July is the month that saw the first ever wholesale loan on MYC4 fund which is a great milestone. Jubilant Kenya also joined the list of Kenya MYC4 providers in the month. Below is an update on how the other providers are fairing…
Kenya Providers
KEEF – As you are aware KEEF experienced Fraud in the recent past hence the deterioration of their par. In the last 2 weeks of July, KEEF has been working on ways to reduced their PAR 30 and have had repayments of 5,186 Euros. They are expected to continue with repayments every week as was before and this week MYC4 is expecting approximately 3900 Euros from them.
SISDO – has continued repaying the portfolio and there currently have an OLB of € 34,646.44 with a par 30 of 2.87% .
Milango – reached its ceiling as per our policy. After the evaluation it was noted that their total PAR30 both internal and on the platform for the organization was high and therefore they were given some time to rectify the situation which they are progressing well. In addition, MYC4 is almost 30% of Milango’s total OLB, which is the ceiling. Milango will be having an AGM this month where the shareholders will discuss and approve more funding for Milango to give them more leverage to borrow.
Jubilant Kenya – The youngest kid on the block is doing well, and currently has an OLB of € 16,491.00 and a Par 30 of 0%. They are expected to upload loan equivalent to € 12,500 a month.
Tanzania Providers
Tujijenge Tanzania – The month of July saw Tujijenge pay a total some of € 42,639. They have agreed to be transferring repayments every month, this will enable them reduce the portfolio and also regulate Par 30. Tujijenges OLB stands at € 139,701.32 with a Par 30 of 49%.
Fanikiwa– has been gradually repaying the portfolio every bi weekly, the Par 30 currently stands at 21% with an OLB of € 36,864.38. This week MYC4 is expecting repayments amounting to € 6,000.
Mtaji – July saw Mtaji transfer repayments of € 4,334.50, it is expected that they will continue repaying the portfolio in the months to come. Their OLB currently stands at€ 80,958.26 and Par 30 is 100%. Mtaji is working hard with the help of MYC4 staff to see the Par 30 is reduced and that repayment of the portfolio is back on track.
Uganda Providers
July saw MYC4 Officially pull out of Uganda a few months after pulling out of Tanzania while strategizing to remain in Kenya. The uganda providers have continued repaying their portfolio as expected. Uganda Micro credit Foundation and Tujijenge Uganda transfer their repayments in good time and their current OLBs are € 138,186.40 and € 69,823.75 respectively and the Par 30 for both is currently at 0%
Gatsby – is in the process of paying off the portfolio , so far they have grouped all their repayments and have transferred half of the amount.
Compliments for Uganda providers! They repay regularly and Gatsby even cleared their portfolio.
Hi,
For me, this is quite an unsatisfying explanation on Mtaji. Mtaji did not make any repayments since April or May. Last month, the provider update told (http://blog.myc4.com/2014/07/02/june-provider-update-2/) that:
“32.253 Euro of repayments that they have collected from borrowers, passed the entries on the MYC4 platform, but are yet to transfer to MYC4”.
Where is this money?
Why did Mtaji only transfer 4.334 Euro as stated in this update?
Will this 4.334 be the expected amount for the upcoming months or will this be increasing to catch up?
Mr Kjaer
I’m confused here. As High SInclair has explained on his blog, did not MYC4 affiliiates provide most of the cash supposedlty raised in the ‘crowdfunding’ exercise you are now celebrating? His blog is here for those who missed it:
http://blog.microfinancetransparency.com/mysterious-update-from-microfinance-p2ps/
I see that you did not answer or even respond publicly to Hugh’s important query so far as I can see, so I can only presume he was correct in his statements. In which case is it not possible that by artificially pumping up the success of the whole ‘crowedfunding’ episode you have committed some sort of legal transgression, apart form the obvious ethical one? I mean, if a regular company or bank secretly purchases its own shares in order to inflate the price of its shares artificially, thereby to sell them on (at the inflated price) to a third party, this is against the law. Many companies and banks have been prosecuted for doing this. Yet is this not what MYC4 are doing in a way? Any clarification on this would be appreciated.
Dear Milford,
Thank you for your reflection and comments. We don’t think that anything is not as transparent as it should be. MYC4 and its internal stakeholders has since we started the platform been part of the Investor community and also on this first Wholesale loan. The Wholesale loan is an idea we have had for many years to make a new product for the larger micro finance institutions and/or banks and to be mixed with the classic Retail loans direct to the micro- or small business in question.
Looking from our side; involving our own and internal stakeholders funds is reducing the overall risk for the retail investors as the risk is shared and again, in a fully transparent way.
