Related Resources

Village Financial Systems in Northeast India
Villagers in Lower Assam are pioneers on the frontiers of informal finance, according to the results of recent field work conducted by the Indian Institute of Bank Management. This note provides an overview of the village financial systems in Northeast India, highlighting the flexibility and...
88.98 KB
Driving Viability for Banks and BCs
Business Correspondent (BC) model is quite often considered onerous by banks and is taken as a burden thrust on them by the regulator and policy makers. Low-income consumer segments, BCs as service providers, No Frills Accounts (NFAs) and bank's portfolio of products are viewed in...
76.31 KB

Grameen II - The First Five Years 2001-2005

Author: Stuart Rutherford
Published: February 01, 2006


MicroSave conducted a study in 2006 to understand the transition of Grameen Bank in Bangladesh to Grameen II. The study was carried out by Stuart Rutherford in association with MicroSave.  Grameen II is only a partial redesign of the classic Grameen model, focused mostly on changes in the range of products offered and their terms and conditions.

Grameen II offers more need-based services to the clients and also makes access to these services significantly easier. Processes have been simplified and streamlined. The staff have been trained in better process management to handle the volume of transactions involved to deliver efficient functioning. The other dimension considered was portfolio diversification through renewed emphasis on public deposits. Besides, new and attractive services such as the special savings account, special purpose loans, etc. based on client demand were introduced.

The study also highlights the areas for improvement for a possible Grameen III to emerge, such as better use of information technology, better marketing of products and services offered and desirable regulatory environment for emerging players in the microfinance sector in Bangladesh.

Tags: Microfinance , Retail banks , Business model , Case study , Institutional change , Grameen II , Bangladesh , South Asia , Grameen model

0 Comment
0 Likes Like
919 KB

Leave a Comment