> Posted by Tess Johnson, Project Associate, CFI

When you receive a chain letter, it usually promises that you will receive great rewards, but only if you don’t break the chain. When you do break the chain, it’s generally because you don’t trust those promises. While blockchain technology offers a different equation, trust in its promises is equally important.

Read the rest of this entry »

> Posted by Kelsey Truman, HBS-Accion Program Coordinator, CFI

Domestic abuse and violence against women (VAW) are pervasive and shocking. According to the World Bank, 38 percent of murders of women globally are committed through intimate partner violence. Globally, one-third of all women have experienced domestic or intimate partner violence. The World Health Organization even went so far as to call VAW a “global health problem of epidemic proportions.” Could financial services possibly play a role in improving this situation?

One of the largest hurdles in combating VAW around the world is women’s inability or unwillingness to seek help when they find themselves in abusive situations. In conjunction with fear, one important reason many women don’t seek help rests on their degree of financial dependency. That is, they don’t have enough money or economic resources necessary to establish themselves independently, much less pay for legal fees and so forth. Furthermore, women’s vulnerability to violence has been shown to increase with their relative level of poverty. If women are given options to easily and discreetly pursue financial options and open bank accounts independently of their husbands and other male family members, it could very well save their lives one day.

Read the rest of this entry »

> Posted by Danielle Piskadlo, Manager, Investing in Inclusive Finance, CFI

Data privacy is officially dead. The U.S. House of Representatives’ vote to overturn the Federal Communications Commission’s (FCC) internet privacy rules was yet another nail in the coffin, making data privacy a thing of the past.

In previous generations, banking may have been based on personal relationships and a handshake. More recently, it was based on your banking history and financial flows. But for future generations, access to financial products and services will almost undoubtedly be decided by big data algorithms, gobbling-up whatever digitized information, financial or otherwise, the corporate tentacles can seize.

We know what you’re thinking. Won’t this help underwrite previously-underbanked individuals? Of course. And what does data-sharing matter so long as you don’t have anything to hide? Won’t ultra-targeted ads make the consumer experience better? All definitely true. Well, actually there are inherent problems with these lines of thinking, but honestly what’s the point of resisting? The notion of being “data rich” has never been more powerful. And what are negative social externalities in 2017? After all, the U.S. political system breathed new life into the fallacy of “clean coal” earlier this week in the name of making a few bucks.

Read the rest of this entry »

> Posted by Gina Harman, CEO, Accion’s U.S. Network

Accion is constantly inspired by small business owners we work with in the U.S., who have transformed their lives by starting, sustaining or growing a business. At the same time, we are increasingly aware of the importance of demonstrating through research the value of our investments in small business success (and the investments of government agencies, philanthropic organizations and corporations that make our work possible). In assessing this impact, we are confronted with the challenge of understanding the value of our services in helping entrepreneurs achieve a diversity of business and personal goals. Our research finds that while many small business owners in the U.S. are looking for growth, financial security and family financial health is sometimes just as important. These findings resonate with conclusions from recent research on Latin American small businesses by CFI Fellow Christy Stickney.

Read the rest of this entry »

> Posted by Tanya Ladha, Senior Manager, ‎Center for Financial Services Innovation, and Elisabeth Rhyne, Managing Director, CFI

The following post was originally published on NextBillion.

Meet Shabana. She is a middle-aged woman, lives in a large metropolis and works at one of the city’s bustling train stations. One day, she suffered a severe workplace injury and wasn’t able to work for weeks. With no support from her employer, she realized how financially vulnerable she was, and decided at that moment to make a change. After recovering from her accident, she began saving almost 30 percent of her income, and after a year was shocked – and empowered – by the considerable financial cushion she had built herself.

Shabana’s story is one of resilience in the face of vulnerability, one of adapting daily habits, one of planning and achieving goals. It is a story of financial health, and it is universal. While Shabana lives in Mumbai, India, her story is relevant for millions of individuals around the world, both in developing and developed countries, including here in the U.S. It is this core concept that pushed the Center for Financial Services Innovation (CFSI), in partnership with the Center for Financial Inclusion at Accion and funded by the Bill & Melinda Gates Foundation, to explore how a U.S.-oriented financial health framework could translate into a developing world context.

Read the rest of this entry »

> Posted by Ignacio Mas

All languages have a set of untranslatable words, single terms which capture feelings and experiences that in other languages take many words to convey. (I wonder: is there a word that conveys that in any language?)

One such word in Spanish is desamparo. Dictionaries triangulate it on the English meanings of abandonment, neglect, helplessness and distress. Abandonment comes closest: that feeling of not having anywhere else to go, of not finding anyone who even cares about your issue. It´s neglect and helplessness in its terminal stage. Its effect is more than just distress: it undermines one´s sense of humanity – that you are visible, that you have agency, that you count. Think Kafka.

We know that desamparo comes primarily from inescapable power and bureaucracy, but can technology lead us down the path of greater desamparo? When we look at this question, we tend to focus on those unfamiliar with or without access to modern technologies. But undesirable as any form of exclusion is, such desamparo will only result if the use of the technology is inescapable. So what financial inclusionistas must not do is set our goal to be the eradication of alternatives (going entirely cashless, eliminating informal or semi-formal financial services). You don´t include people by excluding solutions.

But there is another type of technology-induced desamparo, and that´s the one I am feeling right now. Let me explain.

Read the rest of this entry »

> 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

Read the rest of this entry »

> Posted by Lisa Kienzle and Gigi Gatti, Grameen Foundation

Nanays will use the Panalo system to conduct transactions for clients and provide them with receipts.

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.

Read the rest of this entry »

> 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?

Read the rest of this entry »

> 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!

Read the rest of this entry »

Enter your email

Join 1,992 other followers

Visit the CFI Website

Twitter Updates

Archives

Founding Sponsor


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.

Note

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.