Getaneh Gobezie , Independent Consultant, Ethiopia
19 November 2022

Dear colleagues
I am really inspired, once again, by the points raised on this post!! This is quite consistent with the discussion points raised few month back on another blog on this site:
https://www.findevgateway.org/blog/2022/06/how-do-savings-contribute-fi…
But, perhaps most important factor in effectively serving clients (especially on saving) that has become a challenge for financial service providers as they grow larger is maintaining effective INSTITUTIONAL CULTURE. When institutions are relatively small, the contact between staff at leadership (e.g head office) and those at operation (e.g branches) is stronger,. However, when operation grows, and institutions become larger (often quite quickly!) , maintaining such a strong contact become increasingly challenging. Institutions need to learn ''change management'' skills..... In dominantly patriarchal communities (where top-down leadership style is the norm) this is really a challenge!! One of the most important element in institutional culture, ''TRUST' between leadership and staff will then be at risk, as our team has highlighted in the SAVINGs paper earlier posted at this web-site (see link below):
''.... Microfinance is built on trust. Loan officers have to trust that clients will repay their loans; clients have to trust that the MFI will safeguard their savings and return it when they want it. The trust relationship between management and staff and between the head and field offices are just as important. Managers must trust that their “self-managed” employees are really doing what they are supposed to. Employees must trust that the board and senior management are making decisions in the best interests of the MFI and its staff members. If these internal bonds of trust are broken, the MFI will find it difficult to operate....''
https://www.findevgateway.org/case-study/2015/02/overview-practical-cha…
Thanks and Regards
Getaneh