Lessons from Informal Financial Systems: An Indonesian Perspective

• by Ghiyazuddin Mohammad and Rahmi Yunaningsih
• May 3, 2018
• 1 min
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This paper highlights how the products and methods of informal finance offer valuable suggestions for formal financial service providers.

Over the past few years, MicroSave has conducted several research studies in Indonesia to understand the household-level financial ecosystem in the country. Through focus group discussions (FGDs) and participatory rapid appraisal (PRA) tools, we gained insights on access to and use of financial products in communities across Indonesia. This blog focuses on the role of informal financial institutions. It concludes by highlighting how the products and methods of informal finance offer valuable suggestions for formal financial service providers. The following are some of the financial products or services we have observed in the field.