Amanda Lotz

Blog Post

&gt; Posted by Amanda Lotz, Financial Inclusion 2020 Consultant, CFI

Javier moved from Honduras to the United States with his wife and their children in search of better work opportunities and to escape the violence in their community. His parents chose to stay behind. Luisa moved from the Philippines to Canada to pursue more lucrative opportunities as a nurse, hoping to support her family back home. Yousef fled from Syria to Lebanon, as a refugee, to escape civil unrest.

<a href="http://www.flickr.com/photos/24738097@N04/5062517764/"><img class="alignright wp-image-15019" style="border: 0" src="http://centerforfinancialinclusionblog.files.wordpress.com/2014/05/5062517764_0ff45913d8_b.jpg?w=490" alt="" width="350" height="350" /></a>Javier, Luisa, and Yousef - fictitious characters - are only symbolically representative of some of the enormous global migrant population - estimated to total 232 million people in 2013. Certainly not homogenous, their reasons for leaving their home country can vary tremendously and may include economic opportunities, natural disasters, and security or political concerns.

In spite of the complications of migrating, there is an undeniable and increasing opportunity for financial service providers to serve migrants and their families. Today, I will focus primarily on migrants who move for economic and employment opportunities, though we recognize that these issues are more nuanced for migrants like Yousef who have fled their country of origin for the sake of their safety. I will save this smaller subset, <a href="http://www.un.org/News/briefings/docs//2013/130911_Migration.doc.htm" target="_blank" rel="noopener">7 percent</a> of all migrants, for another post. Though, I will mention that MasterCard has an innovative partnership with Banque Libano-Française for Syrian refugees in Lebanon, which you can read more about <a href="http://newsroom.mastercard.com/mea/press-releases/mastercard-celebrates-partnership-with-banque-libano-francaise-in-lebanon/" target="_blank" rel="noopener">here</a>.

In <a href="http://www.centerforfinancialinclusion.org/fi2020" target="_blank" rel="noopener">Financial Inclusion 2020</a>’s consultations with experts who work with migrants, one message rang particularly loud and clear: it’s not just migrants, but their families too. Regardless of their reasons for relocating, many migrants are leaving someone behind in their native country. With linkages back home, and also because 75 percent of the global migrant population is of working age, they are likely to send remittances to friends and family members. In fact, remittances are projected to reach <a href="http://www.worldbank.org/en/news/press-release/2013/04/19/world-bank-launches-initiative-on-migration-releases-new-projections-on-remittance-flows" target="_blank" rel="noopener">USD $515 billion per year by 2015</a> according to the World Bank. This is quite significant, especially as evidence suggests that remittances have a strong <a href="http://esa.un.org/unmigration/Time_for_Action_UN%20Summit_by_PSutherland_RMAD.pdf" target="_blank" rel="noopener">impact </a>on reducing poverty.

To support remittances for migrants, services providers should maximize migrants’ connections to their native countries. This applies especially for providers in the <a href="http://www.un.org/News/briefings/docs//2013/130911_Migration.doc.htm" target="_blank" rel="noopener">top 10</a> migrant receiving countries (United States, Russia, Germany, Saudi Arabia, United Arab Emirates, United Kingdom, France, Canada, Australia, and Spain). In many cases, migrants typically can only send remittances infrequently (often quarterly) due to costs. The recipients, typically family members, often struggle to budget money during the long lapses of time. Additionally, the migrant has little control over how their family uses the money. If they could send smaller amounts at more strategic times, they could better facilitate the use of the remittances by their families. Accordingly, the World Bank is leading an initiative to reduce remittance costs by the <a href="http://blogs.worldbank.org/psd/more-efficient-ways-transfer-remittances-are-emerging-are-migrants-and-their-families-ready-benefit" target="_blank" rel="noopener">end of 2014</a>, which we hope will relieve some of the burden. However, more can be done to engage with migrants and their families.

