Learning Resource

Module 2 – Principles for the Design of Agricultural Finance Products

Overview: This module focuses on the design of successful agricultural finance products and the critical importance of tailoring a strong value proposition based on understanding client needs and client relationships within agricultural value chains.  Having developed a deeper understanding of agricultural client and market characteristics, participants will be better able to identify and respond to product risks (which is the focus of Module 3).
Total time required for standard delivery of the module: 2 hours and 15 minutes

Objectives (OBJ)

1.       Examine common financing needs for clients engaged in different agricultural value chain segments

2.       Recognize critical complementarities between general finance and agricultural finance products

3.       Identify opportunities for market insights to inform the design of products that have a strong value proposition

4.       Apply lessons learned to create a process for gathering market insights that can inform effective product design and delivery

Key Takeaways (KT)

1.       Financial market assessment helps financial institutions design products with a value proposition that is better than the current scenario.

2.       To build a strong value proposition, one must understand individual clients’ needs as well as their relationships with key value chain stakeholders.

3.       Qualitative research techniques, such as in-depth interviews and rapid prototyping, are critical to cost-effective product design.

4.       Prototype testing is an iterative process that should include clients and key stakeholders affected by clients’ use of the product.