In a series of blogs, ISF Advisors and the Mastercard Foundation Rural and Agricultural Finance Learning Lab (the Lab) will introduce major concepts and frameworks that will anchor our upcoming State of the Sector report for rural finance. Building on the “industry model” developed in our 2016 Inflection Point report, these frameworks aim to bring further clarity and insight to the three layers of the market: Rural clients [1], financial service providers (FSPs), and the capital markets. We hope that by sharing early versions of this thinking we can stimulate debate and discussion across the sector about what is needed to continue to enhance access to rural, agricultural financial services.
In this second blog, we discuss some of the major shifts and trends that have shaped the FSP market since the ‘innovation inflection point.’ Further, we present a new segmentation of FSPs, that goes beyond type of FSP to create segments based on organizations’ underlying ‘Primary Goal for Service Delivery’ and ‘Service Delivery Model.’
[1] Rural clients include smallholder households and rural, agricultural service enterprises.
