Paper

Measuring the Performance of Alternative Delivery Channels

Metrics and benchmarks for FSPs to assess their performance against other market actors
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Financial service providers (FSPs) are deploying various alternative delivery channels (ADCs) to serve their clients outside of branches, often enabled by technology and digitization of the service. FSPs are developing metrics and dashboards to monitor the development of these new channels and to track them against operational and strategic goals. However, FSPs still need visibility onto the rest of the market. 

Understanding this need, MIX embarked on research to design ADC performance metrics and benchmarks to enable FSPs to assess their performance against other market actors, interviewing, visiting and collecting data from partner FSPs in sub-Saharan Africa. The findings from this research highlight the demand for standard metrics to guide decision making on ADCs in a changing environment. Some of the key findings are:

  • A significant share of transactions is performed at ADCs;
  • Transactions at ADCs are performed by clients who are more active than average;
  • Clients carry out much smaller transactions at ADCs;
  • Outside of agents, clients enrolled in ADCs rarely exceed 20%;
  • Assessing deposit mobilization is made difficult by the multiplicity of channels;
  • Transactions that remain at branches have specificities of their own that should be considered in an FSP’s service point mix.

About this Publication

By Navarro, A. & Stephens, B.
Published