Priya Punatar

Yanina Seltzer

<div style="width: 391px" class="wp-caption alignright"><img src="http://accion-staging.flywheelsites.com/wp-content/uploads/2019/05/IMG_0825.jpg" alt="" width="381" height="508" />Azucena, a stay at home mom and former bank teller in Mexico</div>
Although Mexico and Chile are different markets, underserved consumers face similar problems improving their financial health. People and businesses rely on informal means to manage money, including storing cash in lockboxes and borrowing from family and friends. These methods are familiar and convenient, but they don’t provide the guidance, tools, and information people need to better manage their income and expenses, build reserves, and plan for the future.
In Chile, <a href="https://news.gallup.com/reports/233399/gallup-global-financial-health-study-2018.aspx">nearly half of the population</a> feels unsure about how they would cover their basic needs for more than a month if they lost their income. Following several financial crises, consumers are hesitant to trust<a href="https://www.accion.org/five-reasons-small-merchants-arent-using-financial-services-in-chile/"> financial institutions</a>, and many see working with banks as a last resort. One business owner in Santiago expressed a sentiment that we heard from many Chileans: “I would prefer to be indebted to my family than to a bank.”
We’ve seen similar patterns in Mexico, where, over the last three years, the percentage of adults who save at financial institutions declined from 15 percent to 10 percent. In an interview, Azucena, a stay-at-home mom who previously worked as a bank teller, told us that she and her husband prefer to <a href="https://www.accion.org/people-saving-money-mexico">save cash </a>in lockboxes in order to have money at home for unexpected emergencies. When it comes to credit, many people told us that they often hear negative stories about defaults, rather than positive stories about people using credit to improve their lives.
These behaviors indicate that FSPs could do more to better understand their clients’ needs and goals, build greater trust, and deliver more valuable products and services.

<div style="width: 4938px" class="wp-caption alignleft"><img src="http://accion-staging.flywheelsites.com/wp-content/uploads/2019/05/DSC_0388.jpg" alt="" width="4928" height="3264" />FSP employees participate in a <a href="https://www.accion.org/building-and-deploying-user-centric-products">human-centered design exercise</a> in Chile</div>
For decades, Accion has worked around the world to help FSPs deliver the products that underserved clients need to access, use, and benefit from the formal financial sector. Our hybrid approach combines human-centered design, insights into emerging technologies, and effective business models to create financial services that accelerate social and economic progress.
Over the next 18 months, Accion, <a href="https://www.accion.org/accion-and-metlife-foundation-announce-expanded-partnership-to-advance-financial-inclusion/">in partnership with MetLife Foundation</a>, will apply this approach with five FSPs in Mexico and Chile. We’ll work alongside these institutions to develop viable products and services that reach underserved clients and improve their financial health. This process will include building the business case for customer-centric products; managing organizational change; and designing, testing, and implementing product innovations.
We’ll begin by using human-centered design, which links product and service design to customers’ needs and lives. By first understanding the challenges that low-income clients face and the goals they want to achieve, FSPs can create products and experiences that are available at the right moments, provide visibility into users’ finances, and take into account customers’ aspirations. Such products can lead to improved financial health, better decision-making, and more informed financial management.
While considering our clients’ needs and their goals, we’ll integrate behavioral science to create products and experiences that support healthy financial behaviors and habits. For example, behavioral scientists know that people tend to prioritize the present over the future and put off tasks that feel stressful, like budgeting, saving, and long-term planning. By taking this tendency into account and creating products that balance the management of day-to-day finances with future planning, we can promote clients’ financial health.
Ultimately, our understanding of low-income clients’ needs, the application of behavioral insights, and our focus on business considerations will inform the creation and deployment of new products that improve underserved clients’ financial health and that are sustainable in the market.

To qualify for the program, FSPs developed product proposals that addressed low-income client needs using a customer-centric lens; each of their proposed solutions is tailored to improve clients’ financial health and advance the organization’s strategic business objectives. Our partners will adapt their proposals through several rounds of user research and ongoing support from Accion.
Below is a list of our five partners, their product concepts, and goals for improving the financial health of their customers.

We’ll work alongside our partners to refine their initial concepts into customer-centric, market-ready products and services that help underserved families and small businesses improve their financial health.
Over the next 18 months, Accion and our partners will be working closely with customers, and with the FSP teams responsible for interface, application, operations, marketing and customer engagement to deliver an excellent customer experience. While we will focus on client behavior change, Accion and our partners understand that institutional change management is the real starting point.
For these solutions to promote clients’ financial health over the long-term, we will work with our partners to consider the business case for each product and the organizational changes needed to implement them. It’s only by combining our unique insights into client needs and our understanding of inclusive business models that our partners will be successful. It’s critical to look at longer-term profitability and customer lifetime value to ensure that our partners’ new products advance their long-term strategic goals; we’ll test customers’ willingness to pay for new services throughout their development and adjust product design to increase value to the customer.
These products represent significant new investments that will demand structural support, so we’ll also work to ensure that our partners have the right people, processes, and systems in place to launch and sustain the new products, helping with upskilling or capacity building as needed.
To create a financially inclusive world – to provide entrepreneurs with the means of hiring more employees, parents with the ability to save for the future, and communities everywhere with the tools they need to accelerate social and economic progress – we must develop financial products that clients trust, use, and benefit from. We’ll work alongside our Mexican and Chilean partners to create new solutions and services that help underserved families and businesses improve their financial health, and that realize the vision of a financially inclusive world. Follow us here as we keep you updated on our progress and process with our partners.
<img class="alignnone" src="http://accion-staging.flywheelsites.com/wp-content/uploads/2018/08/MetLife-Foundation.png" width="247" height="115" />This brief is a part of our <a href="https://www.accion.org/accion-and-metlife-foundation-announce-expanded-partnership-to-advance-financial-inclusion/">Building Financial Capabilities and Strengthening Institutions through Customer-Centered Innovations project</a>, supported by MetLife Foundation.

“Financial health is achieved when an individual’s daily systems help build the financial resilience to weather shocks, and the ability to pursue financial goals.” Financial Health Network

Brief

<h2>The path to financial health</h2>
People around the world are continually aiming to improve their financial lives – they do so with whatever tools are available, whether formal or informal, and with whatever knowledge they have gathered. Every day, people work hard to grow their businesses, send their children to school, save, make ends meet, and troubleshoot during tough moments. Ultimately, they aspire for greater financial health and a better life for themselves and their families.
<img class="aligncenter" src="http://accion-staging.flywheelsites.com/wp-content/uploads/2019/02/CFSI-1.png" /><a href="https://cfsinnovation.org/">The Financial Health Network</a>, the  <a href="https://www.centerforfinancialinclusion.org/">Center for Financial Inclusion at Accion</a> and <a href="http://www.dalbergdesign.com/">Dalberg's Design Impact Group</a> developed a <a href="https://content.centerforfinancialinclusion.org/wp-content/uploads/sites/2/2017/03/FinHealthGlobal-FINAL.2017.04.11.pdf">framework of six indicators</a> for financial health in the developing world.
In order to help consumers improve their financial health, financial service providers (FSPs) can design products, tools and services that empower consumers to better understand and manage their finances and encourage them to improve financial habits. Focusing on financial health also has the potential to impact the FSP’s bottom-line: Gallup found that when customers feel that their bank <a href="https://news.gallup.com/opinion/gallup/176534/looking-customers-financial-table-stakes-banks.aspx">looks out for their financial well-being</a>, they are much more likely to be fully engaged with the bank.

However, in order for FSPs to successfully promote financial health, they first need to understand customers’ opportunities and obstacles to improving it.

Achieving financial health in Mexico and Chile

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On Thursday, families across the United States will sit down together for Thanksgiving. It’s my favorite holiday, and not just for the food. It’s a special moment that allows us to reflect on the things we’re grateful for and express our gratitude.

One of the things I’m most grateful for is the people, institutions, and partnerships that supported Accion over the last year. The work that we do alongside our partners allows us to help farmers improve their resilience, help parents pay for their children’s education, and build a world with more opportunities for everyone. From providing better crop yields to promoting economic growth to helping women gain autonomy, <a href="https://www.uncdf.org/financial-inclusion-and-the-sdgs">financial inclusion enables the UN’s Sustainable Development Goals</a> and creates a safer, more equitable world.

With your support, Accion has continued to work toward making full financial inclusion a reality. Together, we welcomed new leaders, created new partnerships and continued demonstrating how inclusive financial services can catalyze progress. In 2019, we:
<ul>
 	<li>Worked with Apollo Agriculture to <a href="https://www.accion.org/learning-new-skills-helped-this-longtime-farmer-thrive">teach smallholder farmers across Kenya</a> the best ways to use new fertilizers, plant their seeds, and use financing to grow larger crops.</li>
 	<li>Expanded <a href="https://www.accion.org/fintech-for-inclusion-why-accion-is-betting-big-on-startups">Accion Venture Lab’s work</a> harnessing <a href="https://www.accion.org/six-vital-trends-changing-the-future-of-fintech">emerging fintech innovations</a> to help people manage their daily lives, navigate unseen challenges, and capitalize on new opportunities.</li>
 	<li>Helped <a href="https://www.accion.org/these-women-are-growing-their-businesses-and-their-confidence">female entrepreneurs across Colombia grow their businesses and confidence</a> through a new interactive digital platform that teaches core business skills and promotes better financial habits.</li>
 	<li>Welcomed the Center for Financial Inclusion’s new Managing Director, <a href="https://www.centerforfinancialinclusion.org/q-a-with-mayada-el-zoghbi-cfis-new-managing-director">Mayada El-Zoghbi</a>. Mayada has been at the forefront of inclusive finance; she’s the right person to begin CFI’s next chapter protecting customers and researching the big, unanswered questions that we must answer to create a financially inclusive world.</li>
 	<li><a href="https://www.accion.org/the-faces-behind-mexico-citys-mercados-publicos">Connected Mexico City’s mercados públicos with the consumers that rely on them</a> through CÍVICO, a digital platform that helps Latin America’s entrepreneurs modernize their businesses and access financial services for the first time.</li>
</ul>
Those are just a few of the many highlights from a remarkable year: your support helped countless people and businesses around the world and will allow us to continue this important work. To everyone who gave or partnered with us in any way, thank you.

What you do for Accion means so much to so many: with 3 billion people still left out of the global financial sector, we have work to do. We’ll continue relying on you to help us create a world where everyone can meet their day-to-day needs, save for the future, and help their children learn and grow.

Thank you again, and happy holidays.

What I'm grateful for

Facing a <a href="https://www.smefinanceforum.org/data-sites/ifc-enterprise-finance-gap-0">$17 billion gap funding gap</a>, Peru’s micro, small, and medium enterprises are often left without the capital they need to grow or even make ends meet. Often the businesses that are the most underfunded are small, rural, and women-run.

This important segment of Peru’s economy is where Accion partner, <a href="https://www.mibanco.com.pe/">Mibanco</a>, specializes. Mibanco has years of experience in providing financial services to small businesses and emphasizes building long-term relationships with its clients. “Micro and small businesses are the heart and spinal cord here in South America. They make up 90 percent of businesses here. And even though they are spread out, they are the base of business and the economy,” explains Mibanco branch manager Roberto Gallardo Bejarano. Mibanco recognizes that supporting MSMEs powers large scale economic growth. 

[caption id="" align="alignleft" width="511"]<img src="http://content.accion.org/wp-content/uploads/2019/01/2018_Accion_MiBanko_Day2__0059.jpg" alt="" width="511" height="340" /> Mibanco is a pioneer in using technology to streamline processes and make their services even more accessible.[/caption]

Supporting these critical businesses creates ripples throughout communities and helps build a more vibrant economy. Mibanco client Tarsila Apaza has seen the growing impact of Mibanco as more of her fellow business owners and neighbors have begun working with the bank. “My colleagues around here also work with Mibanco so sometimes when I go to pay at the bank I see them there and I’m like “hey, you’re also here!” So yes, they have helped many of us around here,” she says.

Mibanco’s success in serving small — and often rural — businesses relies on its network of agents that go out to the field to connect with clients. Mibanco has also been a pioneer in using technology to streamline processes and make their services even more accessible. Through a digital app, agents can quickly input customer data during their field visits and manage loan disbursement and payments. Coupling technology with human interaction allows Mibanco to better understand their clients and provide them with more effective services. “We are working with business people — people who need to be at their businesses, and don’t want to take time to go to the bank. So we want to go to them,” says Roberto. 