Beyond remittances, providers should take responsibility for helping migrants and their families transition to other financial services - for example, savings accounts. When it comes to savings, like many other low-income people, migrants often prefer to stow their earnings at home. Introducing financial services can be aided through the use of complimentary financial consultations at the “teachable moment” of the transaction (e.g. cashing out a remittance), as has been successful through <a href="http://www.developingmarkets.com/case-offering-free-financial-consultation" target="_blank" rel="noopener">Developing Markets’ Associates work</a> in Moldova, Kyrgyzstan, Tajikistan, and Armenia. Taking a holistic approach to the family, <a href="http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2012/08/14/000158349_20120814084903/Rendered/PDF/WPS6157.pdf" target="_blank" rel="noopener">evidence</a> suggests that increased savings, budgeting, and financial planning result when both the migrant and another family member are trained.

Another promising example of linking remittances and other financial services comes from the Philippines. The Commission on Filipinos Overseas, in partnership with Land Bank, created the Kiddies Kapatid Savings (KKISs) program for migrant parents and their dependents. When children make a deposit, migrants are encouraged to match the <a href="http://cfo.gov.ph/index.php?option=com_content&amp;view=article&amp;id=1944:kiddie-katapat-savings-program-kkiss&amp;catid=108:cfo-press-release&amp;Itemid=839" target="_blank" rel="noopener">savings</a>.

An innovator that caught my attention is <a href="https://www.quippi.com/" target="_blank" rel="noopener">Quippi</a>, which provides fee-free international gift cards targeting remittances sent from the U.S. back to Mexico. These gift cards may be used at stores in Mexico, which enables the migrant to have more control over the recipient’s spending.

In Italy, Banca Monte dei Paschi di Siena offers a <a href="http://www.fininc.eu/gallery/documents/wp-migrants-financial-services-final-january.pdf" target="_blank" rel="noopener">special package</a> for migrants, which includes a checking account and remittances/bank transfers at <a href="http://english.mps.it/I+Nostri+Valori/Notizie/Archivio/Montepaschi+at+G20+table+to+support+financial+inclusion.htm">no cost</a> if sent to their country of origin. This is accomplished through special agreements with foreign banks.

At the Center, we are also very interested in on-ramps to financial inclusion, i.e., products and processes that lead to increased use of financial services. In Sri Lanka, Hatton National Bank (HNB) offers a <a href="http://www.microfinancegateway.org/gm/document-1.9.29510/49615.pdf" target="_blank" rel="noopener">savings-linked remittance product</a> to help migrants and their families increase savings and access credit. By partnering with local and international banks, HNB educates migrants and family members on the value of formal remittances. Requiring that 5 percent of transferred funds be saved, after a designated time period the migrant or a family member is able to take out a loan much greater than the amount in the savings account.

Imagine if some of these models were replicated in other countries! Certainly, there are cases where regulatory issues are a challenge. However, whether you’re a regulator, provider, or support organization, I hope that these examples inspire you to think of what more can be done to reach migrants and their families.

Do you have an innovative model that you’d like to share? Please tell us in a comment below.
Image credit: <a href="http://www.flickr.com/photos/24738097@N04/5062517764/" target="_blank" rel="noopener">Romulo Moya Peralta</a>
Have you read?
<a href="http://cfi-blog.org/2014/05/07/walmart-joins-the-list-of-non-traditional-players-offering-remittances/">Walmart Joins the List of Non-Traditional Players Offering Remittances</a>
<a href="http://cfi-blog.org/2014/04/16/facebook-to-provide-remittances-the-news-and-the-bigger-picture/" target="_blank" rel="noopener">Facebook to Provide Remittances? The News and the Bigger Picture</a>
<a href="http://cfi-blog.org/2011/02/01/remittances-a-key-driver-of-economic-reform-in-cuba/" target="_blank" rel="noopener">Cuba &amp; Remittances: Can the "Money in the Mail" Drive Reform?</a>

Not Just Migrants, but Their Families Too

&gt; Posted by Amanda Lotz, Financial Inclusion 2020 Consultant, CFI

<a href="http://www.centerforfinancialinclusion.org/programs-a-projects/financial-inclusion-2020"><img class="alignright size-medium wp-image-8784" style="border: 0;margin-bottom: 15px" src="http://centerforfinancialinclusionblog.files.wordpress.com/2012/11/fi2020_antilogo2.jpg?w=300" alt="" width="300" height="66" /></a>

The <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/financial-inclusion-2020" target="_blank" rel="noopener">Financial Inclusion 2020</a> campaign at the Center for Financial Inclusion at Accion is building a movement toward full financial inclusion by 2020. This blog series spotlights financial inclusion efforts around the globe, shares insights from the FI2020 consultative process and highlights findings from “Mapping the Invisible Market.”

