THE DATA BEHIND GOOD DECISION MAKING...• FII Wave 1 provides baseline measurements. Subsequent...
Transcript of THE DATA BEHIND GOOD DECISION MAKING...• FII Wave 1 provides baseline measurements. Subsequent...
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
+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