Financial Education WinWin for Clients and MFIs

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• Financial EducationWin-Win for Clients and MFIs
  

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What is Financial Education?

• Financial education is teaching the knowledge,
  skills and attitudes required to adopt good
  money-management practices for earning, spending,
  saving, borrowing and investing.
• Participants who receive financial education
  acquire the information and tools to make better
  financial choices and work towards their
  financial goals to enhance their economic
  well-being.

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Why is Financial Education Important for the
Poor?

• Better understand financial options
• Use financial resources more effectively
• Build self-esteem and confidence
• Shift from reactive to pro-active decisions

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Financial Education Objectives
Current Behaviors ? Desired Behaviors
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Examples of Behavior Change
FINANCIAL EDUCATION
PRESENT/CURRENT
FUTURE/DESIRED

• Savings
• Wasteful expenditures
• Irregular savings
• Savings not linked to goals

• Savings
• Avoid unnecessary expenditures
• Have a savings plan
• Save regularly

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How was the Financial Education Curriculum
Developed?
The Partners India SEWA Bank Philippines
CARD Bank South Africa Teba Bank Morocco Al
Amana Bolivia Pro Mujer Poland The
Microfinance Centre
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Module Design Process
Market Research
Module Design
Module Pilot Test
Module Refinement
Generic Module Design
Generic Module Test
Finalize Generic Module
Dissemination TOT
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Curriculum Modules

• Budgeting- Use Money Wisely
• Debt Mgmt.- Handle with Care
• Savings- You Can Do It!
• Banking Services- Know Your Options
• Financial Negotiations- Communicate with
  Confidence

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Curriculum Components

• Trainers Guides
• Training of Trainers Manuals
• Implementation Guidance
• Adaptation Guide

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Training Techniques

• Small Group Discussions
• and Activities
• Stories
• Categorization
• Simulation Exercises
• Case Study or Situation Analysis
• Practice Exercises

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Channels of Delivery
Volume of Outreach

• Campaign
• Radio Show
• Soap Opera
• Classroom Training
• Credit and Savings Group-based
• Individual Counseling

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Why is Financial Education Important to MFIs?

• Better meet client demand
• Gain competitive advantage
• Improve portfolio performance
• Enhance position as socially responsible
  institution

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Modes of Delivery

• Parallel Two or more programs or departments in
  same organization
• Linked -- Two collaborating but independent
  organizations (e.g. training NGO and MFI)
• Unified Integrated services delivered by same
  staff in an organization

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Challenges

• Literacy levels
• Adaptation to market segments
• Lifecycle position

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Current Activities

• DISSEMINATION
• TOT Workshops
• South/South East Asia
• Central America
• Middle East
• China
• India
• Eastern Europe
• In-country Training and TA

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Current Activities

• INNOVATIONS
• Youth
• Remittances
• Micro-insurance
• Risk management
• Consumer Education
• Bank Cards