If you are new to the financial inclusion industry, or just looking to uncover more about some of its key action areas, there’s a new online portal sharing resources that we at the Financial Inclusion 2020 project believe are essential: <a href="http://www.centerforfinancialinclusion.org/fi2020/resources" target="_blank" rel="noopener">the FI2020 Resource Library</a>.

The FI2020 team compiled some of its favorite resources on financial inclusion, including publications, blog posts, white papers, websites, data, and policy sources. The resources are organized around FI2020’s five focus areas - Financial Capability, Technology-Enabled Business Models, Client Protection, Credit Reporting, and Addressing Customer Needs – as well as the areas of policy, data, and general financial inclusion discussion.

<a href="http://www.centerforfinancialinclusion.org/fi2020/resources"><img class="aligncenter wp-image-14907" src="http://centerforfinancialinclusionblog.files.wordpress.com/2014/05/accionmanaus0761_financial_capability3.png" alt="" width="600" height="240" /></a>We invite you to explore our suggestions, each featuring its own annotation, and contribute your own. In line with the consultative approach of the FI2020 movement, we are eager to hear what your recommended resources are and continue to build the library. You can submit them to us at the <a href="http://www.centerforfinancialinclusion.org/fi2020/resources" target="_blank" rel="noopener">library webpage</a>.

Here are a few resources to get you started in your reading:

1. Those actively engaged or interested in client protection should check out the following report – with important lessons for all financial inclusion actors.

<a href="http://www.oecd.org/finance/financialeducation/50236278.pdf">Client Protection: A Three-Legged Stool?</a> (April 2012)
OECD
Analistas Financieros Internacionales
Authors: Virginia González Pérez, Verónica López Sabater
This report identifies key stakeholders that make up the three-legged stool of client protection: authority, industry, and clients. It proposes that client protection is not possible unless all three stakeholders are equally engaged. Client protection principles, standards, and practices should be fully applied by providers, with utmost transparency. The authority should exercise its role as provider of regulation, institutional capacity, supervision, and financial education of clients.

2. To better address customer needs, many financial services providers are exploring opportunities to innovate and address client feedback. Speaking directly with clients can help providers to provide a customized service offering. This publication highlights one model from India.

<a href="http://www.cgap.org/sites/default/files/CGAP-Forum-The-Pursuit-of-Complete-Financial-Inclusion-The-KGFS-Model-in-India-May-2012.pdf">The Pursuit of Complete Financial Inclusion: The KGFS Model in India</a> (May 2012)
Consultative Group to Assist the Poor, IFMR Trust 
Authors: Bindu Ananth, Greg Chen, Stephen Rasmussen
This publication describes the Kshetriya Gramin Financial Services (KGFS) operating model in India, which includes a village and household mapping exercise. This innovative model trains front-line staff as “wealth managers” who conduct detailed interviews to diagnose financial needs and offer advice. Wealth managers then propose a customized mix of financial products that address the unique needs of each household, which includes savings, credit, and insurance. They also utilize sophisticated analytics of local economic data. Discusses the client response so far, reviews how far the financial viability of the model has progressed, and explores the applicability of KGFS principles to contexts beyond India.

3. This resource is a financial capability classic which has helped shift industry thinking from financial education (as knowledge acquisition) to financial capability (promoting sound financial choices and behavior).

<a href="http://csd.wustl.edu/Publications/Documents/WP10-17.pdf">Financial Capability: What is It, and How Can It Be Created?</a> (2010) 
Center for Social Development, Washington University
Author: Margaret S. Sherraden
Proposes an alternative to financial literacy, financial capability, which includes when clients have both the ability and opportunity to act. Addresses how people traditionally acquire financial knowledge and skills through financial socialization, financial education, and financial advice/counseling. It then explains how financial inclusion can only be achieved if financial services are accessible, affordable, appealing, simple, secure, and reliable. Knowledge, skills, and inclusion are linked.

