The case presents a successful implementation of product and market diversification. The case draws from the experience of MDF-Kamurj – an Armenian microfinance institution which developed and launched a new credit product directed to rural microentrepreneurs involved in agriculture and livestock breeding. The case seeks to present how the process of market research and pilot testing helps in mitigating risks related to entering new areas with a new product (a product not meeting clients’ needs, inefficient procedures, resistance among staff towards innovation). Simultaneously it discusses the requirements of conducting market research and pilot testing (including financial and non-financial costs as well as the golden rules of the process).
Blog
Understanding and assessing the demand for microfinance
It is clear, and now generally accepted, that poor people want, need and do indeed save. Low income clients have limited access to formal and regulated financial services and thereby resort to semi-formal service providers. This further aggravated with MFIs being prohibited from offering savings as a service for poor.
The present note discusses the needs, financial behaviour and the financial landscape of the clients. It discusses this through two case studies on how women have benefited from microfinance institutions.
The note concludes by saying that microfinance can play a key, cost-effective and sustainable role in achieving the Millennium Development Goals (MDGs) if we build flexible and reliable financial services that respond to the real, diverse needs of the poor and vulnerable.
Process Mapping in Practice
This note discusses process mapping – a technique that makes workflows visible. A process map is a flowchart that shows who is doing what, with whom, when, for how long and with what documents. This note outlines the steps in process mapping which include – identifying and prioritising operational gaps. It documents the benefits of process mapping, explores the challenges and suggests ways to overcome them.
Cash, children, or kind? Developing security for elderly low-income people in Africa
The number of people aged over 60 in the developing world is predicted to rise from 375 million in 2,000 to 1,500 million in 2050. This note outlines the economic and social challenges which come with old age. It documents some of the common traditional practices adopted as a security measure against these challenges. It outlines the general saving methods, focuses on educating people on why and how to save. Further it discusses the potential market for long-term contractual savings services that provides security in old age.
Cash, Children or Kind? Developing Security for Low-Income People in Old Age in Africa
The number of people aged over 60 in the developing world is predicted to rise from 375 million in 2000 to 1,500 million in 2050. This note outlines the economic and social challenges which come with old age. It documents some of the common traditional practices adopted as a security measure against these challenges. It outlines the general saving methods, focuses on educating people on why and how to save. Further it discusses the potential market for long-term contractual savings services which provides security in old age.
Lessons from MicroSave’s Action Research Programme (2004)
Under its Action Research Programme, MicroSave learns and disseminates lessons relating to market-led microfinance. This note documents lessons learned during 2004. It analyses the progress made using MicroSave tools like – process mapping, risk management, customer service, branch based costing, pricing, pilot testing, and institutionalising toolkits. The note also looks at other related aspects like- system usage and capacity, electronic banking and the institutional aspects.