[caption id="" align="alignright" width="536"]<img src="http://content.accion.org/wp-content/uploads/2019/01/2018_Accion_MiBanko_Day2__0495.jpg" alt="" width="536" height="357" /> Roberto Gallardo Bejarano, a Mibanco branch manager, pairs customer service with innovative digital products to serve MSME clients in Peru. [/caption]

The goal is to provide resources and insights in addition to financial services that enable small businesses to grow responsibly. Most clients begin with small loans and build up to larger amounts as their relationship with Mibanco deepens. “They start with small credit and over time they have grown to be able to ask for more credit,” says Jorge Pucurimary Gutierrez, a Mibanco manager. 

For microentrepreneurs, it is critical that they have the knowledge and resources to grow sustainably. By starting with small loans and building to larger amounts, business owners learn how to manage their finances and grow their enterprises. Mibanco is serving a traditionally excluded, but immensely important, segment of Peru’s population. Small businesses drive the economy and by providing relevant products, Mibanco is helping families to do better financially and to build better futures.

How to reach underserved Peruvian small businesses

We know from our work that digital technology can be a powerful tool for financial inclusion.

Yet, despite advancements in mobile connectivity, improvements in payments infrastructure, and investment in new technologies, cash is still used in the majority of transactions around the world. In fact, the use of cash is rising.

Cash is slow, expensive, and exacerbates a broader issue: without digital tools to record transactions, store owners struggle to build the credit history they need to obtain financing. That, in turn, keeps merchants from expanding their business and limits inclusive, sustainable growth.

In the past year of our ongoing project with<a href="https://www.accion.org/mastercard-and-accions-partnership-to-unlock-millions-of-underserved-microbusinesses"> the Mastercard Center for Inclusive Growth</a>, we have built partnerships and shaped strategies to drive the digital transformation of millions of microbusinesses and the financial institutions that serve them. We are excited to be working with institutions that are making the digital economy more inclusive by developing meaningful and responsibly designed products and services. Our current partners, Accion Microfinance Bank in Nigeria, Bancosol in Bolivia, CÍVICO in Colombia and Mexico, and Sub-K in India, already serve more than 2 million microbusinesses.

As we think about what successful digital transformation looks like, we look to the small business owners that our partners serve for insight and inspiration. Their stories bring to light how microentrepreneurs benefit from financial technology innovation and digital transformation.
<h3>Promise appreciates a faster loan process in Nigeria</h3>
[caption id="" align="alignleft" width="527"]<img class="" src="http://content.accion.org/wp-content/uploads/2019/10/Promise-AMfB.jpg" alt="" width="527" height="351" /> Promise owns a business importing leather for making shoes and bags and has been an AMFB client for 11 years.[/caption]

Accion Microfinance Bank in Nigeria (AMFB), an Accion partner, has invested in systems that make it easier for small business owners to get the funding they need. AMFB is using mobile tablet devices, SMS payment reminders, automatic loan deposits, and other digital features to make applying for and managing a loan much more convenient for its busy entrepreneur clients. And those clients notice the difference. Promise, a microentrepreneur, who has a business in which he imports leather for making shoes and bags, has been an AMFB client for 11 years. He appreciates the new digital banking service. For example, he says, the time it takes to apply for a loan has decreased dramatically. “I don’t have a lot of paperwork anymore because it’s all done digitally,” he says, adding, “Before, you waited for more than a week for your loan, and it would make you angry. But now I get it in three days.”
<h3>Alfonso is going digital in Mexico — and bringing the whole market with him</h3>
[caption id="" align="alignright" width="523"]<img src="http://content.accion.org/wp-content/uploads/2019/10/Alfonso-Civico.jpg" alt="" width="523" height="392" /> Accion CEO, Michael Schlein speaking with Alfonso Lopez Carmona, a merchant in the Medellin market who sells candies and beverage among other items.[/caption]

CÍVICO, a digital platform that maps micro and small businesses and connects communities in Colombia, Mexico, and Chile, is working with Accion to provide credit services to merchants. In Mexico City, Mercado Medellin (also known as “The Little Habana”) has over 500 market stalls, offering products from across Latin America. One of the merchants in the Medellín market, Alfonso López Carmona, sells international products, such as candies and beverages He appreciates CÍVICO’s efforts to bring Medellín market into the 21st century. He actively uses the platform to promote his business and also uses CÍVICO Pay and QR codes to receive payments. Alfonso hopes to leverage CÍVICO to increase the digital presence of his business. He believes this will enable him to attract more customers, sell a greater variety of products from other countries, and grow his business. He also actively promotes the adoption of CÍVICO among other merchants in the market.
<h3>In Bolivia, Carolina's clothing business is powered by tech</h3>
[caption id="" align="alignleft" width="530"]<img src="http://content.accion.org/wp-content/uploads/2019/10/Carolina-BancoSol-1.jpg" alt="" width="530" height="354" /> With BancoSol's help, Carolina was able to afford the machines and staff she needed to grow her business.[/caption]

Bolivia, like much of Latin America, has lagged behind other countries in the <a href="https://www.globalinnovationindex.org/analysis-indicator">Global Innovation Index</a>. To boost innovation in the country, Accion is working with BancoSol to create an innovation hub that would offer meaningful financial products and services to BancoSol’s nearly one million customers.

Carolina Yesica Rodriguez Alcon, an entrepreneur who runs her own clothing company under the “Jhonny Dey” trademark in Bolivia, has been a BancoSol client for several years. The loan from BancoSol helped her buy machinery and recruit staff to run her company. Carolina is a driven and ambitious entrepreneur — she is working towards expanding her brand nationally and internationally. She appreciates that she can manage her finances and grow her business with financial technologies offered by BancoSol, including AppSol and SolNet — BancoSol’s mobile and internet banking platforms. She even uses QR Pay to conveniently and swiftly collect payments from customers and make payments to suppliers. By prioritizing innovation, BancoSol will be able to help more entrepreneurs like Carolina spend less time at the bank so they can focus on their customers.

As we continue to work with Mastercard and partner with more forward-thinking institutions around the world, we hope to equip millions of microentrepreneurs with the tools and technology that accelerate the growth of their businesses and help improve the quality of their lives.

Arisha Salman contributed to this article.

Three small business owners who show why we need better digital tools

Entrepreneurship runs in Claudia Salomon’s family. “This is what we love — and that’s why we do it. What we want is the business to grow. We have already opened a second store. But we want it to grow more,” she says. 

To achieve the growth she desired, Claudia sought assistance from Accion partner, <a href="https://www.mibanco.com.pe/">Mibanco</a>. She learned about Mibanco from the advisors that frequently visited her neighborhood to talk with entrepreneurs about opportunities to work together. Mibanco specializes in providing financial services to traditionally underserved small business owners. According to the <a href="http://datatopics.worldbank.org/financialinclusion/country/peru">World Bank’s Global Findex data for 2017</a>, 57 percent of adults in Peru still lack a bank account. Running a successful enterprise is challenging without credit and savings products, so Mibanco offers underserved entrepreneurs sensible products to grow their businesses. <img class="wp-image-19941 alignright" src="http://content.accion.org/wp-content/uploads/2019/10/2018_Accion_MiBanko_Day1__0673-1024x682.jpg" alt="Claudia speaking with a Mibanco representative" width="504" height="336" />

This business support was just what Claudia needed. Her first loan with Mibanco kicked off a lasting relationship. “I remember the first time we worked with Mibanco, we asked for working capital — which was 500 sol all those years ago — and since then we have continued to ask for loans.” With the working capital, Claudia could buy more materials to produce furniture, expand into a larger working space, and in turn, help provide a better future for her family. “Mibanco not only helped my business grow but they also helped us to pay for my children to study,” she says, adding proudly that, “My daughter just finished at law school.”

Claudia and her family had a strong business before working with MiBanco. But, with the help of trusted advisors, she learned how to efficiently access capital to expand and run her business. “I am very thankful because Mibanco has allowed us to grow. And not only has it allowed the business to grow, but it has also trained us.” 

With the right training and funding, she looks forward to a bright future for her business. “We would like to continue to have that — continue to let it grow,” she says.

Growing the family business is a dream come true for Claudia

At a height of 14,000 ft, up in the Andes, lies a thriving economy — La Paz, the capital of Bolivia. During a recent visit, I stopped by El Alto, a neighboring city that hosts the country's largest outdoor market. El Alto sits at an even higher elevation than La Paz. To reach it, I took Mi Teleferico, the aerial cable car system that serves as affordable public transport for the state’s 2.7 million residents.

From a public infrastructure perspective, Mi Teleferico is a monumental achievement. In 2014, upon completion, the system was the longest aerial cable car system in the world. Bolivia is also the first country to use a cable car system as the <a href="https://www.nytimes.com/2014/08/17/world/americas/with-subway-in-the-sky-valley-meets-plateau.html?_r=0">backbone of a mass-transit system</a>. For its innovation in addressing a growing public transportation crisis, Mi Teleferico won a <a href="http://gondolaproject.com/category/installations/mi-teleferico/">Latam Smart City Award</a> in 2018.

While Bolivia is driving innovation in public transport and sustainability, it has lagged in other areas — particularly financial services. Significant regulation has made innovation difficult, especially in serving Bolivia’s informal small businesses sector, which employs over <a href="https://pdfs.semanticscholar.org/3614/d4228fd389c6ec33944b4b394220034b346e.pdf">half of the population</a>. The country also has the <a href="https://www.worldatlas.com/articles/the-richest-countries-in-south-america.html">lowest GDP per capita</a> in Latin America, and it’s the <a href="http://hdr.undp.org/en/composite/HDI">second-lowest in South America on the Human Development Index</a>. In this environment, small businesses can't access the tools they need to grow.
<h2>Serving Bolivia’s small businesses</h2>
<a href="https://www.bancosol.com.bo/">Banco Solidario S.A (BancoSol)</a>, the first regulated commercial bank in the world dedicated to serving micro and small entrepreneurs, is headquartered in La Paz. The bank serves more than 1.5 million clients nationwide. Most of these clients operate in the informal economy, and nearly half are women. Accion has been supporting BancoSol, as a shareholder and advisor, since its original transformation into a <a href="https://www.accion.org/transforming-finance-low-income-people-bolivia">commercially driven microfinance bank.</a>

Bolivia’s small businesses need innovative products to help them grow

Learn how digital supply chains support merchants while driving financial inclusion.

Supply Chain Finance 

Explore the evolving world of digital financial services through a report, webinar, and articles.

Demystifying digital lending

Videos: Entrepreneurs around the world describe what inspired them to launch their startups.

Fintech founders up close

Stories, videos, and photos show how financial inclusion has helped people across the globe.

The real impact of financial inclusion

Meet the women at Accion and our portfolio partners who are helping empower women globally.

Women building a better future

Series

In the last decade, China has emerged as a leading market for digital financial services. The government has encouraged this growth by limiting regulation, and while innovation has flourished in this environment — so has malpractice. Millions of people have lost their life savings in the severely unregulated person-to-person (P2P) lending and digital lending industries. Now people find it hard to trust the digital financial tools that were supposed to improve their lives.

Liang Zhanli runs a small business in Inner Mongolia, selling local specialties like mushrooms and beef jerky. She knows first-hand the harm caused by irresponsible digital financial services. Several years ago, when she decided to try her hand at investing, Ms. Liang used her savings and even borrowed money from friends and family to make investments. She used a P2P platform, which takes capital from individual investors and lends it to another party. But when the P2P platform she used shut down, her investment failed. She had to sell her apartment to repay her friends and relatives.

This experience could have soured Ms. Liang on all financial service providers — leaving her without funds or the tools she needed to rebuild. Fortunately, even in her moment of hardship, Ms. Liang knew she could still trust Accion partner <a href="http://grassfin.com/en/home">Grassland Finance Limited (GFL)</a>. She had been working with the microcredit company for three years to support her business. Now, she plans to leverage capital from Grassland to invest in and grow her business to generate savings and buy a new apartment. From now on, she says she’ll only trust financial service providers that have a physical presence and staff she can meet in person.

Grassland Finance Limited is celebrating its 10th anniversary this month — a decade of supporting entrepreneurs like Ms. Liang with credit for <a href="https://www.accion.org/grassland-filling-gap-chinas-microcredit-industry">advancing their lives and businesses</a>. Unlike digital financial companies, microcredit companies are closely regulated – from interest rates to capital requirements to geographic expansion, but Grassland has managed to grow, even as competition increased. One key to Grassland’s success is the institution’s ability to <a href="https://www.accion.org/the-tech-touch-balance">balance human interaction and technology</a>.

