A Structured Approach to Understanding the Financial Service Needs of the Poor in Mexico
Financial service providers have traditionally focused more on the supply side of financial inclusion than on the demand side. Undoubtedly, it is easier to measure number of branches; total customers served, and aggregated portfolios rather than at...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/05/16541972/structured-approach-understanding-financial-service-needs-poor-mexico http://hdl.handle.net/10986/9441 |
| Summary: | Financial service providers have
traditionally focused more on the supply side of financial
inclusion than on the demand side. Undoubtedly, it is easier
to measure number of branches; total customers served, and
aggregated portfolios rather than attempt to get into the
messy business of poor and underserved customers'
lives, businesses, and needs. However, authors are starting
to recognize the fundamental importance of working directly
with customers to understand their financial habits and
needs, as well as the role of finance in their lives. This
brings a new perspective on the problem of financial
inclusion: a deeper understanding of demand could be key to
designing a more meaningful and sustainable offering,
particularly as authors realize how little we actually know.
The study also helped us understand the value of informal
options used today. Saving at home is easy, low cost, and
convenient. Informal credit is easily accessible from family
and friends, bears little or no interest, and has flexible
terms of repayment. |
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