Stay tuned, as we’ll soon feature resources on inclusion of underserved and/or vulnerable client groups (e.g. older adults or women). Happy reading!

For more information on Financial Inclusion 2020, <a href="http://bit.ly/FI2020signup">sign up for campaign updates</a>.
Image credit: Accion
Have you read?
<a href="http://cfi-blog.org/2014/03/25/the-microfinance-industrys-most-respected-resources/" target="_blank" rel="noopener">The Microfinance Industry's Most Respected Resources</a>
<a href="http://cfi-blog.org/2014/03/07/top-five-resources-of-2013-on-financial-inclusion-of-women/" target="_blank" rel="noopener">Top Five Resources of 2013 on Financial Inclusion of Women</a>
<a href="http://cfi-blog.org/2011/02/23/portal-de-microfinanzas-shares-unique-mix-of-resources-in-spanish/" target="_blank" rel="noopener">'Portal de Microfinanzas' Shares Unique Mix of Resources in Spanish</a>

What’s on Financial Inclusion 2020’s Bookshelves?

&nbsp;

<a href="https://www.g20.org/"><img class="alignright wp-image-14626 size-full" style="border: 0" src="http://centerforfinancialinclusionblog.files.wordpress.com/2014/04/g20logo.png" alt="" width="231" height="143" /></a>The Group of Twenty Finance Ministers and Central Bankers (G20) is targeting financial inclusion through the G20 Development Working Group (DWG), which is in the process of finalizing an agenda for its 2014 goals. The DWG focuses on developing an agenda for tackling development challenges, with the intent to remove constraints to sustainable growth and poverty alleviation. Recently, through our participation in InterAction’s G20/G8 Advocacy Alliance, CFI teamed up with other non-profits in the financial inclusion community to develop a set of recommendations for G20 leaders. While the Alliance and DWG span a diverse range of issues, our focus was, of course, on financial inclusion.

Our recommendations to the G20 were developed in coordination with CARE International UK, the Grameen Foundation, the Cherie Blair Foundation for Women, HelpAge USA, and the Microcredit Summit Campaign, among others. They urge governments to implement national strategies for financial capability and client protection, ensuring that these strategies and targets address a full suite of financial services and include underserved groups. You can read the full set of recommendations and contributing organizations <a href="http://www.interaction.org/document/2014-g20-financial-inclusion-recommendations">here</a>.

Last week we had the opportunity to discuss our recommendations with senior leadership from the Australian G20 presidency. As you may know, the G20 Presidency rotates each year, and this is Australia’s year. Each presidency takes a lead in setting the agenda and priorities, which are then discussed and (ideally) implemented by all G20 members.

The G20 Australian presidency issued a <a href="https://www.g20.org/news/g20_maps_out_its_plans_support_developing_countries_under_australia%E2%80%99s_2014_presidency">global development agenda</a>, which was supported by the DWG. It highlighted two major outcomes for 2014 related to financial inclusion and remittances. We were happy to see an expressed desire to move beyond a focus on cost reduction for remittances, where there has been a great deal of progress, to maximizing the potential of remittances to increase financial inclusion.

During the meeting, our financial inclusion team brought three key points to the conversation:

1. No Financial Inclusion without Financial Capability. An example illustrating this point is CARE’s work with village savings groups for women. In order to ensure that women will benefit from the new formal financial services made possible when savings groups are linked to banks, we must ensure that the women will have the combination of knowledge, skills, attitudes, and ultimately behaviors that translate into sound financial decisions and the appropriate use of the new formal services. The methodology of savings groups is conducive to teaching members about financial services. While the G20 has been supportive of financial capability building efforts, we are calling for countries to incorporate lessons from behavioral economics and also ensure that government-to-person payments promote financial capability.

