Youth between 10 – 24 years of age constitute 1.77 billion (27% of the total global population). This constitutes a huge potential market for FIs seeking to extend financial services to the youth. MicroSave together with the Population Council have been managing – The Safe and Smart Savings Products for Vulnerable Adolescent Girls (SSSVAGs) project – implemented in Kenya and Uganda. The project, among other objectives, seeks to extend financial services and build financial capability amongst young girls 10 – 19 years of age. Under this project, savings products were designed specifically for the adolescent girls using MicroSave’s systematic product development approach which begins with market research to understand the target clients’ current financial behaviour, needs, coping mechanisms, gaps and preferences. This Note presents key lessons learned from this project, on youth-inclusive financial services using the “8Ps of marketing” as a framework. The lessons, derived from the success and challenges experienced, offer an opportunity to inform future YIFS programmes.
Blog
Taking Financial Inclusion to the Next Level
Banks and business correspondents (BCs), under the policy and regulatory directions, and supervision of the Reserve Bank of India (RBI) and the Ministry of Finance (MoF) are making concerted efforts towards financial inclusion (FI).
In January 2012, MicroSave facilitated a dialogue amongst select banks, and institutional/MNO (mobile network operator) BCs to reflect on the progress made, the lessons learned, challenges faced and identify critical areas needing attention and collaborative efforts. It emerged that the sector has reached a critical inflexion point, where certain actions are inevitably required to take financial inclusion to the next level. These are essentially around developing BC as an additional banking channel; driving viability and making BCs sustainable through various interventions and risk mitigation mechanisms; and coherence of policies and directives from various quarters.
The State of Business Correspondence: Agent Networks in India
With close to half a billion people and a vast terrain with limited infrastructure and the results of India’s efforts to achieve financial inclusion thus far are remarkable. To continue this momentum, however, we always need to know what agents are saying, and not saying, achieving and not achieving. Financial inclusion cannot happen without agents and it will happen with better and more lasting results if all levels in this effort-senior regulators, bank presidents, branch officers, network managers-pay more attention to the last and critical link to their customers.
Electronic and Mobile Banking in India: Gearing-up for Growth
Financial inclusion has witnessed extraordinary investments and efforts from a variety of stakeholders in India over the past two years. There is however, a need to step back and objectively assess several vital measures that have been undertaken in recent times, together with the announcements in the 2012 budget speech, and the impact thereof. This Policy Note discusses these and the many other announcements on policies and guidelines that have accelerated the pace of reforms around financial inclusion over the last 6 months.
Remittances: The Evolving Competitive Environment
Consumer pull and economics have resulted in remittance products becoming a prime focus for an increasing number of business correspondence network managers (BCNMs) and agents. This Brief examines the various facets of remittance product offerings, highlights some important aspects and issues around the different remittance models, agent economics, client protection and the way forward including recommendations on steps needed to make the increasingly competitive market for remittances more customer (and agent) friendly.
Also, watch the videos (video 1 and video 2) where the business correspondent agents talk about the various service providers offering remittances and what is important for the agents as well as the customers.
Governance in Member Owned Institutions – Community Microfinance
Strong governance in member owned institutions (MOIs) is important for their sustainability. If the governance is weak, there are high chances of fraud by staff, members with vested interests, and by the social and political elite. Such a situation could lead members to lose faith and withdraw their shares/ and leave the institution. An MOI with strong governance is able to establish a conducive environment for members through the right mix of ownership incentives, member decision-making and other control mechanisms. Good governance structures give members and investors confidence and are necessary foundation for successful community-based organisations.