Professor Margaret Abernethy with Melbourne Microfinance Initiative President, Melanie Alforque and Vice President, Callum Wood.

Countless millions of the world’s poorest citizens are unable to access bank loans because they have no credit history, collateral, or access to steady income. The the microfinance industry provides small loans and other basic financial services to these people but it is only able to meet a fraction of demand. A group at the University of Melbourne believe that student involvement in Microfinance can go some of the way to solving this problem.

The Melbourne Microfinance Initiative (MMI) is a student organisation that aims to empower members with knowledge and experience in microfinance recently celebrated its first anniversary. The club provides students with a working knowledge of microfinance in the hope that they will take real action towards alleviating poverty.

Created in 2010 by Bachelor of Commerce student Fernando Tamayo and five others, MMI was the first microfinance club at a university in Australia. Fernando has since graduated and is working on the development of a social enterprise in Peru but the growth of the organisation has been amazing. In just a year MMI has grown to a membership of more than 300.

The anniversary celebrations were attended by Dean of the Faculty of Business and Economics, Professor Margaret Abernethy, and featured addresses from the current club president, Melanie Alforque and vice president, Callum Wood. MMI is currently working with four overseas NGOs in Laos, Cambodia, Ghana and Kenya to provide microcredit and members from each of the Country Initiative teams also gave updates on their projects at the event.

The club also runs a range of activities for members including presentations by industry leaders on microfinance and consulting engagements with NGOs.

Melanie, a third year Arts student majoring in politics and international studies, says it was travelling to her family’s home country of the Philippines at a young age that ignited a passion for helping others. She says that at the opening event last year she was inspired by stories of how microfinance has dramatically changed the lives of people in developing countries so joined MMI as O-Week Coordinator.

Callum, a third-year Commence student majoring in economics, became interested in microfinance through his study of development economics. He says that his involvement with MMI has raised his awareness of the magnitude of global poverty.

Professor Nilss Olekalns, Head of the Department of Economics, praised the groups desire to bring about positive change in impoverished countries, “The Microfinance group has been a huge success in terms of membership and making a difference in improving lives in developing countries,” he said.

MMI is proudly supported by the Faculty of Business and Economics and an Advisory Board consisting of Professor Olekalns, Professor Jeff Borland and Professor Rob Brown provides advice to the club executive.

More information about the Melbourne Microfinance Initiative can viewed at: www.melbournemicrofinance.com