I discovered a new microfinance giant.  The newly created Postal Bank of Morocco is the largest microfinance provider in the country: it offers payments and transfer and saving services to 4.5 million low-income clients and boasts 90% of the domestic transfer market thanks to its flagship product the “mandat poste”.
 
It has ambitious goals for financial inclusion.  Its business plan aims at bringing 2.5 million more clients into the financial system over the next five years.  This is more than twice the current outreach of all the MFIs in Morocco. So, can it succeed?
 
The Postal Bank is a subsidiary of the country’s postal network and was granted a full banking license in late 2009. It has a unique network of 1800 branches spread out among all Moroccan districts including the most remote ones. It has a very low cost structure with access to cheap deposit funding and affordable staff resources. Remarkably, it has talented senior managers all coming from commercial banks.  The bank plans to offer credit services soon, but management admits they lack the expertise in credit underwriting, so they will partner with experienced credit companies. The bank will first launch a consumption credit product with SOFAC, a leading consumer lender. They are also contemplating  offering housing loans and microenterprise loans through partnerships with MFIs.
 
Obviously the new Postal Bank also has its challenges. The quality of service at the branches is poor and the staff lacks training and good incentives. The MIS is obsolete and as much as 30% of the reported accounts are dormant.
 
Yet the Postal Bank of Morocco has an exciting new vision for financial inclusion, a first class management in place, a bank license, and a unique delivery platform for financial services. This shows the great potential for countries to leverage their postal networks to advance financial inclusion.

Bienvenues les  Banques Postales!