Financial Education

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Financial Education Pilot Project Bosnia and
Herzegovina Srebrenica Regional Development
Programme (SRRP) Guy Dionne UDRDP Programme
Manager (former SRRP Economics Specialist) May
2007
United Nations Development Programme
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Srebrenica Regional Development Programme

• Rationale for intervention
• Economically depressed and remote area
• Genocide and return issues
• Large displaced population
• High concentration of war widows
• Extreme vulnerability of female headed households
• Programme Services (6-Year Funding Framework, 30
  M)
• Municipal capacity Building
• Economic Development
• Public Infrastructure Reconstruction

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Financial Education Activity

• Pilot Test (sponsored by the Gov. of the
  Netherlands)
• Training of Trainers
• (performed by MFC following a competitive
  tender)
• Publication of Financial Education Workbooks
• Updating and translation of all required
  documents
• Field-test performed by 7 organizations

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Financial Education Results

• Demographic Data about the participating clients
  
• 176 participants completed all modules out of 213
  (83)
• 80 - Women
• 40 - 31,45 years of age
• 50 - Temporarily employed
• 32 - Retired
• 100 - Low income (47 lt 83 / day)
• Key Results
• 30 change in savings behavior (Poor people can
  save)
• 25 change in the importance of regularity and
  discipline

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Voluntary Delivery Models of Financial Education
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Efficiency Vs Delivery Models
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Alternative Models of Sustainable Financial
Education Provision

• For Parallel Models
• Outsourcing to local Business Centres
• Identify community leaders who can become
  trainers
• For Linked Models (NGOs)
• Seek funding from commercial banks
• Engage Ministries
• For Donors
• When financing Self-sustainable MFIs (gt110 SS)
  peg financial education through a linked model

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Sample Model of Financial Education involving an
MFI and a Business Centre
Linked Model Provider
Financial Institution
Donor
If gt 120
Provision of Sustainable Financial Education
Financial Services
Financial Services Development Programme
To be used with care!
Clients
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Sample Model of Financial Education involving an
MFI and a Business Centre
Donor X invites commercial MFIs to apply for a
donation to equity in order to extend their
services to new underserved locations and
clientele. Donor X will grant the loan fund based
on the competitiveness of the applicants. The
successful MFIs will receive the fund at the
condition that it seeks a partnership with a
local business centre which will undertake the
provision of financial education. Thereby the
MFIs will finance the BC at a level corresponding
to 4 of the value of the loan fund for a period
of 15 years (pegged on previous fiscal year
inflation data).
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Financial Education
Many opportunities can be envisioned. We
encourage institutions to seek their comparative
advantages and embark in best delivery models of
financial education. Poverty is multi-faceted
and different services should be provided to
various citizens. Thank You!