GSMA Conference in Nairobi – July 11th
Women and Mobile Savings Products: India and the Philippines
Agenda
Project overview Top learnings Key success factors and conclusions
Introduction
http://www.youtube.com/watch?feature=player_embedded&v=TG9NYaHuWa8#at=125
Mobile penetration among women clients: • India client base: 40% own mobile phones, another 40%
have access to a phone, 20% have no access • Philippines client base: 81% own mobile phones (another
2% have a SIM but no phone), most of the remainder have access to a phone in their household.
800,000 clients are actively saving across 3 MFI’s
MFIs service 100% women for their credit business and ~75-80% for savings products.
Both institutions are profitable and see savings products as an important part of their overall business model.
Microsavings Initiative Scaling progress
12,0
62
15,7
36
18,5
73
24,5
70
29,9
88
37,9
05
49,0
14
33,8
49
60,7
85
71,5
56
80,4
53
82,8
86
92,8
52
99,8
83
110,
473
123,
227
141,
385
147,
476
154,
185
159,
165
166,
716
178,
607
185,
731
185,
915
202,
463
206,
627
208,
853
209,
992
218,
451
220,
519
244,
511
260,
957
275,
573
282,
348
295,
446
288,
832
317,
223
331,
380
366,
254
374,
200
4,68
19,
362
14,0
4323
,842
33,6
4043
,439
57,6
2671
,812 85,9
9987
,117
88,2
3489
,352
96,4
2010
3,48
712
3,44
113
9,81
317
6,19
020
2,87
621
0,52
521
6,53
922
3,25
923
8,97
628
2,25
826
7,04
430
8,90
328
9,60
732
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
832
0,84
8
- - - - - -- -
- - - - - --
-
-- 21 904 8,694
15,466
21,223 31,973 37,158 41,984 47,314 54,542 52,283 50,017
50599*47,568 46,765 59,663 64,552 69,311 78,339
91,926 102,952 100,834
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
750,000
800,000
850,000
900,000
950,000
1,000,000
Jan
Feb
Mar
Apr
May Jun Jul
Aug
Sep
Oct
Nov
Dec'
10 Jan
Feb
Mar
Apr
May
June July
Aug
Sep
Oct
Nov
Dec'
11 Jan
Feb
Mar
Apr
May
June
'12
July
'12
Aug'
12Se
p'12
Oct
'12
Nov'
12De
c'12
Jan'
13Fe
b'13
Mar
'13
Apr'1
3
Total Active Savings Accounts at CARD Bank + ACSI + Cashpor ACSI CARD BANKCashpor
*Due to reporting errors Sep'11 to June'12 Cashpor active customers are <150 +days inactive.In July'12 we received active customers with <180 +days inactive.
795,882
India: Cashpor
Alternative Channel Agents
Center Manager
Account Opening
Deposits Withdrawals
Bal. Inquiry
Center Meetings
Cashpor Savings Program
100% of clients are women
94% live below $2.50/day PPP; 69% live below $1.25/day PPP
Over 125,000 savings accounts opened; > 100,000 are active (trx in last 180 days)
Savings Product Features:
• Mobile-based • 4% p.a. interest rate • Basic vs. Premium Plan
• Premium Plan = Opening Fee Rs.100 ($1.80), unlimited transactions • Basic Plan = no opening fee, deposit and withdrawals are Rs.2 ($0.04)
Cashpor Case Study: “Just because a woman owns a phone, it doesn’t mean she knows how to use it”
65 women interviewed : 23 own a phone; 22 have access to a phone; 20 women have no access
Only 23 out of 65 women could use a phone independently • 13 of the 23 own their own phone; thus only 56% of those who own could
use it independently Only 10 out of 45 women could check their savings balances on
their own Almost none of the women could use the SMS feature prior to
training 10 out of 22 women who borrow a phone have restricted
access to it Almost all women who borrow a phone say the reason they
don’t own one themselves is lack of knowledge of how to use it – not the cost.
