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Microfinance Opportunities
Microfinance Opportunities (MFO) promotes an embedded financial education model, where financial education is integrated into financial service delivery systems. MFO is currently piloting and monitoring embedded education materials with financial service providers, telecommunications companies, and other organizations in Kenya, Zambia, India and the Philippines. Preliminary results from MFO’s work in Zambia with VisionFund and Zoona suggest that the education programs improved financial knowledge, skills, and attitude towards money management, leading to more prudent borrowing behavior and financial planning. MFO found that this change in behavior measurably reduced VisionFund’s portfolio at risk.
Coming Attractions
FI2020 Explores Financial Capability Models
In November, FI2020 will bring together leading financial capability experts and financial services providers in Colombia to discuss how products insights from behavioral economics can be built into design and delivery in sustainable and scalable ways to help customers build financial capability. Participants will discuss what allows (or prevents) the integration of capability-building elements into products. This workshop will kick off a worldwide examination of innovative models for scaling financial capability efforts, supported by JP Morgan Chase.
Financial Health Survey in the
United States
The Center for Financial Services Innovation has recently deployed a nationally representative survey to assess the financial health of consumers in the United States. The study examines usage, behaviors, and preferences of consumers for a range of financial services. It measures consumer financial health and examines links between service use and financial health. The goal is to provide a framework of indicators defining what it means to be financially healthy so that policies and services can focus clearly on promoting the financial well-being of consumers. Findings from the survey will be released in early 2015.
Juntos Finanzas has integrated insights from behavioral research into an SMS-based service delivered in conjunction with bank accounts. Juntos provides a service to banks whereby it communicates directly with customers about their personal finances in a way that is highly personalized and interactive. Juntos partners with Latin American banks, such as BanColombia, to help customers track spending and save towards goals. Juntos is expanding in Colombia and is starting in Mexico. It expects to reach 650,000 consumers by the end of 2014. Through its pilot programs in Latin America, Juntos claims a 50 percent lift in average savings balances and a 32 percent increase in the active client rate. Juntos plans on launching in West Africa by the end of this year.
Juntos Finanzas
A VisionFund loan officer in Zambia provides training.