Market Insights

Anup Singh, Microsave

3

Agenda

▶ Research approach▶ Key insights ▶ Implications for digital and financial literacy project

Research approach

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Research objective

Objective Analysis Outcome

The market research had the

following objectives:

• To corroborate and validate

previous research findings

• To gather insights in relation to

the design of the digital and

financial literacy programme for

refugees in Nyarugusu camp in

Tanzania

The findings were analysed to:

• Develop persona map of a typical

refugee at Nyarugusu camp

• Refugees’ needs for digital and

financial literacy

• Implications and

recommendations for the project

The analysis was used to

facilitate the development and

adaptation of:

• An in-person training curriculum

for savings groups to include

money management, digital

financial services and mobile

money

• Feedback to our partners on

design of digital financial

literacy content

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Research approach

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Research focus areas• Assess the current abilities and strategies used by the target group to

manage, keep, receive and send money both formally and informally• Determine the financial, digital, and mobile financial literacy levels

and knowledge gaps of the target group• Understand the various sources of income among the segments of our

target group• Understand the main income, expenses and prioritizations among the

segments in our target group• Identify challenges and barriers to financial literacy among our target

group

02

Research methodology• Focussed discussion groups with refugees• Key expert interviews

• CARE VSLA Methodology Expert• Implementing organisations: Good Neighbours Tanzania,

International Rescue Committee (IRC) • Mobile Money players: Vodacom agent and airtime recharge

vendor

Key insights

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Key insights – Respondent characteristics

• Females are the head of households • Households at the camp rely on solar as the alternative source of

electric power• Raise cash by selling part of the food ration • Seek alternative or informal health services

Household aspects

Challenges faced

Attitude and Behavioural Aspects

• Refugees are increasingly vulnerable given the large family sizes• Food insecurity in terms of quality and quantity is a core challenge• Competing business and household needs impact their savings culture• Refugees are psychologically unsettled and this impacts their day-to-day

decisions

• Value learning and training as they recognise it may open up avenues for entrepreneurial activities that promise better quality of life

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Key insights – Financial literacy and mobile money

• Low literacy levels witnessed among the refugee population• The population interviewed is enthusiastic to learn new skills• The population is only interested in learning if a clear outcome or

objective is in place

Financial literacy

Phone ownership and usage

Mobile money

• Majority of the respondents interviewed possessed a basic mobile phone• Phone usage limited to communication – calling and receiving calls• Complicated M-Pesa process decreasing adoption by economically active

persons• Training on use of the basic phones will determine level of adoption

• Mobile Money (MM) agents are critical to mobile money activities in the camp despite the lack of support from MM companies

• Registration documents for MM services are unclear to agents• Cancellation of customer registration to MM services arouses trust

concerns around MM and related services

10

Key insights – Savings group programme characteristics

• Group formation driven by urge to improve livelihood and social networking

• The refugees objectives/motives for joining groups does not always match what the program implementers anticipate

Motivation to join savings groups

Savings groups programme

• Savings groups’ methodology varies among implementing organisations• Implementation of savings groups’ training methodology not standardised • Training needs vary by target segment

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Persona map

Seeq Agents apply extra charges on transactions by the

refugee communityq Schools and vocational centres where refugees can

learn different skillsq Refugees want more contact with the host communityq The refugee community is vulnerable due to existing

living conditions –missing food rations, inadequate health services, limited finance options

q Refugee families are generally large

Think and Feelq Have limited ability/resources to start businessesq Inability to move outside the camp has incapacitated

their financial capabilitiesq Living within a camp has left them with no

opportunities and no hope to thrive in businessq Are in a transition phase despite living in the camp for

the last 20 years.q Airtel Tap Tap project was more beneficial –allowed

them opportunity to make spending decisions

Say and Doq Sell WFP food rations to raise incomeq Risk their lives by leaving the camp to earn incomeq Buy and sell foodstuff at the common marketq Receive remittances from friends and family q Are eager to learn new skills to earn incomeq Females are the head of refugee households

according to UNHCR procedures

Hearq The refugee community is enterprising and want

empowerment in terms of skills and ideas to start businesses

q Need money/capital to start businessesq Refugees do not want to live on welfare benefits. They

want to get back on their feet and take care for their families

q Some refugees have been asked to stop opening new businesses by the camp administration

Implications

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Implications for financial and digital literacy

• Improve mobilisation communication • Follow through on promises made on training the groups• Keep adapted learning curriculum basic• Design simple delivery methodology

Curriculum Development

Delivery of the curriculum

Programme effectiveness

• Methodology to cater for the varying literacy levels• Training to have practical and progressive learning approach• Learning centres to be closer to the living areas• Digital content to be delivered via phones must take into account the

limited understanding

• Design the roles of the stakeholders in the project aligned to the envisaged outcomes

• Harmonise savings groups’ model implementation• Coordinate organisation activities at the camp to avoid duplicating

efforts

SMS-based Training Content Creation

Martina Taverna, Arifu

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Content Design Overview

▶ We follow a Human-Centered Design (HCD) approach where learner centricity is the heart of the design process. The process starts with the learner and ends with new solutions that are tailor-made to suit their needs.

