IPC Agricultural Encyclopedia: Knowledge sharing for MSME finance
Banks and MFIs
COUNTRY / REGION
The IPC application Agricultural Encyclopaedia online is a web based knowledge sharing tool providing comprehensive information on selected agricultural value chains in a given country.
The Encyclopaedia presentation follows the value chain approach referring to the whole range of goods and services necessary for an agricultural product to move from the farm to the final customer or consumer. The information within the Encyclopaedia tool is thus sorted by value chains dealing with the technical aspects of the agricultural production, the actors along the value chain and important markets for the specific agricultural product at the core of the respective value chain.
The objective of IPC’s “Agricultural Encyclopaedia” is to provide relevant, updated and comprehensive information on the functioning of a specific agricultural value chain in a particular region with a focus on agricultural production to its users, i.e. business, credit risk, credit control and management staff of a financial institution as well as to all other staff needing a reference for their work. In particular, the “Agricultural Encyclopaedia” serves as a repository of knowledge useful for:
- Refreshment of knowledge of the business staff involved with customers and prospects active in a link in an agricultural value chain
- Easy access to data for credit risk staff in order to evaluate and crosscheck agro-lending related information provided by third parties
- Training of the (Agricultural) Relationship Managers and (Agricultural) Credit Analysts who must understand and assess agricultural business activities
- Training of decision-makers and middle managers on agricultural technologies and the risks involved in the agro-businesses
Hence, the “Agricultural Encyclopaedia” tool benefits financial institutions because it allows to:
- Decrease risks while lending to businesses related to agriculture
- Define business opportunities for the financial institution and its agribusiness strategy
- Assess agricultural loan demands with a better understanding of the associated risks
- Take more informed decision in credit committees
- Share knowledge with newcomers to agricultural lending
- Support agricultural business client advisors on assessing agricultural MSMEs
- Collect current data on the financial institution’s agricultural lending MSMEs experience
This knowledge sharing tool is established for financial institutions with a sector-specific approach and it can be thus customized not only for the agricultural sector, but also, for example, the logistics value chain in a specific country or region, where a FI is present, the education sector or the health sector.