Best practices in creating financial capability (INCORPORATE PROVEN…
Best practices in creating financial capability
Reminders work, thether aimed at loan repayment or savings, and they are especially effective when coupled with a customer's personal goals. They can be delivered in many ways. Cell phone messaging provides an accessible anfd cost-effective channel.
For many custumers, figuring out new products or technologies is a long process. The ability to ask questions as they occur rather than later can ease the learning process. An easy and inexpensive way to provide information and identify customers' barriers.
For new new technological and customers unfmailiar with formal financial services, opportunities to practice, either with a staff person to assist or through apps, help build confidence and bridge the important gap between signing up and actively using a product
FINANCIALLY CAPABLE FRONT-LINE STAFF
An investment in the financial capacbility of staff could increase staff satisfaction and enable staff to provide support to the financial capability of their customers.
SIMPLE PRODUCTS AND PROCESSES
Processes should be intuitive, simple and adjusted to the literacy levels of customers.
PREPARE THE ORGANIZATION
Institutions will need to invest in analytics, product design, marketing and staff.
Adopt the premise that every customer touchpoint is an opportunity to encourage better financial habits.
Customer data analystics
FC interventions are built around close observation of customers, including segmentation that allows tailoring of interventions. The advice offered should be backed by detailed data analysis of thousands of families with similar characteristics.
Interactive product design
The companies observed have built into their business models the time and resources to test and refine their financial capacbility interventions, often using techniques suchs as HCD.
Engage organizations serving the BoP, from social service agencies to employers to non-profits
Teachable moments for financial capability occur around critical life events - starting education, having childrem setiing up a household, immigrating, a serious illness, a new job, aging. Emplyers can encourage employers to save for retirement; a hospital can deliver (or organanize) financial conseuling to a family experiencing a helth shock. Or G2P payments that is bringing people have access to accounts.
INCORPORATE PROVEN PRACTICES THAT SUPPORT BEHAVIOR CHANGE INTO EXISTING FINANCIAL EDUCATION EFFORTS
Offer rules of thumb, five memorable hrases will help people know what to do when the time comes, hours of epxlanation will not.
Upfront you might have thought that this would be suboptimal, but once you understand the behavioral limitations and cognitive problems of overload, then you find that these rules of thumb made a big difference in peoples’ businesses. The in-depth programs were too complicated and time consuming so never were applied in the real world
Connect training to real life opportunities (open a bank account / carry out transactions)
Assist participants to understand their own situation and set their own goals, by adding a couching / counseling component.
Use the social context. Peers can teach and motivate each other.
Make it fun! games, contests and humor can be easily integrated into programs
We encourage providers to measure efficacy and impact of their products through an iterative and collaborative design process, regular data gathering, and rigorous analysis of longitudinal data