Mifos and DreamStart team up on Commitment – And they’re looking for a partner!

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Mifos + DreamStart logos
Join the Mifos Initiative and DreamStart Labs in a new, bold, and momentous initiative. They are collaborating on a joint Campaign Commitment that embodies the spirit of the 100 Million Project with its measurable approach and global outreach for the financial inclusion of the world’s extreme poor.

These two Commitment Makers will begin by providing a sample of savings groups from various countries with software to manage their financial records. Working in the lean startup method of “build-measure-learn,” they will adjust and fine-tune their software to meet the needs of the extreme poor. Not only will the software empower families and communities to become part of the formal financial services system, but more importantly, it will provide crucial data that will improve product design and the lives of the families who receive them.

BECOME PART OF THIS INITIATIVE. Mifos and DreamStart are looking for a partner to roll out this platform. The ideal partner for this project will be a highly motivated, committed organization with a global network of saving groups. The Mifos Initiative and DreamStart Labs hope to welcome this partner by the end of the month and announce this exciting new Commitment at the 18th Microcredit Summit in Abu Dhabi this March 14-17.

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Grameen Fdn expands our knowledge on poverty measurement

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We are pleased to post an update from Grameen Foundation about the Campaign Commitment that they launched in 2014. Focused on supporting the growth of the use of a very effective poverty measurement tool, the PPI®, their Commitment also underscores the importance of using the data from tools like this in helping to improve the way we support and serve those living in poverty.

You can learn first-hand how such tools can be used, not just to prove that you are reaching the extreme poor, but to improve the services that you offer and the way you interact with the extreme poor. We are organizing a breakout session at the 18th Microcredit Summit called “Innovations in Measuring Social Impact.” Learn more and register today!


>> Authored by Julie Peachey, Grameen Foundation

In early 2014, Grameen Foundation made several commitments, as part of the Microcredit Summit Campaign’s 100 Million Project, towards achievement of the collective goal of helping 100 million families escape poverty. Our commitments focused on demonstrating use of the Progress out of Poverty Index® (PPI®) for measuring household-level poverty, because reaching and lifting people out of poverty requires knowing who is actually poor.

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microPension Foundation to advance pension and social security inclusion

Micro Pension Foundation co-hosts a financial counselling session at Sullimula Paniya tribal village (India). Photo courtesy of Micro Pension Foundation — Read the press release announcing Micro Pension Fondation’s Campaign Commitment (the link connects to the ESAF press release) — Read their Commitment letter (the link connects to the ESAF letter) —Watch the recording of the E-workshop co-hosted with the Center for Financial Inclusion, Micro Pension Foundation and HelpAge International, (hyperlink https://www.youtube.com/watch?v=gFzTaAlc7To)

microPension Foundation co-hosts a financial counseling session at Sullimula Paniya tribal village (India). Photo courtesy of microPension Foundation
Read the press release announcing microPension Foundation’s Campaign Commitment
Read their Commitment letter
Watch the recording of the E-workshop co-hosted with the Center for Financial Inclusion, Micro Pension Foundation and HelpAge International

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The Microcredit Summit Campaign welcomes microPension Foundation (mPF) as the 58th organization to make a Campaign Commitment. mPF commits to provide an integrated, contributions-led micropension solutions for 25,000 domestic help workers in India and work to further social security inclusion for low-income informal sector workers. With this Commitment, mPF joins a global coalition to help 100 million families lift themselves out of extreme poverty.

The non-profit mPF is a specialized pension and social security inclusion R&D hub established in 2012 through an inception grant from VISA, Inc. mPF develops, field-tests, and mainstreams innovative and scalable technology-led solutions to enable secure, convenient, and affordable access to contributory pension and social security programs by low-income unbanked workers.

microPension Foundation joins our coalition and commits to the following:

  • By encouraging mass-scale civil society action to achieve pension and social security inclusion by motivating P2P action using the first global e-commerce social security platform titled “gift-a-pension.” This web-platform enables middle and upper-middle income households to enroll their domestic help (cooks, drivers, maids, guards) for an integrated pension, insurance, and micropayment solution through the Internet.
    Employers use electronic financial literacy tools (FAQs, animations, films, calculators) to explain pension and social security concepts and product features to their home help. Domestic help who do not have a bank account are provided a bank-issued prepaid card for channeling periodic micropension contributions to regulated pension funds and life insurers.
    By December 2016, the microPension Foundation will aim to achieve coverage of 25,000 domestic help employed by middle and upper-middle income households in India. The microPension Foundation will also identify and work with like-minded institutions in other developing countries to implement the Gift-a-Pension platform in other countries.
  • The microPension Foundation will collaborate with a specialized social security solutions enterprise to launch a new social security gateway named microPension-in-a-Box (mPIB). This gateway will enable governments, regulators, multilateral and bilateral aid agencies, MFIs, cooperatives, NGOs, and social enterprises more generally to offer an integrated social security program based on portable, individual pension and insurance accounts to their citizens, clients, or beneficiaries.
    With the Microcredit Summit Campaign, the microPension Foundation and the new solutions enterprise will launch a global road-show in mid-2016 to show-case the mPIB solution to Campaign partners and to build a global partnership-led implementation network.

