Balancing flexibility and discipline in microfinance: Innovative financial products that benefit clients and service providers
Jan 01, 2011
| M. Hamp, C. Laureti | Centre Emile Bernheim
The paper describes innovative market-oriented products that combine flexibility features with financial discipline. Those are microsavings, microcredit and microinsurance products and come from microfinance institutions worldwide. This review shows that service providers are introducing various types of flexibility into financial contracts; and that flexibility combined with appropriate enforcement mechanisms may enhance clients’ discipline.