Businesses that deal with money, giving out of small loans, giving out small credit loans to people and transactions involving investments and trust friends are all referred to as microfinance institutions. These microfinance institutions are: microfinance banks, loan agencies , Microcredit and Microcredit companies.
Micro-finance organizations like banks, investments banks and Microloan companies are very important to individuals in the society in times of need for loans that are too small for major banks. Micro-finance and Micro-credit companies also perform similar functions with financial organizations like banks and insurance companies. Micro-finance organizations and institutions provide a wide variety of products and services for commercial business and also for individuals; and to make these services easier for both themselves and their clients, they employ the use of co-branded payment cards, debit cards, credit cards, debit cards and many other programs.
Co-branded cards gotten in partnership with internationally recognized card issuing companies like MasterCard and Visa to provide prepaid card programs is now used by these institutions to serve their customers better. The prepaid cards produced are termed co-branded cards.
The benefits of co-branded card within the micro-finance and Micro-credit industry is numerous. These companies enjoy profits when they charge their clients fees on the co-branded cards. The charges could vary accordingly if they are specifically branded for a particular business. Another benefit is that the use of prepaid credit cards helps to increase cash flow in these institutions, the ease of crediting and debiting an account as greatly increased the rate of flow of money within the finance industry.
The money generated from this cards increases the cash flow and liquidity in the Micro-credit company, this money can be used to invest in other sectors such as giving out of more loans and getting interests on it, more trusts can be given and quick overdrafts to more clients.
Another benefit is the extra revenue generated from the use of cards to the issuing companies. For every new recruit, the issuing company pays the microfinance bank a special bonus called Spiff. The issuing company is under legal laws and regulations to pay the Microloan organization a percentage of the profit generated from the use of these cards on a monthly or yearly basis.
Co-branded cards indirectly help to increase the customers base level, patronage, and loyalty among the existing customers. And also will entice new clients and prospective investors into the organization.
The use of co-branded cards is more cost effective for Microloans, micro-finance and Micro-credit organizations. With the use of this co-branded programs, more transactions will be done online and there will a drop in how people go to the buildings and hence reducing the work force. Thereby, reducing the running cost.
Micro-finance organizations like banks, investments banks and Microloan companies are very important to individuals in the society in times of need for loans that are too small for major banks. Micro-finance and Micro-credit companies also perform similar functions with financial organizations like banks and insurance companies. Micro-finance organizations and institutions provide a wide variety of products and services for commercial business and also for individuals; and to make these services easier for both themselves and their clients, they employ the use of co-branded payment cards, debit cards, credit cards, debit cards and many other programs.
Co-branded cards gotten in partnership with internationally recognized card issuing companies like MasterCard and Visa to provide prepaid card programs is now used by these institutions to serve their customers better. The prepaid cards produced are termed co-branded cards.
The benefits of co-branded card within the micro-finance and Micro-credit industry is numerous. These companies enjoy profits when they charge their clients fees on the co-branded cards. The charges could vary accordingly if they are specifically branded for a particular business. Another benefit is that the use of prepaid credit cards helps to increase cash flow in these institutions, the ease of crediting and debiting an account as greatly increased the rate of flow of money within the finance industry.
The money generated from this cards increases the cash flow and liquidity in the Micro-credit company, this money can be used to invest in other sectors such as giving out of more loans and getting interests on it, more trusts can be given and quick overdrafts to more clients.
Another benefit is the extra revenue generated from the use of cards to the issuing companies. For every new recruit, the issuing company pays the microfinance bank a special bonus called Spiff. The issuing company is under legal laws and regulations to pay the Microloan organization a percentage of the profit generated from the use of these cards on a monthly or yearly basis.
Co-branded cards indirectly help to increase the customers base level, patronage, and loyalty among the existing customers. And also will entice new clients and prospective investors into the organization.
The use of co-branded cards is more cost effective for Microloans, micro-finance and Micro-credit organizations. With the use of this co-branded programs, more transactions will be done online and there will a drop in how people go to the buildings and hence reducing the work force. Thereby, reducing the running cost.
About the Author:
Co-branded debit cards are encouraged for use in the micro-finance and finance world often. Credit card programs, prepaid credit cards are all a big plus to an institution with them.. Also published at Benefits Of Using Co-Branded Cards For Micro-Finance And Micro-Credit Organizations..
No comments:
Post a Comment