GRID Impact Presenation at CFI March 2014


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human centered design + behavioral economics + international development

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GRID Impact Presenation at CFI March 2014

  1. 1. Client-Centered Design at the Base of the Pyramid Alexandra Fiorillo Principal, GRID Impact March 12, 2014
  2. 2. I made up my mind ...that I would never try to reform man—that’s much too difficult. What I would do was to try to modify the environment in such a way as to get man moving in preferred directions. //R. Buckminster Fuller// global  |  research  |  innova0on  |  design   2  
  3. 3. Where Do We Go From Here? ① Human-Centered Design ② Behavioral Economics ③ Hybrid Approach: Behavioral Design ④ Behavioral Design in Financial Inclusion ⑤ Activity! ⑥ 6 Principles to Remember (take notes!) global  |  research  |  innova0on  |  design   3  
  4. 4.  global  |  research  |  innova0on  |  design   4  
  5. 5. Improving Cookstoves How might we make clean cooking more affordable and accessible? global  |  research  |  innova0on  |  design   5  
  6. 6.  global  |  research  |  innova0on  |  design   6  
  7. 7. global  |  research  |  innova0on  |  design   7  
  8. 8. desirability   (human)   Viability   (business)   Feasibility   (technical)   Human-Centered Design (HCD) The discipline of generating solutions to problems and opportunities through the act of making “something” new, where the activity is driven by the needs, desires, and context of the people for whom we design.1 ①  Empathy & deep understanding of client needs ②  Interdisciplinary & creative collaboration ③  Experimental and iterative process 1  Luma  Ins0tute  2011       The  solu0ons  that  emerge  at  the   end  of  the  human-­‐centered  design   process  should  hit  the  overlap  of   these  three  lenses  global  |  research  |  innova0on  |  design   8  
  9. 9. Product Re-Design Project with CARD Bank in the Philippines global  |  research  |  innova0on  |  design   9  
  10. 10. Improving Microsavings Behavior How might we help members and non-members build savings balances in CARD Bank savings accounts? global  |  research  |  innova0on  |  design   10  
  11. 11. To define the problem we contrasted observed behavior with desired behavior Many  CARD  Bank  clients  do  not   build  sufficient  balances  in  their   CARD  Bank  accounts  to  meet   their  goals.  They  may  not  be   deposi0ng  money  oTen  enough   or  in  large  enough  amounts.   They  may  be  saving  informally   or  not  at  all.   Observed  Behavior   CARD  Bank  clients  build  savings   balances  in  CARD  Bank  savings   accounts  by  making  deposits   and  limi0ng  withdrawals.       Desired  Behavior   global  |  research  |  innova0on  |  design   11  
  12. 12. Behavioral Diagnosis of Savings Behavior at CARD Bank BoUleneck  #1:  The  required  minimum  deposit  into  the  Pledge   account  anchors  clients  to  lower  deposit  amounts.     BoUleneck  #2:  Clients  open  new  accounts  without  an   inten0on  or  plan  about  how  to  use  them.     B#3   B#4   BoUleneck  #3:  Clients  do  not  enroll  in  regular  savings   collec0on  because  the  decision  is  not  made  salient  at  the   moment  of  choice.     BoUleneck  #4:  Saving  goals  are  distant  and  abstract,  while   today’s  financial  tempta0ons  feel  pressing.     B#1   B#2   global  |  research  |  innova0on  |  design   ideas42      12  
  13. 13. Card bank staff and clients informed the final designs through user experience testing 13  
  14. 14. New Savings Plan Savings  Plan   focuses  on   the  client’s   savings  goals   Amount   client  wants   to  save  is   made  salient   Client   chooses  their   reason  for   saving   New  sec0on   that  links  the   savings   purpose  to   the  type  of   savings   account   Client  makes   a  specific   plan  for   when  they   can  save   Client  signs   crea0ng  the   feeling  of  a   commitment   global  |  research  |  innova0on  |  design   Ideas42      14  
  15. 15. Results & Lessons Learned 15%  HIGHER   INITIAL   DEPOSITS   73%  MORE  LIKELY   TO  INITIATE   TRANSACTION  IN   NEW  ACCOUNT   TREATMENT   INCREASED   BALANCES  37%   ① Embedding  behavioral  principles  into   product  design  can  trigger  desired   behaviors   ② Focus  on  helping  people  take  ac0on   rather  than  providing  them  with  more   informa0on   ③ Rigorous  data  analysis  is  an  important   component  of  developing  deep   behavioral  insights  –  and  ins0tu0on  need   to  support  this  capability   ④ Using  a  randomized  controlled  trial   methodology  to  test  impact  and   outcomes  providers  rigorous  evidence  to   support  business  decisions   global  |  research  |  innova0on  |  design   Ideas42    15  
  16. 16. Behavioral Economics (BE) A method of economic analysis that applies psychological insights into human behavior to explain economic decision-making. Strengths: ①  Evidence-backed research of actual human behavior & biases ②  Improvement from “rational choice” model ③  Framework for “diagnosis” of behavioral biases global  |  research  |  innova0on  |  design   16   Insights: ④  People have inconsistent preferences ⑤  Small, often overlooked, non-economic factors play a large role ⑥  Insights about why people do what they do suggests new ways to act and products
  17. 17. Behavioral   Research   &  Design   Behavioral   Economics   Human-­‐ Centered   Design   Behavioral Research & Design A process that uncovers behavioral motivations & biases and informs the design of products & services that people will like and actually use. Deep  behavioral   insights   Crea0vity  &  empathy   global  |  research  |  innova0on  |  design   17  
