#tbt: Digital services to reach the unreachable at the 2013 Summit

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Speakers in the “Reaching Deeper and Lowering Costs: The Path ahead for Digital Services” plenary session at the 2013 Partnerships against Poverty Summit in Manila, Philippines. We learned how mobile devices can help provide better options to those who are reliant upon riskier, costlier options.

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Highlighting technology innovations in the microfinance sector, the plenary session “Reaching Deeper and Lowering Costs: The Path ahead for Digital Services” at the 2013 Partnerships against Poverty Summit was moderated by our very own Sabina Rogers, filling in for Karen Dávila, noted Philippine broadcast journalist.

It was a fun session, using visual aids to represent certain aspects of a value chain for delivering mobile and financial services. A house represented the client and the start of the digital transaction value chain; then images showed the mobile interface for conducting transactions; a sari-sari represented an agent kiosk; a net represented both communications networks as well as financial networks; and a bank stood in for a variety of types of financial institutions.

Speakers were asked to make use of the array to help them illustrate where the companies and organizations the represented fit into the value chain.

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Gordon Cooper, Head of Emerging Market Solutions, APCEMEA, VISA, and Raj Singh-Khaira, Vice President, RM & Consumer Services, FINO PayTech

Nadeem Hussein of Tameer Microfinance Bank (Pakistan) led off the discussion demonstrating how Tameer had a role in supporting a number of points along the value chain overall from understanding the consumer landscape to developing mobile transaction interfaces including working with agents, and all as a financial institution.

Raj Singh-Khaira of FINO PayTech (India) and focused on the need for institutions like his to diversify their involvement in a number of ways along the value chain because “the market is not mature enough for us to be just this one component…the agent kiosk in this example.” He pointed to the wide array of services FINO provides to achieve this diversity including a number of types of savings products, insurance, and some loans.

FINO serves over 67 million clients and employs more than 50,000 agents. Technology is important to help reach this kind of scale as opposed to manual transactions. He also mentioned the ability to better track and secure transactions through the use of digital means of transacting.

The role of VISA was presented by Gordon Cooper. “Visa is a Network, a network service provider. It’s all about interoperability,” cited Cooper; continuing, he described a project VISA launched several years ago which focused on finding one key way VISA could contribute to increasing access to formal financial services for low income individuals.

The result: launching mVISA in Rwanda, a mobile transactions platform (see this video). He focused on the necessity of interoperability, which refers to the ability of one financial service provider’s platform to link up with others’ platforms in order to enable customers on different networks or in different financial systems to transact. Increasing interoperability as a means to support wider access will be one major focus for VISA in the digital area.

Napoleon Nazareno of Smart Communications, one of the largest mobile network operators working in the Philippines, echoed Khaira. Smart is not isolated to only providing mobile phone connectivity, but also goes beyond to touch on all aspects of the value chain. Beginning more than a decade ago, Smart launched a small mobile banking service platform. By partnering with financial service providers over the years, this has now grown into a full-fledged mobile microfinance service platform.

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Ian Radcliffe, Director, WSBI-ESBG

Ian Radcliffe of WSBI illustrated their role in supporting the actors involved in the value chain as direct service providers. Their core activity is advocacy, but apart from that, they also deliver training and consultancy services to providers.

He highlighted an initiative begun about four years ago, to understand what it would it take to double the number of savings accounts among poor people. This launched the WSBI savings account program, which is now working with banks in 10 countries to develop and improve agent banking models and mobile banking models now, too.

Nazareno summarized the session nicely at one point during the presentations, pointing to the power of digital channels for reaching the financially exclude citing recent national survey in the Philippines.

He said, “80% of the households in the Philippines don’t have a bank account. On the other hand, 90% of Filipinos have a cell phone,” which highlights the viability of using mobile devices to provide financial services to those who would otherwise remain excluded. Mobile devices can help provide better options to those who are reliant upon riskier, costlier options, and, ultimately, ones that would stand in the way of their journey out of poverty.

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A participant at the 2013 Summit was having a great time.

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Watch the full video of this plenary

Accessible and affordable microinsurance with Afua Donkor

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We are pleased to bring you this #ThursdayThrowback blog post, which was originally published in Resilience: The State of the Microcredit Summit Campaign Report, 2014. Afua Boahemaa Donkor, executive director of Star Microinsurance in Ghana, explains how they have developed microinsurance products that are simple and affordable for the poor.


>>Authored by Ana Hecton, former intern, and Sabina Rogers, Communications and Relationships Manager

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You can read a transcript of her interview here.
Read the full report here.

