Examines the managed ASCAs operating in Central Province of Kenya. These ASCAs run on the basis of their own members’ savings as capital and pay a fee for management services provided by an MFI. The study examines the strengths and weaknesses of this alternative approach to supporting financial services for the poor.
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Looking Before You Leap: Key Questions That Should Precede Starting New Product Development
Product development is an essential activity for market-responsive MFIs. As clients and their needs change, market-driven, demand-led MFIs need to refine their existing products or develop new ones. But product development is a complex, resource-consuming activity that should not be taken lightly and many MFIs fail to recognise the complexity and cost involved in this exercise. This paper outlines some of the basic questions and issues that MFIs should address prior to embarking on the process of product development.
Written by the CGAP-Coordinated Product Development Taskforce, the paper examines the pitfalls associated with rushing into new product development without adequate institutional preparation or systematic process. The paper offers clear guidelines for a systematic approach to product development that will minimise the risk of failure.
BURO, Tangail’s Approach to Product Development – A Case Study
BURO Tangail has developed an array of financial services, and as a result remains popular amongst its clients despite its relatively high interest rate on its loans. The present paper uses the CGAP Case Study Framework and examines how BURO Tangail, an innovative large/medium scale MFI operating in Bangladesh sets about the process of product development.
The paper focuses on the approach adopted by BURO which include:
An institutional commitment to high quality, client-responsive financial services delivered on a sustainable basis;
A simple system of market research embedded in its operations, procedures and involving all staff from top management to the front-line Village Development Workers as well as the clients themselves;
A thorough system of controlled pilot-testing that allows the organisation to refine its accounting and financial management systems, cost/price analyses, training and marketing systems, etc. prior to roll-out.
Mobilising Savings
People save because of many reasons such as insurance against emergency, investment, social obligations, and poor have proved that they can save and derived ingenious (often costly) mechanisms to save. This note thus focuses on voluntary savings services, as compulsory savings services have witnessed drop outs in East Africa and Bangladesh and in many cases people do not want loan every time to meet their needs. It further suggests that MFIs should conduct market research and feasibility analysis, before introducing savings services. The note also addresses the issues related to costs, HR, MIS and management systems.
Informal Sector Finance Systems: What The Microfinance Industry Can Learn From Them
Draws lessons from the informal sector financial systems in East Africa, West Africa, South Africa and India and their implications for microfinance institutions.
Savings Products and Services in the Informal Sector and Microfinance Institutions in West Africa: The Case of Mali and Benin
Looks at how poor people use informal, semi-formal and formal sector savings systems and services to better manage their household income and expenditure flows. The paper also examines the impact of the availability (or otherwise) of a variety of saving systems and services.