Orientation Session For Junior Loan Officers in Marketing

February, 2012

Introduction to Session

Part I

1. FINCA (understanding FINCA)

2. The Competition

3. Loyalty

(Note: part I is a discussion format)

Part II

4. FINCA and FINCA Microfinance Holding

5. FINCA identity elements (logo, corporate elements)

Part III

6. Marketing strategy 2012

7. Understanding of Direct Marketing (cons and pros of direct marketing/field promotion, effective promotion, key messages in sales promotion).

8. Customer Care Credos

Understanding FINCA

I- General observation and perceptions of the brand (discussion):• What does FINCA do? What does FINCA stand for (the social mission, the

values)• Who are FINCA customers? Why?• Why would someone choose FINCA and not other MFI/bank?

II- Experience of the brand (group discussion): • As a group write up the attributes you most value about FINCA• What do you think, the clients would value (your perceptions)

Follow up: in-depth discussion on what attributes loan officers most value and why

The Competition

General discussion:• Who are FINCA’s biggest competitors (write a list up on the flipchart) Pros and Cons of each competitor (your perceptions/knowledge

about competitors) Why would people choose them? How are they different from FINCA? How are they similar to FINCA?

Follow up: in-depth discussion on above perceptions.

Loyalty

Discussion:• Who are you loyal to and why?• How would you make your clients loyal?• What would FINCA need to actually do to make its clients

more loyal?

(make a list of recommendations on flipchart)

Wrap up of part I: evaluation of the first part of the session (in-depth summary of previously discussed topics)

Part II

FINCA and FINCA Microfinance Holding

• FINCA history (mission, vision)

• FINCA and FMH

Partners of FINCA in FMH (FINCA International Inc, IFC International Finance Corporation, KfW Bankengruppe, the German development bank, FMO, the Netherlands development bank, responsAbility, Global Microfinance Fund, a Zurich-based social investment firm, Triple Jump, a Netherlands-based microfinance investment manager.

FINCA Identity elements

The Logo

a “tree of abundance” – symbolizing growth, strength and security. At the base of a tree rising a tiny seedling symbolizes a small loan that allows a low-income person to create a self-help opportunity to lift the family out of poverty.

Surrounding FINCA’s tree is a linear circle that represents the earth we share and the oneness of humanity. We’re connected to one another through our families, communities and our planet. The continuous movement expressed by the unbroken circle is symbolic to FINCA’s belief, that we must progress together.

Corporate colors – FINCA Red and FINCA grey are the core colors of our visual identity.

FINCA Georgia Positioning/Market Share (number of clients)

FINCA; 27.1%

Credo; 41.2%

Constanta; 16.0%

Crystal; 7.2%

Lazika; 8.5%

End 2010

FINCA; 23.4%

Credo; 43.4%

Constanta; 20.0%

Crystal; 8.2%

Lazika; 5.5%

End 2011

Competitors in figures

MFI Name Total Clients (#)Total Loans Outstanding (USD)

PAR > 30 days (%)

Loan Officers (#)

Branches (#)

Credo 65,089 54,666,463 0.01% 301 22

Constanta 30,052 70,826,590 0.34% 195 24

Crystal 12,317 13,011,674 0.23% 55 16

Lazika 8,331 8,797,802 0.74% 33 9

FINCA Georgia state of Business

• Growth history

FINCA Georgia grew substantially in 2011, with an increase of clients from end of year 2010 of 28, 451, with 2011 total active clients at 35, 074 (23% growth). The gross loan portfolio increased by 60%, reaching $39, 780 103.

Objectives for 2012 – clients – 44 846, portfolio – 50 049 967 $

• Geographical outreach - FINCA Georgia is looking to enhance growth in existing areas, while ensuring quality customer service.

Strength of FINCA Georgia

FINCA Georgia’s strengths include: • Extensiveness of branch network and convenience of locations;• Efficiency of loan analysis and speed of loan turnaround time;• Lower documentation requirements;• Flexible collateral/guarantee requirements;• Diverse product range, including rural and agricultural offerings;• Motivated staff members and business process that involves going to the

client to provide the most convenience and service; and,• Focus on micro-level clients

Objectives 2012

The following are FINCA Georgia’s 2012 main objectives: • Start banking transformation; • Maintain largest branch network of MFIs• Improve brand recognition. • Introduction of mobile banking services in partnership with Open Revolution • Roll out of Money Transfer services, using major MTOs; as well as currency

exchange services; • Expansion to new geographic areas, • Ensure reaching 37 563 clients and at least $41 837 292, preserving high

portfolio quality

Objectives: Increasing existing penetration and market share

Increase penetration in existing markets while focusing on customer service via:• Increase customer penetration through targeting new clients including

establishing satellite offices;• Maintain focus on direct marketing activities while providing additional

resources and training to credit officers and branch managers;• Further research to introduce new products and services such as

remittances and currency exchange as well as mobile pay service;• Improve relations with current customers by increasing client loyalty,

retention and maintain portfolio quality; • Continued market research into clients’ needs and satisfaction (e.g. focus

groups, exit surveys).

