10 years selling raisins and dates from street corners in and around kuala lumpur. he travelled daily to and from night markets and mosques on his motorcycle ; his fortunes often at the mercy of unpredictable weather. but opportunity beckoned when a micro loan was obtained in 2011, which enabled him to rent a permanent physical space and invest in a basic logistics system to stock and deliver goods to customers. with the continued support of his bank, business grew, three more stores were opened and sales increased fivefold. he secured greater financial security and independence for his family and at the same time, created jobs for 10 persons within his community. as a contribution to his community, one of the three branches was dedicated for micro - entrepreneurs in the locality to showcase their products, free of rental. this simple and generous gesture to share resulted in positive spillovers, where some once wayward school - leavers and young adults received the opportunity to become owners of small businesses plying delicate handicraft and innovative accessories. there are many examples such as this, that if done right, can create a virtuous cycle of 3 / 4 bis central bankers'speeches expanded positive spillovers that uplift the community as a whole. despite what seems to be an increasingly crowded space, microfinance often ends up being relegated to government - sponsored institutions, non - profit enterprises and donor organizations, because it is perceived to be financially unsustainable if a certain scale is not achieved ( usually very large ) or imposing high interest rates to hedge risks or cover high operational costs. a growing body of experience shows that the reverse is necessary to deliver a lasting positive impact on the lives of the poor. i have alluded earlier that aligning operational strategies with behaviors of micro borrowers can improve loan performance, thus reducing risks to lenders. in insurance, traditional agency - based distribution models are being disrupted to lower the costs of on - boarding and servicing micro policyholders. these are clear ways in which the trade - offs between higher perceived risks, accessibility and affordability associated with the micro segment can be managed more optimally. sustainable microfinance programs are often successful if synergies are realized. between governments, policymakers, microfinance institutions and donor organisations, significant synergies can be unlocked by aligning incentives, reducing barriers and enhancing coordination. the agent banking framework implemented in malaysia has been a successful model where industry is able to capture opportunities for cross - sector strategic partnerships that can transform the microfinance landscape

for example, “ your repayment can help your friend in need ” ), can help keep repayments current. working through local community groups to engage borrowers, or identifying with religious tenets to overcome weak willpower to repay, are some experiential learning that creates favorable conditions that can expand access to credit and encourage high repayment rates. these “ small nudges ”, a notion popularized by behavioral scientist david halpern, allow us to revisualise how operating models and technology can be adapted more effectively and efficiently to deliver sustainable microfinance solutions. malaysia ’ s microfinance journey has also reflected a wider focus on developing the broad range of financial services that are needed by the unfortunate to manage and improve their financial circumstances. credit is important, but not all important. savings, insurance, business training and financial education are other key components of our program approach which work together to amplify the economic and social impact of microfinance. the largest microfinance institutions in malaysia are also among the largest mobilisers of micro savings. as a case in point, our national savings bank ranks among the top three financial institutions in the country with the largest number of micro - loan and savings accounts. overall, 92 % of the population have a deposit account, compared to 42 % who have a loan account. we are also currently working to expand the offering and take - up of micro insurance solutions under a multi - pronged strategy that combines tailored products offered by insurance companies and development financial institutions, and a universal product option available through low - cost mobile and other channels. documented studies have shown how simply introducing an affordable, safe and accessible avenue for savings resulted in increased spending towards healthcare, education and nutrition. it has empowered women with more decision - making power and enabled children to spend more on school supplies that ultimately led to better test scores. insurance has also been shown to play an important role in encouraging micro enterprises and low income households to make productive investments without the fear of natural disasters or medical emergencies wiping away their hard - earned assets and savings. by providing opportunities and the foundational knowledge to low income individuals and entrepreneurs to gain access to credit, increase savings and manage their exposures, this would greatly improve the probability of success in business and enhance socioeconomic mobility. this in turn will bring many important benefits to society. these benefits might be difficult to quantify but are obvious and far reaching. this is illustrated in the story of a malaysian micro - entrepreneur who spent