Bangladesh boasts a large number of well-known microfinance institutions (MFIs), including many medium and smaller MFIs operating throughout the country. As of December 2022, 750 MFIs possess a license from the Microcredit Regulatory Authority (MRA), and many have applied for a license. COAST Foundation has been operating its microfinance operation since 1998, after the acquisition of the project from Action Aid in Bhola.
In 2022, DevMaker Consulting conducted a review of the program to analyze the overall situation of the core program (MF) based on the COAST Foundation’s activities and interviews that were conducted with other stakeholders like MRA, PKSF, CDF, INAFI, banks, BURO Bangladesh, PMK, and CIDIP. It will then identify and describe issues to be addressed for the next five-year plan. This review process has been instrumental in creating a cultural platform in the upcoming time. Since its inception, COAST Foundation’s microfinance program has evolved as an economic development approach to benefit low-income people in coastal regions. The organization has gathered decades of experience in microfinance program operations. The organization has a dedicated number of skilled staff and effective work plans to prepare a strategic plan for the next 5 years. Besides the human resources and the infrastructural opportunities, COAST Foundation has boosted its business plan and targeted to invest more capital funds in the program operation. Since various financial and non-financial projects are being undertaken to achieve its goal in the microfinance industry number of people-centered programs and experiments have been conducted by COAST Foundation thereby microfinance has undergone continuous improvement this time.
Since its inception, COAST’s microfinance program has shown strong resilience and continues to contribute to the enhancement of organizational growth. At present, COAST is providing its services to around 150,000 active members under the core program (MF) through 107 branches in 11 districts which 90% are women. The total outstanding loan of the organization has increased to BDT 2,527 million in June 2020 which was BDT 2,250 million in June 2019, a remarkable growth of 12.5% in the last fiscal year. The loan has been disbursed to 103,186 poor families, helping them to be self-employed and accelerating the overall economic development process of the coastal areas of Bangladesh. The total savings has also increased by 17.5% from BDT 814 million in June 2019 to BDT 957 million in June 2020. Therefore, the organization achieved significant growth in the last year. It is also factual that, COAST’s field operation is facing pressure and challenges in the market due to some unanticipated practices like the undue competition of expansion, investment, and loan disbursement guidelines by a number of the big and medium-level organizations; which sometimes hampers the regular operation in the overall program. Also, COAST has faced the long effect of the moratorium in the last two years due to the COVID-19 pandemic causing the PAR has increase to 19.21% which was 5.54 in 2019-20. It has a two-fold impact on the organization; one is on the program finances where the FSS has reduced and stood at 96% and another one the clients are withdrawing their savings. Therefore, the revenue went down and increased the cost of operation as a whole.