What Works: PRODEM FFP'S Multilingual Smart ATMs For Microfinance

This case study presents the experience of Bolivia based PRODEM Private Financial Fund (PRODEM PFF) that uses innovative technological and product variations to reach the poor and the marginalized.

PRODEM faced some major business challenges and the conventional technological solutions were not very helpful to solve the problem. Some of the serious business challenge that PRODEM FFP faced includes:

• Lack of basic infrastructure such as communication network;
• High level of illiteracy;
• Lack of knowledge of concepts such as identification codes.

PRODEM FFP decided to develop a new ATM with smart card and voice instruction to overcome these barriers in servicing the poor. The major reasons behind success of PROMED FFP are:

• Continuous Innovation;
• Community trust;
• Effective use of proprietary technology.

The study concludes with the following observations:

• The same basic business principles that apply at the top of the economic pyramid apply to the lower income levels as well;
• Neither quality nor profit needs to be sacrificed to serve low-income communities;
• Rural, low-income communities are both willing and capable of using high-tech services as long as these serve their needs.