MSC worked with IFC to train and build the capacity of Indian farmer producer companies (FPCs) on governance, financial management, risk management, and business planning. We conducted a training-needs assessment and developed training modules besides conducting a training-of-trainers sessions, all using adult learning principles. We developed replicable and sustainable capacity-building models to support the use of the curriculum, content, toolkits, and methodology across various states and geographies.
The program resulted in nearly a million smallholder farmers being trained. Several financial service providers are now able to extend significantly more credit to farmer producer organizations and their member farmers. This has been made possible because of better management, operations, and governance, which stem from MSC’s training and capacity building. Many financial service producers have also adopted the curriculum. MSC’s training now enables them to train and skill producer organizations at scale.
Visa commissioned a secondary research on the global emerging middle class, with a particular focus on three markets—Nigeria, the Philippines, and Peru. The research uncovered key customer insights to help Visa design a go-to marketing strategy in the global emerging economies.
MSC studied the sources and uses of cash by these segments. Our teams worked on understanding consumer needs, behavioral dynamics, and emerging trends. We assessed and analyzed opportunities for the use of digital financial services and products.
There has been a significant growth in consumer preference for digital payments in each of these countries over the past three years. According to the National Bureau of Statistics of Nigeria, retail digital transactions have grown by 202% in terms of volume between 2015 and 2018. Of these, card-, internet-, and mobile-based transactions have grown nearly 600% during this period (report). Likewise, according to a consumer survey by Visa in the Philippines, 57% Filipinos mentioned a preference for electronic payments in 2017, compared to 46% in 2015.
The report is available here.
Business Finance for the Poor in Bangladesh (BFP-B) contracted MSC to undertake a study on the transformation of MFIs in the country. Through our intervention, BFP-B expects to strengthen the agenda of financial inclusion in the country.
The study covered regulatory requirements, creation, or changes in the acts, and capital requirements, among other aspects. It provided actionable recommendations to BFP-B and other stakeholders on the feasible policy options, the types of institutional transformation, and possible regulatory arrangements.
2018 – Ongoing…
The usage and sustained adoption of financial products and services in India face considerable challenges and disparities. Women’s financial inclusion in India, in particular, lags because of the demand-side constraints, lack of focus on women’s needs, and the financial behavior of supply-side players. Since 2018, MSC has played a crucial role in strengthening financial ecosystems across 27 districts as part of PEFI.
Lessons from the project have been scaled pan-India (TFIIP).
As part of our ongoing engagement in aspirational districts and blocks, we liaise with financial service providers and government stakeholders at the central, state, district, and block levels. We provide ground-up evidence to stakeholders on notable gaps in the use of financial services, support policy development, collaborate for capacity building of stakeholders, and cocreate and test innovative solutions to enhance financial service access and user experience among low- and moderate-income groups, especially Particularly Vulnerable Tribal Groups (PVTGs).
In the current phase of work, we focus on ways to increase the usage of financial products by women and men and address the challenges they face. Specifically, we will
- Reduce the exclusion and improve the use of financial services,
- Enhance adoption of digital financial services,
- Identify opportunities for innovative product development, and
- Improve user experience and quality of delivery of financial services for low- and moderate-income people.
Related documents
PEFI summary
TFIIP: From pilot to policy
The real story of women’s financial inclusion in India
Action research on digital capability
CICO Agent Lifecycle – Interactive Digital Flipbook
The six village story – India: An assessment of the real gap in financial inclusion
USAID commissioned MSC to provide technical assistance to refine and reposition the microinsurance product line of Britam, a financial services provider in eastern and southern Africa.
MSC conducted a situational analysis of microinsurance at Britam, deep-dive market diagnoses, and executed a concept distillation process. We revised the product and a strategic business case by pilot-testing and refining the products. As part of the assignment, we also drafted specific market and communication strategies, followed by an implementation framework.
Before MSC’s intervention, Britam had made recurring losses on its microinsurance portfolio. After our assistance, Britam achieved operational break-even in 2016 and made a small profit on the microinsurance portfolio. As of the end of 2017, Britam increased annual profits on its microinsurance portfolio to KES 79 million (USD 790,000). By the end of July, 2018, Britam had been serving over 550,000 low-income customers.
In 2001, Equity Building Society, Kenya, approached MSC to understand the reasons for the low uptake of their credit products. The resulting research, re-structuring of the products, and supply-side support put Equity on the path to transform into a bank. Equity was subsequently listed on the Nairobi Stock Exchange.
MSC supported Equity in strategy, product innovation and design, product marketing, digital transformation, costing and pricing, business process re-engineering, risk management, staff incentives, branding and corporate identity, and many other areas. From 2010, we also worked to build Equity’s model to deliver digital financial services. This involved agent network development and management, digital transformation, product-mix assessment, channel, and product differentiation, new product development, testing and roll-out, marketing and communication, customer service, and digital transformation.
MSC’s close collaboration with Equity Bank over the past two decades has helped the bank’s customer base to grow from 109,000 to over 12 million across six countries. Over 97% of Equity Bank Kenya’s transactions are conducted outside their branches, while customers initiate over 70% of transactions on their mobile phones. Today, Equity is the most respected mass-market bank in Africa.
