Paper
Product Development and Strategic Planning in Microfinance
Presentation made on regulation and practical operations of microfinance institutions
Download
24 pages
This presentation explores the process of MFI product development.
MFIs must offer diverse products to meet clients needs, achieve its social mission, enhance returns on investment, expand client base and face competition. Before developing a new product, an MFI must reflect on its motivation, commitment, institutional capacity and commercial viability of the product. Developing a new product includes:
- Allocating resources and building a team;
- Conducting market research that identifies financial needs of clients and reviews the financial landscape;
- Seeking information from internal reports, client exit analysis, loan portfolio diversity, interaction with staff and national data banks;
- Using market research to develop a concept design of product features, requirements for product development and determination of financial viability;
- Implementing a pilot to determine product viability.
The presentation describes key pilot testing tasks and states that it helps in defining objectives and performance indicators, determining the location, sample size and duration of testing and addressing logistical issues. Pilot testing would also evaluate the product and make recommendations for improvements.
About this Publication
Published
