This document summarizes Margaret Miller's presentation on financial inclusion in Turkey given on June 3, 2014. The presentation discusses how access to finance can facilitate consumption and savings by making transactions easier. It also notes the importance of long-term financing for SMEs. The presentation provides empirical evidence on the impact of financial inclusion and covers topics like the promise of technology, business models, and financial literacy.
This study analyzed the factors affecting loan repayment performances in Microfinance Institutions (MFIs) with
a case study of (Promotion of Rural Initiatives and Development Enterprises) PRIDE Arusha, Tanzania. The
study used both quantitative and qualitative techniques to investigate factors affecting loan repayment
performances. The findings show that clients’ characteristics (age, household size, gender and level of
education), nature of business (business type, business stability and income level) and loan characteristics
(repayment period, repayment mode, and repayment amount) were among the factors that influenced borrowers
in repaying their loans. Lack of business knowledge was another factor mentioned by clients which leads to low
productivity hence failure to have enough fund to repay their loans.
The study further revealed that there was a significant relationship between loan repayment performances with
clients’ businesses challenges, loan diversification to other non-income activities, and other outside factors such
market imperfections, higher interest charges, drought, among others.
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This study analyzed the factors affecting loan repayment performances in Microfinance Institutions (MFIs) with
a case study of (Promotion of Rural Initiatives and Development Enterprises) PRIDE Arusha, Tanzania. The
study used both quantitative and qualitative techniques to investigate factors affecting loan repayment
performances. The findings show that clients’ characteristics (age, household size, gender and level of
education), nature of business (business type, business stability and income level) and loan characteristics
(repayment period, repayment mode, and repayment amount) were among the factors that influenced borrowers
in repaying their loans. Lack of business knowledge was another factor mentioned by clients which leads to low
productivity hence failure to have enough fund to repay their loans.
The study further revealed that there was a significant relationship between loan repayment performances with
clients’ businesses challenges, loan diversification to other non-income activities, and other outside factors such
market imperfections, higher interest charges, drought, among others.
Efl Juhudi webinar presentation: Using phsycometrics for smallholder credit s...Malia Bachesta
As part of a Learning Lab Webinar series to highlight and showcase the work of our partners Entrepreneurial Finance Lab (EFL) and Juhudi Kilimo – a Mastercard Foundation Fund for Rural Prosperity Winner – explain the basics of psychometric credit scoring and share learnings from real world experiences.
How Generation Y millennials are driving financial industry changeHarland Clarke
Financial marketers are being put to the test as fairly predictable generations of customers give way to the less familiar and less predictable. Pre-Baby Boom generations have been in retirement for years, and their pattern of drawing down assets continues. Now, Baby Boomers themselves are busy liquidating assets to fund college educations, weddings and their own retirements. Generation Xers have well-established careers and saving/investing habits to match.
Consumer Financial Literacy
Financial literacy is becoming essential to the future of the auto industry. We have seen the beginnings of a transformation in the customer?s buying behavior and expectations. It is very important for the entire industry to become more transparent with the customer to improve the customer experience; from shopping; to in store, to financing; to servicing. Financial literacy means demystifying the auto buying, financing, and ownership process for our customers. Demystifying the process can improve customer engagement/retention and reduce complaints. Learn some practical ways to help improve your customer?s financial literacy.
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Technical Report of ITU-T Focus Group on Digital Financial Services :
The Digital Financial Services Ecosystem
written by the following authors, contributors and reviewers:
Carol Coye Benson, Charles Niehaus, Mina Mashayekhi, Nils Clotteau, Trevor Zimmer, Bruno Antunes, Yury Grin, Peter Potgieser, Quang Nguyen, Graham Wright, Nathalie Feingold, Ashwini Sathnur, Johan Bosini, Jeremy Leach, Oksana Smirnova, Evgeniy Bondarenko
This Report defines the Digital Financial Services ecosystem and describes the players and their roles within the Ecosystem.
