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> Posted by Deepak Saxena, George Cheriyan and Amol Kulkarni, CUTS International, India

The Consumer Care Center managed by CUTS International in Jaipur, Rajasthan

When a business makes a mistake, does that influence your decision to keep using its product or service? How about if that mistake costs you money and you can’t get the business to correct the mistake?

To date, the importance of efficient and effective grievance redress as a building block for consumer trust has unfortunately remained understated. Across sectors, focus remains predominantly on enabling access to goods and services, with limited thought on post-sale customer engagement and grievance redressal.

This holds true for the financial inclusion sector as well. The success of financial inclusion efforts have mostly been calculated in terms of number of accounts opened or the amount of credit disbursed. Limited thinking goes into putting in place timely and effective recourse processes capable of dealing with fraud and related consumer protection issues. In many countries, state capacity in managing consumer grievances has also remained limited. This is a huge missed opportunity. In the inclusive finance sector, more than in many other industries, establishing trust among first-time users of services is essential.

Consumer Care Centers in India

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> Posted by Lisa Kienzle and Gigi Gatti, Grameen Foundation

Community Agent Network training

Women make great digital financial service (DFS) agents: they are often savvy at managing liquidity, effective at building trust, and perhaps most importantly, they are more effective at onboarding other women into DFS than men. This makes the recruitment and training of women agents an important strategy for closing the gender gaps in digital financial services and technology, and for ultimately ensuring universal financial inclusion.

Men in developing markets still outpace women in account ownership by 9 percent. The technology gap is even larger – women are 14 percent less likely to own a mobile phone than men. Given the growing emphasis on digital solutions to drive financial inclusion, this technology gap could further widen the financial services gender divide if not explicitly taken into account in the design of digital solutions. Women agents are a crucial element of that design.

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> Posted by Alix Lebec, Director of Business Development & Investor Relations at WaterEquity, and Hannah Kovich, Investor Relations Manager at WaterEquity

The following post was originally published on NextBillion.

Consumer demand is a force that changes the world. With each purchase, we shape and sometimes even revolutionize the world we live in. A great example of this is the smart phone. The iPhone has changed consumer behavior and unleashed possibilities unimaginable to us 15 years ago. As consumers, we use our dollars as a proxy for our voice, affirming products and brands that best align with our needs and values, propelling them to scale and expand. What if we could tap into this intrinsic power of the consumer to end one of the greatest challenges facing the world today – the global water crisis? What if those in need of safe water and sanitation were empowered to purchase their own solutions?

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> Posted by Daniel Rozas, Independent Microfinance Consultant

The following post was originally published in The Phnom Penh Post.

On March 13, the National Bank of Cambodia announced a major new policy. Starting April 1, all microfinance institutions operating in Cambodia will be required to lend at interest rates no higher than 18 percent per year. This is a deeply misguided regulation that will undo over a decade’s worth of successful financial policies.

At the dawn of this century, Cambodia’s financial sector was largely nonexistent. There were no ATMs, few bank branches, and equally few customers. In rural areas, there were no banks at all, and moneylenders held a monopoly on lending.

How times have changed!

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> Posted by Alex Silva, Executive Director, Calmeadow, and Jeffrey Riecke, Senior Communications Specialist, CFI

Impact investors, social investors, responsible investors…regardless of name, they claim to serve the greater good. In the world of financial inclusion, impact investors are supporting the development of financial markets that have inadequately served the base of the economic pyramid.

What happens when social investors exit from their financial inclusion investments?

Some exits are non-controversial, but what if responsible investors sell their stake to an investor that doesn’t place priority on the social mission? The risk of mission drift or abandonment is real, and responsible investors must consider it as they make their exit decisions. With financial inclusion sector trends suggesting that impact investing exits are going to become more frequent, it’s worth examining the topic in greater detail.

Investors exit for many reasons

It’s important, especially for critics of impact investors, to recognize that a decision to exit may arise from any number of factors, including factors internal to the investor.
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> Posted by Virginia Moore, Communications Director, CFI

Last week, the Center for Financial Inclusion at Accion (CFI) participated in LendIt USA, an annual conference that brings together leaders and startups in fintech, lending, and venture capital to discuss trends, innovations, and the future of the industry.

