Designing women-focused financial
products --- Women’s World
Banking’s approach
Anna Gincherman
Chief Product Development ...
Key Characteristics of a Women-Focused
Financial Product

Relevant

• Provide a tangible benefit responsive to her
needs
•...
Our Product Design Framework (Savings
example)
Product Design
Barriers to opening
•

Opening requirements: ID, proof
of ad...
Examples from Our Work (1): Developing a Proposition
for Un/der Banked Women in Nigeria with Diamond
Bank
Key Research Fin...
BETA Operating Model
MULTI-CHANNEL ACCESS

FAST ACCOUNT OPENING

BETA Friend
Market-based sales and
service team.
Promotes...
Examples from Our Work (2): Rural Credit in Latin America
Project Outcomes:
Customer Research Findings
 Men and women in ...
Examples from Our Work (3): Hospital-Cash Insurance
Policy in Jordan
Launched in April 2010 by Women’s World Banking and M...
Keys to Designing Women-Focused Products
Products designed for men often do not reach women, but those that are
attractive...
Are Women-Focused Financial Products the
Solution to Women’s Financial Inclusion?
We must address a full range of barriers...
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"Building Women Focused Products and Services" Anna Gincherman, Women's World Banking

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  • Product designAccount opening requirements – ID, reducing other requirements to the minimalOpening balanceMinimum balancePricing policy – Simple to explain, preserve valueInterest
  • "Building Women Focused Products and Services" Anna Gincherman, Women's World Banking

