A Tale of Two Sisters: Microfinance Institutions and PAYGo Solar
The microfinance institutions of the future will not know every client personally. They will acquire and service customers through a variety of partnerships, products, and channels, as some providers are already demonstrating. The institutions that are able to build the right bundles of partnerships, products, and channels will thrive—and will help their clients to do the same.
This publication traces the journey of two global microfinance groups, Baobab and FINCA, that have worked with their “sister” pay-as-you-go (PAYGo) solar subsidiaries in Africa to acquire new customers and offer existing customers new financial products. Using this template, other microfinance institutions could reach more customers through partnerships with asset finance companies, fintechs, and others.