The report recognizes a goal of reaching “digital liquidity” – a state wherein consumers and businesses are content to leave their funds in digital form, therefore reducing the burden of the
“cash-in”, “cash-out” process. Various high-level challenges and issues in the ecosystem are acknowledged in the report
APPLICATION OF TWO-STAGE MCDM TECHNIQUES IN EVALUATING THE PERFORMANCE OF ELE...IJDKP
Electronic payment systems act as a catalyst in the economic development of many developing countries. However, their evaluation has become a daunting task over the years. This research employed a two-stage multi-criteria decision analysis (MCDA) to evaluate e-payment systems in Ghana. The AHP method was utilized to find the contribution scores of the various criteria for the performance of the e-payment systems.
With the aid of the Probability Linguistic-TOPSIS (PL-TOPSIS) approach, we obtained the performance scores of the e-payment systems and ranked them. Among the six indicators employed in this study, we found cost-effectiveness to be the major indicator of an e-payment system performance. The performance ranking results indicated that credit/debit card has the highest performance score, followed by mobile money, ATM, online banking, and E-zwitch, respectively. We contribute to literature by providing intuitions on how AHP and PL-TOPSIS methods can be applied to evaluate the performance of e-payment systems.
The term 'differentiate or die' is obsolete. Why? Because there's too much choice and not enough differentiation to go round. That's why marketers today need to stop trying to convince us they're different but instead should focus on activity that's
Consumer Financial Literacy
Financial literacy is becoming essential to the future of the auto industry. We have seen the beginnings of a transformation in the customer?s buying behavior and expectations. It is very important for the entire industry to become more transparent with the customer to improve the customer experience; from shopping; to in store, to financing; to servicing. Financial literacy means demystifying the auto buying, financing, and ownership process for our customers. Demystifying the process can improve customer engagement/retention and reduce complaints. Learn some practical ways to help improve your customer?s financial literacy.
Mercer Capital's Bank Watch | April 2017 | Is FinTech a Threat or Opportunity?Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Technical Report of ITU-T Focus Group on Digital Financial Services :
The Digital Financial Services Ecosystem
written by the following authors, contributors and reviewers:
Carol Coye Benson, Charles Niehaus, Mina Mashayekhi, Nils Clotteau, Trevor Zimmer, Bruno Antunes, Yury Grin, Peter Potgieser, Quang Nguyen, Graham Wright, Nathalie Feingold, Ashwini Sathnur, Johan Bosini, Jeremy Leach, Oksana Smirnova, Evgeniy Bondarenko
This Report defines the Digital Financial Services ecosystem and describes the players and their roles within the Ecosystem.
The report recognizes a goal of reaching “digital liquidity” – a state wherein consumers and businesses are content to leave their funds in digital form, therefore reducing the burden of the
“cash-in”, “cash-out” process. Various high-level challenges and issues in the ecosystem are acknowledged in the report
APPLICATION OF TWO-STAGE MCDM TECHNIQUES IN EVALUATING THE PERFORMANCE OF ELE...IJDKP
Electronic payment systems act as a catalyst in the economic development of many developing countries. However, their evaluation has become a daunting task over the years. This research employed a two-stage multi-criteria decision analysis (MCDA) to evaluate e-payment systems in Ghana. The AHP method was utilized to find the contribution scores of the various criteria for the performance of the e-payment systems.
With the aid of the Probability Linguistic-TOPSIS (PL-TOPSIS) approach, we obtained the performance scores of the e-payment systems and ranked them. Among the six indicators employed in this study, we found cost-effectiveness to be the major indicator of an e-payment system performance. The performance ranking results indicated that credit/debit card has the highest performance score, followed by mobile money, ATM, online banking, and E-zwitch, respectively. We contribute to literature by providing intuitions on how AHP and PL-TOPSIS methods can be applied to evaluate the performance of e-payment systems.
