Emergency Hand Loan

The poor and other underserved populations in developing countries have unique financial service s needs. However, there is often a mismatch between what financial institutions offer and what underserved populations need or want. This product gap may reflect a lack of interest by financial institutions in designing more target products, or a lack of willingness or capacity on the part of financial institutions to design, market and implement tailor-made financial products. The objectives of the Product Design Case Studies are to 1) develop expertise related to product design and innovation processes through a better understanding of best practices in the field, in depth research and application of behavioral economics concepts; 2) increase awareness of product design/innovation and the links between product development and financial inclusion; and 3) generate publicity and knowledge sharing around product design and innovation. While the hand loan product was broadly successful in achieving its original intent, the pilot encountered considerable institutional and execution challenges that are instructive for future product innovation efforts. The first two sections describe the problem and the innovative product designed to address it. The next section describes the final design and implementation of the product in detail. The fourth section covers post-pilot data collection and results. The final sections discuss lessons learned and planned future enhancements.

Bibliographic Details

Main Author:	International Finance Corporation
Format:	Working Paper biblioteca
Language:	English en_US
Published:	Washington, DC 2015-03
Subjects:	ACCESS TO FINANCE, ACCESSIBLE LOAN, ACCIDENTS, ACCOUNTING, ADVISORY SERVICES, APPROVAL PROCESS, BANK CUSTOMER, BANKING SERVICES, BANKS, BASIC NEEDS, BENEFICIARIES, BORROWER, BORROWING, BRANCH, BRANCHES, CASE OF DEFAULT, CASH ADVANCES, CASH FLOW, CASH FLOWS, CASH SHORTAGE, CASH SHORTAGES, COLLATERAL, COLLATERAL REQUIREMENT, CONSUMER CHOICE, CREDIT CARD, CREDIT LINE, CREDIT OPTIONS, CREDIT PRODUCTS, CUSTOMER RELATIONSHIP, DEBT, DEBTS, DEVELOPING COUNTRIES, DISBURSEMENT, DISBURSEMENTS, EMERGENCY FINANCING, EMERGENCY FUNDS, EMERGENCY LOANS, EMPLOYER, EMPLOYERS, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, FINANCE SERVICES, FINANCES, FINANCIAL ACCESS, FINANCIAL COMPANY, FINANCIAL CONCERNS, FINANCIAL COST, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL MANAGEMENT, FINANCIAL NEEDS, FINANCIAL PRODUCTS, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDER, FINANCIAL SERVICES, FINANCIAL SHOCKS, FINANCIAL STABILITY, FINANCIAL VIABILITY, FINANCING NEEDS, FORMAL FINANCIAL SERVICE, HIGH INTEREST RATES, HOLDING, HOLDING COMPANY, HOUSEHOLDS, INCENTIVE STRUCTURES, INCOME, INCOMES, INFORMAL LENDERS, INFORMAL LOANS, INFORMATION SYSTEM, INSTALLMENTS, INSURANCE, INTEREST PAYMENT, INTEREST RATE, INTEREST RATES, JOINT LIABILITY, LATE PAYMENTS, LIFE INSURANCE, LIQUIDITY, LOAN, LOAN AMOUNT, LOAN AMOUNTS, LOAN DATA, LOAN PRODUCT, LOAN PRODUCTS, LOAN RECOVERY, LOAN REPAYMENT, LOCAL MARKET, LOCAL MONEYLENDERS, LOW-INCOME FAMILIES, MARKET VALUE, MAXIMUM LOAN AMOUNT, MFI, MFIS, MICROFINANCE, MICROFINANCE INSTITUTIONS, MICROFINANCE PRACTITIONERS, MOBILE PHONES, MONEY LENDERS, MONEY MANAGEMENT, MONEY MARKET, MONEYLENDERS, MUTUAL FUND, NATURAL DISASTERS, NEED FOR CREDIT, NEW PRODUCT, NEW PRODUCTS, OPERATING COST, OUTREACH, PAWNBROKER, PAWNBROKERS, PENALTIES, PENALTY, PEOPLES, PORTFOLIO, POTENTIAL BORROWERS, PROFITABILITY, PROMISSORY NOTE, REMITTANCE, REPAYMENT, REPAYMENT BEHAVIOR, REPAYMENT CAPACITIES, REPAYMENT RATE, REPAYMENT RATES, REPAYMENT RECORDS, REPAYMENT SCHEDULES, REPAYMENTS, REPUTATION, SALARY, SAVINGS, SAVINGS ACCOUNT, SEES, SMALL INSTALMENTS, SMALL-BUSINESS, SMALL-BUSINESS LOANS, SOURCES OF FINANCE, STORE, TUITION, VILLAGE, WOMAN,
Online Access:	http://documents.worldbank.org/curated/en/2015/03/24158037/emergency-hand-loan-product-design-case-study https://hdl.handle.net/10986/21683
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