Signposts to the Provision of Market-led Microfinance Services

This paper lists the following signposts to the provision of market-led microfinancial services that reflect MicroSave's experience with its Action Research Partners:

• Vision and mission statements: They focus on profitability by designing, developing and delivering quality customer responsive financial services;
• A competent board that prevents mission drift and supports a customer-focused agenda;
• The executive function:
  • Focus on the customers;
  • Ensure balance between the functions of marketing and operations;
  • Hire and develop competent senior management;
  • Plan the future;
  • Be aware of the competition.
• Development and retaining of customer-focused staff by investing in:
  • Training on delivering client focused services;
  • Effective internal communication;
  • Building staff capacity;
  • Staff incentive schemes.
• Retaining customer-focus in the front-office operations through:
  • A marketing department that maintains a customer-focus in all activities;
  • A research department that looks into customer requirements;
  • A strong brand;
  • A feedback loop that welcomes suggestions from customers;
  • A pleasant banking environment;
  • Branch managers, who are knowledgeable about their local community.
• Support from back office operations in continually improving products and processes by:
  • Pilot testing major changes;
  • Actively managing risk;
  • An information technology (IT) department that develops customer-friendly IT solutions;
  • An internal audit aimed at ensuring efficient service delivery and customer satisfaction.

The paper concludes that a market-led transformation is beneficial to a financial institution in terms of increasing profitability and outreach. However, the institution needs to use great skill to take care of the resulting growth.