THE DATA BEHIND

GOOD DECISION MAKING

HOW TO USE INFORMATION ON YOUTH AND MOBILES

TO EFFECTIVELY PROMOTE FINANCIAL INCLUSION

InterMedia Workshop Youth Economic Opportunities Conference

Washington, DC Oct. 8, 2014

Think of a time when you learned an

important detail about your intended

project beneficiaries, which would have

been really helpful to know before

the project started.

ABOUT INTERMEDIA

• We are an independent, global consultancy with expertise in research

and evaluation, particularly in low- and middle-income countries.

• InterMedia’s work supports strategic decision-making and program

assessment by a range of clients and partners, including: international

development agencies, philanthropic foundations, program

implementers, content providers, government departments and

commercial firms.

• InterMedia helps clients and partners understand the people and

businesses they intend to support or engage. Most of our work focuses

on producing practical “demand side” insights.

InterMedia – 20 years of people-focused research

in more than 100 countries

Financial Inclusion Research Locations

FII – COUNTRIES AND CONTENT

A combined 2 billion-plus population representing a mix

of more-advanced and early-stage DFS markets

• Annual, nationally

representative

surveys of adults

aged 15+ in eight

countries over

multiple years

(sample sizes from

3,000 to 45,000)

• Targeted studies

focusing on

particular FI issues

A combined 2 billion-plus population representing a mix

of more-advanced and early-stage DFS markets

HOW DOES FII’S DEMAND-SIDE RESEARCH ASSIST in

PROMOTING THE EXPNSION OF DFS?

By providing knowledge and insights on:

• Client pain points in the current methods of transaction to help identify potential for introducing new/modified products and services

• Triggers and barriers to uptake and usage of services including quality of service, accessibility, cost, trust, awareness, education, and lack of financial literacy to inform providers’ strategy for promoting their services/products and engaging with existing and potential clients

• Transactions/financial activities that would benefit from digitalization to advise providers and donors on priority areas for digitalization

• Existing infrastructure and regulatory framework for DFS to contextualize digitalization strategies

• Potential for digitizing payment streams in industry value chains -- for example garment industry, agriculture, government benefits – to advise how to target decision-makers with the right message to enable identified sectors adopt DFS

FII RESEARCH ELEMENTS: TRACKER SURVEY

Data collected

Core data: Basic demographics Poverty measurement (Grameen Progress out of Poverty

Index (PPI))

Access/use of mobile devices Access/use of mobile money (MM)

Access/use of formal financial services (e.g., bank accounts)

Level of satisfaction with financial service providers and products

Extended core data: Trust in financial services Use of “informal” financial services

Use of digital/prepaid cards

Use of savings instruments Use of insurance instruments

Borrowing and lending habits

Additional data (selected countries): Mobile money adoption influencers Financial service interoperability

Technical issues in mobile money use

Perceptions/Opinions on consumer issues related to interoperability

Perceptions of fraud in mobile money

Survey summary

• A national survey representative of all

adults aged 15+ living in the selected

country, conducted annually

• Sample sizes large enough to

facilitate demographic and geographic

analysis

• Face-to-face interviews lasting on

average 44 minutes

• Rigorous data quality control

procedures

• Collection of participants’ household

GPS coordinates

• FII Wave 1 provides baseline

measurements. Subsequent annual

surveys will measure trends and track

market developments in DFS

• Datasets posted on online query tool

and SPSS datasets available upon

request

• First wave datasets available from

January 2014

WHAT IS DATA AND RESEARCH FOR?

oUnderstand behaviors, resources, capabilities,

needs and priorities; satisfaction and

dissatisfaction with current services

o Set realistic and specific targets based on data-

driven evaluation of opportunities

oDevelop tailored strategies: Cut & paste

strategies may have limited impact without

local market knowledge

“If I knew I was going to live so long….

I would have taken better care of myself.”

-Eubie Blake

14% 13% 13%

16%

18%

13%

9%

17%

15%

17%

20%

16% 17% 17%

31%

28%

30%

36% 35%

30%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Youth as Pc of Total Population

Youth 15-19 Youth 20-24 Youth 15-24

48% 50%

58%

41%

81%

47%

43%

63%

40%

72%

78%

93%

67%

59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bangladesh(n=6,000) India(n=45,024) Pakistan(n=6,000) Kenya(n=3,000) Nigeria (n=6,002) Tanzania (n=2,997) Uganda (n=3,000)

Percent of Youth Who Own Mobile Phones

Youth 15-19 Youth 20-24

94%

88%

80% 83%

91%

75% 79%

97%

90% 89%

94% 98%

86% 90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percent of Youth Who Own or Have Access to a Mobile Phone

Youth 15-19 Youth 20-24

Youth Who Own a Mobile Phone:

PC Who Have to X Type of Phone (Can have more than one)

BAN IND PAK KEN NIG TAN UGA

Basic 21% NA 76% 37% 51% 66% 41%

Feature 69% NA 30% 51% 41% 28% 52%

Smart 10% NA 3% 12% 10% 5% 5%

Youth 15-19

BAN IND PAK KEN NIG TAN UGA

Basic 32% NA 68% 37% 47% 67% 35%

Feature 62% NA 43% 49% 44% 28% 60%

Smart 9% NA 8% 14% 15% 4% 5%

Youth 20-24

4%

33%

2% 5%

23%

5% 2%

15%

39%

5%

28%

44%

9% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bangladesh(n=6,000) India(n=45,024) Pakistan(n=6,000) Kenya(n=3,000) Nigeria (n=6,002) Tanzania (n=2,997) Uganda (n=3,000)

