An Evolving Service System in Microfinance
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- BRAC provides microfinance and social services to improve livelihoods in Bangladesh. It was selected as a case study. - Interviews and observations revealed that BRAC's business model has evolved to provide more financial education through customer service assistants. - This financial literacy is tightly coupled with the knowledge and skills needed for microfinance products and employment, improving its service system core.
An Evolving Service System in Microfinance
- 1. An Evolving Service System in Microfinance: A Case Study in BRAC, Bangladesh Siddike, Md. Abul Kalam; Kohda, Youji and Hoque, Monirul School of Knowledge Science Japan Advanced Institute of Science and Technology, Japan 07/07/2015
- 2. Outline • Research Background • ASHOKA Fellows Analysis • BRAC’s Microfinance Case Analysis • Future Research Directions 2
- 4. Our Focused Service System • SDL can be understood from two point of view, i. e. Behavior and Structure. • Resource integration is the center of behavior and service system is considered as structure. Value in use/context Service system Institutions Resource integration Value co-creation Resource liquidity Resource density Behavior Structure 4
- 5. Our Approach • There is not so many research in service system in service dominant logic (SDL) perspective. • To depict a service system is difficult due to diverse actors. Listing up diverse actors are very difficult. • As a result, we will develop a service system through document analysis and we will validate the service system using a real life case. 5
- 6. Research Objective • To justify how educational opportunities are tightly coupled with employment opportunities in the developing countries. 6
- 7. 2. Document Analysis of Ashoka Fellows 7
- 8. ASHOKA • Ashoka is the largest network of social entrepreneurs worldwide. • There are nearly 3,000 Ashoka Fellows in 70 countries putting their system changing ideas into practice on a global scale. • The description of each case contains essential information of the essence of success factor of Social innovation. • Social innovation is the creating of service system from the scratch. • Each follow’s case is written shortly including: • NTRODUCTION; THE NEW IDEA; THE PROBLEM; THE STRATEGY ; THE PERSON 8
- 9. Ashoka Fellows • Ashoka Fellows are leading social entrepreneurs who recognize to have innovative solutions to social problems and the potential to change patterns across society. • Ashoka categorizes Fellows broadly into one of six fields of work: Civic Engagement, Economic Development, Environment, Health, Human Rights and Learning/Education. • We selected 17 “Ashoka Fellows” in the field of “Education” in Bangladesh. • Even the analysis of 17 cases are considered as good source for the development of service system theoretical model. 9
- 10. Ashoka Fellows in the Field of Education in Bangladesh 10 Cases Ashoka Fellows Year of election 1 Muhammad Ibrahim Sobhan 1988/1/18 2 Mashuda Khatun Shefali 1990/12/30 3 Mohammaed Serajul Islam (Shaikh) 1992/11/2 4 Samnata Barua 1993/6/29 5 Runa doja Khan 1994/12/6 6 Mahbuba Leena 1994/12/31 7 Mostafa Shiblee 1996/1/13 8 Afsan Chowdhury 1998/1/10 9 Mahabub Zamal Shamim 1998/1/10 10 Fatima Khanam 1998/12/27 11 Shahidul Chowdhury 2001/9/27 12 Quazi Iqbal Sabery 2002/6/16 13 Shamushul Palash 2002/6/16 14 Matin Ahmed 2003/6/25 15 Omar Azad Chowdhury 2004/7/28 16 A.K.M. Masksud 2006/8/6 17 Munir Hasan 2008/8/18
- 11. Brief Description of Cases 11 Case (Ashoka fellow) Problem statement 1 Munir Hasan Mathematics as an optional selection in eleven and twelve grade cause problems in further science related graduation level 2 A.K.M Maksud Bede community is deprived from the socio-economic benefits and voting rights in Bangladesh as they are not recognized indigenous minority 3 Omar Azad ChowdhuryChildren have less attraction and fear in learning science 4 Matin Ahmed The standard of English and IT in state run school system is poor and college and university students have less confidence in these which become barrier in getting better employment opprtunities 5 Quazi Iqbal Sabery children have less opprtunity outside the classroom to utilize their time in creative activities in rural areas 6 Shamsul Palash University students are involving in party politics which creates violence and distraction from education 7 Shahidul Chowdhury learning computers is not available in rural areas 8 Fatima Khanam lack opportunities particularly for rural women to have professional education and skills necessary for securing positions in government, business and social sectors 9 Afsan Chowdhury sex education is very sensitive topic where parents and teachers usually do not share with the youth community, increasing sexual abuse, sexually transmitted diseases 10 Mahabub Zamal Shamim gradual disappearance in cultural identity specially in children in rural areas 11 Mostafa Shiblee Many Bangladeshi students abandon their studies, fall into drug abuse, become involved in violent political confrontations because educational system fails to provide creative and engaging alternatives regarding the pressing social and economic development issues. 12 Mahbuba Leena Women in Bangladesh are poor and disadvantaged than men. Women who are working in brothel as a sex worker, factory worker, domestic helpers cannot give better environment for education and social norms 13 Runa Doja Khan The education system in Bangladesh is very outdated. The performance of the students becoming less creative because the due to lack of user-friendly and goal oriented text-books and education system. 