In ‘Upgrading’, LFS consults and assists financial institutions in professionalizing their processes and operations. This may be the transformation of a non-regulated financial institution into a regulated entity. It can also mean the improvement of risk management or the development and introduction of new products and services.
The approach of ‘upgrading’ projects highly depends on the characteristics of the institution and the type of service offered by LFS. Therefore, it is not possible to define a standardized approach. Rather, each project is designed on an individual basis. This ensures maximum effectiveness of the intervention.
Example of upgrading services
- Transformation of unregulated financial institutions into regulated entities: LFS consults and assists unregulated financial institutions in transforming into a regulated financial institution. This includes the enhancement of internal structures and processes.
- Development and introduction of new product and services: LFS advises financial institutions in the development and introduction of new products and services. This may be credit or non-credit products. Examples are SME lending, housing finance, agricultural finance, deposit or remittance services. The service of LFS includes the design and implementation of those products. As crucial for successful implementation se see the selection and training of staff.
- Improvement of risk management: LFS assists partner institutions in introducing or improving effective risk management practices. This includes the identification of deficiencies in risk management. Subsequently, LFS advises the partner institution on measures to take to reduce these deficiencies.
For information on upgrading projects of LFS, go to LFS project experience or select one of the countries below: