What characteristics of banks facilitate entry into retail microfinance?: What characteristics of banks facilitate entry into retail microfinance?
Extensive delivery channel infrastructure (if strong retail network) Existing pool of human resources, especially those with skills in HR, IT, marketing, legal and financial management Market presence and brand recognition Distribution of fixed costs among many financial products Access to plentiful and low-cost funds Banks can launch and expand retail microfinance services more efficiently than pure start-ups. What factors prevent banks from decisive entry into microfinance?: What factors prevent banks from decisive entry into microfinance? Market knowledge & experience is lacking so consider too risky & expensive Inappropriate business processes and products to reach this segment successfully Higher frequency of face-to-face transactions Differences in mission and organizational culture within supporting departments (“silos”) Cost structure and expectations of microfinance staff Regulatory & supervisory environment Key Challenge:: How do we overcome the obstacles in order to leverage