Earlier this year, Accion worked with Grassland staff to interview customers to understand the needs, aspirations, and emotions of Grassland’s client base. Several customers told us that they didn’t want to rely on only digital finance products because they found them difficult and uncomfortable to use. However, once they understand how to use digital products, customers also told us that they like the convenience and ease these products offer with the onboarding and ongoing support from loan officers Grassland is moving towards digitization but will continue to offer a human touch to customers through loan officers and branches.

Grassland’s digitization efforts include designing and piloting a mobile app that allows clients to submit loan applications and sign contracts digitally and securely. Grassland is also working with Accion to build a credit model and automate the underwriting process. Throughout the credit process, loan officers serve as financial advisers to clients. They provide hands-on support, including teaching clients how to use digital channels for loan repayment and how to distinguish between reliable and dubious providers. One of the primary reasons that clients like Liang remain loyal to Grassland is out of trust for the institution’s loan officers, who are often seen as “old friends” they can turn to when they have finance-related questions or challenges.

Many clients are excited for the Grassland mobile application since they trust the institution and its staff. Take, for instance, Qin Xiaobo, who told us he is always cautious with digital finance. Nevertheless, he’s eager for Grassland to become more digitized because he feels it will continue to improve his experience.

Grassland is also moving towards digitizing customer education and support processes. For example, the organization has set up a corporate account with WeChat (similar to a corporate blog) and leverages the platform to publish financial education content regularly. Through insights collected from client interviews, Grassland recognizes that its clients lead busy and stressful lives, so it’s hard to make time to learn about financial management. To make learning more accessible, the institution is planning to leverage a <a href="https://walkthechat.com/wechat-mini-programs-simple-introduction/">WeChat mini program</a> to design interactive financial education activities, embedded in the WeChat corporate account. The game would encourage clients to learn and practice financial concepts in an engaging way and share their newfound expertise with their social networks. Grassland is also planning to partner with colleges to develop games and activities for clients’ kids so they can build financial literacy early. The institution intends to prototype these ideas soon.

It is increasingly evident that outside of major cities, digitization is unlikely to drive sustainable impact for low-income clients in China — unless it incorporates strategic human interactions. For a decade, Grassland has enabled people like Ms. Liang and Mr. Qin to seize business opportunities, increase income, endure economic shocks, and manage their households. While China’s digital financial services and microfinance industries remain <a href="https://www.accion.org/financing-chinas-smallest-businesses">fraught with challenges</a>, Grassland has proven that balancing tech with a human touch is good for business and good for customers.

Arisha Salman and <a href="https://www.accion.org/bio/yiran-lu">Yiran Lu</a> also contributed to this article.

Giving customers a reason to trust digital finance in China

As I prepared for my first visit to China, I was curious about what I would discover and hoping that what I learned would help me in my work to build more inclusive financial systems in Africa. I would be joining a delegation of digital finance professionals in Africa, including Tunde Kehinde, co-founder of Accion Venture Lab portfolio company <a href="http://lidya.co/">Lidya</a>. The trip was organized by the Mastercard Foundation<a href="https://www.financedigitalafrica.org/blog/2018/07/eight-things-we-learned-in-china-driving-fintech-fortune/"> Partnership for Finance in a Digital Africa (FiDA)</a>  to learn about the ecosystem in China and bring insights and inspiration to our workplaces. 

Tunde and I both live and work in Lagos, Nigeria, home to over 20 million people — one of the world’s megacities. We were fascinated to see how China has galvanized their government, businesses, and citizens to adopt financial products and services and how they’re creating a more seamless financial ecosystem for all. During the trip, we took note of everything we discovered and we’ve distilled our findings into lessons for inclusive finance in Nigeria. 
<h2>From big data to bigger data</h2>
Tunde and I were both impressed by the tremendous amount of valuable data sources companies could tap into for lending decisions. As we met with business leaders from companies such as JD Finance, Ant Financial, and WeBank (the first Internet-only bank in China), we were surprised to learn that they leverage from 30,000  to 100,000 data points on consumers and merchants in their underwriting process. As a comparison, Lidya uses 100 data points, and that’s a pretty robust data set in a region where high-quality and consistent data can be hard to obtain. Despite their advances, one Ant Financial Executive we met claimed that they are “still in the small data age of big data”, and that in 50 years we will look back and laugh at the datasets we have at our disposal today.  
<h2>Payments as the underbelly of a rich dataset</h2>
During the trip, we saw how a strong payment infrastructure is crucial for collecting data to build successful customer profiles to lend to the underserved. China’s impressive data collection starts when customers make a payment. The QR code system has been widely adopted for transactions in China, making it extremely simple for consumers to scan and pay. The low cost of implementing QR code payment infrastructure at the merchant level has led to high adoption rates, rich data sets, and <a href="https://www.techinasia.com/fake-qr-code-scams-china">minimal fraud</a>. In comparison, Nigeria has two primary approaches to payment facilitation: point-of-sale (POS) devices and USSD payments. Unfortunately, high costs, and inconsistent internet connectivity meant that POS devices are hard to come by or unreliable. 
<h2>Collaboration for advancement</h2>
One thing that Tunde and I both found surprising was the <a href="https://www.financedigitalafrica.org/blog/2018/08/you-cant-clap-with-one-hand-how-collaboration-drives-chinas-fintech-success/">high level of collaboration in the Chinese fintech sector</a>. We expected companies to be highly competitive, secretive, and unwilling to work together in their race to the top. Surprisingly, that couldn’t be further from the truth. Instead what we learned is that many share potential customer pipelines. These companies have started to specialize in finance offerings for clients at various income levels and businesses of different sizes, and they found that it was more productive to share a pipeline so each customer segment gets the most valuable experience from the optimal provider for them. 

Tunde and I have both traveled a significant amount, but we both walked away transformed by our time in China. It was a thought-provoking trip — one that allowed us to see the tangible progress of a market that has made significant strides in fintech and financial inclusion. At one point I started to panic, wondering if any African nation, let alone the entire continent, could ever catch up. However, what I came to accept was that our collective goal is not necessarily to imitate China’s model but to forge our own path, centered on the needs of African consumers and small businesses. That path may look entirely different from China’s. There is no one solution for building a financially inclusive future, and each region and country will have their own challenges and successes along the way. While our visit to China inspired us, Tunde and I returned home most excited for what’s to come here in Nigeria.

This article was written with support from Tunde Kehinde, co-founder of Accion Venture Lab portfolio company Lidya. It is also published on the <a href="https://www.financedigitalafrica.org/blog/2019/01/what-can-nigeria-learn-from-chinas-digital-economy-insights-on-big-data-mobile-payments-and-what-chinas-model-means-for-financial-inclusion-in-nigeria/">Partnership for Finance in a Digital Afric</a><a href="https://www.financedigitalafrica.org/blog/2019/01/what-can-nigeria-learn-from-chinas-digital-economy-insights-on-big-data-mobile-payments-and-what-chinas-model-means-for-financial-inclusion-in-nigeria/">a</a><a href="https://www.financedigitalafrica.org/blog/2019/01/what-can-nigeria-learn-from-chinas-digital-economy-insights-on-big-data-mobile-payments-and-what-chinas-model-means-for-financial-inclusion-in-nigeria/"> (FiDA) blog</a>.

What can Nigeria learn from China’s digital economy?

Case Study

MetLife Foundation's longstanding partnership and philanthropic support of Accion’s work, and our joint public engagement efforts, have raised awareness of the opportunities and solutions to advance financial inclusion. Since 2013 MetLife Foundation's core focus has been to improve the financial health of low-income individuals across the globe. Together, we’ve helped underserved people around the world gain access to the tools they need to improve their lives.
<h5>EMPOWERING THE PEOPLE OF MYANMAR</h5>
Since 2015, MetLife Foundation has supported Accion’s partnership with Early Dawn Microfinance (DAWN) to provide entrepreneurs in Myanmar — especially women in rural areas — with microfinance services. When we began working with DAWN, it served 25,000 clients with less than $2 million in loans, and loan officers recorded clients’ activity entirely by hand, which could take up to four hours a day. As an investor and operating partner, Accion has worked with DAWN to reach new customer segments, improve and expand its product offerings, leverage new technologies and channels, and improve its operational efficiency. Today, that previous four hours of work takes just 20 minutes, giving loan officers more time to meet with and understand their clients. Now, DAWN is a premier institution that serves as a model for the country’s nascent microfinance industry, serving more than 160,000 clients with more than $30 million in loans.

MetLife Foundation and Accion: Seeking opportunities to advance financial inclusion

With nearly 5 million residents, Chifeng isn’t a small city. But as it sprawls across the vast prairie of Inner Mongolia, an autonomous region in northern China, some parts of the city feel almost rural. This combination of rural and urban create a diverse mix of clients for <a class="markup--anchor markup--p-anchor" href="http://chifeng.gaoxinlong.com/">Grassland Inner Mongolia</a>.
Initially launched as Accion Microcredit China in 2009, Grassland Inner Mongolia remains a locally registered microcredit company (MCC) but is now part of the Pan-China operation, <a class="markup--anchor markup--p-anchor" href="http://grassfin.com/en/home">Grassland Finance Ltd</a>. <a class="markup--anchor markup--p-anchor" href="http://www.accion.org/grassland-filling-gap-chinas-microcredit-industry/">Accion partners with Grassland</a> to help deliver financial services to China’s underserved businesses using in-person, mobile, and digital platforms. Over the years, Grassland Inner Mongolia has provided more than RMB 1.7 billion (USD 261 million) in loans to over 16,000 customers, with the average loan amount under RMB 105,000 (USD 16,100).
On a recent trip to China, I spoke with Zhu Yanyan, the general manager of Grassland Inner Mongolia, about how the company has developed since its founding, and her vision for its future.
Q: Tell me a little bit about the clients you serve.
A: We provide microloans to farmers, herdsmen, commercial households, and microenterprises. Most are in the trade, services, agriculture, and manufacturing industries. They are diligent and honest entrepreneurs, yet they aren’t targeted by banks since most of them cannot provide the kind of collateral required. However, unsecured loans are our primary product so we can enable access to financial services for such clients.
Q: You’ve been here since the beginning in 2009. How has your job changed over that time?
A: I’ve had the honor of witnessing the transformation of the firm over the past eight years, in several areas.
With the formation of Grassland Group, the company’s geographic coverage grew rapidly, now covering Pan-China, from here in Inner Mongolia, to Chongqing, Hunan, Shandong, Sichuan, Xinjiang, Hubei and Shanxi provinces.
Grassland’s Head Office team is familiar with best practices in Chinese microfinance and has good insight into the Chinese microcredit industry. They’ve been very effective in bringing about new corporate best practices, so we’ve been able to standardize processes and policies across the group, helping us work better with faraway colleagues.
At the same time, the company embraces the principle of “local people managing local affairs,” trusting our local talent and investing in training to help local employees with potential become good microfinance professionals.
I’m proud of our social impact, as well. Through our continuous effort in promoting inclusive finance in Chifeng, Grassland Inner Mongolia has been widely recognized within the microcredit company (MCC) industry as a forefront contributor in promoting financial inclusion. Each year, we’ve won awards from the China Association of Microfinance and from the Finance office at the city and provincial government levels.

<h4 class="graf graf--p">Q: How are you using new technology to support your work?</h4>
A: We feel we’re at the forefront of technology and innovation among MCC industry players. Grassland has built public websites for both investors and customers. In 2016, we also introduced a digital field application tool called Keystone, which is an end-to-end platform loan officers and credit managers use to process loan applications via tablet.

<h4 class="graf graf--p">Q: What do you enjoy most about your work?
</h4>
A: My three favorite things are:
First, taking on the challenge of expanding Grassland Inner Mongolia’s operations. As I explore the market, I seek to identify the best areas for lending, forecast the market potential for growing our loan portfolio and number of clients, and learn how to control risk effectively.
Second, the opportunity for constant learning and self-improvement. Through this job, I continue to work toward being a well-rounded leader, not just in terms of new business development and credit risk management, but also in areas such as operations, finance, and HR, therefore becoming a true General Manager.
And last but not least, I like to see our clients expand their businesses and improve their lives through the services we offer.

<h4 class="graf graf--p">Q: What’s next for Grassland Inner Mongolia?
</h4>
A: I am determined to continue expanding our business operations to other parts of the region and making sure that we continue to be a critical player in the overall Grassland organization as we look ahead to a prospective IPO in Hong Kong in a few years.