The term 'differentiate or die' is obsolete. Why? Because there's too much choice and not enough differentiation to go round. That's why marketers today need to stop trying to convince us they're different but instead should focus on activity that's
The role of finance and microentrepreneurship in the informal economy.compressedPontus Engstrom
Thesis presentation, delivered and accepted at the University of Agder in Kristiansand, Norway. The thesis looks at WHY Microfinance is struggling to help microenterprises, focusing on profits, ROA and sales growth. The thesis concludes that microfinance is helping microenterprises earn higher profits, but that it has no prolonged impact on sales growth. It shows that the financial literacy in this context is generally very low, which should be a concern to practitioners. Enhanced financial and economic literacy, are called for. In addition, the paper highlights the possibility of actually seeing a decline in performance over the first years due to size, and that economies of scale kick in at a later stage, when the firm moves from being micro into being a small business.
The Singapore FinTech Consortium - Introduction to Financial Inclusion in Sou...FinTech Consortium
In recent years FinTech, has grown tremendously and is making its presence felt across the globe. The Singapore FinTech Consortium presents our slide deck: Introduction to Financial Inclusion in Southeast Asia to give you a preview of our research in the Southeast Asian landscape.
If you are keen to learn about P2P Lending, please view our slide deck at:
http://www.slideshare.net/SGFinTech/singapore-fin-tech-consortium-intro-to-p2p-lending
If you would like to receive a pdf copy of any of our slide decks, please drop us an email at info@singaporefintech.com and we'll be happy to oblige. For more information about us and our service offerings, please visit our company website at www.singaporefintech.com.
Global Financial Development Report 2014 - Financial InclusionWB_Research
As mobile banking and other technological innovations fuel the expansion of financial services in many developing countries, a new World Bank Group report urges policy makers to focus on products that benefit the poor, women and other vulnerable groups the most.
Effects of micro- finance institutions' services on sustainability of small e...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
The thrust of this study was to determine the impact of micro credit on the MSMEs sector in CRS,
Nigeria. Three hypotheses were formulated from the research questions and tested by using chi-square statistic
to validate the truth or otherwise of the hypotheses. Ex-post factor research design was adopted and a sample
size of 158 respondents was selected and used for the study. A structured questionnaire was used in obtaining
the data. In testing the hypotheses, all the calculated chi-square values were greater than the critical chi-square
value at the given level of significance and degree of freedom. This resulted in rejecting the null hypotheses
while the alternate hypotheses were retained. The results indicated that micro credit programmes have
significant effect on MSMEs in CRS. Equally, credit administration has a significant effect on the performance
of microcredit programmes and that collateral requirements on MSMEs have significant effect on obtaining
credit from microfinance institutions in CRS. Arising from the findings, the study recommends that government
should make more microcredit programmes available for the development of MSMEs in CRS. There should be
efficiency in credit administration on the part of both government and the private sector so as to enhance the
performance of microcredit programmes in CRS and also collateral requirements should be minimized, while
low interest rate should be charged on micro, small and medium enterprises so as to enhance obtaining of credit
facilities from microfinance institutions in the State.
