New delivery channels

“Clicks and ___________” banking is where you combine both the ___________ network with ________________ banking. ______________ banking uses the Internet only.

WAP services use ______________ for all banking transactions. ____________ banking means you can bank from home using the ______________________.

Exercise 18. A. Discuss the following questions:

What does the term “microfinance” mean?

What does the abbreviation NGO stand for?

B. Match up the words and definitions:

C. Listen to an MBA student who is talking about microfinance. Answer these questions.

1. In microfinance, what replaces normal financial collateral?

2. What is the “risk-management tool” that the speaker mentions?

3. Why is lending money to poor people not necessarily as risky as it sounds?

4. Why are conventional banks now developing microcredit products?

5. In which three continents are there successful microfinance schemes?

6. What do you think of this kind of banking initiative? What other initiatives like this have you read about or heard of?

Exercise 19. Role-play the following situation:

A major bank has been rescued by the government after losing billions of euros on speculative investments. But it has lost a lot of customers and now has a very bad reputation. One of the directors thinks that the way the bank can regain public trust and restore its reputation is to enter the microfinance market in developing countries. He/she calls a meeting to explain the idea to colleagues. Choose the role. Take part in the meeting to decide what to do.