Q&amp;A: Entrepreneurs in China  —  A perspective from Chifeng, Inner Mongolia

Despite its astonishing progress in reducing poverty, China remains one of the nations with the greatest unmet needs for financial services. <a href="http://www.worldbank.org/en/programs/globalfindex">Some 234 million low-income Chinese — or about 21 percent of the total population—lack access to formal financial services</a>. One vital strategy for expanding financial access is to strengthen China’s microfinance industry so it can scale up. That, in turn, requires helping senior managers of microfinance institutions (MFIs) overcome the day-to-day business challenges that can slow down growth.

To build the sector’s expertise, Accion, with the support of MetLife Foundation and in partnership with the Chinese Association of Microfinance (CAM), launched the <a href="http://www.accion.org/mmlp-winter-china-microcredit-industry/">International Microfinance Management and Leadership Program</a> (MMLP) in December 2015. This program provides senior MFI managers training in effective strategies to address technical and operational issues in microfinance, and to extend better services to more people. <a href="http://www.accion.org/metlife-foundation-and-accion-reach-more-than-one-million-clients-through-training-program-for-chinas-microfinance-managers/">This month in Beijing, we celebrated the completion of MMLP’s second round of training</a>. In all, two cohorts have participated, totaling 73 mid- and senior-level managers from 34 Chinese MFIs, including market leaders like CreditEase, CFPA Microfinance, Hope Finance, Grassland Ltd., and Hanhua Credit Group.

The International Microfinance Management and Leadership Program was the first holistic, systematic microfinance management training and capacity-building initiative in China. Participants refined their leadership and management skills and developed sound technical knowledge in microfinance operations and human capital management. Over the course of several months, trainees attended in-classroom seminars and participated in monthly webinars, online discussions, and field visits to best-practice MFIs. This blended approach, combining classroom-based and experiential learning, helped participants retain information for longer, strengthened core skills, and put the lessons they learn into practice. This required a much longer commitment than the short, lecture-based trainings that are more commonly seen in China, and exposes the trainees to the more participatory teaching styles of Western institutions.

Graduates rated the program highly (with an average of 4.73 out of 5 in cohort 1, and 4.85 in cohort 2). Said Yang Tao, assistant general manager at CFPA Microfinance and cohort 1 participant, “The program’s courses really touch the pain points and needs of mid and senior managers in microfinance institutions. The content is very practical and relevant.” Another participant from cohort 2, Peng Honglang, senior manager at CreditEase, said, “The training is very comprehensive, guiding me through key points in strategic planning, human capital and operation management, and adoption of new technology, which will be very useful in my future work.”

The partner institutions behind MMLP brought complementary strengths to the project. Accion is a financial inclusion pioneer with 50 years of experience building 65 MFIs in 32 countries on four continents. The Chinese Association of Microfinance is the first member-based association in China’s microfinance sector, and advocates for the development of rural microfinance and public-interest MFIs.

Given the size of the financially excluded population in China, scaling financial inclusion in China translates to global impact. Combined, the first and second cohorts will impact more than one million MFI clients. CFPA Microfinance, China’s largest microfinance institution, is now poised to take over the MMLP, building on the achievements of the first two rounds of training to continue developing financial services for all.
By Dandan Wang and Yiran Lu for Accion. An earlier version of this post was published on the <a class="markup--anchor markup--p-anchor" href="http://partners.wsj.com/metlife/multipliers/articles/making-small-loans-on-a-bigger-scale-in-china/" target="_blank" rel="noopener noreferrer">Wall Street Journal’s Multipliers of Prosperity</a>, in partnership with the MetLife Foundation.

Making small loans on a bigger scale in China

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Jeffrey  Campbell

Financial service providers can serve more customers by leveraging data and technology

How does a traditional bank go digital to serve more customers? Recently I visited Lagos, Nigeria, and La Paz, Bolivia, to see — and help drive — that process. In Lagos, <a href="https://www.accionmfb.com/">Accion Microfinance Bank</a> hopes to triple the number of people it serves through a digital-first model for acquiring new clients and improve internal processes. In La Paz, Accion is working with <a href="https://www.bancosol.com.bo/">BancoSol</a> to establish an innovation hub — a unit tasked with bringing better digital products to market, using a data-driven approach. Both projects are part of <a href="https://www.accion.org/mastercard-and-accions-partnership-to-unlock-millions-of-underserved-microbusinesses">Mastercard's ongoing partnership with Accion</a>.

For the last 14 years, I’ve worked with <a href="https://www.mastercardservices.com/en/solutions/test-learn">Mastercard</a> to fulfill the mission of bringing smart, data-driven decision making to the banking, retail, consumer packaged goods (CPG), hospitality, and automotive sectors. We help companies test ideas like “should I dramatically overhaul my stores and brand?” or “should I offer a 30 percent promotion, 35 percent, or buy one, get one free?” Getting these questions right can mean significant impacts on top and bottom lines.

In August, Mastercard gave me the opportunity to take on a new mission for three months: bringing a similar approach to solving big questions with data, analysis, and testing to Accion’s <a href="https://www.accion.org/how-we-work/advise/accion-global-advisory-solutions">Global Advisory Solutions</a> team. We are working with Accion’s partner organizations to leverage analytics to drive financial inclusion.

During my travels with Accion, I had the opportunity to speak with Accion Microfinance Bank and BancoSol’s senior leadership teams about their use of data and technology in building out their digital strategy. I also gave a presentation to each team’s leadership on how to conduct testing and analytics, and how it can help organizations achieve their growth ambitions.

I spent time with clients of each bank in their homes and at their places of business to learn more about how they use financial services. I was surprised at how accessible financial technology is for many entrepreneurs — one vendor's stall in Lagos was no bigger than my cubicle but featured a Point-of-Sale (POS) machine for credit cards. Even though that vendor was equipped to receive digital payments, they were hesitant to make electronic payments and deposits of their own. This disconnect reflects how much less customers trust their banks in Nigeria compared to customers in the U.S. One takeaway from speaking with customers in Lagos: we have a big task ahead in giving underbanked people reason to trust that digital banking will be safe, reliable, and easy to use.
<blockquote>We have a big task ahead in giving underbanked people reason to trust that digital banking will be safe, reliable, and easy to use.</blockquote>
In Bolivia, the challenge is less about trust-building and more about increasing people’s comfort and literacy around digital tools. Many entrepreneurs told us that they have a digital product but aren’t using it.

Like customer needs, degrees of digitization vary dramatically. At Accion Microfinance bank, the team is working to build a data warehouse to make analytics and reporting less manual. At BancoSol, the data warehouse has existed for several years and is impressive. It captures critical elements into a data server and then extracts commonly used information into reports automatically. It rivals the systems in place for banks in the U.S., and there are plans in place to make it even more powerful. BancoSol’s next goal is to leverage this well-captured data more effectively. That’s one of the mandates for the new innovation hub, and something we will be supporting them to implement.

In many ways, the challenges facing microfinance institutions look a lot like the ones facing the commercial banks that I work with at Mastercard. In both worlds, companies are looking to understand their customers' wants and needs and create a niche in a rapidly evolving market. They're both working to take down the overhead of branches and field staff while trying to expand reach digitally.

My visits were educational and eye-opening. It’s amazing to be part of an effort to expand the benefits of the global financial system to people who have not had them historically. The opportunity to speak directly to customers about their relationship with their financial providers was a good reminder that the customer should always be at the center of any initiative. Upon returning to Mastercard, I will be reminding my clients of this as well.

I am excited to support the Accion team to identify the role of data in making digital banking more accessible. From risk analysis to customer segmentation to operations and payments, when we leverage data, we can make financial tools more available — and more useful — to everyone.

Data is crucial for driving  inclusive growth

Apollo Agriculture supports smallholder farmers in ways old and new

Smallholder farmers in Kenya — like smallholder farmers everywhere — work very hard, and live precariously, always facing challenges from drought to floods to commodity market fluctuations. Margaret Auma Oyoko, who grows maize and raises cows, when asked to describe her day says simply, “When I wake up, I pray to God to help me in my activities like farming, feeding the cows, and other household duties.”

&nbsp;

[caption id="attachment_20230" align="alignleft" width="500"]<img class=" wp-image-20230" src="http://content.accion.org/wp-content/uploads/2019/12/Kenya_Nakuru_0030-2-1024x684.jpg" alt="Alfred in maize field" width="500" height="334" /> Alfred appreciates how healthy his crops are with Apollo’s fertilizer.[/caption]

<a href="https://apolloagriculture.com/">Apollo Agriculture</a>, an Accion Venture Lab portfolio company, was founded to help farmers like Margaret thrive in the face of their many challenges. When farmers become Apollo clients, they receive not only high-quality seeds and fertilizer but also advice to help them farm more effectively. 

Alfred first heard about Apollo from a friend who is also a farmer. He reports that he and several neighbors have all had positive experiences with Apollo so far. “Their fertilizer is very rich, which meant my crop yield was very high. After harvesting and selling my maize, I was able to pay the school fees,” he says, adding, “I’ve also learned so much more about agriculture. They teach us a lot and show us how to do farm work.”

[caption id="attachment_20232" align="alignright" width="500"]<img class=" wp-image-20232" src="http://content.accion.org/wp-content/uploads/2019/12/Nakuru_0023-1024x684.jpg" alt="Susan shows an Apollo agent her produce." width="500" height="334" /> Susan shows an Apollo agent her produce.[/caption]

Susan Wangui Wanjiru also learned about Apollo through a friend, and while like Alfred, she appreciates the quality of its products, she is especially impressed by its tech-enabled systems. She first signed up as a customer via text message and then an agent came to her property and assessed her farm. Says Susan, “The beauty of it is that Apollo does not give out cash to anyone, not even the agents. You send it directly to them [using M-Pesa]. You then get your balance as a text message.” For a busy farmer and mother, the convenience is invaluable.

Summing up his Apollo experience, Alfred says, “Before, I struggled to get farm inputs. The next problem was finances, as you have to buy everything with cash. It was also difficult to find people who could teach you something new. But now it’s better with Apollo.”

Seeds, fertilizer, mobile money: Kenyan farmers get the supplies they need

Archana Kejriwal

Financial literacy and capability programs support a growing middle class in India — now these programs are going digital

For families to get ahead, they need access to financial products and services. However, many people in India don't understand how to use these tools well, so they <a href="https://repository.lboro.ac.uk/articles/Conceptualising_financial_literacy/9494978">avoid them and avoid planning for the future</a>. This leaves them vulnerable to predatory lending, overselling, and fraud, and it can lead to crippling debt and poor financial management. Financial education can make all the difference by helping people to build <a href="https://www.centerforfinancialinclusion.org/what-is-financial-capability#targetText=Financial%20capability%20is%20the%20combination,access%20to%20appropriate%20financial%20services.">financial capabilities</a>.  Armed with the knowledge, skills, and self-efficacy needed to make the best money management decisions available, individuals can finally reach their economic potential.

For roughly two decades, Accion has included education and training services as important components of its financial inclusion work. As part of its client education programs in India, Accion has partnered with <a href="https://www.axisbank.com/">Axis Bank</a> to deliver programs inlcuding Mass Awareness Campaigns and the Money Plan Program. The former focuses on spreading awareness of basic financial concepts and the latter on creating awareness about the importance of keeping track of debt, savings, and expenses. Women are the main beneficiaries of these programs, which focuses on developing their decision-making skills to effectively drive women’s empowerment.
<h3>Mass Awareness Campaigns </h3>
Mass Awareness Campaigns focus on spreading financial literacy to low-income households across India, primarily in rural areas. The program uses tools like street plays, drama, and magic shows to teach all aspects of people’s financial lives, including earning, spending, saving, borrowing, and investing. It spreads awareness of good spending habits, monthly budgeting, identifying appropriate institutions, and avoiding risks. For many clients, this program is crucial for building initial awareness, inspiring financial conversations among family and neighbors, and driving them to seek out additional training. More than 15,000 individuals have participated in these campaigns, and many have gone on to take part in the Money Plan Program.
<h3>From awareness to the Money Plan Program</h3>
The Money Plan Program is a three-day in-depth workshop which focuses on building a deeper understanding of critical financial concepts. It focuses on improving the financial capacity of low-income women by giving them the tools to maintain their personal and household accounts efficiently. Through a set of modules, participants learn about financial planning, cash flow and budgeting, savings, debt, investment, insurance, and banking.

The initial results of the impact of program are promising. A survey of 9,000 women showed that it promoted significant behavior changes, especially in terms of financial discipline and budget planning. After the workshop, respondents reported a 27 percent increase in savings and an 18 percent increase in the use of bank accounts for saving. Interestingly, it wasn’t only attendees who benefitted. Respondents shared that after the program, their spouses also engaged in the financial planning exercises and in joint decision-making.
<h3>The road ahead for financial education programs</h3>
While the initial impact has been positive and women have been excited to use interactive tools for building their financial capability, scaling the programs has been challenging. They require large human resource investments, both in terms of time and money. Additionally, the programs do not permit real-time collection of data, which makes supervision and monitoring time-consuming and costly.

