Market Research on Expanding Microfinance Outreach in Jordan Through Innovative Market-Driven Product Development

This study is part of the “Technical Assistance to Jordan Microfinance Network – Tanmeyah” project which is in turn a component of a larger program funded by the European Union (EU) under the name of “Promoting Financial Inclusion through Improved Governance and Outreach of Microfinance in Jordan". The program was designed to support the implementation of the objectives set for the network in the National Microfinance Policy Framework (NMPF).

General findings:

• The microfinance sector has been contributing to financial inclusion by targeting the most vulnerable segments of society mainly women, the youth, non-Jordanian citizens, residents of southern governorates, the self-employed people, and people with less formal education among others.
• MFIs provide a diversified mix of products that meet the different needs of business owners and individuals. Products include productive loan products such as working capital, fixed assets, as well as, cheques and invoices factoring. Additionally, it includes social / personal loan products like home improvement, medical treatment, education, and household purchases.
• There are currently potential client segments who are in need of financial services, and yet are unserved or restrictively served by the microfinance institutions (MFIs) such as start-ups, youth, self-employed individuals, professionals, and refugees.

The study recommends that potential segments can be attracted and served by MFIs through providing customized products and services that meet their specific needs, better financing terms and requirements to encourage them to take financial and non-financial services such as training, consultation services, as well as marketing support. Jordanian MFIs can reach out to the identified potential segments through expanding the branches network and enhancing their presence in Amman, Irbid, Zarqa, Ma’an and Mafraq in addition to focusing on push marketing strategies (i.e. direct visits by the loan officers) and further building loan officers' capabilities.