Client-focused Microfinance: A Review of Information Sources

For MFIs, this paper highlights the importance of focusing on diverse and dynamic clients needs and developing appropriate products and services. It suggests the need to utilize information sources to achieve the above.

Further, the paper lists some of the sources of information - both informal and formal to listen to and learn from their clients - which MFIs could use to design products that suit their clients:

• Analysis of information available through the Management Information Systems (MIS) can help:
  • Identify the problems that the institution is facing;
  • Understand client preferences and projected demand;
  • Gain insights into target markets for new products or the need for product refinement.
• Competition Analysis can provide an impetus to develop new product ideas and opportunity for growth. By observing the competition, the MFI can improve its products and services;
• Feedback from frontline staff can give valuable information on clients' needs, perceptions and preferences;
• Talking to clients can yield information that may be used to refine products and services. Similarly, exit interview with clients provides information about market realities and possible product shortcomings that can be addressed by the MFI;
• Primary market research methods help in obtaining clearly defined, relevant and useful information, thus saving time, energy and financial resources.

Finally, the paper recommends that MFIs need to become more sophisticated in their approaches to understand the markets within which they operate.