This document discusses using behavioral design principles and methodologies to improve financial inclusion. It begins with an overview of human-centered design, behavioral economics, and how a hybrid behavioral design approach can generate solutions driven by user needs. The document then describes a case study where behavioral design was used to improve microsavings behaviors at a Philippine bank. Key lessons highlighted how behavioral insights can trigger desired user behaviors when embedded in product design. The document concludes by discussing opportunities to apply behavioral design within financial inclusion to areas like financial education, diversifying products, mobile banking, and consumer protection regulation.

1. Client-Centered Design at the
Base of the Pyramid
Alexandra Fiorillo
Principal, GRID Impact
alex@gridimpact.org
March 12, 2014

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//
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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!)
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4. www.dalberg.com
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5. Improving Cookstoves
How might we make clean cooking more
affordable and accessible?
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6. www.dalberg.com
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7. www.upenergygroup.com
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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
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9. Product Re-Design Project with CARD
Bank in the Philippines
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10. Improving Microsavings Behavior
How might we help members and non-members
build savings balances in CARD Bank savings
accounts?
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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
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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
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13. Card bank staff and clients informed the
final designs through user experience
testing
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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
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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
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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
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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. 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
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18. GRID Impact’s Methodology
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EXAMINE
UNDERSTAND
DESIGN
EXPERIMENT
DISSEMINATE
Listen, observe,
redefine
Draw insights &
collaborate
Brainstorm &
create
Get feedback &
iterate
Share & learn
EMPATHY

19. Behavioral Map
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Identify
contextual
barriers to
behavioral
outcomes

20. The
Design
Gym

21. The
Design
Gym

22. Understanding Your Research
More%at%www.theDesignGym.com/tools
the design gym
Understand Ideate ExperimentExamine Distil
UNDERSTAND
DATA
A Few Steps
INSIGHTSTHEMES RELATIONSHIPS
The
Design
Gym

23. Design to Experiment: From
Observations to an Idea

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
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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. 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
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27. Consumer Protection & Behavioral
Design: Recourse Systems and
Complaints Resolution in Ghana
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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?
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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
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30. Initial Design Concepts
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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)
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32. Behavioral Research & Design…
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provides
us
with
a
deep
understanding
of
users
in
context
and
the
behavioral
biases
they
face

33. Behavioral Research & Design…
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encourages
us
to
develop
an
understanding
of
both
stated
preferences
and
observable
behaviors…
they
may
not
be
the
same!

34. Behavioral Research & Design…
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uses
an
iteraNve
cycle
of
prototyping-­‐
reviewing-­‐tes0ng,
to
come
up
with
the
best
solu0on
for
the
specific
context
&
problem

35. Behavioral Research & Design…
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has
users
parNcipate
as
consultants,
testers,
reviewers,
co-­‐designers

36. Behavioral Research & Design…
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pushes
us
to
create
a
solu0on
that
changes
the
context
/
environment
/
product,
not
the
person!

37. Behavioral Research & Design…
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assures
that
EMPATHY
is
at
the
founda0on
of
all
insights,
ideas
and
solu0ons

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
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39. Thank you!
Alexandra Fiorillo
alex@gridimpact.org
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40. If I had 20 days to solve a problem,
I would take 19 days to define it.
//Albert Einstein//
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