India is the world’s second-largest smartphone market and <a href="https://www.gsma.com/mobileeconomy/india">is expected to add over 330 million mobile subscribers by 2020</a>. Many of the new mobile and internet users have experience learning on digital platforms. This gives us the opportunity to build people’s financial capability through online and mobile channels. Mobile-based delivery of information, available whenever and wherever the learner needs it, would reach communities at greater scale than in-person programs currently can.

Accion has already rolled out such tools in Latin America.  The platform <a href="https://www.accion.org/these-women-are-growing-their-businesses-and-their-confidence">Ovante</a> is helping entrepreneurs build and enhance their business skills, grow their enterprises, and adopt healthy habits for using financial products and services. Users access the platform on their mobile phone or computer and receive information and tools to improve their business in real time. Based on the experience in Latin America, Ovante will be tailored for the Indian market and will aim to provide low-income microentrepreneurs with the tools they need to run their businesses and support their families and communities.

Arisha Salman contributed to this article. 

&nbsp;

What's next for financial education in India

Michael Schlein

Digital financial services platform Destacame leverages technology to streamline processes, reach new users, and provide customer service  

“Everything is based on technology,” says Camila Valdés who serves as the chief data officer for Accion partner <a href="https://www.destacame.cl/">Destacame</a>. The online platform enables users in Chile and Mexico to manage their financial lives, access free digital financial health tools, and see appropriate financial service offerings. From back-end development to the way users engage with the platform, innovative technology enables Destacame to understand and serve its customers better, and it will continue to be crucial as the fintech startup grows.

[caption id="attachment_17142" align="alignleft" width="500"]<img class=" wp-image-17142" src="http://content.accion.org/wp-content/uploads/2019/01/2018_Accion_Destacame_Day1__0352-1024x768.jpg" alt="Destacame employee Nel Pérez" width="500" height="375" /> “Technology used in the proper way can make a huge difference in people’s lives,” says Nel Pérez.[/caption]

Nel Pérez is Destacame’s chief technology officer, and he’s the perfect person for this job. Even as a child, Nel was tech-obsessed, focused on learning everything he could about computers and programming. “It was love at first sight with technology,” he says. Despite his abiding infatuation, he emphasizes that his role is not about employing technology for technology’s sake — it has to have a purpose: “It’s not about the technology — it’s about the needs we have that technology can help solve.” Internally, this means leveraging data analytics, cloud storage, and other solutions to keep all of Destacame’s processes running smoothly.

Technology is also the vehicle Destacame uses to connect with its users externally since they can access the service from their own computers or mobile devices, wherever they are. This ability to interact with users regardless of distance is crucial for Destacame’s mission and growth. “Technology allows us to have more of a range, so we can reach the community, whereas before it was impossible because it was not cost-effective. It also allows you to attend to each person’s needs individually. So it’s a service that suits everyone,” says Camila.

[caption id="attachment_17156" align="alignright" width="501"]<img class=" wp-image-17156" src="http://content.accion.org/wp-content/uploads/2019/01/2018_Accion_Destacame_Day1__0909-1024x682.jpg" alt="Destacame employee Virginia Chacón " width="501" height="334" /> Virginia Chacón discusses how Destacame builds customer relationships using technology[/caption]

And technology’s not just useful for reaching new users — it also assists Destacame in building existing customer relationships. “It helps us have a very close relationship with users,” says Virginia Chacón, Destacame’s head of operations. “We can even use Whatsapp to contact our users.” Staying in touch digitally helps Destacame provide customer service and make sure users can all receive the right messages at the right time to take advantage of credit-building opportunities, access services, and build their financial health.

As Destacame continues to grow, the fintech startup is finding even more ways to leverage technology to improve its platform, and José Luis Birrer, Destacame’s product manager in Chile, helps guide that process. Unlike his colleague Nel, José Luis never planned to work in technology, but after interning at a tech company, he found a sense of purpose in the work: “Technology allows people to use data in a better way — better products and better access to services.” He designs new products and implements improvements for existing ones with two factors in mind: first, solving users’ problems, and second, making sure it’s profitable so that Destacame can continue to scale and reach more customers. To inform its development, Destacame analyzes data to understand its users better and build products that meet their needs. “It’s about getting to know our clients so we can see what they need and how we can help fulfill those needs,” says José.

[caption id="attachment_17148" align="alignleft" width="500"]<img class=" wp-image-17148" src="http://content.accion.org/wp-content/uploads/2019/01/2018_Accion_Destacame_Day1__0516-1024x682.jpg" alt="José Luis Birrer, Destacame’s program manager in Chile" width="500" height="333" /> José Luis Birrer, Destacame’s program manager in Chile[/caption]

To help fulfill customers’ needs, Destacame is <a href="https://www.accion.org/achieving-financial-health-in-mexico-and-chile/">currently working with our Global Advisory Solutions team</a> on providing even more robust services. The project, supported by MetLife Foundation, will expand Destacame’s platform to include a financial health dashboard that clearly assesses users’ financial health and sets a roadmap to help them achieve their long-term plans. The platform will also recommend additional products, services, and tools for paying down debt, starting a business, saving for school, and more — these recommendations will evolve along with each user’s financial situation, helping them to take the right steps at the right time to live a financially healthy life.

“Technology used properly can make a huge difference in people’s lives,” says Nel, summing up why technology is so crucial for Destcame’s mission. By always putting users’ needs at the center and emphasizing financial capability-building, Destacame is making the most of technology and setting an example of how inclusive fintech can improve lives.

Fintech fuels inclusive growth for Destacame

Justin Matheson-Turner

Mibanco uses human interaction and financial technology to serve MSME clients in Peru

“This business is part of my family,” says small business owner Joaqium


Joaquim owns a garment business in Mozambique, and it’s a family affair. “I started the business myself,” he says. “I then got married, which was nice because my wife was also in this kind of work, making clothes. So we put our hands together and started working together. My son is at school, studying things that relate to the business.” The feeling extends to his staff; as he puts it: “The people working here are not employees. I consider them family, because we’re all helping each other.”

[caption id="" align="alignright" width="506"]<img src="http://content.accion.org/wp-content/uploads/2019/11/Socremo_Clients_0010.jpg" alt="" width="506" height="337" /> Joaqium examines material at his family-owned garment shop in Mozambique.[/caption]

Back when Accion portfolio partner Socremo Bank was getting established in Joaquim’s area, he wasn’t sure he needed a loan. “I found Socremo because they were going around looking for people to make business with. They came three times, but I wasn’t interested. Then they sent me an invitation to come to their branch and explained who they were, so I got a loan and started working with them,” he says. Now, he’s glad he did. “I think they are a great bank, and I know I am only where I am now because of Socremo. The bank made a huge difference for me, my family, and the community,” he says. 

Joaquim is looking forward to continuing to grow his business, which again he puts in terms of relationships. As he says, “This business is part of my family, so if I make it bigger, my family will also grow.”

Stitching together family and entrepreneurship in Mozambique

Destacame client used the Chilean fintech platform to build his financial capability and overcome his debt

"Having debt is stressful because there is a point where you can't see how you can get out of it,” says Juan Carlos. He just wanted to maintain a lifestyle for his family, but as he had increasingly relied on credit cards, he soon found himself mired in debt and started to lose sleep every night worrying about his debt. Would he ever be able to pay it off? Would he still be able to take care of his family’s needs? Would it hurt his business?

When Juan Carlos found Accion partner <a href="https://www.destacame.cl/">Destacame</a> in 2015, he was struggling to tackle his financial problems: “My life was really complicated and deep in debt, so I reached a stage where I was looking for someone to help me open my horizons, help me reorganize in this area, and help me to get out of the hole.” His debt felt insurmountable, but as he entered all of his accounts into Destacame’s platform, he began to feel a sense of hope. “It made me realize that I could organize myself; it was a huge change in my life,” says Juan Carlos.

Juan Carlos’ story is a good example of why helping people build their financial capability is a critical consideration for financial inclusion. “Sometimes you look for loans, and the banks won't give you one, and sometimes you are not looking, but suddenly you get credit cards approved for so much money,” he says. People don’t just need access to financial tools — they need to be able to use these tools in a way that improves their lives.

Destacame’s market research has revealed that Juan Carlos isn’t an outlier — far too many of its middle- and low-income users don’t fully understand the financial system or how to pick financial products that will be beneficial for them. That’s why the fintech company is currently working with Accion’s  <a href="https://www.accion.org/how-we-work/advise/accion-global-advisory-solutions/">Global Advisory Solutions</a> team to make its platform even more customized and straightforward for users so they can set, visualize, and work toward their goals, using personalized nudges, tips, and incentives. This effort is part of <a href="https://www.accion.org/achieving-financial-health-in-mexico-and-chile/">Accion’s project with Metlife Foundation</a> to work with financial service providers and leverage technology so that everyday people in Latin America can strengthen their financial capability.

For Juan Carlos, Destacame’s intuitive platform is already making a difference in his life. He appreciates how simple it is to use: “It's a wonderful and efficient tool for me. Nowadays you sit at your computer, and you do everything online. You don't have to go out — if you want to make a payment, you can do it online.”

It was hard at first, but Juan Carlos adjusted his expenses and applied all of the money he saved to paying off his bills. Today, he has conquered his debt and is living a life that makes him proud: “I am at peace. I Iive my life more relaxed. We live a happy life with our children.”

His debt felt insurmountable, but fintech helped him conquer it

Emma Morse

Mastercard and Accion are working to empower microbusinesses to leverage the benefits of the digital economy 

Shannon Dwyer

Q&A with Lamine Zarrad, co-founder and CEO of Joust, a neobank for freelancers in the US

Done right, financial inclusion shouldn't just be about making financial tools available to all — we need to ensure that those tools are useful and make a positive impact on customers and their financial health. Building financial health is especially critical as the future of work takes shape, bringing with it both flexibility and uncertainty.

The newest addition to the <a href="https://www.accion.org/how-we-work/invest/accion-venture-lab">Accion Venture Lab</a> portfolio, <a href="https://joust.com/">Joust</a>, is a neobank targeting microentrepreneurs, freelancers, and self-employed workers in the United States. It has set out to tackle many of the financial pain points associated with a shifting economy. Joust offers a suite of financial services tailored to the needs of freelancers, including a business bank account, payments processing, and invoice factoring — all in a single mobile app.

I recently sat down with Lamine Zarrad, the co-founder and CEO of Joust, to discuss what he believes is driving the current economic shift, the issues it creates for the self-employed, and Joust’s unique positioning to solve them.

Q: There are over 57 million freelancers in the US, and Freelancer’s Union projects that by 2027 over half of the American workforce will freelance in some capacity. In your eyes, what is driving this shift?

A: There are several factors we believe are driving this shift. First, we believe there is a seismic shift in labor economics, with the paradigm of the corporation eroding through the advent of new technologies. These technologies are giving individuals the ability to engage with parties across the globe. This leads us to point number two — freelancers value flexibility. Seven out of 10 freelancers are interested in moving somewhere other than a large city, allowing them to optimize for cost of living while participating in the work available in a city hub. Finally, self-employed individuals value the work life balance and job fluidity the type of work often allows.

Q: How do you think this new form of working impacts the way individuals engage with financial institutions?

A: The microbusiness has very similar needs to any other business when it comes to banking. They need access to somewhere they can store funds, the ability to accept payments from clients, and access to liquidity to perpetuate growth. However, because they’re often new, small, and sometimes insignificant to large financial institutions, they struggle to utilize or afford the comprehensive services that are designed for large corporations. As such, freelancers end up piecing together 10 different tools to run their business, while still missing out on some critical financial offerings.

Q: Can you give a brief overview of the product you provide, and which part of that offering you’re most excited to be bringing to market?

A: As a first step, Joust offers a fully functioning business bank account, with streamlined onboarding and no monthly fees or minimum balances. Through the account, users can accept payments and utilize our fully integrated invoicing tool, allowing them to send and accept invoices directly through the app. We are also planning on launching new features later this year based on feedback we’ve received from existing customers.

Last but not least is the PayArmour tool, which we’re especially excited by. PayArmour allows our customers to instantly fund a sent invoice, if they need access to capital, or guarantee invoice payment within 30 days, if they need to manage cash flows. PayArmour is what we believe to be the single most exciting part of our platform and gives us an interesting differentiation from other players in the market.

Q: For this product suite that you’re offering, who is that target customer?

