Publications

Building Customer Loyalty

02 May 2014
  • Craig F. Churchill
  • Sahra S. Halpern

The importance of customer loyalty and customer satisfaction has become increasingly apparent to microfinance practitioners as the microfinance industry has matured during recent years. In the past three years, Centenary Rural Development Bank has grown by nearly 300% in terms of total assets and number of customers served. This dramatic growth has in part resulted from the use of many of the customer service oriented policies presented in this technical […]

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Smart Lending: Client Protection in the Grameen-Style Group Lending Process (India)

02 May 2014

    “Smart Lending: Client Protection in the Grameen-Style Group Lending Process” is a tool for MFIs that want to incorporate good client protection practices into their group lending process. The tool is applicable to Grameen-style “group of groups” credit methodology and was developed specifically for Indian MFIs. The group lending process is segmented into five key phases: (1) Client Recruitment & Application, (2) Compulsory Group Training & Group Recognition Test, (3) […]

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    Compartamos Initial Public Offering: A Case Study on Microfinance Interest Rates and Profits

    02 May 2014
    • Richard Rosenberg

    On April 20, 2007, Banco Compartamos, a microfinance institution (MFI) that was launched in 1990 and originally funded by grants from various sources, including CGAP, completed a landmark initial public offering (IPO) of its stock. The IPO was 13 times oversubscribed and considered a huge success by any financial market standard.1 Pent-up demand caused the share price—representing 30 percent ownership in the bank—to surge 22 percent in the first day […]

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    Beyond Codes: The Foundation for Client Protection in Microfinance

    02 May 2014
    • Heather Clark

    Beyond Codes was an action research project of the Center for Financial Inclusion at ACCION. The project was designed to provide a body of experience and knowledge from leading financial institutions serving low-income people about how consumer protection codes of conduct are implemented. The two-year project started in mid-2008 and ended in June 2010. The project aimed to develop the tools and experience that could inform the subsequent work in […]

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    Client Protection Good Practices in Europe and Central Asia

    02 May 2014

      AccessBank, Azerbaijan provides financial services for micro and small businesses and low- and middle income households (the average loan size is USD 2,900). It is one of the largest private banks in the country, and is the leading microfinance bank, with over one-third of the market share. Adie, France offers micro credit and financial counseling services for micro entrepreneurs. Adie’s 27,500 clients consist of micro entrepreneurs from many walks of […]

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      Transparent and Responsible Pricing at Mi-Bospo

      02 May 2014
      • Nejira Nalic
      • Courtney Piper
      • Adriana Magdas
      • Leah Nedderman
      Transparent and Responsible Pricing at Mi-Bospo

      The principle of transparent and responsible pricing rests on the assumption that clients are capable of making smart financial decisions when they have access to and understand all the necessary information.Transparent pricing goes beyond just stating an interest rate. Financial institutions are responsible for making sure that they communicate a product’s true total cost, along with its applicable terms and conditions,in a way that clients can understand, given educational and […]

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      Customized IT at Caja Morelia safeguards client data

      02 May 2014
      • Cara Forster

      At Caja Morelia Valladolid, investing in high quality technology is the foundation for accurate and secur eclient information as well as the basis for strong customer service for its clients. Caja Morelia began as a cooperative society initiated by the Catholic Church in 1964. In 2005, it became a regulated cooperative overseen by federal authorities in Mexico and by 2008, Caja Morelia had transformed into a regulated financial intermediary subject […]

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      Facing Over-indebtedness at Partner Microcredit Foundation

      02 May 2014
      • Ewa Bankowska

      In a vibrant and competitive microfinance sector,Partner Microcredit Foundation employs a multifaceted system to prevent, detect, and correct overindebtedness among its clients. Management views avoiding client over-indebtedness as an institutional responsibility and has built a robust system that functions throughout the lending process. Partner was started by Mercy Corps in April 1997 as a non-profit organization with a long-term goal of establishing a micro credit company to eventually transform into […]

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      Collections with Dignity at FinComún

      01 May 2014
      • Cara Forster

      In 2008, while facing rising default rates, FinComún implemented a new collections philosophy in order to support clients facing the global financial crisis and combat rising default rates. The new philosophy,Collections with Dignity, is based on the belief that collections agents should treat clients how they themselves would like to be treated. By focusing on client outcomes as well as loan recovery,FinComún was able to strengthen relationships with clients, increase […]

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      Compartamos: Building institutional culture around a code of Ethics

      01 May 2014
      • Cara Forster

      Staff ethics have been at the heart of Compartamos Banco’s institutional culture since its inception. Com-partamos began as an NGO in 1990, lending to women microentrepreneurs in Mexico. By 2006, the institution had transformed from an NGO into a commercial bank. Although it now has 1.2 million clients and its staff has nearly quadrupled to almost 6,000, the bank always maintained a spirited institutional culture. Compartamos established a formal Code […]

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