The 2014 State of the Campaign Report features various actors in the microfinance sector that are taking steps to help their clients lift themselves out of poverty. In this interview Afua Boahemaa Donkor, executive director of Star Microinsurance in Ghana, talks to DSK Rao from the Microcredit Summit Campaign about how microinsurance works and how it can benefit the poorest. Ms. Donkor also discusses the challenges in providing coverage for the poorest.

Star Microinsurance in Ghana started in 2008 as a specialized microinsurance subsidiary of the Star Insurance Group. Star Microinsurance works to design microinsurance products, looks for distribution channels, and provides the back office administration of the products.

“Microinsurance is supposed to be suave. When I say that, it means that it has to be simple, accessible, understandable, fundable, and efficient.”

— Afua Boahemaa Donkor

Star Microinsurance aims to make their insurance accessible to all people, those living in the city and those living in remote areas. The microinsurance products that are offered by Star Microinsurance are “made very simple, the premiums are set to be very cheap, affordable, so that the informal person, in the rural sector, can afford to have insurance products.”

Star Microinsurance collaborates with rural banks, MFIs, and post offices where the product is located. The rural banks and post offices are spread all throughout Ghana, therefore being highly accessible to all people no matter their location.

The challenges that face microinsurance

When talking about microinsurance and selling it to those living in poverty, Ms. Donkor says that it is hard for people to grasp the concept that they are paying for a possibility that may or may not occur. For those living in extreme poverty, possibilities of the future or what could happen is not a high priority. The demand is for what they need right here, right now. Thus, trying to sell microinsurance to people whose concern is focused solely on getting through that day is very difficult. In fact, “insurance in general is a very difficult thing to sell whether to an educated person or an uneducated person because it is an intangible good we are selling.”

What we know of the impact of microinsurance

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A systematic review of the impact of microinsurance (2013) produced by the ILO’s Microinsurance Innovation Facility. Source: http://www.impactinsurance.org/emerging-insights/ei76

Partnership building to reduce the Philippines’ maternal mortality rate

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Women learn about family planning techniques while they wait for their exams at October’s community health fair.

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Pathway

Microfinance savings and/or borrowing groups linked with health education, health financing, and health product delivery


>>Authored by Camille Rivera, Senior Program Associate, and Sabina Rogers, Communications & Relationships Manager

HMHB_CMYK_English_BeveledWith the 2013 Partnerships against Poverty Summit in the Philippines, we wrote a new chapter in the evolution of the Microcredit Summit Campaign. The 16th Microcredit Summit focused on how public-private partnerships could combine expertise from the field of microfinance with other areas to develop more efficient and sustainable services for the extreme poor.

We have since created one such collaboration in order to address the problem of stubbornly high maternal mortality rates in the Philippines. While the country has experienced strong economic growth in recent years and the government has instituted a national hospital insurance scheme, PhilHealth, maternal mortality is at 221 per 100,000 live births. The Philippines are far off track of their maternal mortality MDG of 52 deaths per 100,000 live births.

It is a long way to go from 221 to 52 in the next few months, but when offered the opportunity to scale up in a short period of time our integrated health and microfinance methodology, we (with Freedom from Hunger) jumped at the chance. In partnership with a local partner CARD MRI (the largest social development organization providing micro-financial services in the Philippines) and with the financial and strategic support of Johnson & Johnson, we are implementing the Healthy Mothers, Healthy Babies project (HMHB, or “Kalinga Kay Inay” by its name in Tagalog).

Photo credit: Cassie Chandler

Photo credit: Cassie Chandler

How it works

The idea is simple: offer free health check-ups and behavior change education on health topics to pregnant and lactating women to create positive health outcomes. By the end of 2015, CARD and other MFIs will educate 600,000 women to improve maternal health and safe deliveries of infants, birth outcomes, and reduce preventable maternal death; and 8,000 pregnant or lactating women will be directly connected to relevant services and products. CARD and partners have held two community health fairs so far, and for many of these women, it was their very first gynecological exam.

At these health fairs, CARD sets up tents to give shade to those waiting outside. Inside the building, as the women wait for their preliminary exams (and, if necessary, ultrasounds), they learn about family planning. The volunteer health providers (doctors, OB-GYN, midwives, and others) write prescriptions for those who need medications, and BotiCARD (a CARD MRI institution) fill them for free in a tent set up outside.

