Tham khảo tài liệu 'new partnerships for innovation in microfinance_2', tài chính - ngân hàng, ngân hàng - tín dụng phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 10 . von Pischke Finance innovates in three ways reducing transaction costs lengthening term structures and refining valuation processes. The nature of the challenges posed by these three ways and the social benefits they produce deserves explanation Reducing transaction costs - the admission tickets to financial markets - is the first mode of innovation in finance. At the retail level these costs include the transaction costs of savers intermediaries and borrowers. These costs are often major constraints at the small end of the market. However they can be dealt with in a number of ways. For example highly successful co-operatives and group credit arrangements may pass many of these costs on to borrowers who in fact believe that these costs are benefits - benefits from being involved in new activities that make a difference in their lives. Commercial financial institutions probing the frontier may attract clients by assuming greater costs but in ways that lower clients costs relative to the next best alternative which is often informal finance. This formula relies on marketbased pricing and economies of scale and scope that make it possible for formal institutions to cover the greater costs of dealing at the bottom end of the market. Transaction costs play a large role in defining financial market segments. The second way in which financial markets innovate is by lengthening term Longer term structures denote confidence and produce accumulations of long-term funds that can be applied to useful projects of all sorts that take a long time to generate income. To borrow from Stuart Rutherford 2000 a long normal yield curve is society s usefully large lump sum. Lengthening term structure is the most difficult mode of innovation because finance is delicately tuned to and often has little power over the larger determinants of term structure - confidence moods and how society generally views the future. Information and incentives have a large role to play. .
