Corporate Branding and Identity - Why They Are Important For MFIs

This paper explores the importance of branding and positioning for microfinance institutions (MFIs). It suggests that MFIs should identify their competitive advantage.

The paper argues that a good corporate brand is important to MFIs' business as it provides:

• Instant recognition and reputation to its customers;
• Warranty of the quality and reliability of services offered;
• Credibility to the organization;
• Facilitated promotion that enables MFIs to dedicate time to competitive advantages and products;
• Word of mouth marketing;
• Differentiation that enables a well-branded MFI to stand-out in a competitive market;
• Goodwill.

Further, the paper provides a basic perceptual map for MFIs involved in brand development:

• Plot the position of an MFI and its competitors through appropriate market research;
• Make a statement of position that supports the MFI's brand by focusing on key strategic or competitive advantages that address market needs;
• Align the customer's experience of delivery, product and pricing to the advertised brand;
• Define its corporate identity with an emphasis to ensure consistency through standardization;
• Carry out good corporate communications and public relation functions to build strong links between the MFI and the public.

Finally, the paper suggests that developing and delivering a clear brand and corporate identity is essential for:

• The sustainability of MFIs;
• Empowering poor people to access the financial services of their choice.