The conventional banks rarely provide banking services to the low income segment due to high costs associated with it. However, technology has resulted in lowering down the costs per transaction, and thus impacted the banks to consider the options of servicing the low income segment. This note talks about the gains from various technologies such as ATMs, plastic cards, mobile phones, used by the present banking system to serve the people belonging to lower income strata.The conventional banks rarely provide banking services to the low income segment due to high costs associated with it. However, technology has resulted in lowering down the costs per transaction, and thus impacted the banks to consider the options of servicing the low income segment. This note talks about the gains from various technologies such as ATMs, plastic cards, mobile phones, used by the present banking system to serve the people belonging to lower income strata.
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Taking banking services to the people: Equity’s Mobile Banking Unit
Equity serves some customers that live and work in remote rural areas, through a network of rural branches and through a system of mobile banks. In addition to providing services the mobile banking units are used for public relations and marketing purposes. Whilst banks such as Barclays and Kenya Commercial Bank closed their mobile services, Equity is rapidly expanding its mobile services. This paper explains the structure of each of the mobile units and their further evolution. Lessons from the mobile banking project are considered, and the performance of the units is explained. Client perspectives are aired.
The competitive environment in Uganda: Implications for microfinance institutions and their clients
This study explains competitive scenario in the microfinance sector in Uganda. It provides overview of the Ugandan microfinance market and chalks out its characteristics. Going further, the study also underlines various concerns to respond to the challenges relating to competition. It details out overview of international experience on competition relating to over-indebtedness, clients behaviour, niche markets, pricing and mergers and acquisitions. The study also discusses donors’ role in various degrees of competition—monopoly, competition and saturation.
An in-depth assessment of the Ugandan microfinance market—Qualitative-side study report
This study aims to understand why and how clients make the various choices to use different financial service providers in the main markets in Uganda; how and why clients have moved between financial service providers; understand how clients are using the many options available to them (including accessing financial services from several sources simultaneously) and assess the implications for the MFIs operating in these areas.
Lessons from MicroSave’s Action Research Programme 2002
MicroSave’s goal is to promote the development of high-quality financial services for poor people. This report documents the progress made under the Action Research Programme during 2002. It presents MicroSave’s package of services, summarises the lessons learned from MicroSave’s Action Research Programme, covers the selection of ARPs, presents an overview of results, and then details the activities undertaken with each of the partners.
Innovative approaches to delivering microfinance services: The case of Capitec Bank
This paper briefly captures the origin, history and the structure of Capitec Bank. It is a story of institutional growth, formalisation, and the development of products, which serve clients with what they want, where they want it. The paper discusses the nature of business and the bank’s operating mechanism. Key issues discussed in the paper are – market and attributes accessibility, affordability, simplistic transaction methodology developed by the bank; its range of products and pre conditions required for a loan. In short it discusses the management and governance of the bank, its administrative and operating systems and associated risks and achievements. Additionally it documents the bank’s strengths and challenges and outlines the lessons for the mainstream MFIs.