This report integrates the case studies conducted on four microfinance institutions (MFIs) in the Philippines. These MFIs have undertaken innovative and successful microfinance products specifically targeted for poor households.
The report looks into the effectiveness of these products, the processes involved in developing the products, and factors that led to the success of the products designed for the poor.
The MFIs selected for the case studies were:
* Rural Bank of “Sto. Tomas (RBST)”,
* “CARD-Mutual Benefit Association (CARD-MBA)”, an insurance company serving the micro-insurance needs of poor households,
* “United Sugar Cane Planters of Davao Savings and Credit Cooperative (USPD SCC)”,
* “Tubao Credit Credit Cooperative (TCCI)”.
The report describes:
* The general framework, in terms of the market environment, new product development, and phases of product development.
* The institutional set-up of each of the selected MFIs, their operational highlights and their innovative and successful financial products and services.
* The following processes involved in product development:
o Research to identify needs and opportunities,
o Design and pilot testing,
o Monitoring and evaluation,
o Revision and scaled-up implementation.
It identifies the following factors for success:
* An efficient product development team,
* “Buy-in”, i.e. support for the process of product development within the institution,
* Market segmentation,
* Market research.
It stresses the importance of:
* Effectiveness of the product,
* The process of product development,
* Institutional effectiveness.
The report concludes by outlining the implications of these findings.
