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.

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