Percent of Youth Who Own or Have Access to a Bank Account

Youth 15-19 Youth 20-24

BAN

(150)

IND

(2673)

PAK

(52)

KYA

(172)

NIG

(256)

TAN

(47)

UGA

(52)

Send money to

someone

94% 8% 11% 5%

Receive money

from someone

6% 34% 16% 21% 16%

Someone

requested I use

an account

32% 8% 9%

Receive money

from an org. or

govt. agency

11% 29% 14% 7% 6%

Start saving with

a bank

29% 5% 50% 47% 43%

To have a safe

place to store my

money

30% 22% 5% 26% 27%

Why did you decide to start using a bank account? (20-24 yo)

1.5%

5.5%

1.5%

2.2%

1.0%

2.0%

7.0%

1.0%

1.5%

0.8%

1.4%

4.4%

1.6%

2.7%

1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Cooperative Esusu VillageSavingsGroup

Post Office SavingsCollectors

Nigerians 15-19: Use of Non-Bank Savings Instruments

Total 15-19 (n=1069) Male 15-19 (n=462) Female 15-19 (n=632)

3.2%

7.8%

1.2%

5.2%

1.6%

3.4%

5.7%

1.4%

4.4%

1.6%

2.9%

10.0%

1.2%

6.0%

1.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Cooperative Esusu VillageSavingsGroup

Post Office SavingsCollectors

Nigerians 20-24: Use of Non-Bank Savings Instruments

Total 20-24 (n=987) Male 20-24 (n=503) Female 20-24 (n=484)

22%

0% 3%

46%

0%

34% 34%

26%

0%

11%

77%

0%

54%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pc of Youth Who Have Used Mobile Money

Youth 15-19 Youth 20-24

3.60% 0% 0%

28%

0%

27%

9.40%

4.20% 0% 0%

66%

0%

42%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pc of Youth Who Are Active MM Users (used in past 90 days)

Youth 15-19 Youth 20-24

KENYA

“Beyond basic wallet” services develop to meet new demands

Rank Top services (n=1,999) %

Save money 10

Pay a utility bill 8

Pay a school fee 7

Receive wages 4

Pay for goods at a grocery store, clothing shop, etc. 3

An increasing number of innovative

mobile money services (often

referred to as “services beyond

basic wallet”) are being brought to

market by Safaricom and other

partners or providers to meet

demand for tools that build on

money transfer. Those in the chart

to the left are:

M-Shwari: savings account and

credit provider

Lipa na M-Pesa: merchant

payments tool

M-Kesho: bank-linked savings

accounts

Lipa Karo na M-Pesa: payment

service for school fees

M-Kopa: MM-based product for

acquiring solar electric systems

Source: InterMedia Kenya FII Tracker survey (15+)

Both questions allowed multiple responses

1

2

3

4

5

Percentage of active MM account holders who have used the following

Safaricom services beyond basic wallet (n = 1,999)

Top 5 uses beyond money transfer among active MM account holders

1%

2%

2%

4%

15%

M-Kopa

Lipa Karo na M-Pesa

M-Kesho

Lipa na M-Pesa

M-Shwari

10%

5.20%

15%

0%

2%

4%

6%

8%

10%

12%

14%

16%

All Kenyans 15+(n=3000)

Kenyans 15-19(n=476)

Kenyans 20-24(n=607)

Percent of Kenyan M-Shwari Users by Group

Data Exercise – Utilizing data to support a

strategy for mobile-supported savings (or

credit) product targeted at Young Rural

Females in Nigeria or Uganda

Key Considerations:

-What are the group’s important demographic

attributes?

-Important sub-segmentation lines?

-Current exposure to financial services?

-Experience with/accessibility to mobile

devices and/or MFS?

For more information, contact:

Peter Goldstein, InterMedia

goldsteinp@InterMedia.org

+1-202-434-9584

SUGGESTED READING M-Shwari in Kenya: How is it Really Being Used?

http://finclusion.org/fii-blog/m-shwari-in-kenya-how-is-it-really-being-used/

Pakistan: Mobile Money Uptake, Awareness and Trust

http://finclusion.org/fii-blog/pakistan-mobile-money-uptake-awareness-

and-trust/

FII QuickSights Report on Digitizing Payments to Garment Workers in

Bangladesh

http://finclusion.org/wp-content/uploads/2014/04/FII-Bangladesh-Wave-

One-Garment-Worker-Deep-Dive-Study-QuickSights-Report.pdf

Understanding Lapsed and Non-Users of Mobile Money in Uganda

http://finclusion.org/wp-content/uploads/2014/04/FII-Uganda-Wave-One-

Consumer-Voices-QuickSights-Report.pdf

Use of MFS Among Poor Women in India and the Philippines

http://www.grameenfoundation.org/resource/use-mobile-financial-

services-among-poor-women