Designing Products based on Customer Requirements: Unique Approaches of SEWA Bank and IFMR (KGFS model), India

This paper documents the distinct, but successful approaches of SEWA Bank and IFMR in understanding client (member) requirements and designing appropriate products. It examines the impact that the philosophy of an institution has on its product offering. SEWA Bank adopts a life cycle approach wherein women's financial requirements are mapped from birth to death and products are designed to meet their short term, medium term, and long term needs. IFMR employs Kshteriya Gramin Financial Services (KGFS) model, which operates under the principles of focused geographic commitment, client wealth management approach, and offers a broad range of products. Key discussion themes include:

• Individual philosophies of SEWA Bank and IFMR Rural Services;
• SEWA Bank's approach in understanding its members and their financial requirements by conducting continuous significant experiments such as focus group discussions, field surveys, impact studies, etc.;
• IFMR's understanding of its customers’ financial requirements through a three-step process: household’s financial well-being report, cash-flow assessment to understand surplus of customer, and customized discussion related to needs of customer.