Over 1,300 retail investors had funded the first Wholesale loan 30th July where the Dutch auction started and we ended with 594 bids on the loan. No doubt our Auto Bid and the history of the fact that all currency risk is at the hand of the retail investor was resulting in fewer (and less funds) bid from the retail investors in the end. We expected this, yet over the 6 weeks the Wholesale loan was opened it also served as an example of how MYC4 can add value to and scale in another way than by retail. We expect to have more Wholesale loans coming next year and will hopefully also attract Impact Investors of various size and appetite.
Shouldn’t there be an update on Yehu too?
Keef now has a par30 of 100%. What are the ways keef has been working on to reduce its par30 and when can we expect to see some improvements? The current updates are too vague and it would be nice to be informed of some concrete measures and timeline – especially as it’s par90 has started to kick in!
Dear Myc4 Team,
I have been investing via Myc4 since quite some time now – although only little money. Since experiencing losses in 2008/2009 I really started to regain some trust in Myc4 and the associated business model. I am not a charity bidder (beside I am also not in for the money, given my low investment), but I strongly believe that the vision of myc4 can only made real if there is a working business model associated.
One of the key elements (besides the positive return on interest) in “my” business relation with myc4 is trust, as myc4 is dealing with my money, although you might argue that you are “only” transferring the money to the different providers.
The situation with KEEF is now really eating up the regained trust mentioned above. And it is not (only) about the potential loss of my money, it is more about the communication policy of all involved parties (myc4, KEEF,…). Even if the situation will be cleared and I will get back my money, the way you are treating me information-wise does not fit my expectations – believe it or not to a certain extent I do see myself as a “customer” of myc4. On the contrary, if I would have the feeling of being well-informed, I could easier keep my level of trust up even if the money will be lost.
To clarify, I do not expect to get a minute-by-minute in-depth report about what is going on, but the current situation, with several people placing questions and getting low to no feedback on the website, only minor references in the providers update, no timeline/action plan given how the situation is expected to be solved/clarified and so on, is highly unsatisfying.
And again, my main concern (maybe take it as an advice as well) is style and level of communication. Please give me the impression/trust that you are treating the situation (including me as your customer) serious and professional. Please do not hide away but proactively push for a good level of information.
Raph,
I have the exact same feeling. Since Ghita left MyC4 last year there have been very little or no real communication from MyC4. There have been provider and portfolio updates, but many/most “customer” questions have gone unanswered from MyC4 and/or providers.
Like you I lived through the 2008/9 “incident” and was also then surprised that MyC4’s strategy to handling that crisis was “shutting down customer communication”. And like you I had started to feel that MyC4 had gained my trust again – to a level that I could start recommend it to others.
Unfortunately it seems like MyC4 does not consider us as customers to be kept informed. But what are we then – just “milking cows”? Like you I would prefer partial (and possibly not correct) information soon than perfect information too late. It is the uncertainty and not the loss of money that “kills”.
No response from myc4 – but not surprised. I am considering to suspend my bidding on this platform by the end of this month unless better information is being shared.
Mads – if you are reading this blog – appreciate if you can arrange for more concrete information. I believe that myc4 is working hard to rectify the situation but without the information such effort might not be appreciated. Alternatively – pls answer this question. How can you make us investors comfortable that a substantial part of the outstanding balance will not be in default before the end of the year!
Dear Investors,
Following the discovery of the fraud, KEEF was forced to suspend its operations temporarily as well as some of the officers in order to allow for proper investigations into the matter. As the investigations are coming to a conclusion, KEEF has slowly started resuming its operations but not fully and therefore collections are currently low compared to the norm. Yesterday, one of their suspended officers was arraigned in court for the case mention and today KEEF have initiated transfer of the pending grouped amount of KES 456,954. The KEEF board met recently and MYC4 is expecting an update soon on issues discussed. It is expected that KEEF weekly repayments will resume quickly as the level of operations goes up. A further and more comprehensive update on KEEF will be available in the monthly provider update for August which is expected to be out in about a week’s time. Thank you for your patience and understanding.
No repayments for the last two weeks and I am still waiting money that was due to be paid in April. Almost half of my loans “pending” and a few more “late”.
I’m not going to lend here anymore.
I get the occasional repayment (like quite a few today), but I haven’t seen a loan to lend to since July. Summer time is usually lax, but we’re getting close to September now. New loans need to be uploaded if there is to be any point in considering lending at all.
Will there be a new provider update?
Last month, the repayments were minimal, the PAR30 and PAR90 increased to all time height for more and more providers and some pending repayments were withdrawn and no public news from MyC4 for a month (although personal emails are replied).
What’s going on?