gift a pension photo_275x338mPF will encourage, enable, and assist Campaign partners and other stakeholders to launch integrated, contributions-based micropension and microinsurance programs for low income excluded individuals. With this strategy, mPF seeks to multiply the impact of the social security inclusion effort and create a global micro-social security marketplace which will enable low-income, informal sector workers to achieve a secure and dignified old age through thrift and self-help.

Executive Director of Micro Pension Foundation, Parul Khanna, explains why they are committing with the Microcredit Summit Campaign:

“We are extremely excited about the huge potential global impact of the Microcredit Summit Campaign and are delighted to be a partner in this process. The mPF team is committed to work closely with the Campaign and fellow partners in the coming years to empower and enable low-income excluded women to achieve a financially secure and dignified old age.”

Read the Commitment Letter from Micro Pension Foundation.

The Microcredit Summit Campaign looks forward to welcoming our newest partners to the global coalition and sharing their progress towards the Commitment achievement at the 18th Microcredit Summit. The Campaign’s 100 Million Project is building a movement among financial service stakeholders committed to helping to end extreme poverty through: public statements of commitment to action, expanding practices to reliably measure movement out of extreme poverty, and promoting innovations and best practices to accelerate movement out of poverty.


We invite you to join microPension Foundation and…

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5 lessons on expanding financial inclusion and usage

Source

Source: The 2015 Brookings Financial and Digital Inclusion Project Report: Measuring Progress on Financial Access and Usage.

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>>Authored by Mbaye Niane, 100 Million Project intern

The Center for Technology Innovation (CTI) at the Brookings Institute recently published the 2015 Brookings Financial and Digital Inclusion Project (FDIP) Report and Scorecard. It evaluates access to and usage of affordable financial services across 21 different countries in Africa, Asia, and Latin America.

These countries are geographically, economically, and politically very diverse, but many of their citizens share a common experience of being excluded from formal financial services. Governments from these 21 countries [1] have made a commitment to achieve financial inclusion by improving access to and usage of appropriate, affordable, and accessible financial services. At the Microcredit Summit Campaign, we are mobilizing commitments from private sector actors as well as governments to expand access to and usage of just such high quality financial — as well as non-financial — services.

We know many organizations in the microfinance and financial inclusion sectors affirm a vision of ending poverty. The aim of this coalition is to tie visions to actions and action to achievement. For example, the Technical Secretariat for Disabilities (Secretaría Técnica de Discapacidades) of the Vice-What is a Commitment + Actions to end extreme povertypresidency of the Republic of Ecuador has committed to support 500 entrepreneurial projects led by persons with disabilities through the Productive & Financial Inclusion Network and to implement of a set of poverty measurement indicators that will allow the Technical Secretariat to assess progress in meeting its objectives in serving persons with disabilities.

Brookings’ Financial and Digital Inclusion Project (FDIP) measures the progress achieved in those 21 countries and seeks to answer important questions related to global financial inclusion efforts [2], questions that we are interested to know the answer to as well.

  1. Do country commitments make a difference in progress toward financial inclusion?
  2. To what extent do mobile and other digital technologies advance financial inclusion?
  3. What legal, policy, and regulatory approaches promote financial inclusion?

The FDIP Scorecard assesses the accessibility and usage of financial services in each country using 33 indicators across four dimensions: country commitment, mobile capacity, regulatory environment, and adoption of traditional and digital financial services. This scorecard will help non-governmental organizations, policy makers, private sector representatives, and others examine the best practices for facilitating and measuring financial inclusion.

The FDIP reports that Kenya, South Africa, and Brazil lead the 21 countries overall on financial inclusion. Rwanda and Uganda follow, tied at fourth place. These high-performing countries took the critical steps towards financial inclusion such as policy and regulatory changes. Creating an accessible and affordable path for poor families to use digital technology is a strategic way to get them out of poverty. The FDIP report and scorecard give us valuable information about financial inclusion. It is valuable to show that countries making commitments, solving regulatory issues, and creating an accessible and affordable path for poor families to use digital financial services (i.e., mobile money and e-wallets) is a strategic way to get them out of poverty.

Achieving financial inclusion: Five critical conclusions

The 2015 FDIP Report can be summarized with the following five critical conclusions on how to best expand financial inclusion across the world.

[ONE] Country commitments are vital to reach financial inclusion.

