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Monday Dec 16, 2024
Tuesday, 18 April 2017 00:11 - - {{hitsCtrl.values.hits}}
MIX and The MasterCard Foundation last week announced the publication of “Measuring The Performance of Alternative Delivery Channels”, which introduces reporting standards for alternative delivery channels (ADCs) used by financial service firms in developing countries.
The report also presents an analysis on ADC performance from initial research conducted with financial service providers in Sub-Saharan Africa.
Established in 2002, MIX built its flagship platform, MIX Market, to bring transparency to the microfinance industry. Now, MIX is extending the platform to include new channels - such as banking agents and mobile phones - that financial service providers (FSPs) are adopting to better serve their customers. The initiative, which creates standard guidelines for collecting performance data, enables industry actors to measure and analyze the effectiveness of these ADCs for the first time.
“These channels offer financial service providers the ability to increase customer outreach, reduce costs, and strengthen their own sustainability and relevance in the market,” said Ann Miles, Director of Financial Inclusion at The MasterCard Foundation. “For their part, investors in FSPs have asked for more information on metrics related to these new delivery channels. They’ve also asked for access to aggregate market data to help assess and guide their own operations and to help them make the right investments. This new MIX publication responds to both needs.”
Through consultation with industry stakeholders, and with support from The MasterCard Foundation, MIX introduced a set of reporting standards for FSPs to share ADC performance data with investors. MIX also created benchmark analyses to gauge performance relative to the market, and composed a guidance document for FSPs to assess their capacity for reporting this data.
“With the introduction and adoption of these ADC reporting standards, we hope FSPs and investors will be able to determine where to invest resources and how to meet customer needs,” said Blaine Stephens, MIX’s COO. “The adoption of these standards will ultimately ensure FSPs can adapt to the changing customer preferences in the financial sector.”
MIX is encouraging FSPs that cater to underserved populations to begin reporting ADC performance data through its MIX Market platform. The analysis of ADC performance is published for the first time but MIX plans to conduct similar research every two years and to make its findings known to the broader development community on a regular basis.
