Using Microfinance Networks to Promote Client Assessment: Case Study of ASOMIF
This paper investigates the role of microfinance networks in the client assessment process. It discusses the tools of client assessment taught in the three workshops conducted by Nicaraguan Association of Microfinance Institutions (ASOMIF) microfinance network, including:
- Assessing the Impact of Microenterprise Services (AIMS)-Small Enterprise Education and Promotion Network (SEEP) client satisfaction tool;
- MicroSave relative preference ranking tool;
- AIMS SEEP loan, profit and savings tool.
The paper describes the methodology used in the workshops based on the eight steps of feedback loop. It highlights the implications of opening the workshops to its entire membership and non members on training effectiveness.
The paper then analyzes the factors encouraging post workshop follow up, including:
- Appointment of dedicated staff person by microfinance institutions (MFI) for research and product development;
- Desire of the MFI to expand the loan portfolio;
- MFIs need to resolve issues such as client desertion.
The paper also examines the factors discouraging post workshop follow up, including:
- Senior staff not committed to listening to clients or changing products;
- Lack of funds to implement client assessment tools;
- Allotment of insufficient staff for client assessment.
The paper explains the benefits of tools on ASOMIF members and presents the following changes made by the institutions after client assessment:
- Opening of new branches or improving the existing ones;
- Simplifying approval procedures;
- Introducing training for clients and field staff.
The paper concludes that microfinance networks help in client assessment as they have effective and efficient conduits for knowledge transfer and capacity building.
