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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