Developing and designing
products and services within
the financial institutions.

 
 

We have seen that the more you work with a community to design and develop products and services, the more successful they will be.

 

Value Chain Finance

Our framework centers on market orientation, . It requires that financial institutions take into account the financial potential of the entire value chain – not just the creditworthiness of a single individual, but also micro and large businesses. With this shift in focus, the financial institution can:
  • more accurately measure and mitigate the risk with access to value chain information.
  • reduce the liquidity and production constraints of smaller producers by providing poor and low-income people with access to formal finance.

  • provide access to multiple borrowers over multiple growing or production cycles.

  • align the incentives of different value chain actors to increase the value chain competitiveness and improve end products.
Sectors include agriculture in Ethiopia and Kenya, and affordable housing in Haiti.

Nontraditional Customers

We work with financial institutions to become more inclusive of nontraditional clientele – e.g. youth and women – through education programs, risk mitigation mechanisms, and our value chain methodology (mentioned above). We help financial institutions adapt their existing products and consider introducing new products and services to assist their clientele to:
  • meet immediate financial needs in a health emergency, with a focus on HIV/AIDS in Kenya,

  • access micro, small and medium-scale (including agriculture) lending and 
  • reach and serve more women and youth, like in Mexico.
Examples of new products and services include, youth products, remittances, savings, rural finance, and digital. See our technical guides for more details.
 
Access & Outreach > Products & Services > Sustainability > Enabling Environment