Channel Innovation for Financial Inclusion

This case study demonstrates how Cashpor, an MFI has been successfully leveraged as an effective channel to deliver BC services. It analyzes the channel innovation process that Cashpor adopted with support from Grameen Foundation to provide a range of financial services to its customers. In July 2011, Grameen Foundation worked with Cashpor to create a three-way partnership between Cashpor, ICICI Bank, and Eko India Financial Services Private Limited (Eko).The case study states that the channel innovation was guided by two factors, keeping costs low and delivering savings services to the poor in an effective and efficient manner. Cashpor leveraged its existing MFI infrastructure and staff from the credit operations to deliver BC services to its customers. Some of the channel innovation processes that made Cashpor's BC operations effective:

• Customer centricity played a key role in generating demand for savings services in a sustainable manner;
• Change management through staff motivation and capacity building through workshops with senior and mid-level staff to ensure effective communication and execution;
• Adoption of low-cost, user-friendly technology that helped staff save time and improve the delivery of saving services;
• Incentives for staff for saving services and integrating it in the performance evaluation system.