Strategic Initiatives: Strengthen customer relationship management

Monitoring service quality through various initiatives including: • Enforcement of new CRM Manual across FINCA Georgia network, including

regular trainings to ensure full compliance• Implementation of the CRM standards; • Customer hotline/call centre;• Mystery Shopping;• Trainings developed and based on the results of mystery shopper ranging

from communication skills, sales/direct marketing skills; and,• Monitoring and evaluation of client socio-economic status – through FCAT

survey.

Strategic initiatives: Brand Commitment

FINCA Georgia aims to build and maintain a strong brand image that represents FINCA as a financial service provider In order to achieve this message, FINCA Georgia will utilize the results from the 2011 Brand Awareness survey to enhance themselves in the market.

In addition, FINCA Georgia will:

• Finalize office uniformity in all branches; and,• Build brand awareness through advertisements on the television, radio,

magazine, bus and billboards.

Milestones

• Transformation: Obtaining transformation certificate by December 2012. This will allow FINCA Georgia to diversify services to its customers

• Strengthen customer relationship management and service: Regular analysis based on 2012 calendar to monitor, track and address issues.

• Brand image: The marketing department will conduct regular compliance of office uniformity in accordance with FINCA International Global Brand Standards. A follow up brand awareness survey will be conducted to compare results from 2011.

• Introduction of mobile banking services in partnership with Open Revolution

• Roll out of Money Transfer services, using major MTOs; as well as currency exchange services;

• Expansion to new geographic areas • Reform affiliate loan products, organizational structure, incentive systems,

and other aspects to maximize outreach to micro-segment clients

Part III - Direct Marketing

Why Direct Marketing?

• In Direct Marketing we establish relations with the customer in a direct way (by post, e-mail, face to face communication) thus avoiding media resources.

• Direct Marketing is a call to potential customers to become clients of the organization.

• Direct Marketing is the most effective way from the point of view of client attraction – as:

A) being busy with their business affairs, our potential clients have almost no time to watch TV and use other media resources to get information about potential creditors

B) Advertisements are limited in time and the client may fail to get full information about the advertised product, moreover, it is well known that people understand the same message in a different way.

C) People always have questions, but it is impossible to put a question to a TV set, a magazine, etc.

D) Direct marketing is interactive - the client’s questions and concerns are responded immediately

Essentials

• Remember that a loan officer is a face of the organization and he/she should impress the customer at the first meeting

• You are in charge of negotiations

• You need to do and show your best (be patient, attentive to client’s needs, maintain positive attitude, etc.)

• Identify and visit the potential target audience (don’t wait for the client in the office!)

• Distribute flyers only to a potential client and at the same time tell the customers the detailed information they might need

• Focus attention on strong and most attractive sides of FINCA• Do your best to gain positive attitude toward you and convince the potential

client to take a loan in FINCA

Essentials

• Be business looking – your appearance significantly affects your performance; • Don’t forget to wear a badge; • You should keep in mind all details of the meeting (remember every promise and

comment)• Provide the potential client with all available advertising materials• Show a sample of repayment schedule • Select the target effectively - don’t forget that the client shall be capable of meeting

financial obligations and at the same time the individual with a stable business.• Make sure the client is not busy when you visit him/her (try not to disturb them)• Your purpose is to attract the client’s attention, get him/her involved in conversation and

raise their interest toward the offer• Start a conversation with remarks like : “you’ve got nice variety of goods; it’s a nice

picture, a splendid view. . ”

Keep in mind: you should convince the person that he/she really needs a loan.

Remember: You’ll never have another chance to make the first impression

Essentials – Promo Action

• In the cases, when you see that the potential client is uncertain, you need to not only give contact details, but also try to take the potential clients contact details, to call back a little later not to lose the chain

(It’s impossible to advise on exact period of time for a second visit or call; each case should be treated individually, but remember to be cautious not to annoy).

• Speak Properly• Speak distinctly. Don't mumble, don’t speak too fast, too low, or too loud.

• Try to use simple language/avoid complicated professional language full of banking terms (explain if necessary)

Credo of Marketing

1. Love and Respect your customers.

2. Be sensitive to change, be ready to transform

3. Guard your name, be clear about who you are

4. Customers are diverse, go first to those who can benefit most from you

5. Always offer a good package at a fair price

6. Always make yourself available, spread the good news

7. Get your customers, keep and grow them

8. Whatever your business it is a service business

9. Always refine business process in terms of quality

10. Gather relevant information but use wisdom in making your final decision

Effective and Ineffective Promotion

Handout #.1.• Please read the example of effective promotion and underline the key

messages that you consider important in the dialogue (group work)• Now, please read the example of an ineffective promotion and

underline the messages that you consider as wrong (group work)

Justify your judgments (group leaders)

After group discussion, make a list/steps of effective field promotion (do’s and don'ts of field promotion)

Wrap up of Section II