A: When we were building this product, we wanted to help the most vulnerable of this freelancing population. In our eyes, that is not necessarily the individuals who work for a platform, but rather the individuals who are running and managing their own business. Consequently, a lot of the folks in this population fall into the creative side of things —ranging from a marketing consultant to a musician. We work to help our customers feel confident in their operations, and not anxious about the ability to collect.

Q: How is Joust uniquely positioned to address its users' financial health needs?

A: As mentioned before, freelancers need several tools in order to run their business. They often have a bank account with a traditional provider, a payments product, like PayPal or Stripe, an analytics tool like Mint, a bookkeeping tool like Xero or Quickbooks, an invoicing tool, a timekeeping tool, and more. Joust has consolidated a number of these tools into an “all-in-one” app, designed to solve freelancers’ pain points and simplify their operations.

Additionally, by integrating all of this into a single platform, we can glean into the financial health of our users and create a holistic picture. Consequently, we will have the ability to underwrite our customers in a way traditional institutions cannot. We hope to eventually develop a risk score — imagine FICO for the freelancer — that will allow our users to obtain services they otherwise wouldn’t qualify for.

Q: What are your thoughts on the future of work, both in the US and potentially even globally?

A: It’s most certainly a global phenomenon — the US is not alone. While the US and Western Europe are most similar in their dynamics today, a lot of developing countries’ freelancer populations are also growing. When you look at platforms like Upwork, their users are spread across the globe. Technology continues to bring job opportunities to a lot of new places, spurring freelancing activity.

&nbsp;

 We're working with <a href="https://www.mastercardcenter.org/">Mastercard Center for Inclusive Growth</a> to bring <a href="https://www.accion.org/mastercard-and-accion-partner-to-unlock-growth-for-millions-of-underserved-microbusinesses-around-the-world">more small businesses and individuals into the digital economy</a> by partnering with companies in communities around the world to better leverage digital financial tools.

The future of work is here, and financial health is more important than ever

Latest insights

As I walked through Alaba International and Idumota markets on a recent trip to Lagos, I was in awe of the bustling scene. Not even the rainy season’s torrential downpours could silence the Afrobeat music thumping in the background as buyers and sellers jockeyed for a better deal. Alaba International and Idumota markets reign supreme in Lagos, offering all the goods one can imagine. Alaba International, on the southeastern edge of the city, bursts at the seams with satellite dishes imported from China, secondhand PlayStations shipped in from the UK, and other electronics. Idumota buzzes on Lagos Island, just south of the city center, and is a shopper’s delight replete with wax print hauled over from Ghana, locally produced Nollywood movies, and so much more.

Amidst the action in the markets, I interviewed 22 small business owners who are clients of <a href="https://www.accionmfb.com/">Accion Microfinance Bank (AMfB)</a> to learn more about their financial health and capability. This research will guide us as we develop a framework to help micro, small, and medium enterprises (MSMEs) better understand and achieve financial health. The framework is part of a project we’re undertaking with the support of the <a href="https://www.mastercardcenter.org/">Mastercard Center for Inclusive Growth</a> to increase the <a href="https://www.centerforfinancialinclusion.org/what-financial-health-means-for-small-business-owners">financial health and resilience of individuals and businesses</a> around the globe.

Through my conversations with business owners, I learned about what owners viewed as determinants of their success. We hypothesized that MSME financial health rests on three pillars — earning a profit, having access to capital to seize opportunities, and being resilient to economic shocks. The interviews suggest that our framework is on the right track. For instance, limited and slow access to working capital was commonly cited as a barrier to taking advantage of fleeting business opportunities. We also learned that resilience is not as much about cash-on-hand as it is about being able to quickly shift to other income-generating activities to fill an immediate need.

But arguably, the most eye-opening thing I learned from these interviews had to do with financial capability and the path to entrepreneurship, specifically how owners were able to get the know-how and capital to start their businesses. I had assumed that a commercial bank or <a href="http://www.iosrjournals.org/iosr-jbm/papers/Vol17-issue6/Version-2/J017626267.pdf">esusu</a> — a rotating savings and credit association common in Nigeria — were the first two places that a budding entrepreneur would turn to raise seed funding. However, nearly all the merchants and traders I spoke with started their business with a lump sum they earned after spending several years as apprentices in their trade. This practice is part of the centuries-old Igbo apprenticeship model, <a href="https://pdfs.semanticscholar.org/c77a/7e79ec3fb7ce5c9eccdc72d181205251dfb2.pdf">Imu-Ahia</a>.

The roots of Imu-Ahia date back to the European colonial era when the Igbo ethnic group native to southeastern Nigeria started to gain a reputation as highly skilled traders and merchants. Today, the apprenticeship model has been widely adopted across the country. Most apprentices-to-be meet their “boss” — someone who is already well-established in a trade — through a family member or close contact. Reasons abound for why one might become an apprentice. Several entrepreneurs I spoke with decided at a young age that they wanted to be masters of a trade, so becoming an apprentice was always part of their plan. Others became an apprentice as a last resort, often after financial constraints forced them to put off academic or other pursuits.

During their tenure, which can range anywhere between three and seven years, apprentices observe and take notes on the tricks of the trade. They are assigned a variety of responsibilities, and eventually, they’re charged with promoting sales and store management. Although most apprentices aren’t paid, they are afforded accommodation, transportation costs, food, and clothing. Once the agreement — which can be either informal or formal — has been fulfilled, the newly anointed entrepreneurs are provided a lump sum to help them start their shop. One interviewee — a vendor of computer and phone accessories — was compensated with N800,000, the equivalent of approximately US$2,200, after spending five years as an apprentice. This is a decent payout considering he currently spends N350,000 (US $970) a year to rent his shop.

So what exactly does Imu-Ahia tell us about how these entrepreneurs perceive the determinants of their success? Many interviewees captured it perfectly when they shared advice for aspiring entrepreneurs: one must meticulously study and practice the skills needed to run a business before diving into it.

This advice resonates with our team at CFI because it positions financial capability — the knowledge, skills, attitudes, and behaviors necessary to make sound financial decisions — as <a href="https://www.centerforfinancialinclusion.org/four-reasons-focusing-on-financial-capability-is-good-business">an essential contributor to business success</a>. The apprenticeship <a href="https://guardian.ng/technology/apprenticeship-and-mentorship-the-key-to-technology-talent-development/">model serves as a learning and testing ground</a> for those who are set on eventually running their own shop, much in the same way that the modern-day business incubator serves as a testing ground for startups. By the time individuals “graduate” from the apprenticeship model, they will have developed the knowledge and skills to manage business revenues and expenses. They also have plans to take advantage of investment opportunities and experience observing how businesses respond to the ups and downs of the market.

I only interviewed former apprentices who found success in the business world, so there’s still more to learn. We need to do more to understand the relationship between financial capability and business outcomes, especially business failures. Nevertheless, these qualitative findings echo the findings of other research. The <a href="https://www.nber.org/chapters/c8222.pdf">National Bureau of Economic Research</a> conducted a fascinating study that showed the differences in the psychological profile of wage workers, own-account workers, and small and medium enterprise (SME) owners. It found that “ability, motivation, and a competitive attitude are very important in differentiating SME and microenterprise owners.” The <a href="http://documents.worldbank.org/curated/en/884291527663849364/pdf/126687-18-6-2018-9-32-12-InvestigatingSMEFinancialCapabilitiesFINALWEB.pdf">World Bank</a> launched a project to measure financial capability of SMEs. Their analysis showed a positive correlation between financial capability and a firm’s size and level of sales.

The striking thing about what we learned in Lagos is not so much that financial capability contributes to business success, it is how, in the Nigerian system such capability is learned: over a period of years, through experience, and under the watchful eye of a knowledgeable mentor.

Keep reading the <a href="https://www.centerforfinancialinclusion.org/blog">CFI Blog</a>, where we’ll share future findings as we conduct surveys around the world on MSME financial health!

A version of this post originally appeared on the <a href="https://www.centerforfinancialinclusion.org/what-an-apprenticeship-system-may-reveal-about-the-financial-health-of-small-business-owners-in-nigeria">Center for Financial Inclusion at Accion blog</a>.

In Nigeria, apprentices can learn more than a new trade

After months studying the drivers of financial health and mobile and internet usage in eastern Europe, I was excited when our team finally landed in Serbia. During the hour-long taxi ride from Belgrade’s Nikola Tesla Airport to Novi Sad, we finalized our work plan for the coming days while catching glimpses of the countryside.

We came to Serbia to join our colleagues at the <a href="http://mfc.org.pl/">Microfinance Centre</a> (MFC) in conducting in-depth interviews with current and prospective customers of <a href="http://www.obs.rs/eng/">Opportunity Bank Serbia</a> and <a href="http://fiiw.pl/">Fundacja Innowacja i Wiedza</a> (Foundation for Innovation and Knowledge). We wanted to learn everything we could about the interviewees’ ambitions, challenges, attitudes, and technology use, so we can use these insights to design and develop a digital tool that will help clients understand and improve their financial health. This research is part of the <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/building-financial-capabilities-and-strengthening-institutions-through-customer-centered-innovations/">Building Financial Capabilities &amp; Strengthening Institutions through Customer-Centered Innovations</a> project, supported by <a href="https://www.metlife.com/corporate-responsibility/metlife-foundation/">MetLife Foundation</a>.
<h2>Euros vs. dinars: Serbia’s dual-currency dynamic</h2>
[caption id="attachment_18520" align="alignleft" width="500"]<img class="wp-image-18520" src="http://content.accion.org/wp-content/uploads/2019/05/ECA-pic-2-1-1024x767.jpg" alt="Novi Sad taxi" width="500" height="375" /> Taxis in Novi Sad, Serbia, often quote cab fares in euros.[/caption]

As we pulled up to the hotel, I was perplexed when our driver, Božidar, quoted the cab fare in euros. Last time I checked, the dinar was the currency of Serbia, since it remains an EU candidate country. Yet Božidar demanded that we pay him in euros, as did many other local vendors. We discovered that our interviewees commonly use euros alongside dinars. One farmer said that she quickly deposits any payments made in euros, but she tends to use her dinars for everyday purchases or stash them at home for emergencies. A shop owner said the majority of her suppliers pay her in euros while she accepts payments from customers in both currencies.

The trend of “euroization” or “dollarization” — a foreign currency substituting or complementing the domestic one — is well studied. The graph below, from the <a href="https://www.oenb.at/en/Monetary-Policy/Surveys/OeNB-Euro-Survey.html">Austrian central bank’s Euro Survey</a>, shows that among its neighbors in central, eastern, and southeastern Europe, Serbia is the most euroized, with the highest proportion of all its cash and deposits held in the form of euros.

Why multiple currencies create financial health challenges in Serbia

If you’ve never used financial services in the past, you’re going to encounter a significant learning curve when you finally get access. That’s why more institutions are rolling out products to support first-time clients and equip them with actionable tips and tools to simplify their experience. These new services aren’t just good for customers, they’re good for business. By helping consumers attain the <a href="https://www.centerforfinancialinclusion.org/a-change-in-behavior-catalogue-of-innovations-in-financial-capability">knowledge, skills, attitudes, and behaviors</a> necessary to make sound financial decisions — what we call financial capability — customers can become more informed and engaged. In other words, they become better customers.

For any financial institution interested in increasing customer loyalty, building better financial capability is crucial.

<a href="https://www.accion.org/accion-and-metlife-foundation-announce-expanded-partnership-to-advance-financial-inclusion/">As we work with MetLife Foundation</a> to expand financial capability through customer-centered innovations, we’re excited about the potential benefits for both customers and institutions. Here are four reasons why helping clients build their financial capability is a win-win:
<h3>1. Financial capability drives active use of financial products </h3>
Products that help increase financial capability, <a href="https://www.centerforfinancialinclusion.org/financial-capability-building-practices-in-mexico">drawing insight from behavioral science</a>, can encourage customers to use products more often, which translates to higher profitability for providers and greater usefulness to customers.

Take the case of <a href="https://www.grupobancolombia.com/wps/portal/personas/productos-servicios/cuentas/ahorro/transaccional/ahorro-a-la-mano">Ahorro a la Mano</a>, a mobile savings product and e-wallet from Bancolombia, the largest bank in Colombia. The bank discovered that if a customer does not make a transaction within the first month of opening the account, she is unlikely to make a transaction at all. It decided to use <a href="https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/nudge/">“nudges”</a> to remind users to put money into their savings.