They facilitate knowledge-sharing and engagement among groups and assure that national financial inclusion strategies include measurable targets and a strong coordination across government agencies with the public and private sectors. Country commitments allow the creation of developing surveys that diagnose the status of financial inclusion, a critical step to develop a targeted strategy and assessing the success of future inclusion initiatives.

[TWO] Digital financial services are important for accelerating financial inclusion.

Governments and the private sector will need to increase investments in digital communication and payments infrastructure and ensure services are affordable. The use of digital financial services has grown significantly in recent years among many people who have little or no previous experience with formal financial services. Many households have more than one mobile phone, smartphone or tablet.

We believe that mobile money linked with agent networks in low-income communities is a key financial inclusion strategy — one of our six “pathways” — to help end extreme poverty. According to the Groupe Speciale Mobile Association (GSMA) in 2015 the number of cellular connections through mobile phones, smartphones and tablets increased to more than 7.5 billion and is expected to increase to over 9 billion by 2020. Additionally, smartphone penetration will allow non-bank institutions to expand access to more user friendly interfaces such as mobile financial services. However, for several reasons, feature (or “dumb”) phones will remain the preferred option in many developing community contexts (i.e., poor villages in Africa) for a while still.

[THREE] Geography generally matters less than policy, legal, and regulatory changes.

With this said, there are some regional trends in terms of financial services provision, however. Regulatory and policy changes will likely accelerate financial inclusion outcomes, but in order to promote digital financial services — which, as we explain above, is important for accelerating financial inclusion — countries need a robust digital ecosystem that promotes innovation.

[FOUR] There are many important actors with major roles and they need to coordinate closely.

Central banks, ministries of finance and communication, regulated banks and non-bank financial providers, and mobile network operators each have a major role in achieving financial inclusion. They should closely coordinate with respect to advances in policy, regulation, and technology to ensure a vibrant and inclusive financial ecosystem.

The Microcredit Summit Campaign organized a Field Learning Program last year for ministers and directors of social protection programs in Africa who were interested to learn how to replicate and scale up important, accessible, and affordable financial services to the extreme poor. They observed how flagship programs like Ethiopia’s Productive Safety Net Program are combating extreme poverty pairing financial services with social protection programs. In Mexico, they examined how the government and regulatory authorities coordinate with financial entities and technology companies to deliver a conditional cash transfer (CCT) program. The national development bank, BANSEFI, plays an integral role as a facilitator of cash transfers and an accounting hub for the social protection program.

[FIVE] Tackle the gender gap and address diverse cultural contexts with respect to financial services.

Solving these two problems will help achieve global financial inclusion. For example, formal financial service providers encounter mistrust and a lack of awareness. Public and private sector leaders need to educate the public about these services and mobilize their efforts to improve the efficiency and reliability of communication networks.

The FDIP Scorecard

The FDIP Scorecard provides us an overall ranking for each country on the rate of financial inclusion, a country’s commitment, the mobile capacity, the regulatory environment, and adoption of traditional and digital financial services.

The FDIP Report and Scorecard are instructive to us as we pursue our advocacy on uptake of the six pathways (mobile money, integrated health and microfinance). The FDIP report and scorecard hold valuable information that can provide positive guidance to the design and delivery of financial inclusion interventions. This report strengthens the growing body of evidence demonstrating effective ways of reaching the hardest to reach and poorest individuals with programs that support their sustained progress out of poverty.

The scorecard offers an easy-to-understand progress report on financial inclusion commitments. How can we assess, in the future, progress made on Campaign Commitments?

Here is an example of one of the 21 scorecards in the report:

We hope this report provides strength to the growing body of evidence demonstrating effective ways of reaching the hardest to reach and poorest individuals with programs that support their sustained progress out of poverty.


Footnote

[1] The 21 countries are Afghanistan, Bangladesh, Brazil, Chile, Colombia, Ethiopia, India, Indonesia, Kenya, Malawi, Mexico, Nigeria, Pakistan, Peru, the Philippines, Rwanda, South Africa, Tanzania, Turkey, Uganda, and Zambia.

[2] John D. Villasenor,West, Darrell M., and Lewis, Robin J. The 2015 Brookings Financial And Digital Inclusion Project Report. Pg.3: http://www.brookings.edu/~/media/Research/Files/Reports/2015/08/financial-digital-inclusion-2015-villasenor-west-lewis/fdip2015.pdf?la=en


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How to be disability inclusive and age friendly

Lucía Urtecho Calderón, client of Financiera FAMA, sells candy and candied fruits in Mercado Carlos Roberto Huembes, Nicaragua on December 13, 2012

Lucía Urtecho Calderón, client of Financiera FAMA, sells candy and candied fruits in Mercado Carlos Roberto Huembes, Nicaragua on December 13, 2012. Photo credit: Center for Financial Inclusion at Accion

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>>Authored by Sonja E. Kelly and Misha Dave, Center for Financial Inclusion at Accion

Almost a year ago now, the Center for Financial Inclusion at Accion launched two Campaign Commitments for further research and action on the inclusion of persons with disabilities and older people in financial services. If there is one lesson we have learned from following through on these Commitments, it is that including these populations in financial services is in some ways easier than practitioners expect it to be but, in other ways, harder than it looks.

