Microfinance Research Officer Craig Tower presents the preliminary results of the outcomes assessment of the Financial Education for Branchless Banking Project during the 2012 RBAP-MABS National Roundtable Conference on June 8.

1. Session
8:
Consumer
Educa2on
Tools
for
Mobile
Banking:
The
Phillipines
Craig Tower
Microfinance Opportunities
2012 RBAP-MABS National Roundtable Conference
June 7-8, 2012
Hyatt Hotel & Manila

2. Preliminary Evaluation of Consumer
Education Tools for Mobile Phone
Banking: The Philippines
Craig Tower, Ph.D.
Presented to the MABS NRT
June 8, 2012

3. Contents
• Project background
• The consumer education campaign
• Research, results and potential future
uses
3 © Microfinance Opportunities 2011

4. Project background
4 © Microfinance Opportunities 2011

5. Consumer Education for Branchless
Banking (CEBB)
5 © Microfinance Opportunities 2011

6. What is Consumer Education (CE)?
Teaches the Knowledge, Skills and Attitudes
(KSAs) required to:
• Adopt good money management practices
• Address challenges with the use of BB
services
6 © Microfinance Opportunities 2011

7. Program Objectives
• Determine how Consumer Education:
• Can increase uptake and use of Branchless
Banking services (BB).
• Combined with BB help low income people
improve their financial well being.
7 © Microfinance Opportunities 2011

8. Why Consumer Education Matters
Increase
Product
use
Increase
in
Money
uptake
and
KSAs
financial
management
usage
of
(leverage
well-­‐being
KSAs
branchless
technology)
banking
Money
Management
KSAs
8 © Microfinance Opportunities 2011

9. Global Project Locations
• Philippines,
India, Zambia,
Malawi
• Mobile phone
banking
• Smart cards
9 © Microfinance Opportunities 2011

10. In the Philippines
Working with:
Microenterprise Access to
Banking Services (MABS)
Rural Bankers Association of
the Philippines (RBAP)
GM Bank, Luzon
Cantilan Bank, Mindanao
1st Valley Bank, Mindanao
Objective:
Increase uptake and use of a
mobile wallet for banking
transactions
10 © Microfinance Opportunities 2011

11. The consumer education campaign
11 © Microfinance Opportunities 2011

12. Consumer Education Campaign
Knowledge,
Skills, and
Awareness
Attitudes
Raising
Direct
Training
Prac2ce
by
Reinforcement
customer
Customer
Use
12 © Microfinance Opportunities 2011

13. From Learning Objectives to CE tools
1. Awareness
2. Knowledge
3. Attitudes
4. Skills
- money management
- product use
13 © Microfinance Opportunities 2011

14. Awareness:
Exposure
to
a
new
technology
and
basic
understanding
of
its
purpose
Poster for
branch
staff and
merchants
14
© Microfinance Opportunities 2011

15. Poster and table tent
15 © Microfinance Opportunities 2011

16. Understanding
that
enables
customers
to
Knowledge: decide
about
use
of
the
technology
Flip book for bank staff
16 © Microfinance Opportunities 2011

17. Starter Kit for clients
17 © Microfinance Opportunities 2011

18. Attitudes: Thoughts,
fmobile
phone
banking
hat
mupport
the
use
of
eelings
and
opinions
t s
to
anage
money
effec=vely
Starter Kit –
How to get
help
18 © Microfinance Opportunities 2011

19. Skills: Money What
consumers
must
be
able
to
do
to
try
out
mobile
Management and phone
banking
and
use
it
Product Use effec=vely
Starter Kit -
Find the
money to
save
19 © Microfinance Opportunities 2011

20. Skills: Money What
consumers
must
be
able
to
do
to
try
out
mobile
Management and phone
banking
and
use
it
Product Use effec=vely
Starter Kit –
How to use
Text-A-
Deposit
20 © Microfinance Opportunities 2011

21. Starter Kit: How to read your SMS
21 © Microfinance Opportunities 2011

22. Starter Kit: Tracking your
transactions
22 © Microfinance Opportunities 2011

23. Research, results, and potential uses
23 © Microfinance Opportunities 2011

24. Research methodology
• Conducted with 1st Valley Bank
• Sample:
• 1 pilot branch with CE tools;
• 1 comparison branch without tools
• Qualitative in-depth interviews
• Useful for assessing pilot program
Segment
Pilot
(Zamboanga)
Comparison
(Ipil)
Clients
12
14*
Merchants
4
4
Branch
staff
6
3
*
3
merchants
interviewed
as
clients.
24 © Microfinance Opportunities 2011

25. Preliminary Results
• Branch staff
• Merchants
• Clients
25 © Microfinance Opportunities 2011

26. Branch staff
• Facilitates
marketing
• Focuses
messaging and
knowledge
transfer
• Builds
partnerships
and leverages
trust in rural
bank
26 © Microfinance Opportunities 2011

27. Merchants
• Engages
merchants
in marketing
• Provides
reference
tool
• Provides
visual
evidence of
bank
partnership
27 © Microfinance Opportunities 2011

28. Clients
• Facilitates
understanding
of service
• Provides
reference tool
28 © Microfinance Opportunities 2011

29. Challenges
• Interest triggered by CE tools
must be nurtured by bank
• Client age, disability, or lack of
access
• Client inability or lack of interest
in saving
29 © Microfinance Opportunities 2011

30. The Limits of Consumer Education
Increase
Product
use
Increase
in
Money
uptake
and
KSAs
financial
management
usage
of
(leverage
well-­‐being
KSAs
branchless
technology)
banking
Opera=onal
issues
30 © Microfinance Opportunities 2011

31. Operational issues
• Limited number of cash
conversion outlets
• Limited operating hours
• Lack of liquidity of agents
• Network outages
31 © Microfinance Opportunities 2011

32. Potential for future uses
• Targeted marketing:
• To entrepreneurs
• To students and
parents
• To salaried
employees
• Promoting related
innovations
• ATM debit cards
32 © Microfinance Opportunities 2011

33. Thank you
Craig
Tower,
Ph.D.
craigt@mfopps.org
Special thanks to:
John Owens (MABS);
Cheryl Balingit (MABS);
Jing Gusto (Consultant);
Elda Montero and ARMDEV;
And the staff, merchants and clients of 1st Valley Bank branches in
Zamboanga City and Ipil
33 © Microfinance Opportunities 2011