You are currently browsing the tag archive for the ‘Juntos’ tag.

> Posted by Allyse McGrath and Dennis Ferenzy, Analyst at CFI and Associate Economist at IIF

Contrary to popular rhetoric, banks do not view fintechs primarily as competitors. Increasingly, they seek them as partners. This is the message of How Financial Institutions and Fintechs Are Partnering for Inclusion: Lessons from the Frontlinesa new joint report from the Center for Financial Inclusion at Accion (CFI) and the Institute of International Finance (IIF). The report, launched today, finds that banks, insurers and payment companies don’t see fintechs as “little more than pinpricks for a banking mastodon with trillions in assets,” as The Economist colorfully described the fintech-bank relationship in 2015. The relationships between these players are more symbiotic than combative, because fintechs and mainstream financial institutions bring different strengths. With partnerships, fintechs get to scale their technology and access capital, while financial institutions gain assistance to improve product offerings, increase efficiency, and lower costs.

As it turns out, these are all goals with special relevance to low-income customers who look for products and services that are more convenient, less expensive, and higher quality. That makes financial institution-fintech partnerships a crucial strategy for meeting the financial needs of the unbanked and underbanked around the world. During our in-depth interviews with over 30 industry participants, both mainstream financial institutions and fintechs, CFI and IIF identified dozens of effective bank-fintech partnerships working at the base of the pyramid in emerging markets. The report highlights 14 of them.
Read the rest of this entry »

> Posted by Camyla Fonseca, Knowledge Management Analyst, International Labour Organization

Remember when you were a kid, and your father lectured you about the value of money when you asked him to buy you the new videogame your friend just got for his birthday? You certainly don’t remember how much the videogame actually cost, but you can probably still hear your father’s voice saying money is hard to earn and shouldn’t be spent without caution. Your father may not know, but he used a teachable moment to transfer you some of his knowledge. These are instances when we are more likely to remember something because it was taught when we needed to use that information and hence were most likely to be engaged. A good teacher can leverage or perhaps even create teachable moments by adapting the lesson to the situation.

In the area of personal finance, teachable moments usually occur when someone is taking a financial decision or using a financial service. As a recent report published by the Center for Financial Inclusion notes, individuals are more likely to change their financial behavior or recall information if it is conveyed during these teachable moments. This insight has clear implications on the way financial education interventions are designed. Interactions that happen along precise moments in a financial service provider’s value chain may be more effective than traditional stand-alone classroom interventions. And, financial service providers, due to their repeated interactions with clients at crucial teachable moments, are in a unique position to contribute to financial capability efforts. Every customer touch point is a teachable moment.

Read the rest of this entry »

> Posted by Elisabeth Rhyne, Managing Director, Center for Financial Inclusion at Accion

This post is part of Financial Inclusion Week, a week of global conversation on advancing financial inclusion. This year’s theme is keeping clients first in a digital world. Throughout the week participants will share their thoughts in events and webinars, on social media, and through blog posts. Add your voice to the conversation using #FinclusionWeek.

A lot happens in even the simplest meeting between two people. Instantly, and without thinking, each person observes the other’s appearance and body language. As their eyes connect, they form impressions and make judgments about each other. Whether it’s a smile, a handshake, or the response to a question, the information and emotional content that passes in simple acts can be far richer than the words exchanged.

It has long been important for banking operations to ensure that when customers meet staff, whether at the teller window or in the marketplace, the interactions build customers’ trust and convince them to use the institution’s services. At the same time, crucial information about the customer would flow back to the bank.

Read the rest of this entry »

> Posted by IFMR Trust

The following post was originally published on the IFMR Trust blog.

In this blog post we interview Elisabeth Rhyne, MD, Center for Financial Inclusion, Accion, and co-author of the recently published study A Change in Behavior: Innovations in Financial Capability.

Your paper is the result of a global search for innovative approaches to building consumer financial capability. Financial capability is not a well-known concept. What does it mean?

We define financial capability as the knowledge, skills, attitudes and behaviors a person needs to make sound financial decisions that support well-being. The financial capability approach stems from the research that reveals an important gap between knowing and doing. We may know that savings is important, but we spend instead. Financial capability focuses on behavior change as well as the desired outcome: customer financial health. This approach contrasts with traditional financial education, which has generally been focused on knowledge and information transfer, often stopping short of considering whether information is acted upon.

What prompted you to carry out your scan of the financial capability landscape?

I was reading a lot of material by behavioral economists, and so I was aware of the power of their ideas. However, I didn’t see the kind of uptake in practice that I thought the ideas deserved. I wanted to understand why this wasn’t happening. I was also aware of technology developments that opened exciting new avenues for communicating with consumers, and wanted to find the innovators – organizations like Juntos, a data analytics firm which partners with financial institutions to create personalized SMS conversations containing reminders and tips for customers.

We are also grateful that JPMorgan Chase & Co. provided generous financial support.

What were your main findings?

Read the rest of this entry »

> Posted by Julia Arnold, Financial Inclusion Consultant

thumb_BFBAB02E3F064403B0FCC73A5395DD08Financial service providers must think about their customers not just as users of their products and services, but as individuals whose behavior, and ultimately financial well-being, can be shaped by each interaction. If you’re thinking this sounds like simply passing the financial capability-building onus onto providers, hang tight.