    1. 1. Designing women-focused financial products --- Women’s World Banking’s approach Anna Gincherman Chief Product Development Officer > Building Women-Focused Finance
    2. 2. Key Characteristics of a Women-Focused Financial Product Relevant • Provide a tangible benefit responsive to her needs • Speak to her in her language on her terms Affordable • Link to her income-generating capacity and cash flow • Take into account her family expenses Accessible • Bridge geographical and emotional distance Building Women-Focused Finance 2
    3. 3. Our Product Design Framework (Savings example) Product Design Barriers to opening • Opening requirements: ID, proof of address, proof of income Accessibility • • • Monthly fees Minimum balance requirements Cost of cards or checkbook Incentives • Marketing & Financial Education Emotional distance • This is “for me” • Simple communications in local language Campaign development • Benefits that meet her needs • Media and communication channels that reach her Rewards, prizes or interest paid Financial Education • Raise awareness and increase confidence • Practical approaches aimed at specific gaps Detailed, targeted and insightful assessment of women as target group Building Women-Focused Finance Operating Model Agency and mobile banking • Increase convenience and reduce costs • Especially for women who face security risks, are time-poor Tailored procedures • Fast account opening procedures to reduce cost of acquisition • Reduce impact of barriers like literacy or familiarity with banking procedures Partnerships • Delivery models and financial capability Staff development and training • Profile, incentives and performance indicators for sales teams • Branch staff training Comprehensive, qualified and efficient assessment of institution
    4. 4. Examples from Our Work (1): Developing a Proposition for Un/der Banked Women in Nigeria with Diamond Bank Key Research Findings • • • • Target segments are women (and men) market traders She is familiar with banks but does not think they are relevant to her Even if she has a bank she prefers the agility of informal mechanisms like savings collectors, ROSCAs Comfortable leaving her business for at most 15 minutes to transact Proposition • • • • • BETA Savings (“better” in Pidgin) is a simple savings account tailored for market women, that offers maximum convenience to customers by delivering a low cost banking service to their shops. No forms, no signature, no ID required, no account references, no minimum balance No monthly fee, no deposit fee, no withdrawal fee (ATM/branch) Free starter pack with ATM card Interest paid on balances (3.6% p.a.), rewards scheme with weekly cash prizes Building Women-Focused Finance 4
    5. 5. BETA Operating Model MULTI-CHANNEL ACCESS FAST ACCOUNT OPENING BETA Friend Market-based sales and service team. Promotes BETA & opens accounts. Collects deposits, handles withdrawals in the field. Account opened in five minutes, from anywhere. BETA Friend captures data and photo through mobile app. Customer receives account number and mobile PIN via SMS. Customer receives starter pack with debit card, PIN mailer and info guide. ATM Branch RESULTS TO DATE • • • 42,000 accounts opened; 21 branches; 127 BETA Friends Deposits mobilized USD 1.8 million; average balance USD 43 Women represent 41% of clients; previously unbanked are 28.5% of clients 5 Building Women-Focused Finance
    6. 6. Examples from Our Work (2): Rural Credit in Latin America Project Outcomes: Customer Research Findings  Men and women in rural families both underestimate women’s contribution to the household income.  Similarly, loan officers underestimated the women’s contribution and might not even analyze this income as part of the loan assessment. Colombia Fundacion delamujer 60% of disbursed loans were to women, 38% of total disbursed loans were to new women clients Implications  Women are excluded as customers and a significant portion of the family income is disregarded.  There is increased credit risk in relying on the income from one large harvest for repayment and not taking into account the steady cash flow of women’s activities. Paraguay Interfisa Financiera 31% of disbursed loans were to women, 35% of total disbursed loans were to new women clients Solutions  Modify existing credit methodologies to measure the entire family income and the growth potential of all income generating businesses.  Allow multiple loans per household.  Train staff to see women as viable and valuable clients.  Raise awareness of women’s contributions.  Create multiple loan products for different needs (livestock, machinery, artisan). Peru Caja Arequipa 63% of disbursed loans were to women, 71% of total disbursed loans were to new women clients To date, 9,807 loans have been disbursed to clients, 47% of whom are women. More than half of the clients that have received a loan are new clients, i.e., they have never before received a loan from these institutions – and likely had never received a loan, from any formal financial institution. Building Women-Focused Finance 6
    7. 7. Examples from Our Work (3): Hospital-Cash Insurance Policy in Jordan Launched in April 2010 by Women’s World Banking and Microfund for Women (MFW), the Caregiver product is a first-of-its-kind insurance initiative that recognizes women’s roles as the caregivers of their families and includes maternal health coverage, hospitalization coverage and protects against lost wages. Key customer insights  Hospitalization due to delivery is the event that matters most to women  Women prioritize the health of their family over their own health  The family policy cannot exceed 5JD per month Product Design  Benefit at 15JD per day for up to 30 days, with max of 48 days in policy period  No limitations for pregnancy coverage  No exclusions (for pre-existing conditions)  Premium at 1 JD per month (negotiated down from 1.1 JD)  Mandatory enrollment for borrower only  Voluntary coverage for spouse & full family added at 1 JD per person Results as of June 30, 2013  More than 182,000 policies sold  35% claims rate, almost half of which were for pregnancy-related hospitalization  Microfund for Women has reported higher profits and increased client retention as a direct result of offering health microinsurance. Building Women-Focused Finance 7
    8. 8. Keys to Designing Women-Focused Products Products designed for men often do not reach women, but those that are attractive to women will usually also appeal to men. Segment by gender during product design Women have different preferences and uses for financial services Offer her a product that adds value and improves on her current solution To reach women they must be targeted specifically Women consume different media, may not be attracted by benefits that appeal to men, and make decisions based on their own criteria Develop the business case for serving women and monitor results Sustainability and scale of programs focusing on women depend on development of a robust business case Building Women-Focused Finance 8
    9. 9. Are Women-Focused Financial Products the Solution to Women’s Financial Inclusion? We must address a full range of barriers to women’s financial inclusion. Solutions Barriers Woman Herself Husband/ Household Sees herself as a housewife, not an economic contributor to the household Sees her as a housewife , not an economic contributor to the household Empowerment trainings and campaigns in partnership with media and civil society Gender sensitization campaigns to highlight the women’s economic contribution Financial Institution Society See women as secondary contributors to the household economy Regulatory and cultural constraints such as property rights, land ownership Staff training, product design, genderdiversity programs Work with regulators, civil society, and media to address legal and cultural constraints Building Women-Focused Finance 9

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