2. One Product Does Not Mean Full Financial Inclusion. Along with its support of financial capability, we’d like to applaud the G20 Development Working Group’s focus on remittances and migrants (one of the vulnerable groups we’ve identified in our Financial Inclusion 2020 (FI2020) project). But let’s not look at remittances as a stand-alone product. Remittances can be an on-ramp to additional financial services. In our FI2020 consultative process, Developing Markets Associates shared one <a href="http://www.dmassocs.com/case-offering-free-financial-consulting" target="_blank" rel="noopener">innovative model</a> with us, which provides financial counseling to remittance recipients, encouraging them to open a savings account.

3. National Strategies Should Focus on the Most Vulnerable Populations Backed by Data. While the current development agenda references vulnerable groups, such as youth, women, and migrants, we asked that the DWG also include the following groups: persons with disabilities, older adults, the extremely poor, rural households, refugees, subsistence farmers, and the LGBT community. We highlight a particular population that is growing in importance: older adults. In fact, older adults are the fastest growing population in the world and by 2050 will reach <a href="http://www.helpageusa.org/what-we-do/rights/rights-policy/un-openended-working-group-on-aging/protecting-the-rights-of-older-people/">2 billion people</a>. In this light, when countries develop national strategies for financial inclusion, they need to make sure that vulnerable groups are fully considered. To ensure that we are doing this, countries should track data for each vulnerable group.

During the meeting, we learned that the G20 Development Working Group is working with the Global Alliance for Financial Inclusion (<a href="http://www.gpfi.org/" target="_blank" rel="noopener">GPFI</a>) to push the development agenda beyond government stakeholders to include private sector players (e.g. telecommunications companies, technology providers, insurance providers, private banks, NGOs). This is a new step for the GPFI, which has traditionally focused on government stakeholders. We agree with the new orientation. The promotion of public-private partnerships will be vital to increase financial capability building and create on-ramps to financial inclusion.

We encourage you to review our <a href="http://www.interaction.org/document/2014-g20-financial-inclusion-recommendations" target="_blank" rel="noopener">recommendations</a> and comment if you would like to suggest other priorities for the G20 Development Working Group.

Image credit: <a href="https://www.g20.org/" target="_blank" rel="noopener">G20</a>
Have you read?
<a href="http://cfi-blog.org/2013/05/02/g20-financial-inclusion-indicators-the-new-data-sandbox/" target="_blank" rel="noopener">G20 Financial Inclusion Indicators: The New Data Sandbox</a>
<a href="http://cfi-blog.org/2013/06/25/financial-inclusion-and-the-post-2015-global-development-goals/" target="_blank" rel="noopener">Financial Inclusion and the Post-2015 Development Goals</a>
<a href="http://cfi-blog.org/2013/11/01/what-is-financial-capability/" target="_blank" rel="noopener">What Is "Financial Capability?"</a>

CFI Joins Industry Leaders in Impressing Financial Inclusion to the G20

&gt; Posted by Amanda Lotz, Financial Inclusion 2020 Consultant, CFI

Tomorrow, people around the world will celebrate <a href="http://www.internationalwomensday.com/" target="_blank" rel="noopener">International Women’s Day</a>. In honor of the day, and the tremendous impact that financial services can have for women, we’d like to highlight some of the top resources from the past year that focus on financial inclusion of women. Though there are many great resources out there, below are a few that have caught our attention.

1. <a href="http://siteresources.worldbank.org/EXTGLOBALFIN/Resources/8519638-1332259343991/N9gender.pdf" target="_blank" rel="noopener">Findex Notes: Women and Financial Inclusion</a>

<a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/213907/promoting-womens-financial-inclusion-toolkit.pdf" target="_blank" rel="noopener"><img class="alignright wp-image-14216" src="http://centerforfinancialinclusionblog.files.wordpress.com/2014/03/a-toolkit.png" alt="" width="240" height="340" /></a>Drawing from the Global Findex Database, the World Bank and the Bill and Melinda Gates Foundation created a briefing on the state of women’s access to and use of financial services globally. It’s a concise snapshot of financial inclusion data on women. It highlights gaps that persist for women, as compared to men, globally and across regions. It looks at variations in account ownership for savings and credit, as well as barriers to usage identified by women. And if you’re looking for more, I suggest exploring the <a href="http://datatopics.worldbank.org/financialinclusion/" target="_blank" rel="noopener">Findex database</a> or the <a href="http://www.centerforfinancialinclusion.org/fi2020/mapping-the-invisible-market/data-explorer" target="_blank" rel="noopener">CFI Data Explorer</a> and conducting your own analyses!

