In this video series-1, MicroSave talks to one of the pioneers of microfinance in Bolivia, Pancho Otero – the founding CEO of the Prodem Foundation, the nucleus of BancoSol. Pancho gives his insights on the success of microfinance in Bolivia and how Prodem became a bank and a leader in savings mobilisation. Through BancoSol, Pancho has helped create one of the most successful microfinance institutions in the world. Pancho attributes BancoSol’s success to the self-examining and self-critical attitude at the pilot stage, which helped them to identify the loopholes early and fix them immediately.
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UID and Financial Inclusion – Solution or Not?
The objective of this Note is to share some initial insights on UID with financial service providers and other stakeholders, to help them leverage this new development and support/catalyse financial inclusion in India. It analyses the potential benefits of UID for financial inclusion as well as its potential risks. The Note concludes that the combination of UID, mobile and bank account numbers could truly enhance financial inclusion.
“SBI Tatkal” – From Cash to Cash Cow
What Maggi is to Nestle, Lifebuoy is to HUL, Alto is to Maruti and Horlicks is to GSK, perhaps “Tatkal” is to Eko. Ever since this direct deposit product was launched in August 2010 by Eko, it has emerged as the flagship product for this Delhi based business correspondent (BC) and technical service provider (TSP), providing technology for m-banking and agent based financial inclusion services.
Measuring Willingness to Pay
This Note presents the development and the implementation of an innovative qualitative research tool directed at determining the level of ‘Willingness To Pay’ (WTP) for BC services. The WTP tool has been designed to allow stakeholders to understand how low-income households think about pricing and cost. It is also an effective way to estimate what potential customers of BC services would be willing to pay for the services. The WTP tool helped to elicit some interesting results on the potential of charging ‘reasonable fees’ from potential BC customers.
Do the M-PESA Rails Contribute to Financial Inclusion?
A substantial proportion of the Kenyan population is using M-PESA as an addition to bank savings accounts, and less frequently, as a full-scale substitute. The worry among financial inclusion proponents and banks is that poor people will use M-PESA as a substitute for formal institutions. The Note examines progress towards financial inclusion in Kenya, and concludes that while M-PESA’s rails offer the potential, Kenya may yet have to wait to realise comprehensive, commercially sound, affordable and effective financial inclusion.
Clients’ Willingness to Pay “Reasonable Fee” for BC Services
This Note discusses whether end customers are willing to pay for financial services delivered by Business Correspondents, and if yes, how much are they willing to pay. It concludes that the majority of customers are willing to pay a fee for a convenient banking facility close to their homes. The service, however, has to offer a range of products suiting to their needs. The note gives insight into factors and mechanisms that could guide the decision on the fee to be charged. It provides a backdrop for service providers to start with what can be termed as a ‘reasonable’ fee; and once again, clearly highlights the importance of listening to clients.