preliminary evaluation of consumer education tools for mobile phone banking: the philippines
DESCRIPTION
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.TRANSCRIPT
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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
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Preliminary Evaluation of Consumer Education Tools for Mobile Phone Banking: The Philippines Craig Tower, Ph.D. Presented to the MABS NRT June 8, 2012
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Contents
• Project background
• The consumer education campaign
• Research, results and potential future uses
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Project background
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Consumer Education for Branchless Banking (CEBB)
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Teaches the Knowledge, Skills and Attitudes (KSAs) required to:
• Adopt good money management practices
• Address challenges with the use of BB services
What is Consumer Education (CE)?
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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.
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Why Consumer Education Matters
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Money Management
KSAs
Money management
KSAs
Product use KSAs
(leverage technology)
Increase in financial well-‐being
Increase uptake and usage of branchless banking
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Global Project Locations
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• Philippines, India, Zambia, Malawi
• Mobile phone banking
• Smart cards
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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
In the Philippines
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The consumer education campaign
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Consumer Education Campaign
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Awareness Raising
Reinforcement Prac2ce by customer
Customer Use
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Direct Training
Knowledge, Skills, and Attitudes
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From Learning Objectives to CE tools 1. Awareness 2. Knowledge 3. Attitudes 4. Skills
- money management - product use
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Exposure to a new technology and basic understanding of its purpose
Poster for branch
staff and merchants
Awareness:
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Poster and table tent
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Knowledge:
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Understanding that enables customers to decide about use of the technology
Flip book for bank staff
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Starter Kit for clients
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Attitudes: Thoughts, feelings and opinions that support the use of mobile phone banking to manage
money effec=vely
Starter Kit – How to get
help
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Skills: Money Management and
Product Use
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What consumers must be able to do to try out mobile phone banking and use it effec=vely
Starter Kit - Find the money to
save
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Skills: Money Management and
Product Use
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What consumers must be able to do to try out mobile phone banking and use it effec=vely
Starter Kit – How to use
Text-A-Deposit
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Starter Kit: How to read your SMS
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Starter Kit: Tracking your transactions
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Research, results, and potential uses
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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
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Segment Pilot (Zamboanga) Comparison (Ipil)
Clients 12 14*
Merchants 4 4
Branch staff 6 3
* 3 merchants interviewed as clients.
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Preliminary Results
• Branch staff
• Merchants
• Clients
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Branch staff • Facilitates
marketing • Focuses
messaging and knowledge transfer
• Builds partnerships and leverages trust in rural bank
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Merchants • Engages
merchants in marketing
• Provides reference tool
• Provides visual evidence of bank partnership
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Clients
• Facilitates understanding of service
• Provides reference tool
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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
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The Limits of Consumer Education
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Money management
KSAs
Product use KSAs
(leverage technology)
Increase in financial well-‐being
Increase uptake and usage of branchless banking
Opera=onal issues
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Operational issues • Limited number of cash
conversion outlets
• Limited operating hours
• Lack of liquidity of agents
• Network outages
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Potential for future uses • Targeted marketing:
• To entrepreneurs • To students and
parents • To salaried
employees
• Promoting related innovations • ATM debit cards
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Thank you
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Craig Tower, Ph.D. [email protected]
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