Measuring the performance of alternative delivery channels

Published on

April 13, 2017

The MIX  – with support from The MasterCard Foundation, UNCDF, and IFC – has published a new report on alternative delivery channels and their impact. The research from MIX also helped support the insights explored in The MasterCard Foundation's report on lessons learned from alternative delivery channels, which can be viewed here.

Financial service providers (FSPs) are deploying various alternative delivery channels (ADCs) to serve their clients outside of branches, often enabled by technology and digitization of the service. FSPs are developing metrics and dashboards to monitor the development of these new channels and to track them against operational and strategic goals. However, FSPs still need visibility onto the rest of the market.

Understanding this need, MIX embarked on research to design ADC performance metrics and benchmarks to enable FSPs to assess their performance against other market actors. With support from The MasterCard Foundation, IFC and UNCDF, MIX was able to interview, visit and collect data from partner FSPs in sub-Saharan Africa. This research builds on the extensive work on ADC metrics conducted by Bankable Frontier Associates in collaboration with The MasterCard Foundation. 

The findings from this research highlight the demand for standard metrics to guide decision making on ADCs in a changing environment. The research also indicates that FSPs must begin by updating their reporting systems and dashboards to track these metrics. Doing so will allow them to analyze ADC performance within their institutions and also to contribute their data to create visibility onto the overall market.

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