Identifying and spurring high growth entrepreneurship: Experimental evidence ...INNOVATION COPILOTS
Almost all firms in developing countries have fewer than ten work- ers, with a modal size of one. Are there potential high-growth entre- preneurs, and can public policy help identify them and facilitate their growth? A large-scale national business plan competition in Nigeria provides evidence on these questions. Random assignment of US$34 million in grants provided each winner with approximately US$50,000. Surveys tracking applicants over five years show that winning leads to greater firm entry, more survival, higher profits and sales, and higher employment, including increases of over 20 per- centage points in the likelihood of a firm having ten or more workers. (JEL D22, L11, L26, L53, M13, O14)
Some Aspects of Financial Management Affecting Cost of Operations of Microfin...iosrjce
MFIs play a fundamental role in the Kenyan economy in that they enhance financial deepening by
enabling millions of Kenyans to access financial services particularly credit. MFIs in Kenya have been facing
many challenges. Despite many successful MFIs containing credit risks within desired levels, they still face
greater challenges in the increased volatility of their portfolio. This study sought to analyze the financial factors
affecting the operations of MFIs in Nakuru town, Kenya. The target population constituted 127 MFIs’
employees. A sample of 57 respondents was drawn from the target population using stratified random sampling
method. A self-administered structured questionnaire was used to collect primary data from the sampled
respondents. Both reliability and content validity of the instrument were tested. The collected data were
analyzed with the aid of the Statistical Package for Social Sciences program. Data analyses were both
descriptive and inferential. The findings of the study were presented in tables that captured both descriptive and
inferential statistical results. Access to credit facilities and financial management skills were found to affect
operations of MFIs positively. On the other hand, it was revealed that both cost of operations and credit risk
negatively affect the MFIs’ operations. The study recommends that MFIs should encourage more savings from
their customers in order to minimize reliance on credit facilities from other financial institutions and should
also employ measures of minimizing the costs of operations. Moreover, MFIs are advised to employ measures of
minimizing the costs of operations, in addition to holding training workshops for their staff in order to equip
them with requisite skills in financial management. Lastly, they should enhance the profiling of all their
customers before advancing any credit facility to them
70% is the Percentage of people in Sub-Saharan Africa and South Asia who live on less than $2 a day… compared to only 14% in MENA.
Delivered by Michael Mithika, Course Director School of African Microfinance - SAM
http://www.samtraining.org
Since the 2008 global financial crisis revealed the intrinsic limitations of market-driven economic system despite its own merits incomparable to other alternatives, civil society and policymakers altogether have called for more shrewd policy actions that can achieve two critical public policy goals at once: promoting financial empowerment of the less privileged and enhancing competition in the financial market. While the emergence of fintech in financial markets in the past few years cannot be attributed to the competence of financial regulators and policymakers as to this call, what fintech has already achieved in terms of financial inclusion and competence of financial markets through disruption of traditional financial market structure demonstrate the importance of fintech as a strategy and policy tool of achieving the goal of inclusive growth.
Similar to Financial inclusion-by-margaret-miller-wb (20)
1. GLOBAL FINANCIAL DEVELOPMENT REPORT 2014
Financial Inclusion
Margaret Miller, Senior Economist, FFIMS
Istanbul, Turkey
June 3, 2014
http://www.worldbank.org/financialdevelopment
MJM1
3. Aspirations and Consumption in Turkey:
Access to finance plays a role….
‐ Access to credit can
facilitate higher levels
of current
consumption
‐ Credit and debit cards,
mobile money make
transacting easier
4. Access to finance is also about making
savings more attractive and easy
‐ Commitment accounts
‐ Savings lotteries
‐ Automatic deductions
‐ Preferential tax treatment
5. Long‐Term Productive Investments
Funding for SMEs
“Improve access to long‐term
financing and
develop equity and
venture capital markets,
with a view to unlock
the potential of the
dynamic SME sector.”
World Bank Country
Economic Memorandum,
May 2014
8. Consumer protection and
financial capability
‐ Levels of trust in a society may help to explain financial inclusion
‐ Consumer protection laws and regulations support responsible
finance
‐ Financial education increases awareness of opportunities, ability to
navigate financial markets
9. Intro Measurement and Impact Public MJM8 Policy on Financial Inclusion Focus Areas
Importance of financial inclusion: empirical evidence
• Recent empirical evidence on impact of financial inclusion on economic
development and poverty varies by types of financial services
• Basic payments and savings: evidence on benefits, especially for poor
households, is quite supportive
• Insurance products: also some evidence of a positive impact
• Access to credit—mixed picture: evidence on benefits for smoothing
consumption, but not always for entrepreneurial ventures
– dozens of microcredit experiments, other cross‐country research
– for example Roodman (2011) and Bauchet and others (2011)
– for firms, little effect for micro‐credit but a positive effect on firm growth for small‐and
medium‐size enterprise credit
• Common message from the research: financial inclusion does not mean
pushing access for the sake of access, and it certainly does not mean making
everybody borrow
10. Slide 8
MJM8 I would omit this slide. We've already alluded to the research on the importance of financial inclusion in the early slide. This can be
discussed without a slide.