2. <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/213907/promoting-womens-financial-inclusion-toolkit.pdf" target="_blank" rel="noopener">Promoting Women’s Financial Inclusion: A Toolkit</a>

DFID and GIZ on behalf of the German Federal Ministry for Economic Cooperation and Development prepared a toolkit aimed at policymakers, donors, and NGOs who want to learn how to design and implement programs to enhance the financial inclusion of women. It provides insight into factors that contribute to financial exclusion of women and offers recommendations to address access barriers. In addition, the toolkit provides methods for client segmentation as well as several illustrative case studies. Rather than suggesting focusing on women exclusively, the toolkit also recommends understanding the distinct needs of men.

3. <a href="http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/publications/publications_report_vv-sme" target="_blank" rel="noopener">Ready for Growth: Solutions to Increase Access to Finance for Women-Owned Businesses in the Middle East and North Africa</a>

Vital Voices, MENA Businesswomen’s Network, and the IFC partnered on a report that explores solutions to increase access to finance for women in the Middle East and North Africa. Drawing from an in-depth survey of over 430 women from eight countries in MENA, the report reveals that many women face barriers in accessing finance (41 percent of those surveyed), citing high interest rates (67 percent) and lack of collateral (36 percent) as the main obstacles. In addition, many of the surveyed women expressed high demand for greater access to information and training to grow their businesses. With this expansion, access to financial services will be vital. Along with insightful data, the report includes recommendations on improving access to finance, developing tailored products, and overcoming barriers that women face.

4. <a href="http://www.oecd.org/daf/fin/financial-education/TrustFund2013_OECD_INFE_Women_and_Fin_Lit.pdf" target="_blank" rel="noopener">Women and Financial Literacy: OECD/INFE Evidence, Survey and Policy Responses
</a>

<a href="http://www.oecd.org/daf/fin/financial-education/TrustFund2013_OECD_INFE_Women_and_Fin_Lit.pdf" target="_blank" rel="noopener"><img class="alignright wp-image-14222" src="http://centerforfinancialinclusionblog.files.wordpress.com/2014/03/oecd-infe.png" alt="" width="240" height="337" /></a>In a report released mid last year, the OECD International Network on Financial Education (INFE) discusses data that illustrates gender differences in financial literacy levels. The findings indicate that in many countries women are less financially literate as well as less confident in their abilities than men. Additionally, the report explains the consequences of low financial literacy levels and points to potential explanations for why gender differences may exist, such as the effects of differing test formats or the influence of social networks. In response to the prevailing gap, the report considers ways to address barriers that women may face, drawing from existing policies and initiatives targeted at the needs of women and girls.

5. <a href="http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/02/GSMA-mWomen-Visa_Unlocking-the-Potential_Feb-2013.pdf" target="_blank" rel="noopener">Unlocking the Potential: Women and Mobile Financial Services in Emerging Markets</a>

Visa, GSMA’s mWomen, and Bankable Frontier Associates (BFA) have prepared a report that looks at how best to design mobile financial services, based upon data collected by BFA in Indonesia, Kenya, Pakistan, Papua New Guinea, and Tanzania. The report illustrates preferences and barriers to access, gleaned through interviews with women at the base of the pyramid. To share a few insights, 63 percent of women in Tanzania perceived savings groups as reliable and secure, while 86 percent of women in the country who use formal institutions for savings find them to be reliable and secure. For many of the services that women often use, mobile financial services can increase security and simplify processes. This is true for payments women typically make (utilities, school expenses), money transfers and remittances, and government-to-person-payments.

BONUS! We tried to stay with 5, but couldn’t resist highlighting another resource that we covered in <a href="http://cfi-blog.org/2013/12/20/adding-gender-to-the-microfinance-bottom-line/" target="_blank" rel="noopener">an earlier post</a> by Jaclyn Berfond.