▶ We follow the 3 steps in HCD;

▶ Inspiration - We learn directly from the people we are designing for as we immerse ourselves in their lives and come to deeply understand their needs. We do this in primary & secondary researches.

▶ Ideation - We make sense of what we learned, identify opportunities for design, and prototype possible solutions. This is done when we start the content design.

▶ Implementation - We bring the solution to life, and eventually, to market. We know that our solution will be a success because we’ve kept the very people we’re looking to serve at the heart of the process.

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Content Objectives1. To drive up savings groups membership through provision of information on how to form and joining

savings group.

2. To strengthen existing savings groups and a savings culture in Nyarugusu

3. To seal the mobile and digital literacy gaps for target group

4. To encourage responsible borrowing from savings groups and MPAWA

Expected Outcomes:

1. Increase in savings and borrowing behaviour from adoption of financial capability skills

2. Increase knowledge of savings groups benefits, requirements and operations

3. Increase knowledge of problem solving when faced with saving challenges

4. Increase knowledge of and adoption of mobile money services

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Content Map

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Savings Training

Hi! It's ARIFU. Reply with a number to learn for FREE how to:1. Save2. Form or join a savings group3. Grow your shares4. Use Mpesa5. Use Mpawa6. Tell friends

Jijenge & KwiyubakaFinancial Capabilities Tablet-based AppsCooper Swift, Fundación Capital

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About Fundación Capital

Fundación Capital works in 18 countries across Latin America, Africa, and Asia and in partnership with more than sixty public institutions, private companies and civil society organizations.

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Advantages of tablet-based programs

▶ Intuitive Interaction - Designed for people with low literacy levels. Images and Kiswahili/Kirundi audio guide users through the interactive activities

▶ Edu-tainment - Interactive training, where users improve their financial capabilities in a fun and interactive way

▶ Data and Reporting - The app is supported by a backend that records individual user demographics, module completion, time spent per user, and information about financial behaviours.

▶ Simple Implementation – Jijenge/Kwiyubaka use a simple methodology where tablets rotate through a community, to replace or supplement facilitator trainings

▶ Offline Functionality - Jijenge runs on 7” Android tablets (~$200) and only requires occasional network access to upload user data and install any updates.

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Apps based on RCT-proven “LISTA” program

In Colombia, FundaK, with Innovations for Poverty Action (IPA) ran a randomized control trial of LISTA with bank customers, resulting in:

▶ 14% increase in savings, particularly in formal savings accounts▶ 11% increase in number of people reporting that their monthly

income was sufficient to cover their monthly expenses▶ 9% increase in ATM usage, after using LISTA’s ATM simulator▶ 26% increase in debit card usage

LISTA participants were more likely to set savings goals, and felt greater optimism and greater trust in banks.

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WHATto teach

?

HOWto teach it

?

2424

VS

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Course development process

Prelim.Research

IdentifyKey

Messages

Design Mode ofDelivery

Refine Rollout / Publication

Pilot Test

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Financial Education

26

Financial Education

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Financial education for refugees should help recipients to:

▶Better understand financial options

▶Use limited financial resources (and assets) more effectively

▶Build self-esteem and confidence

▶Shift from reactive to pro-active decisions

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Jijenge & Kwiyubaka financial capabilities apps

After completing Jijenge/Kwiyubaka, we expect users to:▶ Adopt e-wallets, recognizing their

advantages and benefits.▶ Use e-wallets in a more efficient and

comprehensive way, based on the recognition of their functionalities.

▶ Be familiar with the use of e-wallets, recognizing its main features through the interaction with simulators.

A

Registration Section

Module 1

All about mobile money

B

Module 2

Mobile money

Simulator

C

User Journey

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Module 1: All about Mobile Money

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Module 2: Mobile Money Simulator

SMS-based Training Results

Martina Taverna, Arifu

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Project Overview

256 24.5 $1

Number of refugees that

interacted

Variable cost per learner

Average number of messages

pulled

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Learners

▶ 3 channels for refugee onboarding: SMS invite, Tell a Friend, Posters and Word of Mouth

▶ Of the 586 invited learners 72 interacted with content, an adoption rate of 12.3% which is double the expected Arifu blind-SMS adoption rate of 6%.

Language Count Percentage

Swahili 123 54%

Kirundi 103 46%

Total 226 100%

Avenue Count Percent

SMS Invitations 72 28%Tell a friend 1 <1%Posters/Word of Mouth 183 71%Total 256 100%

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Content Engagement

Training

Kirundi Accessed Training

KirundiCompleted Training

Kirundi Completion Rate

Swahili Accessed Training

Swahili Completed Training

Swahili Completion Rate

Save 44 21 48% 85 40 47%Form or join a savings group 36 11 31% 44 20 45%Grow your shares 22 10 45% 10 6 60%

▶ Trainings are on average 13-18 messages each

▶ Top performing content:

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Recommendations

▶ Reduce drop off by reducing the number of menus a learner must navigate to get to a training.

