|Microfinance institutions are lending billions to the poor|
each year. Can they make that money more valuable to
clients simply by redesigning their loans?
Last week I spoke with the leader of an urban microfinance institution in Dhaka about its clients and their needs: was it mainly credit or savings they were after? He said,
“When we first talk to them, they ask a lot of questions about credit. All of them say they want it. We sign them up for a savings account and after a few months, they get access to credit. Ultimately only half of them end up using it, but all of them want to know that they can if they want to.”