Developing and offering new products enables MFIs to serve a larger number of clients and therefore puts them in a better position to fulfil their social mission to provide services to populations excluded from conventional financial services. The new products bring in other sources of income which, in turn, helps to boost the financial sustainability of MFIs.
The microfinance industry has come a long way since the days when MFIs proposed a single product – microcredit – to a single client base - micro-entrepreneurs. Today, MFIs are capable of delivering financial products which are more elaborate and which provide a better response to the needs of their different client segments.
Using case studies and examples from the field, we have developed a training course on the improvement and diversification of new products: Product innovation and diversification.
You will also find a course devised by the CGAP in French-speaking Africa called New product development (in French only).
A training course on the development of agricultural financial products has been developed with the FAO. It provides microfinance institutions with an introduction to the principles and key criteria used in market evaluations and the design of financial products for agriculture.
Mohamed Nadi, who is Manager of the Microinsurance Programme at AXA Assurance Morocco, took part in this course in October 2015 and you can read his testimony here!
The case study, Innovations for inclusive agricultural finance and risk mitigation mechanisms, published jointly by FAO and ADA, details the unique downscaling experience of Crédit Agricole du Maroc (CAM). The analysis presented here aims to highlight principles to be applied by different actors to facilitate rural and agricultural financial services around the world.
ADA supports MFIs throughout the product development cycle, from the identification and design of the product through to its development and commercialisation. Projects have been set up with our partner MFIs, notably around the following subjects:
Would you like to introduce a new product? and we can look together at how we can support your project!