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Managing Product Diversification

Product diversification is a critical strategy for improving the outreach of financial institutions. By expanding the range of products offered, institutions can serve more people, reach underserved markets, satisfy more of their current clients’ financial service needs and, as a result, make greater progress towards the achievement of their commercial and social objectives. Yet product diversification is not an easy strategy to implement successfully. This second volume of the Making Microfinance Work curriculum examines the challenges inherent in product diversification and identifies strategies for meeting those challenges. It explores ten different product options and eight market segments that MFIs may wish to diversify into. It also provides tools and advice for managing the product diversification process as well as the ongoing delivery and maintenance of a diverse product portfolio.

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