Cashpor Case Study: Findings
Phones are treated as household commodities • While the primary male income earner is typically the registered
owner of the phone, most family members have some access to the phone
Household financial management was very complex • Many of the women reported having multiple bank accounts
and informal savings (such as money in a shoebox) at home. In general, poor women keep some savings at home hidden from their husbands.
Women use the phone primarily to make phone calls to family members
Technology (incl. back-end processes like mobile KYC) • Affected women’s willingness to take up and confidence in the
savings services
Philippines: CARD Bank
Delivery Channels offering savings services:
• Mobile using KabaliCARD CICO agents
• Bank branches
• Withdrawal through ATMs
• Deposit via center meetings
• Doorstep Deposit Pickup
Sales Officers
Account Officer
General Public
Existing Members
KabaliCARD Agents
Existing Members
CARD Bank Savings Program
Product Features • Mobile-based for deposits and withdrawals using a
mobile wallet tied to savings product. • Doorstep deposit pickup via SMS requests (on
demand or regular scheduled pickups) • Account opening minimum deposit of PHP100
(US$2.50) (dropped from PHP 1000) • Minimum of PHP500 (US$12.50) to earn interest • 1.5% p.a. interest rate • ATM no fees for withdrawal
CARD Bank Context
Although CARD Bank targets mostly women (75%), 25% of savers are male
47% of CARD Bank’s customers live below the $2.50 PPP poverty line (measured using PPI)
On average poorer customers save less than less poor ones.
Interestingly, women at CARD Bank save substantially more than males – almost 3x as much
When displaying average savings balances across gender and poverty level ,both trends are still clear.
CARD Bank The question: Does gender and poverty level have an effect on the amount saved?
Experienced mobile users tended to have more errors with keywords, at least initially, than the inexperienced users
Older users were less likely to make mistakes in mobile financial services transactions than younger users
CARD Bank Some surprising mobile literacy findings
Mobile preferred, but particularly by younger borrowers who attended more training
Total Preference Member Status Age Education Level Training
Attended Prefer MFS
Prefer Old
Borrow-ers Savers Younger Older Lower
Educ Higher Educ
Less Training
More Training
BASE 169 131 38 95 74 135 34 47 121 52 117
Overall Preference 78 86 66 83 56 72 79 62 85
Keywords 85 98 42 96 72 87 76 79 88 71 91 Transaction Messages 91 100 58 98 81 95 74 83 93 83 94
Fees 72 83 34 77 66 74 65 81 69 52 81
Load 67 81 21 73 61 70 56 72 65 52 74
LEGEND: or Overall Preference blue # majority prefer MFS red # majority prefer old system black # no preference
For Attributes blue # majority satisfied red # majority dissatisfied black # no preference
Between Subgroups (e.g. Borrowers vs Savers) For Overall Preference: a greater proportion prefer MFS For Attributes: a greater proportion are satisfied based on significance tests at 95% confidence level
Not everything appreciated about MFS is monetary…
I could be away for hours just to get my loan release. Walk,
take a tricycle, wait for a jeep, ride the jeep to wait some more at the
unit, commute back home… But now I don’t even have to
deal with the hassle of making sure someone
watches the house while I’m gone.
Some of our members have been held up before on their way to the
unit, since it’s far and the road doesn’t have many houses along it. They’ll be much safer now that they
can just deposit and withdraw nearby.
The level of comfort and confidence women have in the mobile phone drives uptake and usage of financial products – and thus the business model Comfort and confidence derive from access to a “trusted intermediary”;
ongoing training; and peers to learn from.
Business model: CARD and Cashpor have developed profitable, scaled business models servicing mostly women with credit, savings, insurance and remittances Our data shows that women tend to be more active savers than men Women historically have proven to be better credit risks than men
Key Conclusions
For women who are not currently using mobile financial services (where available), what is preventing them?
What role does the user interface play in women’s adoption and usage of mobile financial services?
What interventions reduce women’s propensity to hand over their phones to agents to conduct transactions?
How do variations in agent models drive different levels of uptake and usage?
Open Questions & Next Research