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

•  Project background

•  The consumer education campaign

•  Research, results and potential future
   uses


3   © Microfinance Opportunities 2011
Project background



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




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




9   © Microfinance Opportunities 2011
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
The consumer education campaign




11   © Microfinance Opportunities 2011
Consumer Education Campaign
                                                                                             Knowledge,
               	
  
                                                                                              Skills, and
                      Awareness	
  	
                                                         Attitudes
                       Raising	
  

                                                              Direct	
  Training	
  




                                                                                       Prac2ce	
  by	
  
                                          Reinforcement	
  
                                                                                        customer	
  


                                                                                                            Customer
                                                                                                              Use


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




13   © Microfinance Opportunities 2011
Awareness:	
  
                                   Exposure	
  to	
  a	
  new	
  technology	
  and	
  basic	
  
                                   understanding	
  of	
  its	
  purpose	
  




Poster for
 branch
staff and
merchants	
  



 14
      © Microfinance Opportunities 2011
Poster and table tent




15   © Microfinance Opportunities 2011
Understanding	
  that	
  enables	
  customers	
  to	
  	
  
Knowledge:                                 decide	
  about	
  use	
  of	
  the	
  technology	
  



                                                Flip book for bank staff




16   © Microfinance Opportunities 2011
Starter Kit for clients




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




21   © Microfinance Opportunities 2011
Starter Kit: Tracking your
                       transactions




22   © Microfinance Opportunities 2011
Research, results, and potential uses




23   © Microfinance Opportunities 2011
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
Preliminary Results

     •  Branch staff

     •  Merchants

     •  Clients




25   © Microfinance Opportunities 2011
Branch staff
•  Facilitates
   marketing
•  Focuses
   messaging and
   knowledge
   transfer
•  Builds
   partnerships
   and leverages
   trust in rural
   bank
26   © Microfinance Opportunities 2011
Merchants
•  Engages
   merchants
   in marketing
•  Provides
   reference
   tool
•  Provides
   visual
   evidence of
   bank
   partnership
27   © Microfinance Opportunities 2011
Clients

•  Facilitates
   understanding
   of service

•  Provides
   reference tool


28   © Microfinance Opportunities 2011
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
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
Operational issues
     •  Limited number of cash
        conversion outlets

     •  Limited operating hours

     •  Lack of liquidity of agents

     •  Network outages


31   © Microfinance Opportunities 2011
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
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

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Preliminary Evaluation of Consumer Education Tools for Mobile Phone Banking: The Philippines

  • 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