Margaret J. Miller, 5/29/2013
11. Intro Measurement and Impact Public Policy on Financial Inclusion Focus Areas
Global views: Financial Development Barometer
(% of all respondents) Agree?
"Access to basic financial services is a significant problem for households in my country." 61 %
"Limited access to finance is a significant barrier to the growth of small enterprises in my country." 76 %
"In my country, access to finance has improved significantly over the last 5 years." 78 %
“Social banking (that is, state banks and targeted lending programs to poorer segments of the
population) is potentially a useful tool to increase financial access." 80 %
"Social banking actually plays an important role in financial access in my home country." 43 %
"The lack of knowledge about basic financial services is a major barrier to financial access among
the poor in my country."
78 %
Source: Financial Development Barometer.
Note: The barometer is an informal global poll of country officials and financial sector experts from 21 developed and 54 developing economies.
From 265 polled, 161 responded (61 %). Results are percentages of “fully agree” and “partially agree” responses out of total responses received.
12. Intro Measurement and Impact Public Policy on Financial Inclusion Focus Areas
Global views: Financial Development Barometer
What is the most effective policy to
improve access to finance among low‐income
Financial
education
32%
Promote
new lending
technologies
17%
borrowers?
Other
33%
Better legal
framework
18%
What is the role of new technologies (such
as mobile banking and biometric borrower
identification) in expanding access to
finance in your country?
Very
important
35%
Somewhat
important
25%
Not very
important
24%
Not sure
16%
Source: Financial Development Barometer (informal global poll of officials and experts from 21 developed and 54 developing economies).
13. Intro Measurement and Impact Public Policy on Financial Inclusion Focus Areas
Measuring financial inclusion
• Not all “unbanked” need financial services, but barriers (cost, travel
distance, amount of paperwork and requirements) play an important role
% of adults without
an account
0% 10% 20% 30% 40% 50% 60% 70%
Not enough money to use
Because someone else in the family already has an account
They are too expensive
Too far away
You don't have the necessary documentation
You don't trust them
Because of religious reasons
Source: Global Findex (Demirguc‐Kunt and Klapper 2012). Note: Respondents can choose more than one reason.
MJM7
14. Slide 11
MJM7 This slide provides a good grounding for discussion of the difficulties in getting individuals financial services. I like the following one in
describing the relatively greater challenge for firms in developing countries getting access to finance.
Margaret J. Miller, 5/29/2013
15. Intro Measurement and Impact Public MJM10 Policy on Financial Inclusion Focus Areas
Correlates of financial inclusion/exclusion
Source: Based on Allen and others (2013)
Note: Results from a probit regression of a financial inclusion indicator on country fixed effects and individual characteristics,
for 124,334 adults (15 years and older) covered by the Global Findex in 2011. The financial inclusion indicator is a 0/1 variable
indicating whether person had an account at a formal financial institution in 2011.
16. Slide 12
MJM10 I like this graphic - lots to discuss here in a talk.
Margaret J. Miller, 5/29/2013
17. Intro Measurement and Impact Public MJM25 Policy on Financial Inclusion Focus Areas
Need for “responsible” financial inclusion
• … highlighted by financial vulnerability of many people, even in middle‐income countries
Source: World Bank Survey of Financial Capability (2012)
18. Slide 13
MJM25 I think this is a very interesting graphic - I would keep unless we're tight on slides, then I think it could be discussed without the
visual. We might also want to redo and simplify -- take out the education levels and simply give each country an observation.
