Feedback Loop Analysis: Key Lessons in the Financial Service

Good communications with clients and members of staff informs the MFI of changing market conditions, and facilitates timely and informed decision making.This paper delves into:

• The functioning and importance of the feedback loop mechanism,
• Its role in affecting smooth flow of information within an organization and outside it.

The paper:

• Defines the feedback loop;
• Details the process of analyzing the loop;
• Discusses different feedback mechanisms;
• Develops key lessons for the industry.

Elaborating on the usefulness of the feedback loop, the paper proposes that it can be used for:

• Mapping out the existing communication channels within an institution;
• Understanding the major sources and uses of information;
• Gathering information on client expectations and developing new products;
• Creating effective communication strategies.

Further, the paper discusses:

• The tools and mechanisms used in feedback loop analysis,
• The challenges faced in having effective feedback loops in financial organizations.
• The importance of exercising quality control over the information, describing the various benefits of communication mechanisms.