MICROFINANCE PUBLICATION ROUND-UP: Mobile Finance Implementation; Alternative Delivery Channels and Technology; “Market Insights for Innovations and Design” (MI4ID) Behavioral Research

“Expanding Access to Finance Through Mobile Payments;” published by the Foundation for International Community Assistance (FINCA) International and The MasterCard Foundation; June 2015; 12 pages; available at http://www.finca.org/files/2015/06/FINCA-MasterCard-Case-study-2015.pdf

This case study offers suggestions for microfinance institutions (MFIs) implementing mobile technology. It is based on a partnership launched in 2013 by FINCA Tanzania, a unit of US-based NGO FINCA International, and Vodacom, a South African unit of UK-based Vodafone, that enables customers to make financial transactions via a mobile wallet platform. The authors argue that before engaging such a partnership, it is critical to perform an institutional assessment on areas such as strategy alignment and system capability, to determine the optimal collaboration method. The study also suggests customer education campaigns be geared to a wide audience. The institutions should also actively and regularly perform risk analysis and seek to evolve adaptive strategies for potential reductions in social cohesion resulting from a smaller number of group lending meetings.

“Alternative Delivery Channels and Technology;” published by the International Finance Corporation (IFC), The MasterCard Foundation and the Software Group; 2015; 104 pages; available at http://www.ifc.org/wps/wcm/connect/5d99c500477262e89844fd299ede9589/ADC+Handbook+-+2014.pdf?MOD=AJPERES

This handbook offers practical guidance to help financial institutions implement projects that use alternative delivery channels (ADCs) to expand financial inclusion. ADCs are defined as tools that expand beyond traditional bank branches via technology, such as automated teller machines, internet banking, mobile banking and mobile wallets. The handbook identifies 12 implementation steps, categorizing them into “strategy”, “technology”, “selection” and “implementation” stages. Lessons learned from previous ADC projects include to “use existing networks / platforms to test out new channels” and “prioritize flexibility and scalability”.

“Behavioural Economics and User Centred Design – Opening up New Vistas in Research Processes;” by Akhand Tiwari, Premasis Mukherjee and Anup Singh; published by MicroSave; March 2015; 2 pages; available at http://www.microsave.net/files/pdf/1426491671_BN_155_Behavioural_Research_Approach.pdf

This note provides an overview of the qualitative research approach called “Market Insights for Innovations and Design” (MI4ID), which is used to evaluate customer behaviors to improve product designs. MI4ID comprises: “verbal/self-reported tools”, which track respondents’ decision paths; “participatory tools”, which are used to monitor activities in simulated situations; “observation tools”, which monitor actual decisions; and “expert interviews”, to incorporate external factors in design interventions. The authors also offer examples of how bridge the MI4ID approach into the creation of product designs that can increase savings and improve financial education programs.

By Caroline Zhu, Research Associate

Sources and Additional Resources:

[1] FINCA press release: “New Case Study Outlines Ways to Drive Financial Inclusion Through Mobile Technology,” http://www.finca.org/press-release/new-case-study-outlines-ways-to-drive-financial-inclusion-through-mobile-technology/

[2] IFC: “IFC, The MasterCard Foundation, Software Group Launch Handbook on Alternative Delivery Channels and Technology,” http://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/BC8D18AEE7FECD8685257E0600283EB7?opendocument

[3] MicroSave: “How Can We Be Truly Customer Centric – MI4ID Week At,” http://www.microsave.net/announcement#how_can_we_be_truly_customer_centric_mi4id_week_at_microsave

MicroCapital Universe Profile: Foundation for International Community Assistance (FINCA)

MicroCapital Universe Profile: International Finance Corporation

MicroCapital Universe Profile: The MasterCard Foundation

MicroCapital Universe Profile: MicroSave

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