An initial analysis was conducted to compare the costs and revenues per client at TCP and MCP branches of similar size and age. Based on data from six TCP and six MCP branches, two key trends can be seen:

• The average branch cost per client in both clients is virtually equal (55-56 Rand), even though the TCP absorbs the additional cost of loan officer time to perform PWR and impact assessment, as well as branch manager time to oversee the process. Indeed, the average cost per borrower is slightly lower at TCP branches. This trend could be explained by the higher retention rate enjoyed by TCP branches, as well as lower delinquency rates - which result in higher loan officer productivity.
• Average revenue per client comparisons between TCP and MCP branches reveals a significant difference: 145 Rand for the former, and 167 Rand for the latter. This gap could be attributed to the difference in average loan sizes between branches. In this case, it should be seen as the opportunity cost to SEF of serving poorer clients.