In our research on aging and financial inclusion, one of the key insights was that financial service providers of all sizes often apply age caps on credit products. However, many institutions we talked with did not know exactly where these standards came from. Some attributed them to concerns about life expectancy of older clients, some to institutional history (“that’s just the way we do it”), some to the increase of credit portfolio insurance it would incur, and some to a perception of older people as economically dormant.

Many of these concerns can be mitigated by better research and dispelling myths about the creditworthiness of older people. Easy, right? In fact, there are some institutions that apply creative ideas to providing credit to older people. Group guarantees and automatic withdrawal payments on loans from publicly administered pensions through government partnerships are both examples of this.

However, such institutions providing credit to older people seem to be the exception rather than the rule. Worse, convincing institutions to care about this population is not easy. One institution we spoke with in India was baffled by the idea of providing credit to people over the age of 55. “But they [the older people] could die and wouldn’t pay the loan,” the product developers insisted. Doing the research and articulating the issue was the easy part — now the hard work begins of advocating on behalf of older people.

Similar attitudinal barriers exist in financial institutions for serving persons with disabilities. Let’s take stock: over one billion people around the world — 1 in 7 of us — have a disability and four-fifths live in developing countries like India. Despite this and the fact that many microfinance institutions (MFIs) claim to be dedicated to “serving the world’s financially excluded people,” less than 1 percent of their clients are persons with disabilities.

In India, disabled persons have limited or no access to formal credit and other financial products for education, housing, skills development, business, and such. In addition, insurance companies in India do not cover assistive technology like wheel chairs and hearing aids that disabled persons need to be mobile, avoid further injury to themselves, and work and live full lives. The gap between demand and supply is enormous, and this creates a dangerous hotbed for informal credit and loan sharks to exploit an already vulnerable and marginalized population, dragging them further into poverty.

Disabled persons and older people have similar physical challenges (mobility, visual, and hearing impairment) and misperceptions about their capabilities to work and run businesses. Therefore, helping to financially include one group will serve to make positive changes for the other. Whether it be through changing attitudes and perceptions or implementing universal design principles in their operations, financial institutions can better serve all clients with physical challenges by becoming disability inclusive and friendly.

Equitas_PWD_Dhanalakshmi

Dhanalakshmi was not born blind. She was badly burnt and lost her vision 23 years ago when her husband poured acid over her, her two sisters, and mother. Dhanalakshmi’s loan group has fully included her by using very simple accommodation measures like reciting the MFI pledge aloud and taking turns to assist her to attend the meeting.

Through financial inclusion of disabled persons, we see a compelling story of social inclusion can be seen at the community level. Leveraging the group-based model in microfinance, disabled persons, mostly women, receive community support and social acceptance from other group members. Dhanalakshmi, an Equitas client, exemplifies this.

Dhanalakshmi was not born blind. She was badly burnt and lost her vision 23 years ago when her husband poured acid over her, her two sisters, and mother. While her sisters recovered with minor injuries, got married, and have families of their own, Dhanalakshmi lost her vision and sustained major burns on the right-hand side. Constrained by her disability, she confined herself to her home for many years.

Four years ago, Dhanalakshmi joined Equitas as a member. She took out a small loan and started her garments business, buying clothes from the wholesaler and selling them door-to-door. Dhanalakshmi’s group has fully included her by using very simple accommodation measures like reciting the MFI pledge aloud and taking turns to assist her to attend the meeting. This has given her the confidence and the ability to support herself and her mother financially. Along with economic independence, she has also been socially accepted by people around her.

Group members often help support disabled persons in their businesses, as well. For example, they may purchase raw materials, sell/distribute products, collect and repay loans on behalf of the disabled client. This inclusion is creating role models by empowering disabled persons to be economically self-sufficient while also empowering communities to break down social stigma and attitudinal barriers on what a disabled person can and cannot do.

To help further financial inclusion for persons with disabilities, CFI at Accion’s Disability Financial Inclusion Program in India has provided trainings and resources to sensitize and equip microfinance institutions to serve this marginalized and underserved population, recognizing that globally less than 1 percent of persons with disabilities are served by microfinance. The program provides disability awareness and sensitization trainings, inclusion assessments, and recommendations to make operations and processes more disability inclusive and friendly.

