Servicing 10,000 Clients
Micro-Finance Institution Learns Valuable Lending Lesson

FUSHË KRUJA--With a goal of servicing 10,000 clients by 2007, loan officers from Albanian Partner in Micro-Credit (PSHM) needed to dramatically increase their caseload and improve their marketing techniques.

PSHM began operating in Albania as a micro-credit program in 1999 with the support of USAID through a partnership with Opportunity International. By 2004, PSHM had 30 loan officers in 10 offices across Albania, servicing 3,000 micro enterprises. Each loan officer averaged 140 clients.

A key factor to reach the challenging goal of 10,000 clients was to significantly increase the number serviced by each loan officer.

Because of two USAID-supported trainings in Bosnia & Herzegovina in 2004 and 2005, loan officers suggested changes in operating procedures and implemented techniques for improving individual performance.

Heavy penalties for late repayments were replaced with more reasonable late fees. Instead of relying on the branch managers to make credit decisions, procedures were changed so that loan officers review loan applications and become involved in the decision making process. Loan officers organized marketing presentations for groups of potential clients, saving time previously lost contacting one prospect at a time. And better processes for monitoring clients resulted in fewer clients falling into delinquency.

With these measures loan officers who participated in the training soon averaged 270 clients each and mentored eight new officers with their valuable lessons learned—making it possible for PSHM to celebrate its 10,000th client in late 2006.