Financial service providers have traditionally categorized low-income customers into a single market segment. The CGAP Customer Segmentation Toolkit is designed to help FSPs identify subsets of customers that have common needs, interests, and priorities – then design and implement targeted strategies.
Customer centricity provides significant opportunity for financial inclusion service providers to tackle and overcome the very real challenges that threaten their organizational sustainability and growth.This Brief touches on lessons learned about customer centricity in other industries.
Generating greater value for customers is good for business. Research from a developed market context has found that customer retention leads to a decrease in operating costs, while a decrease in customer satisfaction leads to a decrease in return on investment.
This Focus Note first describes the challenges of the broader financial inclusion landscape and then explores three promising roles government can play in developing more financially inclusive ecosystems.
Over the past 30 years, access to formal financial services for low-income people has increased dramatically. However, misguided efforts to reduce criminal behavior threaten to slow the pace of that progress.
CGAP undertook a scenario-building exercise to help anticipate and prepare for the global demographic, political, and technological forces that will shape the future of microfinance. We and a wide range of outside experts grappled with the potential impact of these forces in order to craft positive and negative scenarios for the year 2015 that might instruct the microfinance actors today.
Innovative use of information and communications technologies to inexpensively process a large volume of small transactions and deliver a wide range of financial services may help to make microfinance institutions (MFIs) more efficient and commercial banks more interested in serving poor people.
There is a vast potential market for retail financial services among low-income clients, and a growing number of commercial banks have successfully entered this market. These are the findings of recent research undertaken by CGAP, the global resource center for microfinance supported by a syndicate of 30 multilateral, bilateral, and private donors.