Technical Assistance Delivery to Small Business Banks and MFIs: What Works?

This paper is part of ShoreCap Exchange's (SCE) literature on effective business delivery. The paper aims to help SCE and other technical assistance (TA) services providers improve their business services' design and delivery to better serve financial institutions that focus on underserved and lower-income markets.

SCE based its findings on:

• A series of in-depth interviews conducted with a small set of microfinance and small business financial institutions, their TA providers and donors;
• A literature review of case studies in effective business delivery.

Using SCE's preliminary research and first-hand experience, the paper highlights that effective providers of business services to banks and MFIs, which target small and micro entrepreneurs:

• Are client or demand driven;
• Are highly focused;
• Work with clients that are "ready";
• Charge for services;
• Let client characteristics drive both the type of service delivered and the delivery mechanism used;
• Deliver business services based on the urgency of their need;
• Build accountancy and performance incentives into the technical assistance (TA) design.

The paper also identifies the following as being fundamental to effective TA implementation:

• Continuous trust building with the client;
• A common goal for client banks, TA providers and donors - the delivery of cost-effective and value added services to client financial institutions.

The paper concludes with key tips for business services or TA providers, client banks or MFIs and funders.