Combined Microfinance: Selected Research Questions from a Stakeholder Point of View

This paper discusses the specific characteristics of combined microfinance schemes. It recommends a formative evaluation approach to assess the possible implications of combed microfinance on key stakeholders.

There is a growing interest in combined microfinance schemes that deliver microinsurance as well as microcredit. These schemes aim to provide a more comprehensive response to existing market failures that lead to lack of access to financial services for excluded populations.

Such schemes should be consistently and rigorously evaluated to check whether they are really creating positive change in poor people’s lives. There is, therefore, a need for:

• Thorough and formative evaluation approach, which builds on lessons learned during the design and implementation of combined products;
• Analyzing effective and potential changes of introducing combined services on key stakeholders of microfinance schemes;
• Identifying methods to achieve economies of scope and limit risks;
• Examining relevance of combined microfinance at the micro, meso and macro levels;
• Underlining linkages to other poverty alleviation approaches and development initiatives;
• Focusing on introduction of positive and innovative externalities for more effective social inclusion and poverty alleviation.