Lessons from MicroSave's Action Research Programme (2003): Briefing Note

This paper lists down lessons learnt and disseminated by MicroSave, under its action research program during 2003. Many of MicroSave's program have experienced significant growth through following a market led approach.

The lessons listed are:

• Avoiding unplanned explosive growth through carefully prepared institutional response;
• Financing a market-led expansion;
• Preparing for take off through:
• • Appropriate policies, procedures and management systems;
  • Upgraded liquidity and treasury management systems;
  • Development of new mechanisms for managing credit risk;
  • Decentralization of decision-making along with the development of regional management structures;
• Automating growth;
• Rollout of financial services through standardized approaches;
• Carrying process mapping to improve the delivery of market led financial services;
• Strengthening internal and external communications
• Marketing of financial services by word of mouth;
• Influencing word of mouth through:
  • Delivering services to clients, in the manner they want, and to carefully communicate the financial service;
  • Completing the feedback loop;
  • Corporate branding to influence customer perceptions;
  • Building public relations.
• Improving customer service;
• Automating costing systems;
• Developing products which can be effectively institutionalized;
• Rapid rollout through standardization and maintaining a consistent multi-skilled team;
• Partnering to develop and enhance delivery channels through:
  • Financial literacy;
  • An appropriate distribution strategy;
  • Supportive infrastructure and communications;
  • An appropriate regulatory environment.