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Appropriate Product Design and Delivery

Appropriate Product Design and Delivery. Principle in Practice. Providers take adequate care to design products, delivery channels and select partners in such a way that they do not cause clients harm.

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Appropriate Product Design and Delivery

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  1. Appropriate Product Design and Delivery

  2. Principle in Practice Providers take adequate care to design products, delivery channels and select partners in such a way that they do not cause clients harm. Products and delivery channels are designed, and partners selected with client characteristics taken into account. • Consider this: • Appropriate products and services not only provide access to clients, but they also create value for clients.

  3. The Principle in Practice

  4. Suitability runs through multiple systems

  5. Suitability Beyond Credit

  6. Aggressive Sales “[The woman from the bank] kept following me everywhere. I was working, and she kept coming to my house offering me a credit card that I didn’t want. She kept asking for my number for activating the credit card. At the end, I was very tempted because my daughter was turning 15, and I wanted to [throw a party].” Female, Peri-Urban Peru

  7. CPP #1: Standards of Adequate Care FI offers products and services that are suited to the client needs FI monitors suitability of products, services, delivery channels FI has policy and documented process to prevent aggressive sales techniques and forced signing of contracts.

  8. CPP #1: Standards of Care FI offers products and services that are suited to the client needs • ✔ Policy to offer suitable products / services • Flexible repayment. • Fair collateral Policy • Trained staff • Check ins for 3rd party • Transparent process - Insurance FI monitors suitability of products, services, delivery channels • ✔ Client Feedback • Analyze product usage • Monitor Agent liquidity /Network availability.

  9. CPP #1: Standards of Care FI has policy and documented process to prevent aggressive sales techniques and forced signing of contracts. • ✔ Define agressive sales • Train to protect client rights • 3rd parties are trained • Monitoring staff /3rd party • Balanced Incentives • Marketing techniques

  10. Tools available from the Smart Campaign Also see SPTF Library MicroSave’s Market Research toolkits

  11. Good Practice (IFMR) Designing products based on client requirements “Wealth Management Approach”

  12. Key Messages App prod design is relevant in CP because FIs often deal with inexperienced clients that do not necessarily have the knowledge/experience to determine if the product provides good value for the money. Product suitability must be incorporated at all levels of an FI from board policies to staff training MFIs that listens and learns from their client are more likely to succeed than who imitates others product/services in the market. Moderate sales techniques should be used to deliver products/services. Aggressive sales must be defined. Third parties must be vetted with client in mind

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