INSTITUTION: Client-Responsive Sustainable Institutions
USAID carries out a balanced mix of interventions to achieve the goal of more and better financial services. To help ensure that poor clients and their families benefit from choice and competition, USAID supports different types of retail services providers, including banks, credit unions, NGOs, and non-bank financial institutions.
In some countries with more mature microfinance markets, USAID has shifted its strategy from supporting individual retail institutions to developing the microfinance industry as a whole, as well as the market infrastructure it needs in order to thrive. This support may entail funding to help multiple providers with new product development, or investments in specialized institutions such as credit information bureaus and ratings agencies. The aim is that the resulting competition will lead to product innovation, greater efficiencies, and better services and prices for clients.