Meeting Client Needs though Appropriate
Products and Services
Social Performance Task Force
June 6, 2012
Alexia Latortue, moderator
Fatina Abu Okab, Microfund for Women, Jordan
Adela de Rizzo, Fundacion Genesis, Guatemala
Opportunity: getting the right balance
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Vision statement for client-centric financial inclusion (draft)
A world in which (all) people (underserved/very
poor) are capable and able to access and use a
range of appropriate, transparent and affordable
quality financial services that meet their diverse life
cycle needs in order to contribute to achieving their
goals and aspirations (consumption smoothing, risk
management, asset building) and to improve their
lives and the lives of their families.
3
Poor families have very tangible dreams
Source: Peru Graduation Pilot participant, photo by Plan Canada, December
2010; Pilot implemented by Asociacion Arariwa and Plan International Peru
4
Finance has a role in achieving these dreams
Buy and protect
productive assets
Invest in fixed
assets
Expand housing
Pay for school fees
Source: Peru Graduation Pilot participant; photo by Plan Canada, December 2010
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What do we mean by innovation?
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Share with your neighbor...
…the most innovative product or service
that has recently had a significant
impact on you.
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Needs, not products
AUGMENTED
ACTUAL
CORE
Developed by Monica Brand, Accion
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Four challenges facing efforts at innovation
External environment
• Regulation
• Connectivity and technology
• Competitors: urge to “copycat”
Process and
structure
• Processes and incentives eliminate higher risk/higher reward
concepts
• Product development managers lack clear authority or
responsibility for innovation
Internal commitment
• Risk aversion
• Senior management has a laser focus on core business only
• Incentive structures do not compel operational managers to
innovate
Capacity constraints
• Lack resources/knowledge on effective consumer learning
approach
• Lack capabilities to judge and prioritize ideas
o Rapid prototyping
o Data analysis
o Business strategy and modeling at product development level
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CLIENTE
APOYO DE
GÉNESIS
Producción
Agropecuario
Comercio
Servicios
Vivienda
INVERSIÓN
EN EL
NEGOCIO
MAYORES
INGRESOS
16,000 Clie. Men.
US$.533 Prom. Clie.
US$.84M.
157,500 Clie.
Contaminada
1.68%
10,600 Prom. Men.
ALIANZAS
MEJOR
CALIDAD
DE VIDA
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First microfinance program in Jordan
Over 67,000 active borrowers (97%
female, 33% market share)
Portfolio: US$ 26 million
Over 400,000 loans disbursed at a value
of over US$ 200 million
99% repayment rate
Recognition for Excellent Microfinance
Performance in 2008 - Sanabel
Silver Certificate for Social Performance
in 2009 - Sanabel
A Rating in Financial Performance Planet Rating 2010
(4-) Rating in Social Performance Planet Rating 2010
Winner of “Call for Tools: Avoiding
Client Over-Indebtedness” - Smart
Campaign 2010
Grameen-Jameel Regional Award for
Financial Sustainability.
Vision
Microfund for Women envisions a more
equal and just society in which
women in particular are empowered
to break the cycle of poverty,
achieve prosperity and live inclusive
lives.
Mission
To provide sustainable financial and
non-financial services to the
entrepreneurial poor, especially
women, in order to empower them
socially and economically, and to
help them achieve a better
quality of life.
www.microfund.org.jo
Advancing financial access for the world’s poor
www.cgap.org
www.microfinancegateway.org