So, what were we doing there? We attended to help introduce what we do to this audience of over 5,000 people, partnering with LendIt organizers to launch its very first financial inclusion track. CFI managing director Elisabeth Rhyne spoke on a panel about responsible credit along with representatives from the Consumer Financial Protection Bureau, the Marketplace Lending Association, LendStreet, and AEO. Championing the Smart Campaign and consumer protections, Beth brought a global perspective on what responsible credit looks like in practice. She also debated the elephant in the room—or as she put it, “the dead cat on the table:” interest rates. Our director of research Sonja Kelly also moderated a lively session on how smartphones in emerging markets are expanding access to credit with executives from Branch, Cignifi, Juvo, and PayJoy. We’ll have more on these sessions soon.

It was exciting and satisfying to see so much interest in financial inclusion from conference attendees who may not readily know the definition of financial inclusion, appreciate its value, or recognize how they’re contributing to it.

What Is the Value of Financial Inclusion to Fintech and Investor Communities?

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> Posted by Jami Solli, Independent Consultant and Founder of the Global Alliance for Legal Aid

Click here for Consumer International’s interactive map of global WCRD activities

Happy World Consumer Rights Day (WCRD)! Every year on March 15 WCRD serves as an opportunity to promote the basic rights of all consumers and as a chance to protest against the market abuses and social injustices which undermine those rights. The theme for this year is ‘Building a Digital World Consumers Can Trust’. The following post spotlights the increasing need for regulatory attention on online financial frauds.

No country in the world is free of financial fraud. And, every nation seems to have its own Bernie Madoff. Yet, Madoff’s $50 billion did not do systemic damage to the U.S. financial system, nor did it harm financial inclusion efforts in America. Unfortunately, when ponzis occur in developing countries, they do cause systemic risk and untold damage to financial inclusion efforts.

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> Posted by Sonja Kelly, Director of Research, CFI

One of the most surprising unveilings at the recent  Mobile World Congress was the Nokia 3310, a reboot of a 17 year-old feature phone that stands out as intentionally basic amidst a dizzying world of smartphone bells and whistles. This phone boasts no cinema-quality camera, no super-fast internet, and no Candy Crush. In exchange, it offers a month-long battery life, a simplified user interface, and a price point of $49.

To me, this phone is a signal to emerging markets that the mobile industry has not forgotten that much of the world—about 37 percent of people in developing markets and 24 percent of people in developed markets, according to GSMA—will still not be using a smartphone by 2020. These populations are not making the shift for reasons like cost, battery life, and connectivity limitations. For them, the Nokia 3310 is a promising announcement.

In his research on the technology infrastructure surrounding digital financial services, CFI Fellow Leon Perlman points out that while feature phones are not disappearing any time soon, the choices for feature phones and options for people who need them repaired are shrinking. Perlman’s research, which will come out later this spring, underscores the need for the mobile industry to continue to provide valuable infrastructure to people who have not switched to smartphones. He cites the continued prevalence of USSD-based mobile money interfaces, which feature phones can utilize and which do not require internet connection, as a major incentive for continued investment in technology infrastructure for feature phones. If people cannot safely and effectively access their mobile wallets without switching to shiny new smartphones, mobile money will cease to be as inclusive as it claims to be.

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> Posted by Pablo Anton-Diaz, Research Manager, CFI, and Sergio Navajas, Senior Specialist, Inter-American Development Bank

Financial institutions in the Latin American and Caribbean (LAC) region are not investing in fintechs. Over the years the financial institutions in the region have demonstrated their willingness to adopt creative new solutions, such as microcredit and agent banking in the quest to advance financial inclusion. But with fintech solutions, compared to institutions in other regions, Latin American financers have been reluctant to invest. Why?

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> Posted by Kim Wilson

Predictably, the long tentacles of financial inclusion have coiled themselves around the most vulnerable targets of humanitarian aid: low income refugees, migrants and displaced populations (hereon: “refugees”).

Just as predictably, the financial inclusion agenda is driven by suppliers (aid providers, donors, financial intermediaries and governments). Few refugees are demanding to be included in a digital/formal ecosystem. That does not mean they don’t appreciate the shelter, food and cash that humanitarian agencies have mustered on their behalf. They do. They also appreciate the efforts of those same agencies to make cash assistance easier. E-cash that can be transformed into physical cash at convenient times and places is an example. Use of debit cards at ATMs to withdraw cash from digital accounts can cut valuable time otherwise spent waiting in long cash distribution queues. Very appreciated, indeed.

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Credit Suisse is a founding sponsor of the Center for Financial Inclusion. The Credit Suisse Group Foundation looks to its philanthropic partners to foster research, innovation and constructive dialogue in order to spread best practices and develop new solutions for financial inclusion.

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The views and opinions expressed on this blog, except where otherwise noted, are those of the authors and guest bloggers and do not necessarily reflect the views of the Center for Financial Inclusion or its affiliates.