank you will need some help. You will need to create a loyalty and bond to the project. When users borrow money they know that they must pay it back to help others also borrow money. They feel part of the team. They know that if they fail to re pay the loan then we must write the loan off. We tell them that. They know that if they don't pay back money then the dreams of one of their neighbours may not be financed. That way we are all as one team together.
• 6) Create another banking Project in a different location? I feel confident that I would like to also start a Blighty Banking Project in Africa in the future.