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> Posted by Shaheen Hasan, Manager, FI2020 at CFI

The “customer centricity” mantra has become a common refrain among donors, policymakers, practitioners, and providers working on financial inclusion. Indeed we would be hard-pressed to find anyone working in the sector who wouldn’t identify him or herself as focused on customer needs. In the Addressing Customer Needs section of the Financial Inclusion 2020 Progress Report, however, we report that the number of financial service providers who are actually investing in and implementing these ideas at a scalable level are still few and far between. Although the truly customer-centric organizations are in the minority, we found a host of good examples, and we highlight some examples we like in the report.

A critical element of addressing customer needs is building the right consumer insights infrastructure to gather and translate data into better product offerings and the targeting of new market segments. Organizations use a multitude of methods to assemble insights. Some players, such as Equity Bank in Kenya and Tigo in multiple countries have built up in-house research capabilities. Banco Azteca in Mexico, for example, has one of the most sophisticated market research systems to amass and analyze information on customers. It has used that information to build up a clientele of millions of savers, borrowers, remittance receivers (and some senders), and insurance policy holders. Janalakshmi, an Indian microfinance institution, with the support of CGAP, developed a tool, Kaleido, which utilizes its front-line staff to get a “360 degree” view of a household, providing a rich source of data for developing new products as well as assessing the financial progress of a household.

With increasing availability of data on client behavior and new techniques to analyze that data, there is a rich wellspring to mine for insights relevant to market segmentation, product design, and delivery improvements.

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> Posted by Elisabeth Rhyne, Managing Director, CFI

Today the Center for Financial Inclusion (CFI) is proud to launch the Financial Inclusion 2020 Progress Report, an interactive website that portrays the recent progress and unmet challenges on the path to global financial inclusion.

When we began the FI2020 project in 2011, we hoped to create a sense of both urgency and possibility. We believed that enabling everyone in the world to gain access to quality financial services was a goal of major development significance. We also saw that with many active players and the promise that digitization would enable many more people to be reached at lower cost, it was no longer simply wishful thinking to call for full inclusion within a reasonable time frame. Global financial inclusion had entered the realm of the possible.

Today, in 2015, we are both astonished by the progress and daunted by the gaps that remain. Global Findex data shows 700 million new accounts in the three years from 2011 to 2014, reducing the number of unbanked worldwide from 2.5 to 2 billion. National governments have created ambitious financial inclusion strategies, the FinTech industry is exploding with $12 billion in global investments in 2014 alone, and the World Bank has a plan for reaching universal financial access to transaction accounts by 2020.

Our quantitative review, By the Numbersrevealed that if the current trajectory of expansion in accounts continues, many countries will achieve full account access by 2020. The rails are being laid at a rapid rate, and there is great momentum toward universal access. But access to an account is not the same thing as financial inclusion, and progress toward meaningful financial inclusion, in which people actively use a full range of services, is lagging. The passengers – customers – are often still waiting at the station for services that take them where they want to go.

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> Posted by Larry Reed, Director, the Microcredit Summit Campaign, and Jesse Marsden, Research and Operations Manager, the Microcredit Summit Campaign

In collaboration with the CFI’s process to develop the Financial Inclusion 2020 Progress Report, the Microcredit Summit Campaign recently conducted interviews with microfinance leaders* around the world committed to reaching the most excluded. In this post, we share some of the insights from these conversations about how to ensure that the most invisible clients are financially included, directly drawn from the experiences of those who are doing it.

To set the stage, Luis Fernando Sanabria, General Manager of Fundación Paraguaya, made this central point: “Our clients need to be the protagonists of their own development stories. Our products should be the tools they use to meet their needs and empower their aspirations.” With that reminder of the purpose of financial inclusion, we begin the discussion by asking who are the most excluded.

In each country, people living in extreme poverty (below US$1.25 a day) make up the largest segment of those excluded from the financial system. We spoke with leaders from organizations that make intentional efforts to reach this large excluded market: Fundación Paraguaya; Pro Mujer; Fonkoze; Plan Paraguay; Equitas; Grama Vidiyal; and TMSS. These organizations not only address poverty, but also a host of other dimensions that lead to exclusion, including literacy, race, gender, physical disabilities, and age. Less frequently-discussed reasons for exclusion include sexual orientation, language barriers (especially among indigenous populations), and mental or emotional health issues. In India and Bangladesh, for example, those interviewed noted that the lack of personal identification often drove exclusion, especially among women, persons with disabilities, and the socially excluded, such as transgender individuals.

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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.