Supporting cooperatives' expansion strategies in Myanmar

Devanshi Patani|Dec, 2017

The Government of Myanmar has supported the development of financial cooperatives since 2012. More recently, cooperatives have been focusing primarily on addressing the need for better financial access for rural populations. In order to support the expansion strategies where demand is still unmet, MIX’s Interactive Dashboard for Myanmar provides analytical tools for cooperatives to analyze demand and supply within the sector.

 

Financial access points in Myanmar

 

The table above shows a clear relationship between rural areas and the presence of cooperatives. Indeed, the 6 regions with the highest rural population are also the 6 regions with higher number of access points belonging to cooperatives. However, Ayeyarwady, the most populated region in terms of rural population has a ratio of only 1.0 (number of cooperative access points / 10K inhabitants) whereas the median is at 1.5. On the other hand, Shan (East) and Mandalay are well served, with a ratio of 5.7 and 3.7, respectively. Expansion efforts could therefore be sustained in Ayeyarwady as it seems to have a huge market potential. 

 

Financial market share in Myanmar

 

In Ayeyarwady region, cooperatives are the most prominent with 40 percent of all access points. Competition from private banks and state-owned banks is low since they only have 12.1 percent and 3.6 percent of total access points, respectively. The main competitors in the market are currently pawnshops (32 percent of total number of access points), followed by microfinance institutions (12.6 percent of total number of access points). It is interesting to note that cooperatives lead in Sagaing and Magway regions, possessing 78 percent and 71 percent of total number of access points, respectively.

 

For more such insightful analyses, visit our Interactive Dashboard for Myanmar.