Building Women-Focused Finance

Designing women-focused financial products --- Women’s World Banking’s approach

Anna Gincherman

Chief Product Development Officer

>

Building Women-Focused Finance 2

Key Characteristics of a Women-Focused Financial Product

• Provide a tangible benefit responsive to her needs

• Speak to her in her language on her termsRelevant

• Link to her income-generating capacity and cash flow

• Take into account her family expensesAffordable

• Bridge geographical and emotional distance Accessible

Building Women-Focused Finance

Barriers to opening• Opening requirements: ID, proof

of address, proof of income

Accessibility• Monthly fees• Minimum balance requirements• Cost of cards or checkbook

Incentives• Rewards, prizes or interest paid

Emotional distance• This is “for me”• Simple communications in

local language

Campaign development• Benefits that meet her needs• Media and communication

channels that reach her

Financial Education• Raise awareness and increase

confidence• Practical approaches aimed at

specific gaps

Agency and mobile banking• Increase convenience and reduce costs• Especially for women who face security

risks, are time-poor

Tailored procedures • Fast account opening procedures to reduce

cost of acquisition• Reduce impact of barriers like literacy or

familiarity with banking procedures

Partnerships• Delivery models and financial capability

Staff development and training• Profile, incentives and performance

indicators for sales teams• Branch staff training

Detailed, targeted and insightful assessment of women as target group

Comprehensive, qualified and efficient assessment of institution

Product DesignMarketing & Financial Education Operating Model

Our Product Design Framework (Savings example)

Building Women-Focused Finance 4

Examples from Our Work (1): Developing a Proposition for Un/der Banked Women in Nigeria with Diamond BankKey Research Findings • Target segments are women (and men) market traders• She is familiar with banks but does not think they are relevant to

her• Even if she has a bank she prefers the agility of informal

mechanisms like savings collectors, ROSCAs• Comfortable leaving her business for at most 15 minutes to

transact

Proposition • BETA Savings (“better” in Pidgin) is a simple savings account

tailored for market women, that offers maximum convenience to customers by delivering a low cost banking service to their shops.

• No forms, no signature, no ID required, no account references, no minimum balance

• No monthly fee, no deposit fee, no withdrawal fee (ATM/branch)• Free starter pack with ATM card• Interest paid on balances (3.6% p.a.), rewards scheme with

weekly cash prizes

Building Women-Focused Finance

BETA Operating Model

5

ATM Branch

MULTI-CHANNEL ACCESS FAST ACCOUNT OPENING

Account opened in five minutes, from anywhere.

BETA Friend captures data and photo through mobile app.

Customer receives account number and mobile PIN via SMS.

Customer receives starter pack with debit card, PIN mailer and info guide.

RESULTS TO DATE• 42,000 accounts opened; 21 branches; 127 BETA Friends• Deposits mobilized USD 1.8 million; average balance USD 43• Women represent 41% of clients; previously unbanked are 28.5% of clients

BETA FriendMarket-based sales and service team. Promotes BETA & opens accounts.Collects deposits, handles withdrawals in the field.

Building Women-Focused Finance 6

Examples from Our Work (2): Rural Credit in Latin America

Customer Research Findings Men and women in rural families both underestimate women’s

contribution to the household income. Similarly, loan officers underestimated the women’s

contribution and might not even analyze this income as part of the loan assessment.

Implications Women are excluded as customers and a significant portion

of the family income is disregarded. There is increased credit risk in relying on the income from

one large harvest for repayment and not taking into account the steady cash flow of women’s activities.

Solutions Modify existing credit methodologies to measure the entire family

income and the growth potential of all income generating businesses.

Allow multiple loans per household. Train staff to see women as viable and valuable clients. Raise awareness of women’s contributions. Create multiple loan products for different needs (livestock,

machinery, artisan).

ColombiaFundacion delamujer60% of disbursed loans were to women, 38% of total disbursed loans were to new women clients

ParaguayInterfisa Financiera31% of disbursed loans were to women, 35% of total disbursed loans were to new women clients

PeruCaja Arequipa63% of disbursed loans were to women, 71% of total disbursed loans were to new women clients

Project Outcomes:

To date, 9,807 loans have been disbursed to clients, 47% of whom are women. More than half of the clients that have received a loan are new clients, i.e., they have never before received a loan from these institutions – and likely had never received a loan,

from any formal financial institution.

Building Women-Focused Finance 7

Key customer insights Hospitalization due to delivery is the event that matters most to women

Women prioritize the health of their family over their own health

The family policy cannot exceed 5JD per month

Product Design Benefit at 15JD per day for up to 30 days, with max of 48 days in policy period

No limitations for pregnancy coverage

No exclusions (for pre-existing conditions)

Premium at 1 JD per month (negotiated down from 1.1 JD)

Mandatory enrollment for borrower only

Voluntary coverage for spouse & full family added at 1 JD per person

Results as of June 30, 2013 More than 182,000 policies sold

35% claims rate, almost half of which were for pregnancy-related hospitalization

Microfund for Women has reported higher profits and increased client retention as a direct result of offering health microinsurance.

Examples from Our Work (3): Hospital-Cash Insurance Policy in JordanLaunched in April 2010 by Women’s World Banking and Microfund for Women (MFW), the Caregiver product is a first-of-its-kind insurance initiative that recognizes women’s roles as the caregivers of their families and includes maternal health coverage, hospitalization coverage and protects against lost wages.

Building Women-Focused Finance

Keys to Designing Women-Focused Products

8

Segment by gender during product design

To reach women they must be targeted specifically

Develop the business case for serving women and monitor results

Women have different preferences and uses for financial servicesOffer her a product that adds value and improves on her current solution

Women consume different media, may not be attracted by benefits that appeal to men, and make decisions based on their own criteria

Sustainability and scale of programs focusing on women depend on development of a robust business case

Products designed for men often do not reach women, but those that are attractive to women will usually also appeal to men.

Building Women-Focused Finance 9

Are Women-Focused Financial Products the Solution to Women’s Financial Inclusion?

We must address a full range of barriers to women’s financial inclusion.

Woman Herself

Sees herself as a housewife, not an

economic contributor to the household

Empowerment trainings and campaigns in

partnership with media and civil society

Husband/

Household

Sees her as a housewife , not an

economic contributor to the household

Gender sensitization campaigns to highlight the women’s economic

contribution

Financial Institution

See women as secondary contributors

to the household economy

Staff training, product design, gender-diversity

programs

Society

Regulatory and cultural constraints such as property rights, land

ownership

Work with regulators, civil society, and media

to address legal and cultural constraints

Solu

tions

Bar

riers