Bancolombia worked with<a href="https://www.forbes.com/sites/petercohan/2011/06/01/juntos-finanzas-helps-latinos-save-plan/#3c0a808d5db3"> Juntos</a>, a fintech company that specializes in data science and behavioral insights. Juntos developed a chatbot named <a href="https://content.centerforfinancialinclusion.org/wp-content/uploads/sites/2/2018/08/IIF-CFI_FI-Fintech_Partnerships_Final.pdf">“Emilia,”</a>  that could point out opportunities to use the product and makes special offers to encourage transactions within the first month. Because they provide individually tailored messages in a friendly, personal voice, Emilia’s nudges and reminders build trust with clients, and they become more likely to act on her suggestions.
<h3>2. Customer loyalty increases</h3>
As customers use their products more frequently, they are likely to become more loyal. Most financial service providers’ balance sheets and product viability calculations do not figure long-term customer loyalty into their calculations, but customers that stick with a provider over time are important to business success.

In September 2017, BBVA launched <a href="https://www.bbva.com/en/bbva-opens-its-banking-app-in-spain-to-accounts-and-products-from-other-providers/">Bconomy</a>, a digital platform meant to add value to the customer experience by giving them a full picture of their financial health. Fueled by data analytics, the platform uses behavioral insights to encourage positive behavior. Clients can see an overall snapshot of their finances, turning their bank accounts into financial management hubs. The tool ensures that customers continue returning to the platform and rely on BBVA as their primary financial provider. To date, the platform has had over <a href="https://www.centerforfinancialinclusion.org/banking-sector-approaches-to-customer-engagement-and-capability">2 million users per month.</a>
<h3> 3. Capable customers use more products</h3>
Part of the accepted definition of financial capability is a person’s confidence in using a wide range of products to meet their financial needs. Savvy institutions that promote financial capability also build appropriate follow-on products for customers. Institutions that ignore this strategy may see their first-time customers move on to other providers as they become more comfortable with formal finance.

<a href="https://acreimex.com.mx/">Acreimex,</a> a savings and credit cooperative in Mexico, has incorporated savings into payroll loan repayments so that customers who opt in can save painlessly while they repay their loans. Savings discipline is a key attribute of financially capable people, and automated savings is a tool that assists people to stick to their best intentions. Acreimex built this option by combining its two most popular products. It merged its payroll loan and savings services by rounding up repayment installment amounts and automatically depositing the excess amount into clients’ savings.

The combination of products resulted in significant increases in savings activity and balances. An <a href="https://optixproject.org/acreimex/">evaluation</a> showed that participants made about twice as many deposits and saved 30 percent more than those who didn’t participate. Additionally, <a href="https://nextbillion.net/stealthy-saving-building-on-payroll-credit-to-automate-savings/">96 percent of savers chose not to withdraw</a> the balances from their accounts throughout a 12-month pilot. 
<h3>4. Investing in financial capability is more effective — and less expensive </h3>
Traditional, classroom-based financial instruction is costly. Features that build financial capability are often cheaper and more effective because they generate direct and longer lasting behavior change.

When <a href="https://www.nefe.org/Portals/0/WhatWeProvide/PrimaryResearch/PDF/CU%20Final%20Report.pdf">researchers analyzed</a> more than 200 individual impact studies on financial education, they found that only 0.1 percent of the observed positive changes in people that had attended classroom-based financial education programs could be attributed to the programs themselves.

On the other hand, impact evaluations of financial products that incorporate behavioral insights to nudge client behavior consistently find statistically significant positive impacts. For example, in a study with <a href="http://www.bancoadopem.com.do/app/do/frontpage.aspx">Banco ADOPEM</a>, <a href="https://www.povertyactionlab.org/sites/default/files/publications/124_303%20Rules%20of%20Thumb%20AEJ%20Apr2014.pdf">researchers tracked customers</a> who attended either a traditional accounting-based financial education class or a class that, in keeping with behavioral insights, offered simple rules of thumb in accounting. Both classes aimed to assist customers to separate business and personal accounts. In the end, the customers who received the simplified rules of thumb displayed more positive business outcomes — they saw a 30 percent increase on average in the level of sales during weeks with typically low sales and saved an average of 6 percent more in personal savings.

More and more institutions are thoughtfully designing products and experiences that not only match their customers’ experiences and lives, but also consider their attitudes, skills, and behaviors. Financial institutions that invest in building up financial capability are likely ensuring they will have customers that are more active users of their products, that are loyal for longer, and that will use a wider variety of products.

We’ll continue to share insights on financial capability based on research conducted by Accion’s Global Advisory Services team and the Center for Financial Inclusion as part of our project on <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/building-financial-capabilities-and-strengthening-institutions-through-customer-centered-innovations/">Building Financial Capabilities and Strengthening Institutions through Customer-Centered Innovations project</a>, supported by MetLife Foundation.

Four reasons focusing on financial capability is good business

India is one of the fastest growing and most complex markets for inclusive finance, and there is a massive opportunity to extend financial services to the underserved. But the country has struggled in the past with unbridled growth of the microfinance sector leading to a crisis in debt stress, notably in <a href="https://www.huffingtonpost.com/elisabeth-rhyne/on-microfinance-whos-to-b_b_777911.html">Andhra Pradesh</a> in 2010.

Policymakers and networks of microfinance institutions actively responded to these crises and elevated consumer protection on the policy agenda. But it’s one thing for regulators to signal policy support for consumer protection. It’s quite another to tackle the nuts and bolts of implementing best practices, especially in a market as complex as India.

One of the scalable solutions to arise in India is the concept of microfinance networks as Self-Regulatory Organizations (SROs). Networks that have been designated by the Reserve Bank of India (RBI) as SRO networks are responsible for monitoring compliance of member microfinance institutions (MFIs) to the microfinance industry code of conduct and providing an effective grievance redressal mechanism between borrowers and member institutions. <a href="http://www.sa-dhan.net/">Sa-Dhan</a>, the largest organization of community banks in India, was designated an SRO in 2015. While Sa-Dhan had previously filled a quasi-regulatory role, this official designation expanded its mandate for monitoring and enforcement, in turn increasing its need for tools to identify and respond to risks at both the market and institution levels.
<div id="attachment_33139" class="wp-caption alignleft">

[caption id="attachment_33139" align="alignleft" width="500"]<img class="wp-image-33139" src="https://content.centerforfinancialinclusion.org/wp-content/uploads/sites/2/2018/10/Sa-Dhan-tool-launch-photo-1024x714.jpg" alt="announcement-of-sadhan-monitoring-tool-group-photo" width="500" height="349" /> The Sa-Dhan monitoring tool was announced at a launch event during the Sa-Dhan Annual Conference in New Delhi in September 2018.[/caption]

</div>
Aiming to make a country-wide impact on the state of consumer protection in India, CFI’s Smart Campaign and Accion’s Global Advisory Services collaborated with Sa-Dhan to build a digital monitoring tool based on the <a href="https://www.smartcampaign.org/about/smart-microfinance-and-the-client-protection-principles">Smart Campaign’s global standards</a> for financial consumer protection and local regulatory guidelines. The tool is to be the vehicle through which Sa-Dhan collects the information it needs from its members to fulfill its supervisory role in maintaining compliance with the code of conduct. Accion’s advisory team led the digitization of the tool, building of the data warehouse, and the corresponding web platform. The tool was officially launched at <a href="https://www.accion.org/sa-dhan-the-smart-campaign-launch-ifc-backed-monitoring-tool-to-strengthen-consumer-protection">Sa-Dhan’s annual conference</a> with technical and financial support from the International Finance Corporation. Sa-Dhan’s members can now efficiently self-report data through the tool’s online interface, and Sa-Dhan can quantitatively assess market dynamics, especially areas of overindebtedness risk.

This new monitoring mechanism will help to instill consumer protection in Sa-Dhan’s nearly 200 member institutions and protect more than 30 million clients in India.

Across the microfinance sector, new examples of “regtech” and “suptech” are emerging. Just as technological transformation of microfinance institutions can scale their services to new clients, technology can help regulatory bodies meet their broadened responsibilities to oversee the proliferation of lenders. P. Satish, Executive Director of Sa-Dhan sees the new tool as an essential component for self-regulation because it will “help member MFIs with their data analytics and compliance measures, as well as reduce potential client distress.”

After the initial rollout and training workshops for microfinance institutions across the country, Sa-Dhan will put the tool into practice and will use the reports in consultation with the RBI to identify “hot spots” of overindebtedness or lack of compliance to the code of conduct. These reports will also help Sa-Dhan identify under-penetrated areas and help lenders to expand services.

India’s experimentation with self-regulation holds lessons for the world. Traditionally, self-regulation models have been met with skepticism, especially regarding how non-government networks can monitor and enforce compliance among members. The collaboration between the RBI and self-regulatory organizations in India give weight to the microfinance networks through a layered regulatory approach, and technology advances can build the capacity of networks like Sa-Dhan to access data from their members and oversee performance.

The Sa-Dhan monitoring tool can serve as a model for expanding consumer protection in other markets, especially those where there are concerns about rising debt stress. Better monitoring tools can serve as an early warning system and help provider networks or regulators head off crises before they spread.

This post was originally published on <a href="https://www.centerforfinancialinclusion.org/a-new-digital-monitoring-tool-in-india-could-boost-consumer-protection-capacity">the Center for Financial Inclusion at Accion blog</a>.

Increasing consumer protection for 30 million clients in India

According to the <a class="markup--anchor markup--p-anchor" href="https://globalfindex.worldbank.org/" target="_blank" rel="noopener noreferrer">Global Findex</a>, the percentage of adults in Mexico who are saving money at a formal institution plunged from 15 percent to 10 percent in just the <a class="markup--anchor markup--p-anchor" href="https://globalfindex.worldbank.org/" target="_blank" rel="noopener noreferrer">past three years</a> — despite financial inclusion strategies <a class="markup--anchor markup--p-anchor" href="https://cfi-blog.org/2016/07/01/mexico-launches-comprehensive-financial-inclusion-strategy/" target="_blank" rel="noopener noreferrer">enacted by the government</a>. This steep decline in usage of savings accounts came as a surprise and also hit close to home for me as a Mexican. This <a class="markup--anchor markup--p-anchor" href="https://medium.com/accion/is-financial-inclusion-stalling-af0fbd502550" target="_blank" rel="noopener noreferrer">trend is a cause for concern</a>, and it’s also a call to action. At Accion, we took this as an opportunity to listen to the people we’d like to see benefit from financial services. <a class="markup--anchor markup--p-anchor" href="https://medium.com/accion/how-accion-metlife-foundation-will-improve-financial-inclusion-in-latam-1838b934d3e0" target="_blank" rel="noopener noreferrer">With the support of MetLife Foundation</a>, we wanted to understand why fewer people were saving in banks, what products and services people were using — and who was providing those services if it wasn’t formal institutions.
To get answers about what people in Mexico want from their financial service providers, I recently traveled home to Mexico City as part of a team of researchers. We listened to small merchants map out their entire financial lives; their motivations, goals, and aspirations, how they feel about various types of financial services, the strategies they use to stay financially healthy, and more.
Our biggest surprise? The individuals we talked with know about and can access a lot of financial products — they just aren’t using them.
All of the individuals we spoke to reported having access to microloans, consumer store credit, credit cards, and savings accounts. Financial access didn’t seem to be an issue for them — not even in the more rural areas we visited two hours outside the city. Even though our small, qualitative study may not be rigorous enough to extrapolate to the broader population, this finding seems to be consistent with national data. In Mexico, <a class="markup--anchor markup--p-anchor" href="https://www.cnbv.gob.mx/Inclusi%C3%B3n/Documents/Reportes%20de%20IF/Reporte%20de%20Inclusion%20Financiera%208.pdf" target="_blank" rel="noopener noreferrer">86 percent of banking branches are located in urban areas</a>, so people close to the city are unlikely to deal with a shortage of services. What our interviews revealed is that a different issue is preventing further inclusion: lack of alignment between what low-income customers want and what current financial products offer. Most people we talked to dislike dealing with large commercial banks, and they continuously decline the offers for financial services they regularly receive, at their doorstep or in public places

<figure class="graf graf--figure graf--layoutOutsetLeft"></figure>
<div id="attachment_8449" class="wp-caption alignleft">

[caption id="attachment_8449" align="alignleft" width="500"]<img class="wp-image-8449" src="http://blogs.accion.org/wp-content/uploads/2018/07/IMG_0825-768x1024.jpg" alt="Woman holding baby" width="500" height="667" /> Azucena works as a housewife in Alpuyeca, Morelos in Mexico.[/caption]