In the past two and half years, the program has helped sensitized three microfinance partners (Equitas, ESAF, and Annapurna Microfinance) in three states (Kerala, Tamil Nadu, and Orissa). These three MFIs have financially included more than 30,000 low-income disabled persons, including over 2000 visually impaired, a severely excluded disability segment. Last year, the program won an award for its innovation in promoting accessibility and universal design to “ensure a life of equality and dignity for disabled persons.”

This year, we are expanding to three more financial partners in four new Indian states (Karnataka, West Bengal, Jharkhand, and Uttar Pradesh). One partner organization has a network of 33 sub partners providing social and as well as financial support, spreading the seed of inclusion across India. We are also developing strategies to expand disability inclusion with our partners and other stakeholders through advocacy and awareness. We are facilitating partnerships between the financial industry and disability organizations in India, many of which provide livelihoods training, skills development, and other social supports to disabled clients. In sum, we are helping provide a strong ecosystem for sustainable financial inclusion for persons with disabilities.

We remain convinced of the value of including persons with disabilities and older people in financial services outreach. Indeed, financial inclusion is a valuable instrument to equip people with the tools they need to manage and grow their income. As we continue to pursue this goal — despite how challenging it can be at times — we eagerly look forward the day when all people who can use financial services have access to a broad range of quality financial tools.

E-Workshop Recap: Helping Clients to Prepare for their Old Age

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On June 9th, the Microcredit Summit Campaign co-hosted with the Center for Financial Inclusion (CFI) an E-Workshop focusing on financial inclusion for the elderly. This is part of their 2014 Campaign Commitment to bring greater attention to the issue of aging and financial services and to further support the inclusion of those with disabilities. HelpAge International and Micro Pension Foundation helped make it a great discussion about opportunities for organizations (specifically microfinance institutions) to help clients prepare for their old age. The conversation looked both at the supply and demand sides of financial inclusion to better understand what is happening in clients’ lives and how best to approach these issues.

Watch the session recording:

Review the panelists’ slides:

Recap of the E-Workshop

Sonja Kelly from CFI introduced the focus of the session:

“Financial services needs change throughout the lifecycle, and if a client of microfinance services reaches their old age without having developed a plan to meeting their expense needs, it will be too late. Almost all participants in our webinar reported that they knew someone who had inadequately prepared for their older age. This common issue is one that microfinance can help to address by developing longer term savings products and pensions either in-house or through partnerships.”

Eppu Mikkonen-Jeanneret, head of policy at HelpAge International, began the discussion introducing the shift in populations and subsequently labor markets, noting that there are currently about 800 million people who are over 60 around the world. In 15 years, there will be over 1.3 billion people over the age of 60, of which 60 percent will live in low- and middle-income countries.

The common perception is that the 60 percent in low- and middle-income countries either will not save for their old age or lack the capacity to do so. However, the Global Findex report, which looks at the demand side data of financial inclusion, shows otherwise. According to the report, almost 25 percent of all adults say they have saved for old age in the past year — though it is predominately happening in high-income OECD countries and in East Asia and the Pacific. “Around 40 percent of adults in these two regions reported saving for old age, a far greater share than the roughly 10 percent who reported doing so in all other regions” (The Global Findex Database 2014, page 47).

Eppu explained that 18 percent of the pyramid base reported having saved for old age and 60 percent of the top. Sonja Kelly (CFI) noted that the question now is whether they are doing so in safe and secure mechanisms.

Eppu  expanded on this issue following the session, saying,
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“The world is in the middle of demographic sea change; the global population is growing older. This is a result of hugely successful development. We are healthier and better educated, we have less children and we live longer. As a result, in just 15 years the population of 60 years and over will increase from 800m to 1.3b. Far from being a developed country trend, aging is actually fastest in the low and middle income countries. Where it took the European countries over 100 years to transit to an aging population, countries like Bangladesh will do this in just a few decades. In fact, 60 percent of the 1.3 billion people will live in the developing countries.

“We know that people in developing countries continue to work into old age even though the type of work may change. Many work in the informal sector and women especially carry on providing unpaid labour at home. Yet our thinking is locked in outdated associations with people in the 60s onwards as somehow inherently, homogeneously vulnerable. It’s time we embrace the change and take action. Financial inclusion of people across the life course, facilitating social pensions, linking pensions with other financial instruments, and working closely with older women and men will help us all to adjust to the new world.”

Parul Khanna, associate director of projects for Micro Pension Foundation, continued the conversation. She noted this:

“Globally, rapid advancements in technology, telecommunications, and banking outreach have had a powerful impact on the ability of governments to deliver targeted fiscal transfers to the poor, including pension benefits to the elderly. Simultaneously, technology and telecom are reshaping financial services access and delivery, especially among low income excluded households. Most developing countries have a large young workforce, a predominantly informal labour market with modest incomes and savings capacities, a huge pension coverage gap, low banking and formal finance penetration, and limited capacity for large scale fiscal transfers.”

