While there definitely a need to, more effectively use the MicroFinance customer network to cross sell other relevant financial products to the 59 million low income household borrowers. The path to achieve this cannot be a 'separate' cadre of staff because (1) a loan product is a 'pull' product and savings/insurance is a 'push' product a separate cadre selling savings/insurance will not have the same level of leverage as compared to the loan officer (2) the commission/margins of savings/insurance is substantially lower and hence the economics of a separate cadre will only make sense if the savings product officer is able to generate 4 to 5 times more business (3) in order to meet monthly/quarterly/annual profit targets, the leadership will primarily focus on the higher margin Loan product. The only solution is if at the Leadership Team, there is a clear agreement that as part of the Financial Inclusion mandate, fulfilling the holistic needs of their customer is more important AND every level of sales hierarchy is incentivised only on the basis of achieving the agreed mix of loan + savings + insurance
While there definitely a need to, more effectively use the MicroFinance customer network to cross sell other relevant financial products to the 59 million low income household borrowers. The path to achieve this cannot be a 'separate' cadre of staff because (1) a loan product is a 'pull' product and savings/insurance is a 'push' product a separate cadre selling savings/insurance will not have the same level of leverage as compared to the loan officer (2) the commission/margins of savings/insurance is substantially lower and hence the economics of a separate cadre will only make sense if the savings product officer is able to generate 4 to 5 times more business (3) in order to meet monthly/quarterly/annual profit targets, the leadership will primarily focus on the higher margin Loan product. The only solution is if at the Leadership Team, there is a clear agreement that as part of the Financial Inclusion mandate, fulfilling the holistic needs of their customer is more important AND every level of sales hierarchy is incentivised only on the basis of achieving the agreed mix of loan + savings + insurance