-
Taking stock
01.09.2003
-
Crossfire: ‘Building financial capabilities should be product-linked and not focused on personal money management’
01.09.2013
In this issue's Crossfire, Kathleen Stack and Jennefer Sebstad debate whether a product-linked approach is the best way to deliver financial education. -
Perspectives and experiences on developing national financial education strategies
01.09.2013
There is increasing recognition – among central banks, other financial services regulators, governments, financial institutions, NGOs, educators, and international donors – that the ability to manage one's personal and household finances well is an essential life skill. Financial education can help to give people the knowledge, skills, and confidence to manage their money well. Financial education is likely to be an important component of successful initiatives to promote financial inclusion; and it can contribute to the securing of financial consumer protection. Many developed and developing countries have drawn up, or are drawing up, national strategies on financial education. Generally, this work is being led by the central bank, or by another government agency, and is a collaborative exercise involving a wide range of stakeholders. This paper describes common features of the processes for developing and implementing a national strategy on financial education and summarizes the typical contents of these strategies. In doing so, it makes recommendations on good practices – and on some traps to avoid. -
Developing the next generation of economic citizens: financial inclusion and education for children and youth
01.09.2013
In order for young people to achieve their potential as empowered and engaged economic citizens, they must have access to safe and appropriate financial services and quality financial, social, and livelihoods education. The Child and Youth Finance Movement is uniting government authorities, financial service providers, academics, and youth serving organizations from across the world to advance financial inclusion and economic citizenship education at the global, regional, and national level. This article explains the central components of the child and youth finance movement, examines the evidence base for the movement's Theory of Change and explores how various partners and stakeholders in the movement are working to create an ecosystem for the next generation of economic citizens. -
Driving adoption of branchless banking: insights from consumer education in India, the Philippines, and Zambia
01.09.2013
As providers design and launch branchless banking (BB) services, our work has identified that one crucial element that tends not to be given sufficient attention is the customer's experience with the service. This paper examines how customers experience a BB service and the process that they go through to reach adoption of the service. This paper highlights the consumer challenges that prevent adoption of BB in three countries: India, Philippines, and Zambia. It then discusses how consumer education can be used as a tool to address them. The paper draws on previous theories of technology adoption and applies them to the innovative use of branchless banking for delivering financial services. The insights presented in the paper contribute to the current discussions around adoption of BB by highlighting how consumer education can support the adoption of this technology by addressing potential use challenges and enhancing the customer's experience with the BB service. -
SENDFiNGO: an innovative model of financial inclusion in Ghana
01.09.2013
SEND-Ghana pioneered the use of credit unions to expand microcredit outreach in order to promote sustainable livelihood security in the north of Ghana, one of the poorest parts of the country. SEND-Ghana facilitated micro loans through a relationship it built with credit unions, by which it offers funding and technical support to the credit unions. In 2009, SEND established a new entity called SENDFiNGO as an independent organization to take over and manage its previous work in microfinance and credit union development. Since then, SENDFiNGO has grown from 1,314 members in December 2009 to a total of 6,016 at the end of 2012. At the same time, studies have shown the widespread positive impact of the project on clients, including: 49 per cent of women expanding their business; an increase from 24 per cent to 40 per cent in women saving money over the course of their loan; and women contributing to their household expenditure showing an increase from 12 per cent to 45 per cent. The paper sets out the history of the project, details on the impact findings and lessons for other microfinance programmes from this innovative approach to financial inclusion. -
The sustainability of MFIs in Uganda: the need for consumer protection while balancing stakeholders' interests
01.09.2013
Microfinance has taken centre stage in the quest for poverty eradication in Uganda. Microfinance providers traverse the country, many with an objective of making a return on their investment, NGOs notwithstanding. The investment in the sector has grown to enormous proportions. This increased investment, however, has come with increased competition. Amid this increased investment and competition, consumers have taken the backseat to profit-making among many providers. Questionable means of recovery, high interest rates, non-transparent contracts, standard form contracts, cash collateral, fraud against clients, arrest, and committal to civil prison using ex parte judgments have become common phenomena. There is a need to change the legal framework to protect the consumer against the said abuses. Training of loans officers, increased monitoring, insurance, training microfinance clients, and formulating standard acceptable contracts with fair terms to be used by all providers seem to be the only solutions to consumer protection. -
Reviews
01.09.2013