Parul presented their Gift-a-Pension project, which provides micropensions to low-income domestic workers, and she called on participants and readers to take action:
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“Can we do something for informal workers around us…[those] who touch our lives every day? Our maids, drivers, security guards or our washerwomen? Or the guy who we buy our bread from every day? Or our barbers? That seems feasible, right?

“For example, it is possible for you to imagine going home today, and spending just a few minutes with your maid or driver to tell them about the importance of saving for old age. And then spending just 10 minutes on the internet to open their own pension account for them? If your answer is yes, then you have within you the power to gift 20 years of a dignified old age to your maid or driver. And if all did this, we could collectively, as a civil society, change the lives of 40 million domestic help forever. Which, incidentally, is more than the total population of Canada.

It took India 6 years to get 3 million low-income people to start a pension account. If each of us go home today and gift a pension to just 1 excluded person in our lives, we could reach from 3 million to 43 million by this weekend!  After all, just 10 minutes of your time can change 20 years of someone else’s life. You can be the change! Try now with Gift-a-Pension.


Thank you to all panelists for contributing to this important conversation about the importance of saving for old age and how organizations can simplify the process for their clients. We also wish to thank all participants who submitted thought-provoking questions and comments to help make the session interactive!

Related resources:

Film on the micro pension model

About Gift-A-Pension


CFI launched a Campaign Commitment in 2014! We invite you also to…

Get Inspired. Set a Goal. Make a Commitment.

Join the movement to help 100 million families lift themselves out of extreme poverty.

Why I Commit…Child & Youth Finance International

The Campaign sat down with commitment makers at the 17th Microcredit Summit and asked them what making a commitment meant to them. Hear what those leaders had to say in the “Why I Commit…” video series.

Jared Penner, Education Manager, Child & Youth Finance International

See what CYFI Committed to in 2015

Be Inspired. Set Goals. Make a Commitment.

To learn more about CYFI: http://childfinanceinternational.org/

 

Register for our June 9th E-Workshop on Aging and Financial Inclusion

Lucía Urtecho Calderón, client of Financiera FAMA, sells candy and candied fruits in Mercado Carlos Roberto Huembes, Nicaragua on December 13, 2012 (Photo credit: Accion)

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How are you helping your clients to prepare for old age?

Join our next Campaign Commitment E-Workshop to learn about providing micropensions


JOIN US…
Tuesday, June 9th
at 10:00 AM (GMT-4)

…for the E-WORKSHOP
“Helping Clients Prepare for Old Age”


The Microcredit Summit Campaign is proud to present the next installment in our Campaign Commitment E-Workshops Series. Co-hosted with the Center for Financial Inclusion, which launched a Campaign Commitment in 2014, this E-Workshop will focus on helping clients to prepare for old age, including through providing micropensions.

The issue of aging is a new global reality, given increasing life expectancy, shrinking family sizes, and better health systems. Today, the microfinance community has the opportunity to be a leader in addressing this issue, helping people to prepare for their older years and providing financial services for older people. The Center for Financial Inclusion recently published a report titled Aging and Financial Inclusion: An Opportunity addressing the issue and identifying priority actions for financial service providers that will be presented during the E-Workshop.

Presenting Organizations
Center for Financial Inclusion
Sonja Kelly
Micro Pension Foundation
Parul Khanna
Helpage logo Help Age International
Eppu Mikkonen-Jeanneret

This webinar will be conducted in English. We will live-tweet using the hashtag #Commit100M in English, Spanish, Arabic and French.


The Center for Financial Inclusion launched a Campaign Commitment! We invite you also to…

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Join the movement to help 100 million families lift themselves out of extreme poverty:

MicroLoan Foundation commits to reach the poorest women

Photo courtesy of MicroLoan Foundation

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The Microcredit Summit Campaign welcomes MicroLoan Foundation as the newest Campaign Commitment maker, joining a global coalition of 51 other commitment makers working to help 100 million families lift themselves out of extreme poverty. The Microcredit Summit Campaign’s 100 Million Project is building a movement among financial service stakeholders committed to helping to end extreme poverty through: public statements of commitment to action, expanding practices to reliably measure movement out of extreme poverty, and promoting innovations and best practices to accelerate movement out of poverty.

“At the MicroLoan Foundation,” said Peter Ryan, founder and CEO, “we’re committed to ongoing innovation and learning in our mission to reach the poorest women and enable them to move out of poverty. This project is all about responding to client needs with products and services that enable them to overcome difficulties and improve their standard of living.”

