1. Internal preparation: Objective:  Present our approach to Consumer Protection and the contents of the resource manual produced  Establish our experience developing mass media resources Target audience:  NGOs and Foundations that form part of Solidarios Network, MFIs, funders Timing: 15 minutes How much does the audience know about FE? Some Solidario members already implement FE programs. Other participants might have a limited understanding of what FE is Considerations: Presentation will be virtual. It might take longer to go through slides if internet connection is weak June 2010 Microfinance Opportunities 1

2. XII Seminario Internacional “Microfinanzas, Desarrollo e Inclusión: Soluciones en Tiempos de Cambio La Educación Financiera y La Protección al Consumidor - Novedades y Aportes Julio 8,2011 Microfinance Opportunities 2

3. Content: I. Background on MFO II. Financial Education and Consumer Protection III. Experience working with mass media channels June 2010 Microfinance Opportunities 3

4. About Microfinance Opportunities (MFO) MFO is a microenterprise resource center that promotes client-led microfinance: Understands the financial realities of low-income households Develops consumer-focused solutions Shapes the design and delivery of financial products and services Enhances the capacity of low-income consumers to make informed financial decisions Conducts research and offers expertise help to increase consumer access to finance 4

5. communicates the knowledge, skills and attitudes that poor people need for good money management, behavior change and informed choice of financial products and services. Financial Education

6. Examples of behavior change Savings Saving informally Distrust of banks Wasteful expenditures Irregular savings Savings not linked to goals Savings Saving formally Relationship with bank Avoid unnecessary expenditures Save regularly Have a savings plan Financial Education Current/ActualDesired 6

7. Global financial education resources Budgeting Savings Debt Management Bank Services Financial Negotiations Core Curriculum Specialized Modules Risk Management and Insurance Young People Remittances Housing 7 Consumer Protection Resource Manual

8. Why is Financial Education important for Institutions and Clients? Ensure products respond to client’s needs Deliver information to clients in accessible ways Gain competitive advantage Improve portfolio performance Enhance position as socially responsible institution Better understand financial options Use financial resources more effectively Build self-esteem and confidence Shift from reactive to pro- active decisions Successfully try out products and technology Microfinance Opportunities 8

9. Financial Service Providers Clients Avoidance of over- indebtedness Transparent and Responsible Pricing Appropriate debt collection practices Ethical Staff Behavior Mechanisms for redress of grievances Privacy of Client Data Good treatment and respect Transparency and truthful information Appropriate debt collection practices Mechanisms for redress of grievances Holistic Perspective on Consumer Protection Priorities

10. CONSUMER PROTECTION RESOURCE MANUAL: BALANCING RIGHTS AND RESPONSIBILITIES Rights and Responsibilities Right to Respect, to Privacy and to be Heard How Much Debt Can I Afford Choose the Best Financial Product for You Compare Two Loans Two Ways to Calculate Interest Rates What to Ask before Signing a Contract Debt Collection Practices A Justified Complaint Benefits Everyone

11. How can institutions use the Consumer Protection Resource Manual Integrate its content as part of your delivery of microfinance through a client-centered approach Train bank staff –>  Rights and responsibilities of staff and of clients  Define what respect and dignity mean in actual practice  Areas where clients need advice and how to direct them to the right resources Develop resources for clients:  Identify where your clients are today: what are their needs  Develop a campaign & materials that can build progressively the knowledge, skills and attitudes that clients need June 2010 Microfinance Opportunities 11

12. EXPERIENCE USING MASS MEDIA CHANNELS Monique Cohen, Microfinance Opportunities July 2009 12

13. Common Channels to Deliver FE Microfinance Opportunities Depth of messages Number of people reached Individual counseling Mass media (TV, Print, Radio) Community event: street theater, comics, hand outs for customers Group training 2010

14. 1.Quality and frequency of education 2.Relevance of education to the target population 3.A context in which people can exercise their new financial behaviors 4.The opportunity to use this education 5.Appropriateness of available financial products What makes financial education effective?

15. Integrated Strategy combining different channels Makutano Junction –Kenya: Developed 2 series of 8 episodes each Audience encouraged to send SMS to request flyer Flyer provided more information on topics covered in the episode Application form for partner MFI was sent as well DVDs were also developed for Faulu Kenya  bank halls, group training June 2010 Microfinance Opportunities 15

16. Money Managment for women microentrepreneurs Central America - Redcamif 25 episodes: mini-drama programs Lessons learned:  Keep the FE messages short and simple  Pilot test the storyline and content  Workshop with communications experts: market needs, content  Strong marketing campaign to promote the radio program June 2010 Microfinance Opportunities 16

17. Microinsurance Radio Program - Kenya Objective: Educate the public on microinsurance and develop an insurance culture. Build the capabilities of low-income Kenyans to be informed consumers of risk management products and services June 2010 Microfinance Opportunities 17

18. Structure of the program: 1. Frequency: 13 programs, 14 minutes each, broadcast weekly over 13 weeks: Short features 3 times/day; 5 times/week; Long feature 1x/week during evening business program 2 radio stations - Outreach: 70% of population 2. Relevance to target population:  Short drama  Advice from an industry expert  Testimonials 3. Opportunity to use this education:  Question-and-answer session. 12% of clients mentioned calling the program June 2010 Microfinance Opportunities 18

19. Mixed method Evaluation: Quantitative survey of listeners and non-listeners:  Baseline and endline: 300 respondents  Treatment group: daily listeners to radio stations in program  Comparison group: daily listeners of other stations Qualitative: FGDs at endline with listeners and non- listener June 2010 Microfinance Opportunities 19

20. Lessons learned- Radio program: Radio can be used to increase awareness of insurance And to increase trust in insurance “Dosage” of radio education is key to achieve impact Identify market needs, learning objectives and develop a Framework that will guide content Production company must ensure stories translate content into relevant and effective messages for clients Engaging-Drama: make it intriguing, entertaining  will create social interac tion around program and a multiplier effect. June 2010 Microfinance Opportunities 20

21. Consumer Protection Video 2011 21 Monique Cohen, Microfinance Opportunities http://www.youtube.com/user/microfinanceopps

22. Consumer Protection Video Monique Cohen, Microfinance Opportunities July 2009 22