Margaret J. Miller, 5/29/2013
19. Intro Measurement and Impact Public Policy on Financial Inclusion Focus Areas
Measuring financial inclusion
• Among firms, the younger and smaller ones face greater constraints, and
their growth is affected relatively more by constraints
% of firms identifying access to finance as a major constraint
35
Developing economies Developed economies
29
25
16 15
8
Source: World Bank Enterprise Surveys. Sample includes 137 countries from 2005 to 2011.
Country income groups are based on World Bank definition (high income is gross national income of at least $12,476).
40
35
30
25
20
15
10
5
0
firms with <20 employees 20‐99 employees >100 employees
20. Intro Measurement and Impact Public MJM13 Policy on Financial Inclusion Focus Areas
Promoting inclusion: special focus areas
I. The promise of technology
II. Business models, product design
III. Financial literacy / capability
21. Slide 15
MJM13 I like these three focus topics and would keep this slide to clarify the final stage of the presentation and highlight these issues.
Margaret J. Miller, 5/29/2013
22. Intro Measurement and Impact Public MJM14 Policy on Financial Inclusion Focus Areas
I. The promise of technology
• Recent innovations in technology
– Mobile payments, mobile banking
– Borrower identification using biometric data (fingerprinting, iris scans, …)
• Can help reduce transaction costs while increasing financial security
• Example: rapid growth in number of phone subscriptions per 100 people
Source: World Development Indicators.
23. Slide 16
MJM14 I would eliminate this slide.
Margaret J. Miller, 5/29/2013
24. Intro Measurement and Impact Public Policy on Financial Inclusion Focus Areas
Public policy on financial inclusion
• Example: new evidence that collateral registries spur access to finance
Share of firms with
access to finance
0.50
0.73
0.41
0.54
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Treatment Group
(Registry reform)
Control Group (No
reform)
Pre reform Post reform
Source: Love,
Martinez Peria and
Singh (2012)
Note: The effect is
larger among
smaller firms
25. Intro Measurement and Impact Public Policy on Financial Inclusion Focus Areas
I. The promise of technology
• Another example: fingerprinting in Malawi (% of balances repaid on time)
88%
79%
91% 93%
89%
26%
74%
92%
96%
98%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Worst 2nd quintile 3rd quintile 4th quintile Best
Fingerprinted
Control
Source:
Calculations based on
Gine, Goldberg, and
Yang (2012).
Note:
The repayment rates
among fingerprinted
(red) and control
(blue) groups by
quartiles of the ex‐ante
probability of
default. Individuals in
the "worse" quintile
are those with highest
probability of default,
and those for whom
fingerprinting had the
largest effect.
26. Intro Measurement and Impact Public MJM16 Policy on Financial Inclusion Focus Areas
II. Business models, product design
• Improvements in lending to micro and small firms can be achieved by
leveraging existing relationships
• Example: Banco Azteca, Mexico
– in 2002, opened >800 branches in stores of its parent company, a consumer goods retailer
– caters to low and middle‐income groups mostly excluded from commercial banking
Source: Bruhn and Love
(forthcoming)
27. Slide 19
MJM16 This is a good slide for business model discussion.
Margaret J. Miller, 5/29/2013
28. Intro Measurement and Impact Public MJM17 Policy on Financial Inclusion Focus Areas
II. Business models, product design
• Product design that addresses market failures, meets consumers’ needs and
overcomes behavioral problems can foster wider use of financial services
– Commitment accounts, reminders, labeled accounts, group lending, investment games, timing of
repayments, index‐based insurance
• Example 1: commitment accounts
– Deposit a certain amount, relinquish access for a period of time or until a goal has been reached
– Randomized evaluations on Philippines (Ashraf, Karlan, Yin 2006) and Malawi (Brune et al 2011)
– Commitment “treatment” led to increases in bank deposits and caused increases in agricultural
input use, crop sales, and household expenditures over the next agricultural year
– It seemed primarily to have helped farmers by shielding funds from their social network
• Example 2: index‐based insurance
– Clear benefits for lenders (lower risk of weather‐related credit defaults), potential to increase
financial inclusion and agricultural production
– But take‐up often low: 20% for loans with rainfall insurance vs. 33% for loans without insurance
(randomized experiment with farmers in Malawi by Gine and Yang, 2009)
– New evidence: lack of trust and liquidity constraints are significant non‐price frictions that
constrain demand (field experiment in India by Cole and others, 2012)
– What has been shown to help: designing products to pay often and fast, an endorsement by a
well‐regarded institution, simplification and consumer education
29. Slide 20
MJM17 This slide provides some good additional discussion with more detail of the topic - I would keep if possible.