MicroLoan Foundation’s mission is to work with the poorest women and enable them and their families to move out of poverty. MicroLoan Foundation commits by the end of 2016, to successfully complete a pilot program in two Malawi branches and one Zambia branch involving 2,700 clients enabling improved client outcomes due to the following:

  • Streamlined products which meet the needs of the poorest clients (living under $1.25/day) as well as more experienced business women who wish to grow their business
  • Improved access to savings for emergencies and planned costs
  • Improved support to vulnerable clients including formal rescheduling of loans
  • Standardization of pre-disbursement and follow up training using adult learning methodologies

Daniella Hawkins, social performance manager, explains their intent:

“MicroLoan Foundation’s mission is to work with the poorest women and enable them and their families to move out of poverty. As early as 2010 when we started using the Progress out of Poverty Index (PPI) in Malawi, we realised that we could be reaching poorer clients, those living under $1.25/day. We therefore designed a pro-poor loan product which improved our poverty outreach dramatically: data from 2011 showed that 74.6% of clients accessing this pro-poor loan product were under the $1.25/day poverty line, compared to 51.7% of our clients on average. This learning has informed our current pilot, which integrates the pro-poor loan product into a suite of our other products, streamlining our services and allowing clients on different loans in the same group. This will ensure that poorer clients with less business experience learn from our more experienced clients.

Clients who are not able to save ahead of receiving their first loan will qualify for this pro-poor loan. The importance of saving is highlighted to all our clients, and all will be encouraged to save if they want to receive a larger loan, but clients on the pro-poor product will not need to save as much in order to access a loan size increase. Increases are strictly limited to ensure that clients are not over-indebted, and at any sign that any clients are experiencing problems making repayments or savings, a one-on-one meeting with their loan officer will take place so that s/he understands the problem and can facilitate the appropriate supportive response. Clients who have had problems making repayments and/or savings are identified as vulnerable and will not be eligible for a loan size increase.”

Here are the different products offered by MicroLoan Foundation:

  1. Level 1, which is aimed at clients living on less than $1.25/day and/or clients who have never done business: the pro-poor loan product with fewer savings requirements; small loan sizes (maximum first loan is $25).
  2. Level 2, which is aimed at slightly better off clients and/or clients who have done business before: slightly larger starting loan sizes (maximum first loan is $90) and higher savings requirements for clients who want to increase their loan sizes in the next loan cycle.
  3. Level 3, which is aimed at clients with slightly larger, more established businesses: larger loan sizes than Level 2 (initial loan upon graduation to this level is $180) and the option for clients to repay on a monthly basis; the same savings requirements as Level 2 for clients who wish to increase their loan sizes next loan cycle.

The Campaign looks forward to welcoming this new partner in the global coalition and sharing their progress towards the Commitment achievement at the 18th Microcredit Summit in 2015.

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MicroLoan Foundation

MicroLoan Foundation (MLF) helps some of the poorest women in the world feed their families, send their children to school, and pay for life saving medicines. By providing small loans (on average £60) and ongoing business training and support, MLF empowers women in rural Malawi and Zambia to set up self-sustainable businesses. The profits from these businesses enable the women to work themselves and their families out of poverty.


We invite you to join MicroLoan Foundation and…

Get Inspired. Set a Goal. Make a Commitment.

Join the movement to help 100 million families lift themselves out of extreme poverty:

E-Workshop: How to Build Savings Groups and Other Breakthroughs in Financial Inclusion

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Photo courtesy of Jeffrey Ashe

Please note the date for this E-Workshop has changed to
Thursday, December 11th at 10:00 AM (GMT-4). 

Join us for an E-Workshop titled How to Build Savings Groups and Other Breakthroughs in Financial Inclusion

The Carsey School of Public Policy and Fundación Capital are co-hosting with the Microcredit Summit Campaign the next E-Workshop which will share insights on starting and scaling up savings groups. Both Carsey and Fundación Capital announced Campaign Commitments in 2014, and this latest E-Workshop will help microfinance and financial inclusion stakeholders to improve outreach and service with savings groups.
Register 2

What time in your country?

Join us for a discussion with Jong-Hyon Shin (Fundación Capital) and Jeffrey Ashe, which is moderated by William Maddocks (Carsey School of Public Policy). We will be discussing effective ways of forming savings groups and describe 2-hour trainings that Jong-Hyon led in the Dominican Republic.

The speakers will also share insights on linking savings groups and conditional cash transfer programs (see the recording of the Workshop titled Going to Scale: Savings Groups, Conditional Cash Transfers, and Financial Inclusion at the 17th Microcredit Summit), with the example of collaboration with ADOPEM and Fundación Capital in the Dominican Republic.

Through these valuable insights, you will gain a better understanding of the essential steps to start and scale up savings groups, and see how savings groups can contribute to financial inclusion and the end of extreme poverty.