14 Samanta Barua The educational system in Bangladesh does not concentrate on the literacy of adult population and these part of population demands education with vocational training which they can use in their daily life, which is still lack in community based educational system. 15 Mohammad Sirajul Islam (Shaikh) The population density is very high in Bangladesh and this will be doubled until 2020. The insecurity of food, especially nutrition riched food, is increasing which causes malnutrition in future generation. The small land of community people are not effectively used due to lack of agricultural technical skills where they can cultivate food items for themselves and also for extra income generation. 16 Mashuda Khatun Shefali Illiterate and poor rural women is migrating to capital city working in factories cannot afford housing with well sanitation. They are also facing difficulties in coping with the daily requirements due to low salary. They are also facing sexual abuse, acid burnings, kidnap, rape etc. 17 Muhammad Ibrahim Sobhan Education system in Bangladesh seems luxurious and expensive for the poor and landless families. Children from landless families either never enter the schools or dropout well before they become functionally literate.
- 12. Educational Service System in Developing Countries: A Theoretical Model 12
- 13. Finding from Document Analysis 13 Employment opportunity Employment opportunity Tightly Coupled • Employment opportunity is tightly coupled with educational opportunity in the developing countries.
- 14. 3. BRAC, Bangladesh: Case Analysis 14
- 15. BRAC, Bangladesh • BRAC (Bangladesh Rural Advancement Committee) is one of the biggest and successful NGOs in Bangladesh. • BRAC provides a range of microfinance services to the poverty people including microloans, savings, insurance and social services. • Why we select BRAC as a case? Because BRAC not only provides financial services but also provides a series of social services to build livelihoods, boost consumption and improve well-being through creating self-employment. 15
- 16. Research Methodology • Adopt qualitative case study by interview. • Interviews with 11 employees and 14 customers from BRAC from 17th of December 2014 to January 2015. • Direct observation of Village Organization meetings, and financial education program. • Analyze the data qualitatively (thematically). 16
- 17. Results of Case Analysis 17 Introduced Financial literacy through Customer Service Assistant (CSA)Customer PO/BM Advice and monitoring CSA Financial education Information Exchange Previous Business Model PO/BM Customer Advice and Monitoring PO: Program Organizer BM: Branch Manager Current business model
- 18. Work↔Money Necessary knowledge & skills necessary to learning ↔ micro finance items Poor people Existing education Financial Literacy + Knowledge and skills of work We need to micro- finance products Knowledge and skills Advance education Existing education opportunity Microfinance Products BRAC Learning ↔ basic knowledge and skills Investment↔Loan Service system core Core Resources 18
- 19. An Evolving Service System in Microfinance PP VO PO 4 times/ Monthly Institutions Structure PP: Poverty people VO: Village organization PO: Program organization CSA: Customer service assistant PP VO PO CSA 1 time/ Monthly Pre-disbursement orientation for every customer; 4 days financial education 19 Previously Currently
- 20. Conclusion • Education is tightly coupled with employment opportunities to conduct social innovation in the developing countries. • The evolving service system model will add a body of knowledge in the service science discipline. • Social enterprises from all over the world can adopt the service system model modifying in the local settings. 20
- 21. Thank you very much for your kind attention Questions or comments, Please 21
Editor's Notes
- #5: A service system could be understood from two points of view namely Behavior and Structure. When we take a position from SDL point of view, there are several concepts. Center of behavior is resource integration. As a result of resource integration, we receive value co-creation. In addition, RL and RD works as important mechanism for co-creation of value. At the same time, service system determines the value in use/context. But institutions are important for co-creation of value in context. Without institutions service system is just the collection of freely acting actors. In the service system, actors’ behavior are constrained by some institutions or institutional rules. This research will focus on this part.
- #6: Therefore research effort is necessary to develop service system. Service system consists diverse actors and listing up those actors are very difficult. Therefore, in this research first we will focus on document analysis.
- #9: Ashoka is very good source of analyzing service system. Because each case contatins the success factors of social innovation and the service system is unique. Why social innovation? The problem is very severe. And in the beginning there is no service system. But the real work of social entrepreneurs to build up a service system for the poverty people. So we believe that by analyzing the fellowships, we could able to know many successful service system.
- #10: `
- #14: To make sure this, we did some case analysis.