In a previous blog post, we were introduced to how SAJIDA Foundation in Bangladesh is using evidence from data analytics, business case analysis and client research to improve cross-selling as part of the OPTIX project. SAJIDA competes with numerous microfinance institutions by providing relatively similar credit and savings products to support low-income clients. In this post, we discuss three key evidence-based programmatic decisions that were necessary to take a new mobile financial service (MFS)-based microfinance initiative from the design table to pilot testing in the field starting August 2016. This initiative enables SAJIDA to disburse loans directly into bKash accounts of its members, allows members to make loan repayments and deposit savings from their mobile wallets, and is being piloted in five branches with rather varied profiles. These observations are made from the point of view of staff at Bankable Frontier Associates who have been intimately involved with SAJIDA since the inception of OPTIX.
Financial institutions, including those serving low-income clients, regularly turn to cross-selling to engage clients, but do not always consider the particular needs of the clients themselves.
Some institutions hold an inherent assumption that certain products should be “good” for clients. However, because such assumptions are not always backed by hard data or client insights, these institutions may offer products that are not relevant enough, leaving the products unused by clients and expensive for institutions.
What does it take to enhance clients’ engagement and encourage them to actively use multiple products with an institution over time?