Preliminary Evaluation of Consumer Education Tools for Mobile Phone Banking: The Philippines

Session 8: Consumer Educa2on Tools for Mobile

Banking: The Phillipines

Craig Tower Microfinance Opportunities

2012 RBAP-MABS National Roundtable Conference June 7-8, 2012

Hyatt Hotel & Manila

Preliminary Evaluation of Consumer Education Tools for Mobile Phone Banking: The Philippines Craig Tower, Ph.D. Presented to the MABS NRT June 8, 2012

Contents

•  Project background

•  The consumer education campaign

•  Research, results and potential future uses

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Project background


Consumer Education for Branchless Banking (CEBB)


Teaches the Knowledge, Skills and Attitudes (KSAs) required to:

•  Adopt good money management practices

•  Address challenges with the use of BB services

What is Consumer Education (CE)?

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Program Objectives

•  Determine how Consumer Education:

• Can increase uptake and use of Branchless Banking services (BB).

•  Combined with BB help low income people improve their financial well being.

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Why Consumer Education Matters


Money Management

KSAs

Money management

KSAs

Product use KSAs

(leverage technology)

Increase in financial well-‐being

Increase uptake and usage of branchless banking

Global Project Locations


•  Philippines, India, Zambia, Malawi

•  Mobile phone banking

•  Smart cards

Working with: Microenterprise Access to Banking Services (MABS) Rural Bankers Association of the Philippines (RBAP) GM Bank, Luzon Cantilan Bank, Mindanao 1st Valley Bank, Mindanao Objective: Increase uptake and use of a mobile wallet for banking transactions

In the Philippines


The consumer education campaign


Consumer Education Campaign

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Awareness Raising

Reinforcement Prac2ce by customer

Customer Use

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Direct Training

Knowledge, Skills, and Attitudes

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From Learning Objectives to CE tools 1.  Awareness 2.  Knowledge 3.  Attitudes 4.  Skills

- money management - product use

13 © Microfinance Opportunities 2011 © Microfinance Opportunities 2011


Exposure to a new technology and basic understanding of its purpose

Poster for branch

staff and merchants

Awareness:

Poster and table tent


Knowledge:


Understanding that enables customers to decide about use of the technology

Flip book for bank staff

Starter Kit for clients



Attitudes: Thoughts, feelings and opinions that support the use of mobile phone banking to manage

money effec=vely

Starter Kit – How to get

help

Skills: Money Management and

Product Use


What consumers must be able to do to try out mobile phone banking and use it effec=vely

Starter Kit - Find the money to

save

Skills: Money Management and

Product Use


What consumers must be able to do to try out mobile phone banking and use it effec=vely

Starter Kit – How to use

Text-A-Deposit

Starter Kit: How to read your SMS


Starter Kit: Tracking your transactions


Research, results, and potential uses


Research methodology •  Conducted with 1st Valley Bank •  Sample:

•  1 pilot branch with CE tools; •  1 comparison branch without tools

•  Qualitative in-depth interviews •  Useful for assessing pilot program


Segment Pilot (Zamboanga) Comparison (Ipil)

Clients 12 14*

Merchants 4 4

Branch staff 6 3

* 3 merchants interviewed as clients.

Preliminary Results

•  Branch staff

•  Merchants

•  Clients


Branch staff •  Facilitates

marketing •  Focuses

messaging and knowledge transfer

•  Builds partnerships and leverages trust in rural bank


Merchants •  Engages

merchants in marketing

•  Provides reference tool

•  Provides visual evidence of bank partnership


Clients

•  Facilitates understanding of service

•  Provides reference tool


Challenges •  Interest triggered by CE tools

must be nurtured by bank

•  Client age, disability, or lack of access

•  Client inability or lack of interest in saving


The Limits of Consumer Education


Money management

KSAs

Product use KSAs

(leverage technology)

Increase in financial well-‐being

Increase uptake and usage of branchless banking

Opera=onal issues

Operational issues •  Limited number of cash

conversion outlets

•  Limited operating hours

•  Lack of liquidity of agents

•  Network outages


Potential for future uses •  Targeted marketing:

•  To entrepreneurs •  To students and

parents •  To salaried

employees

•  Promoting related innovations •  ATM debit cards


Thank you


Craig Tower, Ph.D. [email protected]

Special thanks to: John Owens (MABS);

Cheryl Balingit (MABS); Jing Gusto (Consultant);

Elda Montero and ARMDEV; And the staff, merchants and clients of 1st Valley Bank branches in

Zamboanga City and Ipil

Preliminary Evaluation of Consumer Education Tools for Mobile Phone Banking: The Philippines

Business

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