CARD has found their collaboration with local government and public health units to be vital in getting higher-than-expected turnout to the fairs as well as for identifying local health providers for CARD members. Local administrators of PhilHealth have joined our January health fair and provided services to 179 health fair patients ranging from members’ renewal enrollment, new enrollment, membership updating, and printing of members’ data information.

Making these changes lasting changes

More importantly to us, through this endeavor, we are working to improve the scalability and sustainability of delivery of health education and related services to millions of women and children in the Philippines. Inspired by the 2013 Partnerships against Poverty Summit, the Campaign’s role in the HMHB project is to reach beyond the traditional microfinance actors and facilitate a partnership-building process for the “MFIs for Health” consortium, a group of 18 MFIs who are banding together to increase access for their communities to health-related products and services.

A doctor provides free checkups as part of a health outreach program in the Philippines. Photo by: CARD MRI

A doctor provides free checkups as part of a health outreach program in the Philippines.
Photo by: CARD MRI

We are talking with several foundations, corporations, and associations to identify specific ways that they can work with us and MFIs for Health to increase access to and improve delivery of healthcare services. The Zuellig Family Foundation (ZFF) and JPHIEGO in the Philippines are two organizations that have joined forces with our alliance — whether formally or informally. They have facilitated introductions to local government units (LGUs) and the Integrated Midwives Association of the Philippines to recruit healthcare providers as volunteers for the health fair and get their help spreading the word to their patients. In fact, ZFF and CARD are working with the Rural Health Unit (RHU) in the Visayas to coincide the RHU’s “Buntis Congress” (Pregnant Women’s Congress) with CARD’s April community health fair. Through this coordination, we are pooling resources and thus gain a larger potential impact for the community.

April is the Month of MicrofinanceLearn more

April is the Month of Microfinance
Learn more

This strategy behind HMHB, to facilitate partnerships between microfinance actors and players in other sectors, parallels efforts to create more integrated approaches to solve the most pressing needs of the extreme poor. In this case, we are addressing maternal and child health; in Ethiopia, it could be fistula and, in India, it could be non-communicable diseases.

Because MFIs meet regularly with large numbers of clients, they serve as an ideal platform to convey health information and services to clients who often build relationships of trust with their loan officers, as well as other members in their group. These exchanges can also have a replicator effect as clients are encouraged to share the information with their family members and others in their community.

By forging partnerships across sectors and bringing in non-traditional actors to microfinance, the Campaign is maximizing the best aspects of each player and (hopefully) helping the Philippines reduce their maternal mortality rate to 52 deaths per 100,000 live births.

Relevant resources

Millennium Development Goal 5: Progress and challenges in maternal mortalitySource: The Institute for Health Metrics and Evaluation

Millennium Development Goal 5: Progress and challenges in maternal mortality
Source: The Institute for Health Metrics and Evaluation

How Savings and Retail Banks Can Bring an End to Extreme Poverty

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Register for the 17th Microcredit Summit today!

Join us in Mexico for the 17th Microcredit Summit this September 3-5 where savings will take an important place in the agenda.

The World Savings and Retail Banking Institute (WSBI) declared its support for the goal of helping 100 million families lift themselves out of extreme poverty by announcing a Campaign Commitment at the 2013 Partnerships against Poverty Summit held last October 2013 in Manila, Philippines. The Microcredit Summit Campaign recently caught up with the WSBI to learn about the progress they’ve made on their Commitment and the ways they are working towards the end of extreme poverty.


logo_wsbi_new_quadri-300x150The World Savings and Retail Banking Institute (WSBI) represents the interests of approximately 7,000 savings and retail banking institutions in 90 countries. It focuses on issues of global importance and supports the aims of the G20 in achieving sustainable, inclusive and balanced growth and job creation worldwide. WSBI favours an inclusive form of globalisation that is just and fair, supporting international efforts to advance financial access and financial usage for everyone. It supports a diversified range of financial services that responsibly meet customers’ transaction, saving and borrowing needs.

WSBI has long been committed to alleviating poverty via financial inclusion. In fact, WSBI member institutions rank financial inclusion as the most important international policy topic. At last November’s Microcredit Summit, WSBI made two Commitments for 2014:

  • To study youth markets to better identify successful strategies for inclusive financial products and services, focusing on four key areas – usability, affordability, accessibility and sustainability – and seek to publish a summary of preliminary outcomes by the end of 2014.
  • To hold with partners and member banks at least three events to share knowledge about appropriate pricing research in Burkina Faso, El Salvador, Indonesia, Kenya, Lesotho, Morocco, South Africa, Tanzania, Uganda and Vietnam, and its implications for offering savings products for the poor.

