Comments on: Increasing Microfinance Productivity http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html A conversation on global economic issues, ideas & data to help us all become better contributors to defeating the scourge of extreme global poverty Thu, 02 Feb 2012 03:26:56 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Neeru http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html/comment-page-1#comment-131 Neeru Fri, 23 Nov 2007 04:02:00 +0000 http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html#comment-131 I think thats a very interesting idea. on the field, we often see adverse selection primarily from clients themselves, with the poorest getting selected out of groups and centers. Having an incentive for the center to inlcude 'ultra poor' within their center, or group could be a great way to encourage financial inclusion (the group and center would still decide on the apropriate risk level, but at least have clients availing financial services) I think thats a very interesting idea. on the field, we often see adverse selection primarily from clients themselves, with the poorest getting selected out of groups and centers. Having an incentive for the center to inlcude ‘ultra poor’ within their center, or group could be a great way to encourage financial inclusion (the group and center would still decide on the apropriate risk level, but at least have clients availing financial services)

]]> By: David Stoker http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html/comment-page-1#comment-119 David Stoker Thu, 01 Nov 2007 20:50:00 +0000 http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html#comment-119 I'm thinking incentives for the loan officer to help his poorest clients reach milestones. It could be cash or recognition incentives for the loan officer. It could be savings milestones for the client. I am thinking the poorest clients in this case, the ones who tend to get left behind as MFIs move up market. I like the idea of savings matches for the poorest as well. <br/><br/>or what if the group has special incentives to help the poorest in their community reach milestones. A match of group savings? a party? regional recognition? I’m thinking incentives for the loan officer to help his poorest clients reach milestones. It could be cash or recognition incentives for the loan officer. It could be savings milestones for the client. I am thinking the poorest clients in this case, the ones who tend to get left behind as MFIs move up market. I like the idea of savings matches for the poorest as well.

or what if the group has special incentives to help the poorest in their community reach milestones. A match of group savings? a party? regional recognition?

]]> By: Dave Richards http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html/comment-page-1#comment-117 Dave Richards Thu, 01 Nov 2007 20:19:00 +0000 http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html#comment-117 In the majority of cases the payment sizes are pre-defined. You can always have an exception and revert to a manual process. Overall, handling exceptions only in this way is more efficient.<br/><br/>What kind of milestones are you thinking of? Clients already have incentives for online payment...they generally get access to new/better products. In the majority of cases the payment sizes are pre-defined. You can always have an exception and revert to a manual process. Overall, handling exceptions only in this way is more efficient.

What kind of milestones are you thinking of? Clients already have incentives for online payment…they generally get access to new/better products.

]]> By: David Stoker http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html/comment-page-1#comment-115 David Stoker Thu, 01 Nov 2007 19:39:00 +0000 http://www.defeatpoverty.com/2007/10/increasing-microfinance-productivity.html#comment-115 I like the idea of preprinted stickers or use of stamps to reduce handwriting time. Are the payment sizes already standardized? <br/><br/>Adding services to the load of a loan officer is about balancing incentives and perceived trust. Financial incentives to the loan officer might help retain loan officers in the long run. If the personal financial incentives are too high then the loan officer might turn into a pushy salesman chasing away clients. Can you provide financial incentives for helping the poorest clients reach milestones? I like the idea of preprinted stickers or use of stamps to reduce handwriting time. Are the payment sizes already standardized?

Adding services to the load of a loan officer is about balancing incentives and perceived trust. Financial incentives to the loan officer might help retain loan officers in the long run. If the personal financial incentives are too high then the loan officer might turn into a pushy salesman chasing away clients. Can you provide financial incentives for helping the poorest clients reach milestones?

]]>