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> Posted by Antoine Navarro, Blaine Stephens and Nikhil Gehani, MIX
Enabled by technology and fueled by the desire to improve business outcomes, over 60 percent of financial service providers (FSPs) are serving clients through ATMs, mobile money, agent networks, and other channels outside of branches, according to a recent global survey by MIX. While FSPs continue to deploy these alternative delivery channels (ADCs), assessing their performance presents a challenge. Even though many FSPs are developing internal metrics to track performance, basic information like number of transaction failures is largely unavailable outside the institution. And even when such information is available to external parties, comparisons against the market are hampered by a lack of standard metrics in the industry.
With the right reporting systems and processes in place, FSPs can compare internal channel performance to optimize their channel mix. FSPs have told us they need visibility onto the rest of the market to benchmark their performance against peers, inform managerial decisions and improve actual results. MIX’s recently published report, “Measuring the Performance of Alternative Delivery Channels” aims to do just that. Through research supported by The MasterCard Foundation, IFC’s Partnership for Financial Inclusion and UNCDF’s MicroLead program, we were able to engage with a number of FSPs in sub-Saharan Africa to develop and refine a set of standard metrics. We also created initial benchmarks based on the data collected from these institutions, which are published in the report. It is our hope that FSPs around the world will begin collecting and reporting on these metrics so market actors will have a common reference point for ADC performance measurement and comparison.
What was found? You’ll have to read the report to get the full scope, but here are a few high-level takeaways.
> Posted by Emily Leeding
Congratulations to Center for Financial Inclusion Faculty Council Members Bhagwan Chowdhry and Paul Hudnut on the Financial Access@Birth (FAB) Campaign. The Campaign is aimed at giving every newborn worldwide a bank account- another innovative way of promoting financial inclusion.
Read all about it in this week’s issue of The Economist: “A FAB idea: Should every child receive a bank account at birth?”
> Posted by Kelley Mesa
This month’s ProInspire Spotlight features ACCION International’s Amitabh Saxena, whose recent work focuses on alternative delivery channels for microfinance institutions. Read the interview here.