  18. 18. GRID Impact’s Methodology global  |  research  |  innova0on  |  design   18   EXAMINE   UNDERSTAND   DESIGN   EXPERIMENT   DISSEMINATE   Listen, observe, redefine Draw insights & collaborate Brainstorm & create Get feedback & iterate Share & learn EMPATHY    
  19. 19. Behavioral Map global  |  research  |  innova0on  |  design   Ideas42  19   Identify contextual barriers to behavioral outcomes
  20. 20. The  Design  Gym  
  21. 21. The  Design  Gym  
  22. 22. Understanding Your Research the design gym Understand Ideate ExperimentExamine Distil UNDERSTAND DATA A Few Steps INSIGHTSTHEMES RELATIONSHIPS The  Design  Gym  
  23. 23. Design to Experiment: From Observations to an Idea
  24. 24. A Vision for Full Financial Inclusion Biggest Obstacles ①  Financial literacy ②  Limited institutional capacity among MFIs ③  Microfinance’s single- product approach ④  Limited understanding of client needs Biggest Opportunities ①  Financial education ②  Expanding the range of products ③  Credit bureaus ④  Mobile banking ⑤  Client protection regulation Center  for  Financial  Inclusion,  2011  Survey   global  |  research  |  innova0on  |  design   24  
  25. 25. global  |  research  |  innova0on  |  design   25   Behavioral  Design  principles  and   methodologies  can  be  applied  to  all  of  the   biggest  obstacles  and  opportuni0es  in   financial  inclusion…   And  can  help  improve  them.    
  26. 26. Opportunities Within Financial Inclusion Ripe for Behavioral Design ① Financial Literacy & Education ② Diversifying Product Offering ③ Mobile Banking ④ Client Protection Regulation ⑤ Credit Bureaus ⑥ MFI Institutional Capacity global  |  research  |  innova0on  |  design   26  
  27. 27. Consumer Protection & Behavioral Design: Recourse Systems and Complaints Resolution in Ghana global  |  research  |  innova0on  |  design   27  
  28. 28. The problem definition we used during the project How might we improve the financial recourse system in Ghana such that consumers submit complaints and persist to achieve satisfactory results? global  |  research  |  innova0on  |  design   28  
  29. 29. Behavioral Insights into Complaints & Dispute Resolution Policy in Ghana BoUleneck  #1:  Consumers  may  not  think  of  submikng  a   complaint  in  the  first  place.     BoUleneck  #2:  Even  if  consumers  think  to  submit  a  complaint,   they  may  be  deterred.     B#3   B#4   BoUleneck  #3:  If  consumers  complain  but  their  complaint  is   not  immediately  addressed,  they  may  not  escalate  their   complaint  or  otherwise  persist  in  the  complaints  process  due   to  their  concep0on  of  banking  as  a  personal  rela0onship.   BoUleneck  #4:  Low-­‐income  consumers  do  not  think  that  Bank   of  Ghana  accepts  consumer  complaints.     B#1   B#2   global  |  research  |  innova0on  |  design   Ideas42  29  
  30. 30. Initial Design Concepts global  |  research  |  innova0on  |  design   30  
  31. 31. Follow-on Behavioral Research & Design Work at CGAP in Consumer Protection •  Standardize behavioral research methodologies and crowd-in more policymakers (upcoming CGAP Focus Note, share country-level diagnostics) •  Move from diagnose to design: Test new interventions or policies and measure impact in pilot phase •  Consider other topics to explore through this lens (consumer lending, mobile financial services & new interfaces) global  |  research  |  innova0on  |  design   31  
  32. 32. Behavioral Research & Design… global  |  research  |  innova0on  |  design   32   provides  us  with  a  deep  understanding   of  users  in  context  and  the  behavioral   biases  they  face  
  33. 33. Behavioral Research & Design… global  |  research  |  innova0on  |  design   33   encourages  us  to  develop  an   understanding  of  both  stated   preferences  and  observable   behaviors…  they  may  not  be  the  same!    
  34. 34. Behavioral Research & Design… global  |  research  |  innova0on  |  design   34   uses  an  iteraNve  cycle  of  prototyping-­‐ reviewing-­‐tes0ng,  to  come  up  with  the   best  solu0on  for  the  specific  context  &   problem  
  35. 35. Behavioral Research & Design… global  |  research  |  innova0on  |  design   35   has  users  parNcipate  as  consultants,   testers,  reviewers,  co-­‐designers  
  36. 36. Behavioral Research & Design… global  |  research  |  innova0on  |  design   36   pushes  us  to  create  a  solu0on  that   changes  the  context  /  environment  /   product,  not  the  person!    
  37. 37. Behavioral Research & Design… global  |  research  |  innova0on  |  design   37   assures  that  EMPATHY  is  at  the   founda0on  of  all  insights,  ideas  and   solu0ons    
  38. 38. Summary of Key Takeaways •  Deep understanding of users in context and the behavioral biases they face •  Develop understanding of both stated preferences and observable behaviors… they may not be the same! •  Design using iterative cycle of prototyping-reviewing- testing •  Users participate as consultants, testers, reviewers, co- designers •  Create a solution that changes the context / environment / product, not the person! •  EMPATHY is at the foundation of all insights, ideas and solutions global  |  research  |  innova0on  |  design   38  
  39. 39. Thank you! Alexandra Fiorillo global  |  research  |  innova0on  |  design   39  
  40. 40. If I had 20 days to solve a problem, I would take 19 days to define it. //Albert Einstein// global  |  research  |  innova0on  |  design   40