WSBI is indeed on track to fulfill these Commitments. Regarding the first Commitment, we have begun a study into the youth markets of Morocco’s Al Barid Bank and Kenya Post Office Savings Bank, in order to better understand the financial habits of people aged 15 to 24.

Regarding the second Commitment, since last November WSBI has delivered workshops at the European Investment Bank and the WSBI African Regional Group Meeting, a “mobile banking as good as mobile money” workshop for the Association of Savings Banks of East Africa (ASBEA) and the WSBI Asia Regional Group Meeting, and a webinar for the Swiss government’s State Secretariat for Economic Affairs (SECO). We will hold another event at WSBI’s General Assembly in San Salvador on July 3rd and 4th.

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Poorest Four Countries (78 Million Adults)

But these two commitments are really just the tip of the iceberg when it comes to WSBI’s overall dedication to financial inclusion. For example, over the past five years, WSBI has worked on a major financial inclusion programme with member banks in the ten countries mentioned in the second commitment above. Apart from project implementation, the core goals of the program were to articulate and disseminate lessons learned to a variety of stakeholders.

One of our first tasks was to scope and scale the target markets, from which we learned that the unbanked poor were the big open market space. The challenge was to understand exactly who the unbanked are, what they need, and how much they can afford to pay to meet their needs. As we broke down the target markets by type of unbanked adult, we learned quickly that demographics matter hugely, and that the young “third adult” in households (aged between 15-24) made up a very significant proportion of unbanked households.

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Three Best-off Countries (220 Million Adults)

While we had a good idea about the financial habits of young people in the poorest countries that we work in–in one form or other they seek to contribute to the family budget–in the better off countries, we could find no research about the financial habits of the 42% of the unbanked population that are young.

Therefore, our Microcredit Summit Campaign Commitments not only contribute directly to the goals of our financial inclusion program but also help to fulfill our high level mission of increasing financial access and financial usage for everyone.

What’s more, empirical evidence at micro-economic, local economic, and macro-economic levels supports the conviction that financial inclusion helps poor households improve their lives and spur economic activity. WSBI’s Marrakech Declaration goal of “an account for everyone” is also fully consistent with the Microcredit Summit Campaign’s goals.

We are actively seeking funding to extend our financial inclusion program to other countries, to work with local social structures–such as village savings and loan associations–and to take  advantage of technology (mobile banking) and innovative techniques (data analytics) that help member banks to develop more customer-centric approaches.


Join WSBI in stating YOUR Campaign Commitment

TODAY! Yunus Centre to Livestream the 10th Social Business Design Lab

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The Yunus Centre will be streaming a live video feed of the 10th Social Business Design Lab TODAY, December 20th at 11 PM (local time: December 21, 2013 at 10.00 AM (GMT+6)) . The Yunus Centre Social Business Design Lab is a meeting place … Continue reading

Initial Reports of Affected Filipino MFI Staff, Clients, and Branches

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We encourage you to make a donation to any one of these MFIs EspañolFrançais Continue reading

Finance for All by 2020 in Order to End Extreme Poverty by 2030

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Originally posted on Center for Financial Inclusion Blog:
> Posted by Larry Reed, Director, Microcredit Summit Campaign Why does the Microcredit Summit Campaign wholeheartedly support the goal of “Finance for All by 2020?” Because we see it as an important…

2013 Partnerships against Poverty Summit Declaration

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From October 9 to 11 we held the Microcredit Summit in Manila on the theme “Partnerships against Poverty.” Delegates of the Summit drafted and approved the 2013 Partnerships against Poverty Summit Declaration, listing the principles that we will follow to insure that microfinance works as a worthy partner in the movement to end extreme poverty. This is the text of that powerful and inspiring Declaration.

We, the participants in the Partnerships against Poverty Summit, state collectively and enthusiastically, that:

EXTREME POVERTY CAN AND WILL BE ENDED BY THE YEAR 2030!

To reach this goal, we declare the following four commitments:

First, we commit to putting the poor first!

