Microfinance for Protecting the Vulnerable in Rural Uzbekistan

Risk management financial services for vulnerable populations
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This document is a note for microfinance practitioners to assist them in developing risk management financial services for low income groups. The document highlights the vulnerability of low income population through a case study by MFP Barakot, which provides a view of financial needs of vulnerable population in Uzbekistan.

The document deals with the following:

  • Necessary questions for the success of a financial product;
  • Vulnerability analysis and its framework which include the following:
    • The type of data required to perform a vulnerability analysis;
    • Questions for providing guidance in vulnerability analysis.
  • Analysis of the relationship between the most powerful vulnerability indicators;
  • Financial needs analysis of target group;
  • Possible existing risks in rural areas and the significance;
  • Different existing risk mitigation strategies used by most vulnerable and least vulnerable groups;
  • Possible financial services that can help people mitigate risk.

The document further talks about customer value proposition analysis and understanding the current financial behavior and financial literacy of customers. It concludes by discussing the changes to incorporate when developing new and effective financial products in order to mitigate risks associated with low income population financial services.

About this Publication

By Matul, M. & Szubert, D.