African Bank Investments Ltd: Breaking through Microfinance Frontiers

Description

African Bank Investments Ltd: Breaking through Microfinance Frontiers: Abstract

African Bank Investments Ltd: Breaking through Microfinance Frontiers is case study by Thabo Mosala and Benjamin Denga.

By May 2007, African Bank Investments Limited (ABIL) had, under the leadership of Leon Kirkinis, become one of the predominant players in the provision of financial credit services to the mass employed population of South Africa. Over the years it had worked very hard to attain the position of market leader in the microcredit industry (with an estimated 31% of total industry loans) using a focused cost differentiation strategy that had enabled the company to achieve the lowest cost to income ratio (27%) in the industry.

Teaching objectives

To develop an understanding of strategies for banking low-income earners and how to price banking products accordingly.