Innovations in Rural Finance
Theme Paper: “Innovative Products and Adaptations for Rural
Finance”
by Juan Buchenau (Frontier Finance)
Abstract
The paper examines rural financial innovations, considering the
characteristics of rural households and agricultural enterprises,
as well as the conditions for the sustainable development of financial
entities that service them. Financial products and product management
innovations that will be highlighted include:
- Agricultural investment loans;
- Warehouse receipt financing;
- Supplier credit;
- Savings and remittances mobilization;
- Credit scoring;
- Use of handheld computers and other technologies.
Innovations will be evaluated according to their contribution to
rural financial market development by reducing the transaction costs,
reducing risk and/or increasing investment capacity. Recommendations
will be provided for donors, governments and financial service providers
on how to decide which innovations to pursue, and on how best to
support the adoption of those innovations.
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