Organization
Name
Carsey School of Public Policy
William Maddocks
Program Director, Microenterprise and Development
Moderator
Fundacion Capital
Jong-Hyon Shin
Country Project Coordinator
Carsey School of Public Policy
Jeffrey Ashe
Fellow
Co-Author of
In Their Own Hands: How Savings Groups Are Revolutionizing Development
Photo courtesy of Fundación Capital "What’s most significant about savings groups is that they are designed to be wholly managed by villagers themselves; by and large, they function as they are intended to function; and they reach impoverished people in remote rural areas who would otherwise go without any financial services, even microfinance."

Photo courtesy of Fundación Capital
“What’s most significant about savings groups is that they are designed to be wholly managed by villagers themselves; by and large, they function as they are intended to function; and they reach impoverished people in remote rural areas who would otherwise go without any financial services, even microfinance.” —David Bornstein, New York Times 


Join us for this exciting discussion to gain a deeper understanding of savings groups and hear from practitioners and researchers about their challenges, gains, and the practical applications! 


Follow this e-workshop and the Campaign’s 100 Million Project:

Learn about the 100 Million Project Project and Campaign Commitments.

The 100 Million Project: Commitment to Action at the Summit

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Participant writing on the Wall

A  Summit participant writes on the Commitments Wall

Where to find Commitments at the Summit?

The 17th Microcredit Summit in Mérida was a huge success, bringing together some 1000 people from 75 countries and featuring 162 speakers and presenters in 7 plenary sessions and 35 workshops. Throughout sessions delegates had the opportunity to hear about the Campaign Commitments their colleagues from other organizations weremaking ahead of the Summit. Launched in 2013 with 18 original Commitments, we celebrated together the 36 new organizations joining them now 2014. Many present were inspired to become leaders in the movement as well and joined (or reaffirmed their role in the Campaign) by stating their own at the Commitment Café. Join them by making your own Campaign Commitment to action! Write to mycommitment@microcreditsummit.org or visit our Online Commitment Form.

Full Commitment wall

51 organizations, including Plan International, the Rotary and the Ministry of Gender, Children and Social Protection from Ghana, wrote on the Commitment Wall.

Throughout the Summit, around 200 attendees visited the Commitment Café every day and 51 new Commitments were written on the Commitment Wall. The Café and the Wall were the gathering area for Summit delegates to join the Campaign, by stating their Commitment to actions that contribute to the global movement to end extreme poverty. There, they had the opportunity to meet with Commitment coaches who helped them form their Commitments. Commitment Makers then posted their actions on the Commitment Wall – creating a dramatic and inspiring range of actors and actions that will help move the industry toward ending extreme poverty.

Commitment Coach

A Commitment Coach is helping a Summit Participant to state her Commitment at the Cafe.

At the Closing Plenary, Summit delegates together with Mohammad Yunus, Larry Reed, John Hatch and Carmen Velasco celebrated the efforts of all Committed Organizations. We particularly acknowledged the 12 organizations who met their 2013 Commitment. The 36 Commitments announced in 2014 were also applauded and represent a great step towards galvanizing the movement to help 100 million families lift themselves out of poverty.

What Commitment Makers say about Campaign Commitments

During the Summit, we conducted interviews with representatives from Commitment Makers to learn more about their Commitment. They shared with us their own Commitments, their current progress on those actions and also told us why it is important for their organization to join the movement to end extreme poverty.

Yves Moury,  Founder and CEO, Fundación Capital (see his short Interview at the Video Corner here)

“We need massive alliances among all sectors of civil society. We invite governments, banks, private companies, civil society institutions to join us for the magnificent objective of ending extreme poverty by 2030.”

Anne Hastings, Microfinance CEO Working Group (see her short interview at the Video Corner here)

“I am here at the Summit because the 8 CEOs I represent have made Commitments. We are here to learn what we can about partnerships that we need to be building and how to collaborate better with the rest of the sector. The challenge for the microfinance sector today is to demonstrate results and especially results in reaching and assisting the extremely poor to get out of poverty.”

William Maddocks,  Program Director, Sustainable Microenterprise and Development , Carsey School of Public Policy

“We want to be part of this Campaign. Making this commitment is an opportunity for us to tell more people about what we do and to support the work of the Campaign. We want our voice to be a part of this Campaign.”

Closing Ceremony: we celebrated 2013 and 2014 Commitments.

Closing Ceremony: we celebrated 2013 and 2014 Commitments. Click here to see all Committed organizations.

Jared Penner,  Head of the Education Division Child and Youth Finance International: “Commitments are made within a community of believers that think this is something incredibly important to advance the industry and these targets give us something to really aspire towards. They are not legally-binding commitments, but there is something that allows us to keep each other accountable and see how things are advancing within our own operations.”


What you can do today

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Improving Maternal Health in the Philippines Through Microfinance

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Collaborating on a cross-sectoral program to help achieve MDG 5 in the Philippines EspañolFrançais Continue reading

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.

WSBI 1

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.

WSBI 2

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