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New Partnerships against Poverty: Health and Financial Services

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When hundreds of millions of women like Alpana can enjoy health, savings, good work, and a sense of achievement and security for their families, we will know that our job is done EspañolFrançais Continue reading

Sign onto the Declaration in Support of the Independence of Grameen Bank

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Please join us and other allies of Grameen Bank in endorsing the Grameen Declaration EspañolFrançais Continue reading

Partnering to End Extreme Poverty

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“Together we can achieve an important milestone in human history. A world that is free—truly free—from extreme poverty.”
—World Bank President Jim Kim EspañolFrançais Continue reading

A Commitment to the Future

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The work that took place is a moment in history when the industry has rededicated itself to the mission of using microfinance to help end poverty.EspañolFrançais Continue reading

Creating Solutions for Social Problems

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“Invest in us and change the world.” That’s what social business is all about. —Muhammad Yunus EspañolFrançais Continue reading

A Comprehensive Approach to Helping the Poor Lift Themselves out of Poverty

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Going the Extra Mile: From Safety Nets to Pathways out of Poverty
Track: Partnerships Targeting the Vulnerable
Date: Thursday, October 10th
Time: 9:00 – 10:30 AM

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Roshaneh Zafar, Managing Director, Kashf Foundation

Partnerships between financial institutions, governments, and social welfare programs are essential for empowering the extreme poor reduce vulnerability and gain self-sufficiency. Moderating the 2013 Partnerships against Poverty Summit plenary session “Going the Extra Mile: From Safety Nets to Pathways out of Poverty,” Roshaneh Zafar of the Kashf Foundation (Pakistan) noted that “poverty is a complex matter. We need multiple solutions, we need synergy, we need leverageability, we need scalability; and we all need to work together and do much more.”

The discussion opened with Department of Social Welfare and Development (DSWD) of the Philippines Secretary Corazon “Dinky” Juliano-Soliman, who told of their “convergence strategy,” a means to help beneficiaries graduate and stay out poverty through conditional cash transfer (CCT) community-driven development and sustainable livelihoods converging. Through this program, they also partner with microfinance institutions to provide credit to clients that need larger loans than DSWD provides (10,000 pesos, or approximately $230).

Juan Borga (Inter-American Development Bank) and Secretary Soliman

Juan Borga (Inter-American Development Bank) and Secretary Soliman

Juan Borga of the Inter-American Development Bank shared their efforts toward poverty reduction. Working mostly with conditional cash transfer (CCT) programs, they are trying to create a system that creates a relationship between the recipients of the CCTs to the financial institutions so that they will have “the right instruments [to save] and the right incentives to do it.” Commonly, “the financial institutions are not really providing them with the right products they’d like to have.”

Nelly Otieno of CARE International in Kenya and Yves Moury of Fundación Capital (Colombia) highlighted the necessity of building assets through methods such as savings groups and CCTs in order to create pathways out of poverty and to prevent long term dependence on financial programs.

Moury, in particular, stressed the importance of asset building and capacity building as a catalyst to spur sustainability and self-sufficiency–and thus an exit strategy for the implementers. According to Moury, “Linking savings and CCTs has been just like putting wheels on suitcases—a powerful combination.”

The speakers agreed that health insurance, mobile phones, identification cards, social protection, and bank accounts, working in tandem, greatly help to supplement financial inclusion initiatives and create pathways out of poverty.

Syed Hashemi,  CS Ghosh, and Nelly Otieno

Syed Hashemi, CS Ghosh, and Nelly Otieno

Syed Hashemi of BRAC Development Institute (Bangladesh) spoke about incorporating governments into exit strategies that allow clients to protect their assets and take advantage of new opportunities. He emphasized that, “through national governments, we can come up with an integrated, holistic, national social protection system that combines CCTs with graduation programs so we can collectively achieve this commitment of eradicating extreme poverty by 2030.”

Hashemi also touched on the cost-effectiveness of social protection policies that include safety nets and offer self-employment because, although graduation programs that include extremely intense monitoring and coaching have been seen to have an initially higher cost, they require a shorter timeline.

Innovative methods of providing health services to the poor are equally crucial to comprehensively reducing the amount of individuals living in extreme poverty. Chandra Shekhar Ghosh of Bandhan (India) stated, “Poverty is a complex syndrome. It is not only possible to eliminate poverty through credit support to the poor.”

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(Photo credit: Vikash Kumar Photography)

Organizations and government institutions working toward eliminating poverty must implement additional services beyond credit, including social, health, and educational programs that target the underlying causes of poverty beyond financial inclusion.

Overall, the plenary constructively critiqued the current successes, challenges, and future opportunities in the effort to create the pathways the extreme poor can take advantage of to lift themselves out of poverty.

However, the speakers recognized that the road ahead is difficult. As Secretary Soliman stated, “We hesitate to say graduation or exit because poverty is very complex. The notion of graduation gives the impression that we are done. But with poverty you can never be done, and that’s why we call it transition.

Watch the full video of this plenary