There is growing recognition that effectively managing agents is key to the success of e-banking and indeed m-banking systems. There is growing literature on the functioning of agent networks and strategies to get the best out of them. This note examines some of the international experience using the “8Ps of marketing” as a framework. MicroSave Briefing Note 73 analysed the agents of e-banking and m-banking systems in the context of Product, Price and Processes. This note extends the analysis into an additional 5Ps of marketing: Place, Physical Evidence, Promotion, Positioning and People.
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Managing Agent Networks to Optimise E- and M-Banking Systems Part-1
There is growing recognition that effectively managing agents is key to the success of e-banking and indeed m-banking systems. There is growing literature on the functioning of agent networks and strategies to get the best out of them. This note examines some of the international experience using the “8Ps of marketing” as a framework – focusing on the first 3Ps: Product, Price and Process. MicroSave Briefing Note # 74 looks at 5 more Ps of marketing: Place, Physical Evidence, Promotion, Positioning and People.
Making Business Correspondence Work in India
This note summarises the findings of a 3-month project by MicroSave India to clarify prospects for a sound business model for Banking Correspondent operators under the current regulations. The study analyses three diverse cases that involve differing institutional arrangements with business correspondents and strategies for sustainability; concluding that achieving profitable operations will remain challenging under the current regulatory environment.
The Global Financial Crisis and Indian Microfinance
This note summaries the impact of current global financial crisis on Indian microfinance sector and analyses the response of various stakeholders. Note also suggests various risk mitigation strategies specifically for small and medium size MFIs to reduce their vulnerability to such economic shocks in future.
Internal Controls in Small/Medium MFIs
The note provides a practical approach, based on COSO framework, for small/ medium MFIs to put in place an effective internal control system. The functional areas that internal audit and control cover like: financial transactions, operations, adherence to mission, have a direct relationship with different types of risks for an MFI. For small and medium MFIs, managing these risks become more complex as systems are still evolving, processes are individual driven, procedures are sidelined, they face human resource constraints and affordability issues etc. It advocates that it is essential to have system of sound internal audit and control at every stage of institutional growth, though setting up such a system may appear complex and costly. There are innovative and cost effective ways though which such a system could be built based on the elements of proper internal control and ownership at all levels within the organisation.
Provisioning for Loan Impairment in MFIs
Maintaining adequate reserves to cushion against future loan losses has again been highlighted in the wake of recent financial crisis. This India Focus Note delves into the importance of this for the microfinance sector, highlights current challenges, and possible ways forward in provisioning for loan losses for Indian MFIs.