</div>
Many of the people we interviewed still prioritize saving cash at home, even if they also have a formal savings account. For example, Azucena, a former teller at a large commercial bank branch, told us that despite her relationship with a bank, she and her husband still prefer to store cash informally. “We save at home, but we do so separately, using different lock boxes for different purposes,” she says.
Through our conversations with clients like Azucena, we discovered that informal alternatives like lock boxes continue to be more convenient for clients and preferable to formal options. Keeping cash at home is, after all, indispensable for unexpected emergencies. If your money is in a bank, you’d have the hassle of getting there and waiting. Plus, it may not be available 24/7, and you can run into issues if the ATM is offline or the pharmacist, mechanic, or whomever else you’re turning to for help doesn’t take a debit card.
In many cases, the interviewees’ savings accounts had been opened for them by former employers to serve as payroll accounts or by government programs for disbursement of benefits. These accounts were less “savings accounts” and more “distribution” accounts that were immediately turned into cash and saved at home. Because the savings aspect wasn’t used — in fact, was never emphasized — once they switched jobs or stopped receiving benefits, they let the accounts lapse.
Convenience may be a key issue, but it is not the only one. Feeling unsafe withdrawing money from a bank branch is also an issue because thieves wait where the money is — outside bank branches and near ATMs. The lack of trust our interviewees placed in financial institutions was often less about security and more about the unclear, high (real, or perceived) maintenance fees banks charge on savings accounts.
Despite this perceived aversion to formal accounts, we found that people still continue to save and set high financial goals for themselves. In all the interviews we conducted, the number one financial goal was saving to access better opportunities: the education of their children, a home for their family, or the chance of opening their own business. The demand is clearly there, and most of the people we talked to were indeed saving.
We heard from customers, and now we’re working with a mix of fintechs and financial service providers of all sizes to use those insights to create financial products that customers will want to use as key tools for their financial lives. Stay tuned!
This research was conducted by Accion, the <a class="markup--anchor markup--p-anchor" href="http://www.centerforfinancialinclusion.org/" target="_blank" rel="noopener noreferrer">Center for Financial Inclusion at Accion</a>, and <a class="markup--anchor markup--p-anchor" href="http://www.dalbergdesign.com/" target="_blank" rel="noopener noreferrer">Dalberg Design</a> as part of our part of our <a class="markup--anchor markup--p-anchor" href="http://www.accion.org/accion-and-metlife-foundation-announce-expanded-partnership-to-advance-financial-inclusion/" target="_blank" rel="noopener noreferrer">Building Financial Capabilities and Strengthening Institutions through Customer-Centered Innovations</a> project, supported by MetLife Foundation.

Why aren’t people saving money in Mexico?

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Mibanco helps small businesses access capital and advice in Peru


Prateek Shrivastava

BancoSol shines for its innovation and efficiency. Even as competition grows, the bank serves more clients in the microenterprise sector than any other institution in the country. Despite many obstacles, including <a href="https://www.export.gov/article?id=Bolivia-Banking-Systems">strict regulations</a>, the bank has managed to continuously improve its performance by expanding its outreach to underserved clients through automated processes and channels. By exploring better ways to serve its target market with new products, alternative delivery channels, and technological solutions, BancoSol maintains client trust and continues to grow. BancoSol’s delinquency rate hovers at less than 1 percent, the lowest in Bolivia’s microfinance industry and one of the best in the world.
<h2>Unleashing a new era of innovation </h2>
Kurt Koenigsfest, BancoSol’s Chief Executive Officer, has led the bank since 2000. Kurt and his team recognized the importance of developing low-cost products that enable small businesses to grow. By innovating processes and products, BancoSol has continued to grow even through market uncertainty.
To ensure continued growth, BancoSol has aligned on a three-pillared strategy:
<ol>
<li>Continue strengthening the efficiency of current operations</li>
<li>Enhance and drive adoption of existing products and customer-facing channels to serve clients more effectively</li>
<li>Drive disruption through an innovation hub that supports long-term innovation.</li>
</ol>

Accion, as part of <a href="https://www.accion.org/mastercard-and-accions-partnership-to-unlock-millions-of-underserved-microbusinesses">our partnership with Mastercard</a>, is supporting the bank to create an innovation hub that would offer a safe space for experimentation. Through the hub, Bancosol will develop new products and improve on existing ones to further strengthen the bank’s value proposition with micro merchants in Bolivia. The hub will foster disruptive innovation by improving existing products and delivering them to new client segments. This will ensure that innovations can be absorbed into the bank and supported by existing processes. Through this methodology, 10 percent of outputs will reflect incremental innovation, 20 percent differentiating, and 70 percent disruptive.
<div id="attachment_19861" style="width: 760px" class="wp-caption alignnone"><img aria-describedby="caption-attachment-19861" class="wp-image-19861" src="http://content.accion.org/wp-content/uploads/2019/09/alchemy_chart.png" alt="Alchemy of Growth chart" width="750" height="381" srcset="https://content.accion.org/wp-content/uploads/2019/09/alchemy_chart.png 974w, https://content.accion.org/wp-content/uploads/2019/09/alchemy_chart-300x152.png 300w, https://content.accion.org/wp-content/uploads/2019/09/alchemy_chart-768x390.png 768w" sizes="(max-width: 750px) 100vw, 750px" /><a href="https://www.innovationexcellence.com/blog/2018/09/20/the-70-20-10-rule-for-innovation/">From Baghai, Coley, and White’s book, The Alchemy of Growth</a></div>
Over the next two years, Accion will help build BancoSol’s “innovation methodology”— a blueprint of how to develop, test, and implement data-driven, digitally enabled innovations. We&#8217;ll also establish linkages and partnerships with key innovation hubs around the world and build minimum viable products that can scale and support change management within BancoSol. This approach will support the bank&#8217;s digitization and help micro merchant customers finally enter the formal economy.
The ingenuity that led Bolivia to develop Mi Teleferico is the same spirit I see when I meet with our partners at BancoSol. And I have no doubt that Kurt and his team will harness this spirit of innovation to make a real impact for micro and small business owners. As BancoSol puts this new strategy into action, Bolivia is poised to become a global leader in innovative digital financial products.

Accion will work with BancoSol to build an innovation hub to create world-class digital financial services

Dandan Wang

With a customer-centric approach that balances technology and human interaction, microcredit company Grassland Finance empowers entrepreneurs

Ashley Lewis

Insights on big data, mobile payments, and what China’s model means for financial inclusion in Nigeria

Accion, MetLife Foundation, and the Chinese Association of Microfinance launched the first holistic, systematic microfinance management training and capacity building initiative in China. The program involved a hands-on approach so participants could develop their leadership and management skills, as well as sound technical knowledge in microfinance operations and human capital management. The program reached 73 participants from 34 leading microfinance institutions which serve more than one million clients.

We recently expanded our partnership with programs that leverage digital solutions to enhance underserved customers’ financial capabilities and engagement. In Latin America, we are working to better understand customer needs and help financial service providers design, test, and implement innovations that drive usage and improve customers’ financial capabilities. In Eastern Europe, we are partnering with Microfinance Centre, a regional microfinance resource center and network of organizations in Europe and Central Asia, to develop and promote digital tools that providers can use to diagnose clients’ financial health, identify gaps, and develop actionable plans to improve their financial well-being.

Accion and MetLife Foundation pursue joint opportunities — like content collaborations, speaking opportunities, research, and commentary — to engage the industry and help it better reach the underserved. Accion shares stories of our impact through MetLife Foundation initiatives like the Wall Street Journal’s <a href="https://partners.wsj.com/metlife/multipliers/articles/bridging-entrepreneurial-gender-gap/?cx_testId=0&amp;cx_testVariant=cx_1&amp;cx_artPos=24&amp;cx_type=search&amp;cx_spnsr=djcc_metlife&amp;cx_navSource=djcc_metlife-unfiltered#cxrecs_s">Multipliers of Prosperity</a> platform and the <a href="https://nextbillion.net/does-greater-inclusion-lead-to-financial-health/">Next Billion</a> blog. Together, the Center for Financial Inclusion at Accion (CFI) and MetLife Foundation support the Economist Intelligence Unit&#8217;s Global Microscope, which benchmarks national progress on financial inclusion around the world and catalyzes reform. And a two-year initiative between CFI, the Institute of International Finance, and MetLife Foundation is using research, knowledge exchange, best practices, real world examples, and expert insights, to identify and share practical guidance that financial institutions can use to expand quality services to the poor.

In 2011, CFI launched an initiative using 2020 as a target date to spur the financial inclusion community to more significant impact. MetLife Foundation advised the effort and provided financial support to CFI’s working groups, each tasked with creating a roadmap for a different enabler of inclusion. This effort culminated in a global forum that brought together practitioners and thought leaders in financial inclusion. To help sustain the momentum, the Foundation sponsored several CFI initiatives to develop tools and research for the industry.
Today, MetLife Foundation continues to be a thought partner, a collaborator, a funder, and an advisor to Accion, providing critical support for our efforts to build a financially inclusive world.

Jim Rosenberg

Microfinance manager shares her secrets for success financing entrepreneurs

Jacqueline Foelster

Research shows how small business owners hone their financial capability as they build job skills

People choose to use euros instead of local currency to protect wealth and hedge against risks of exchange rate depreciation —  something that’s a relatively recent bad memory in Serbia. Many of our interviewees recall the <a href="https://www.nytimes.com/1996/07/09/world/isolated-and-corrupt-serbia-s-economy-stagnates.html">hyperinflation</a> that plagued the economy in the early- to mid-1990s around the dissolution of the Socialist Republic of Yugoslavia. At the peak of Yugoslavia’s hyperinflation, <a href="https://www.vice.com/sv/article/4w38wq/poorest-billionaires-serbia-876">500,000,000 dinars bought a loaf of bread</a>. Several of our interviewees recognized that some of their attitudes toward money might be rooted in the past. And while current realities suggest that the dinar is stable today, risk aversion may be the more prudent course.
<h2>Euros are for saving — dinars are for spending</h2>
Our interviews revealed several insights, particularly around operating in multiple currencies. First, people form mental constructs about the purpose and use of each currency. For the farmer, and several other of our interviewees, euros are for saving, and dinars are for spending. People perceive euros as more stable, and depositing the euros in a bank account or any other formal or informal savings instrument may remove the temptation to spend them If these constructs hold, it could mean that individuals who receive most of their cash in dinars may spend their money more quickly than their peers who rely more on euros.
Our interviews also highlighted the need to manage liquidity properly, which is more complicated in two currencies. The shop owner we spoke with uses euros to pay for her inventory, but she also needs to ensure that her till is stocked with dinars so that she is ready to accept customer payments in both currencies.
Perhaps most important, our field research also confirmed that the risks involved in using multiple currencies, such as borrowing in one currency while operating in another, are a significant consideration when it comes to building financial health. Financial institutions, which have offered loans in a hard currency to people operating primarily in a soft local currency, have often exported currency risk to clients who are not well positioned to handle it. And they have suffered along with their customers when devaluations made it too costly for customers to repay hard-currency loans.
<h2>Next steps in our financial health project </h2>
As we start to develop a digital tool that clients can use to understand their financial health better, one challenge is making sure it accounts for the particular financial behaviors and cognitive biases of a dual-currency system. In addition to brainstorming ideas for behavioral nudges, we need to consider the tool’s user interface, i.e., for our target users in Serbia, are we going to express the value of money in terms of dinars or euros — or both?
We’re excited to put the insights we gained in Serbia to the test and use a customer-centered approach to designing and developing a new solution to help customers build their financial health. Keep an eye on the <a href="https://www.centerforfinancialinclusion.org/blog">CFI Blog</a> for an update when we’re done prototyping in a couple of months!
We’ll continue to share insights on financial capability based on research conducted by the Center for Financial Inclusion at Accion (CFI) and Accion’s Global Advisory Solutions (GLAS) as part of our project on <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/building-financial-capabilities-and-strengthening-institutions-through-customer-centered-innovations/">Building Financial Capabilities and Strengthening Institutions through Customer-Centered Innovations project</a>, supported by MetLife Foundation.
This post was originally published on <a href="https://www.centerforfinancialinclusion.org/dinars-vs-euros-financial-health-and-the-multiple-currency-dynamic">the Center for Financial Inclusion at Accion blog</a>.

Currency is one issue that will inform prototyping of a financial health digital tool for Serbia and other countries in Eastern Europe

Pablo Anton-Diaz

Expanding financial capability benefits financial service providers and customers

Alex Taylor

The Smart Campaign and Accion’s Global Advisory Solutions team up to build a digital monitoring tool for Sa-Dhan, the largest network of microfinance institutions in India

Customer research offers insights into the drop in financial product usage in Mexico

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