Margaret J. Miller, 5/29/2013
30. Intro Measurement and Impact Public MJM18 Policy on Financial Inclusion Focus Areas
Research shows
III. Financial literacy / capability
• Standard, classroom‐based financial education programs aimed at general
population do not work, at least not for adults
• In microenterprises, business training programs have been found to lead to
improvements in knowledge, but relatively small impact on business
practices and performance
31. Slide 21
MJM18 I would omit this slide. It has a very condensed approach to the topic - the following one is more nuanced and better introduces our
findings.
Margaret J. Miller, 5/29/2013
32. Intro Measurement and Impact Public MJM19 Policy on Financial Inclusion Focus Areas
III. Financial literacy / capability
Recent evidence suggests
• It is possible to increase financial literacy through well‐designed and
targeted interventions
• Financial education has a measurable impact when reaching people during
“teachable moments” (e.g. starting a job, purchasing a financial product)
• … and is especially beneficial for groups with limited financial skills
• Leveraging social networks enhances the impact of financial education
– Examples: involve both parents and children, both sender and recipient of remittances
• Delivery mode matters too
– “Rule of thumb” training helps (avoids information overload)
– Engaging delivery channels show promise
33. Slide 22
MJM19 I would keep this slide and the following one from the TV show with financial messages for the discussion of financial literacy /
capability.
Margaret J. Miller, 5/29/2013
34. A Focus on Two Interventions
1) School‐based financial education
in Brazil
2) Mass media in Mexico and South
Africa
35. Brazil’s Financial Education Program
for High Schools
• Give financial education to young Brazilians
• Change understanding and knowledge of the relationship
between present choices and future outcomes
• Change current behavior: increase savings and improve
planning and spending
• Change financial attitudes towards future behavior:
improve financial independence and intentions to save
• Change household outcomes: spillover effects on
parental financial knowledge and behavior
36. Pedagogical Approach
Key points
• Complementary to
educational system, strategy
• Financial capability taught
within other subjects
• Attractive for students and
teachers
41. Opportunity for entertainment
education to strengthen
financial capability
• Helps address selection bias, where only most
interested, informed seek financial training
• Can be used to inform, change attitudes, model skills
and support changes in normative behavior
• Cost effective way to reach large numbers
• Well suited to new financial consumers in developing
countries with limited literacy, numeracy, lack of
experience with basic products
42. Mucho Corazon ‐ A Mexican Soap Opera
with Financial Messages
45. Impacts on Seeking Financial Advice
Daily call volume data from the NDMA call centers shows a spike in
incoming calls immediately following the episode where the NDMA
was introduced into the soap storyline.
46. Intro Measurement and Impact Public Policy on Financial Inclusion Focus Areas
III. Financial literacy / capability
• Example of a promising delivery mechanism: entertainment education
• But effects of literacy programs tend to be short‐lived … need to be repeated
Source: Berg and Zia (2013)
Note: “Hire purchase” refers
to contracts where people
pay for goods in installments
0.35
0.30
0.25
0.20
0.15
0.10
Someone in Household Has Used
Hire Purchase in the Past 6
Months?
Someone in Household Has
Gambled Money in the Past 6
Months?
Control
Treatment
Share of respondents