Staying responsive to a diverse set of client needs

Women European Microfinance NetworkLuxemburg

November, 2009

• Largest MFI in Jordan - Serving over 40,000 entrepreneurs, 96% women

• Broad and deep client outreach • Strong, diversified funding position• Proven operational performance in service delivery - Consistently

strong portfolio quality and efficient delivery• Strong financial performance - Consistently achieving positive

returns on assets and equity• Recognized as a leader – Rated A- by Planet Rating, recipient of

the “Best Microfinance Investment in the Arab World” award• Certificate of excellence in Microfinance Best Practices by Sanabel,

2008• 2009 Award Certificate for reporting on Social Indicators to MIX

MFW today is a successful national MFI with a proven reputation for service and performance

Microenterprises• Continuous cash flow and reinvestment in business• Income from microenterprise is the main source of family

income • Mostly located outside of households

Seasonal Income Generating Activities or Start-up Businesses

• Women with occasional income generating activities (all home based)

• Net income from economic activities is supplementary to other family income

Stable Income-Generating Activities and Businesses in Expansion

• Women with continuous income-generating activities (all home based)

• Net income from economic activities is about 45% of total family income

Segmentation of Microfund Clients

Note: Segmentation developed through survey of clients conducted April 2004. Segments determined by size of business profit.

15% of clients

25% of clients

60% of clients

As we talk about designing tailored products, it is key to understand financial capacity of our clients by segment

Microenterprises

Signifcant capacity to absorb additional financing

Seasonal Income Generating Activities or Start-up Businesses

No capacity to absorb additional financing

Stable Income-Generating Activities and Businesses in Expansion

Limited capacity to absorb additional financing

Note: Segmentation developed through survey of clients conducted April 2004. Segments determined by size of business profit.

MFW clients’ capacity to absorb additional financing differs significantly by segment

MFW’s Current Product Offer by Segment

Tadamon Loans• Loan amount: 200 – 500 JD

Seasonal Loans• Loan amount: up to 200 JDMaternity Loans• Loan amount: up to 250 JD

Tadamon Loans• Loan amount: 200-500 JD

Bedaya• Very small loans for clients starting business

activities• Loan amount: up to 100 JDMaternity Loans• Loan amount: up to 250 JD

Tatweer Loans • Loan amount: 500 – 5,000 JDMaternity Loans• Loan amount: up to 250 JD

Customer Satisfaction with MFW’s current products (from the WWB/MFW gender study, MFW conducts client satisfaction surveys on a systematic basic)

Microenterprise (Tatweer) Clients

Key areas of satisfaction Diversity of loans

Group size

Good treatment from staff

Key areas of dissatisfaction Loan amount for repeat loans

Installment amount

Turnaround time

Income Generating Businesses (Tadamon) Clients

Key areas of satisfactionGuarantee requirements

Other requirements to get a loan

Easy process

Key areas of dissatisfactionLoan amount

Installment amount

New products respond to customer needs and payment capacity

MFW’s New Product Development Strategy by Segment

Focus on expanding the non-credit product offer

Caregiver insurance• In partnership with an insurance provider

Training • Vocational training courses

Focus on expanding the credit product offerLeasing (2009)• Loan amount: from 5,000 JD• Up to 36 monthsHousing Improvement (2010)