Building successful financial capability requires moving beyond traditional modes of product delivery and financial education. In fact, it insists on marrying the two. Not only are providers optimally positioned to strengthen clients’ capability, they stand to benefit the most from capable clients. Financially capable clients are clients that are financially healthy and equipped to regularly use their products and services. Financial capability boosts the business case for serving the base of the pyramid. In our paper A Change in Behavior: Innovations in Financial Capability, the best examples from a global survey of financial capability innovations were those that figured out how to embed important information like money management within the fabric of products and services.

This can be daunting because it requires retooling how business is done. Most critically, building financial capability asks providers to rethink the customer experience. Providers must move past the assumption that customers need their services more than they need the customer (an attitude that surfaced during the very early stages of microcredit). Customer loyalty, trust, and retention are as important as the bottom line and indeed contribute to the bottom line. A number of theories and practices, such as human centered design, behavioral economics, and customer centricity, which have recently grown in popularity, embody this idea. They ask us to redirect our attention away from how a product is being delivered to who is being targeted.

Read the rest of this entry »

> Posted by Susy Cheston, Senior Advisor, CFI

A lot of money is being spent on financial education—and we’d like to see it spent more effectively. We still don’t know all that is needed about what works, but based on our scan of the current landscape for financial capability-building innovations, we can already recommend six major shifts in how financial capability resources are deployed.

The first three recommendations relate to who is building financial capability.

1. Bring financial capability efforts closer to the actual use of financial services by enabling providers to take a greater role.

2. Shift the expectation that the government is responsible for financial capability to an expectation of shared responsibility among all stakeholders, including financial service providers and other institutions.

3. Engage organizations serving BoP constituencies, from government social service agencies to employers to non-profits.

This calls for “all hands on deck.” We argue, first and foremost, that providers can and should take a primary role in building financial capability, as they are best equipped to reach customers at teachable moments and to help them learn by doing. Many providers are already spending significant resources on financial education. They could have a much greater return on their investment if they focused those resources on embedding financial capability into product design and delivery, looking at all the touch points in the customer experience as opportunities to help customers use products more successfully.

Read the rest of this entry »

> Posted by Center Staff

Blog posts. Twitter feeds. Facebook updates. Email listservs. Google Alerts. Lunchtime conversations… We all have our ways, however handy and effective, of trying to stay abreast of what’s happening around the world. For those interested in financial inclusion, this is quite the challenge. The release of new products, partnerships, publications, and policies is a constant. But at CFI’s Financial Inclusion 2020 (FI2020) project, combing the world for the latest inclusion insights, trends, and developments is part of what we do. So, we decided to go one step further.

Starting today, each week the FI2020 team will bring you the big news in financial inclusion in an online magazine, the Financial Inclusion 2020 News Feed. We’ll pull from all over to spotlight great new stories, initiatives, videos, podcasts, and more. To give you a sense, the collection of pieces that make up this week’s edition touch on:

  • JPMorgan Chase & Co.’s new report on U.S. households’ financial resilience, Weathering Volatility
  • AllAfrica’s recent article on the new partnership between Tigo and Juntos in Tanzania
  • The Guardian’s interactive post that visualizes borrowing trends globally
  • A World Bank video on assessing if microloans really make a difference

To check out the first edition, click here, and make sure to subscribe so you can be notified when the latest issue comes out.

Have you come across a story or initiative you think we should cover? Email your ideas to us at ezuehlke@accion.org.

The most exciting trends and startups in inclusive finance this year

> Posted by Vikas Raj, Director of Investments, Accion Venture Lab

There has been a lot of buzz in the financial technology (FinTech) space over the last several months, with a high-profile IPO, several more apparently on the way, and more and more venture funding flowing into FinTech startups. Bold ideas for financial services innovation are getting more visibility – just this month, Australian Wealth Index (AWI) listed the 50 Best FinTech Innovators, and CFI’s Elisabeth Rhyne conveniently categorized the list so it’s easy to see at a glance where the innovations are.

At Venture Lab, we found the AWI list interesting but also felt it missed something significant: namely, that one of the biggest opportunities for FinTech is figuring out new solutions to include the billions of lower-income people who are today excluded from formal financial services. And it’s not charity that compels us to reach these customers – it’s good business. These customers represent a big market. In fact, they’re such a significant part of any emerging market’s customer base that any global providers with dreams of international expansion must cater to them if they want to succeed.

Read the rest of this entry »

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

Fifteen years ago in the microfinance space you may have been able to get away with understanding very little about your clients. Without much competition, MFIs could probably still make a decent profit by offering one product to all their clients using only one delivery channel. Thankfully, those days are gone.

The base of the pyramid is no longer a hidden or forgotten market segment. In fact, according to the recently-released 2014 Microfinance Banana Skins report, the pendulum is swinging in the opposite direction. Overindebtedness once again tops the charts as the biggest perceived risk, perhaps indicating that many clients are now able to gain access to multiple services providers. In some areas, an excess of providers may now be crowding the market.

Read the rest of this entry »

Enter your email

Join 2,116 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.