Publication: Strategic Alliances to Scale Up Financial Services in Rural Areas
Date
2006
ISSN
Published
2006
Author(s)
Abstract
Firms have employed strategic alliances
with other firms to effectively manage costs, overcome
resource and technology constraints, and enhance competitive
position. Strategic alliances can lead to productive
institutional collaborations in rural financial markets,
thereby expanding the array of financial products, and
scaling up access of rural households and micro-businesses
to financial services. Strategic alliances comprise a new
theme in rural finance. The institutions in the study used
strategic alliances to tap new capital resources, manage
transaction costs, access banking technology and
infrastructure, and acquire new skills to provide an
expanding array of financial services to wider markets. The
authors carefully examine the experiences of selected rural
finance institutions, and their strategic allies or
development partners in Guatemala, the Philippines, Ghana,
and India to draw out the main findings and share lessons
that may be applied in other country settings. The study
addressed a number of key questions: What motivated the
rural finance institution to structure its alliance or
partnership with a bank, commercial, or development
organization? How are gains from and costs of alliances and
partnerships shared between collaborating institutions? What
are the key elements that make partnerships or alliances
successful, and which conditions lead to unproductive ones?
Which financial products and services are best introduced
through strategic alliances?
Citation
“Gallardo, Joselito; Goldberg, Michael; Randhawa, Bikki. 2006. Strategic Alliances to Scale Up Financial Services in Rural Areas. World Bank Working Paper No. 76. © Washington, DC: World Bank. http://hdl.handle.net/10986/6960 License: CC BY 3.0 IGO.”
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