Delivering for Efficiency - 3 Case Studies on Cost–Efficient Delivery Mechanisms

Publication Date: 2006
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Case Study (PDF)

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Creative approaches used by MFIs for cost-efficient delivery mechanisms

This paper focuses on cost-efficient delivery mechanisms of three MFIs that help them achieve both efficiency and outreach:

• The Small Enterprise Foundation, South Africa, utilizes existing postal and commercial bank facilities to help a broad range of poor people open savings accounts;
• Caixa Economica Federal, Brazil, uses Point of Sale (POS) devices in lottery outlets and commercial establishments to expand its existing network at a much lower cost than opening new branches. This approach has helped the MFI to extend its outreach into every municipality in Brazil and into remote and rural areas;
• BPR VII Koto, Indonesia, uses deposit collectors to extend its network at low cost. BPR has a single branch that services low-income rural clients. However, its bicycle- and motorcycle-mounted collectors visit around 300 clients everyday, allowing them to make frequent deposits.