Value Proposition canvas- Customer needs and pains
From Best Practices to Next Practices in Microfinance
1. From BEST PRACTICE to NEXT PRACTICE
Joseph Omar Andaya
Green Bank
2010 RBAP‐MABS Na.onal Roundtable Conference
Hya= Hotel and Casino, Manila
June 2‐3, 2010
2. Best Practice
Practices that ensure the sustainability of
the microfinance operations
1. Lending Methodology
i. Proper Credit Investigation / Background
Investigation
ii. Cash Flow Method of Lending
3. - continuation BEST PRACTICE -
2. Market Survey
3. Product Development
4. Pilot-testing and Roll-out
5. Incentive System
4. Future Trend
Next Practices: SUSTAINABILITY of the
Organization so that it would be able to continue
to deliver a wider range of financial products
addressed to the needs of a range of market
segments in different geographic areas factoring
in the Internal and External Environment in the
over-all strategy (Macro and Micro Economy,
Regulatory Environment, Competition, Social
Conditions, Human Resources, etc.)
5. NEXT PRACTICE
1. Further Strengthening Controls and
Monitoring system
a. Management Information System
b. Loan Origination System
c. Core Values (honesty, integrity,
customer service excellence,
etc.)
6. 2. Increasing efficiency
i. Bring down operational costs
through automation (centralized real-
time core banking system, working
toward paperless environment, etc.)
7. ii. Reducing Customer Acquisition Cost
and Maintenance Cost using new
banking channels
a. Banking Kiosks
b. ATMs
c. EFT-Point Of Sales
d. Mobile Phone Banking
e. Agent Banking (Globe’s 18,000 CI /CO
centers)
8. iii. Outsourcing of other some non-core
areas in the organization.
a. Security and Janitorial Services
b. Armored Car services
c. Tax Advisory Services
d. Confidential Payroll Services
9. e. Internal Audit Function
f. Compliance Function
g. Specialized trainings
h. Market Surveys
*i. ATM channel (3rd party providers)
10. 3. Improving Governance
i. Organizing Board Committees
(Risk Management, Information
Technology, Audit)
11. ii. Managing Change in Family
Corporations
iii. Succession Planning in the
organization and in the family
12. 3. Client Protection
i. Transparent Pricing
ii. Financial literacy training / coaching
by account officers
