7. IMPLICATIONS FOR FINANCIAL SOLUTIONS: TRANSLATING THE EVIDENCE INTO FINANCIAL TOOLS TAILORED TO EACH SMALLHOLDER HOUSEHOLD PROFILE How FSPs sustainably engage with smallholder households, particularly when it comes to DFS, depends heavily on the household profile they serve. Smallholder Diaries households can be placed into three loose profiles based on observed dif- ferences in (i) their patterns of agricultural production and sales and (ii) the breadth of their household financial portfolios. Each profile requires its own tailored finan- cial solutions, and the degree to which smallholder households might engage with mobile financial services varies, particularly in terms of their starting point. Œranslating this evidence into financial solutions, the Smallholder ‰iaries observed ey differences across the sample in (i) their patterns of agricultural pro- duction and sales (see Section ‘) and (ii) the breadth of their household financial portfolios (see Section ”)­ £ringing these two variables together, the Smallholder ‰iaries households can be placed into three loose profiles, which correspond with the location of the sample (see Œable ¡) (i) noncommercial smallholder house- holds (–o—ambiue) (ii) those in loose value chains (Œan—ania) and (iii) those in tight value chains (aistan) (see igure Ÿž)­ œach profile has a distinct set of chal- lenges and features that service providers will need to fully understand and address to successfully meet their demands for financial tools­ TABLE 8: Financial Portfolio Breadth and Sales and Consumption of Agricultural Production in the Smallholder Diaries MOZAMBIQUE TANZANIA PAKISTAN Financial portfolio breadth (median) Number of financial instruments 3 12 18 Number of savings instruments 2 5 3 Number of credit instruments 1 6 14 Number of households using credit (%) 67 92 100 Main method of borrowing money (self-reported) Friends and family Friends and family Friends and family, agents Main method of funding inputs (self-reported) Savings, current income, Savings, current Credit in-kind income Sales and consumption of agricultural production Percentage of harvests consumed (self-reported) 68 18 12.5 Buyers N/A Village agents; Agricultural agents; agricultural agents; retail village agents consumers at market Crop storage Bags in the house, Bags in the Tin and aluminum traditional bamboo silos house containers Main method of storing value (self-reported) Money at home Money at home Livestock; money at home; money guard (arthi) | 79