▶ Increase collaboration with staff on the ground to reach more beneficiaries.

▶ More promotional posters spread around the camps.

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Scale

▶ Increase beneficiaries by providing content in other camps.

▶ Adapt content for host communities.

▶ Work with current and additional stakeholders to onboard new learners in the camp.

▶ Able to scale and reduce variable costs to $0.50 per learner.

▶ Introduce new content based on learner needs such as:

▶ Nutrition

▶ Livelihoods skills training (braiding, baking, etc.)

▶ Content around reintegration to return home

Jijenge Results

Cooper Swift, Fundación Capital

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Results: Registration & Module Completion

Registration, 126

Module 1: All About Mobile Money , 79

Module 2: Mobile Money Simulator ,

12

Average Time spent per module

31 minutes 16 minutes

Note: Because participants used the apps in small groups, “Registered Users” actually means small groups of users

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User answers to financial health questions

14%

19%

67%

Question: How can Mariam and Daudi choose a trustworthy mobile money agent?

By choosing agent closest to the bus station

By choosing the agent who plays up-to-date music

By choosing the agent who has signs clearly displayed showing the network, agent number and fees.

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User answers to financial health questions

31%

69%

Question: How should Mariam and Daudi deal with entering their PIN at an agent?

It's fine to give the PIN to agents

Keep the PIN private

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User answers to financial health questions

83%

14%3%

Question: How should Mariam and Daudi keep their money safe?

Using Mobile Money

Keep the cash in the box under the bedA hole on the property

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Leading Indicators and Next Steps

Program Observations• Initial “handholding” then

autonomous use – Users needed guidance on navigating the app, but quickly operated on their own

• User satisfaction – Incentive workers and users enjoyed the app and desire more content

• Improve delivery channel by scheduling and supervising tablet access to ensure consistent user experience

Possible Next Steps• Scale to more people, more

camps• Develop additional content,

specific for refugees• Create linkage modules to

drive users toward other programs (Arifu, etc.), with harmonized narratives

Front-End Learning Results

Jessica Massie and Adriano Tidah, UNCDF

44

Key Activities

Formation of savings groups + exposure to SMS and tablet-based financial education▶ +100 savings groups formed with 2371 beneficiaries

▶ 65% women▶ Training on Jijenge and Arifu done with:

▶ 6 implementing partner organizations▶ 11 Zone Leaders▶ 16 Good Neighbours incentive workers ▶ 30 savings groups (~675 members) - training still ongoing

• Before the project, 72% of refugees surveyed had never received any type of financial education.

• About 50% were in savings groups promoted by GNTZ or other organizations in the camps.

• Almost 60% could not name even one way to recognize a legitimate mobile money agent.

• Similarly, 55% did not know where or who to ask about fees and charges for mobile money transactions.

PRE TESTSome Observations from the Pre-Test:

0

50

100

150

200

250

300

350

NGO Group Do Not Save Box at Home Mobile Money In Kind (Asset) Informal Group

Savings MethodsSavings Plans

Cannot describe plan Basic description Can describe plan in detail

PRE TEST

0 50 100 150 200 250 300

own

shared with family

no phone access

SIM Card Access by Gender

Female Male

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

own

shared with family

no phone access

SIM Card Access by Country

Burundian Congolese

Do you have or have access to a registered SIM card? PRE TEST

PRE TEST

Male Female Congolese Burundian

yes 183 116 67 60 123

no 566 244 322 206 360

TOTAL 749 360 389 266 483

Do you use mobile money?

Forthoseusingmobilemoney,M-PESAtakesover90%ofthemarket.

TransactionsbyType:

• Checking a balance (54%)

• Buying airtime (51%)

• Receiving money (40%)

• Sending money (29%)

• Saving with mobile money (21%)

61%ofcampmobilemoneyuserseitherdidnotknoworanswered“Yes”whenaskediftheypayextrafees.

BUT–85%didnotknowwhatM-PAWAis.

PRE TEST

What are all of the things that you can use a mobile phone to do?

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Key Results

▶ In 3 months:

▶ 2/3 of program participants increased hh savings

▶ Avg. savings = 1 month’s “income” (40,229 TZS)

▶ Mobile money participation increased from 22% to 27%

▶ 9.3 million TZS in deposits were mobilized

▶ Due to program delays and slow procurement processes, endline data is forthcoming

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Key Observations/Lessons Learned

▶ Importance of trust

▶ Excitement/engagement

▶ Management

▶ Issue of access – don’t know where to use the apps

▶ Looking past traditional NGOs

▶ Our model is working!

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Next Steps

▶Phase II launched on July 2

▶GNTZ, DRC, IRC as partners

▶Expand Jijenge modules and introduce Jijenge + Arifu to all three camps and HC

▶ Integrate F2F modules developed by Microsave

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Asanteni!