Savings Mobilization and Marketing for Credit Unions

This paper argues that to cope with the increasing competition in the financial market, marketing is the ideal tool for microfinance institutions (MFI) to use.

The paper lists the following ways in which marketing can be used by an MFI:

• Give the MFI the knowledge needed to develop new financial products that satisfy the customer's needs through market research;
• Create a suitable advertising strategy to convey the right message about the institution, its products and services to potential customers;
• Develop sales people who would present the MFI's products and services to potential customers in a convincing manner;
• Use media such as television, posters, etc. effectively;
• Generate business based on gifts, raffles and promoters in the area of influence;
• Assure the creation of a culture where the customer is first;
• Design and package a financial product attractively and effectively, so that both the customers' and the MFI's needs are met;
• Motivate employees and help them identify with the institution;
• Personalize relationships with customers in such a way that their fidelity towards the organization is reinforced;
• Promote distance banking to go as near the customer as possible;
• Search for innovative branching strategies to maintain a significant presence in the market;
• Assure constant updating of the employees' knowledge of the product through adequate training;
• Develop a solid institutional image through appropriate branding of the symbols and brands of the institution.

The paper concludes by stressing that marketing has to be an ongoing process for it to be successful.