Analysis of a business model for bringing financial services to poor agricultural households
This case study documents an innovative model for providing financial services to poorer rural households dependent on agriculture – the Tamwil El Fellah (TEF) model developed by the Groupe Crédit Agricole du Maroc (GCAM – the Morocco Agricultural Credit Group). TEF has built on the long-standing experience of financing the agriculture sector and the network of agencies and human resources of GCAM, putting in place its own business model with risk management mechanisms adapted to its specific client segment: farmers with small and medium-scale agribusinesses.
These risk management mechanisms include:
Ensuring TEF’s proximity to clients;
The appropriateness of its loan products and support services to clients’ needs;
Its wide set of supplementary customer services;
The establishment of a guarantee fund;
A scoring system for evaluating and managing the risks of TEF’s clients and their context.
The analysis presented in this study aims to highlight important principles that can be applied by financial institutions and supporting organizations to promote inclusive rural and agricultural financial services in the context of developing countries.