<a href="http://www.womensworldbanking.org/wp-content/uploads/2013/09/Womens-World-Banking-Gender-Performance-Indicators.pdf" target="_blank" rel="noopener">Gender Performance Indicators: How Well Are We Serving Women?</a>

Have you been searching for a vetted framework for tracking and measuring institutional gender performance? Building on the work of the social performance community, Women’s World Banking (WWB) created an analytic framework of gender performance indicators, organized around three themes: Client-Centric Focus, Institutional Focus, and Financial and Social Outcomes. To support the development of these indicators, WWB piloted them with three microfinance institutions: Ujjivan Financial Services in India; Finance Trust in Uganda; and Fundación Delamujer in Colombia. Each indicator is ranked based upon its expected degree of complexity to implement, identifies responsible actors, and has corresponding data from the pilot organizations. Providers, take note. This is the best resource out there for measuring gender performance. And don’t forget to disaggregate any collected data!

What were your favorite resources of 2013, centered on financial inclusion of women?

Have you read?

<a href="http://cfi-blog.org/2013/03/08/international-womens-day-2013-where-are-we-with-womens-access-to-financial-services/" target="_blank" rel="noopener">International Women's Day 2013: Where Are We With Women's Access to Financial Services</a>

<a href="http://cfi-blog.org/2012/03/08/congratulations-its-international-womens-day/" target="_blank" rel="noopener">Congratulations, It's International Women's Day!</a>

<a href="http://cfi-blog.org/2011/03/08/women-and-microfinance-whats-there-to-celebrate-today/" target="_blank" rel="noopener">Women and Microfinance: What's There to Celebrate Today?</a>

Top Five Resources of 2013 on Financial Inclusion of Women

&gt; Posted by Amanda Lotz, Financial Inclusion 2020 Consultant, CFI
<a href="http://www.flickr.com/photos/31565856@N07/10797254835/" target="_blank" rel="noopener"><img class="aligncenter wp-image-13492" style="border: 0;margin-top: 15px;margin-bottom: 15px" src="http://centerforfinancialinclusionblog.files.wordpress.com/2013/12/10797254835_6149f77575_c.jpg" alt="" width="600" height="399" /></a>Microinsurance matters, especially as we see an increase in climate change related disasters.
On October 28, Alexia Latortue of the U.S. Treasury moderated <a href="http://www.centerforfinancialinclusion.org/fi2020/global-forum/opening" target="_blank" rel="noopener">the opening plenary</a> of the Financial Inclusion 2020 Global Forum featuring two leaders in microinsurance, Michel Khalaf of MetLife and Martyn Parker of Swiss Re. One of Alexia’s remarks at the Global Forum deeply resonates with me today: “The occurrence of a risk event can set a family back an entire generation.” Among other things, she suggested, there are new and emerging risks linked to climate change.

Shortly after the Forum, we saw haunting evidence of this. On November 8, Typhoon Haiyan devastated much of the Visayas region in the Philippines, with the city of Tacloban being the hardest hit. Typhoon Haiyan is a reminder of why we must prepare to face natural disasters. Microinsurance is one form of advance preparation that can prove instrumental in the disaster rebuilding stage.

In a disaster prone country such as the Philippines, where over <a href="http://data.worldbank.org/indicator/SI.POV.2DAY" target="_blank" rel="noopener">41 percent</a> of the population lives on under $2 per day, ensuring greater access to microinsurance could make an enormous impact. In the country’s rural areas, which encompass roughly half of Filipinos and about 80 percent of those living in poverty, agriculture is the primary source of income. Government data from 2009 indicates that poverty among fishermen is at 41 percent, with farmers close behind at 36 percent. Think about the opportunities for providing microinsurance to farmers and fishers, whose livelihoods and families depend on productive land and assets that can be tremendously affected by weather!

What does the microinsurance industry look like in the Philippines? Of nearly 97 million Filipinos, only 8 million are covered by microinsurance, according to a <a href="http://www.adb.org/sites/default/files/pub/2013/assessment-microinsurance-service-for-poor.pdf">report</a> released in April by the Asian Development Bank (ADB).

Several organizations and providers are working to address this gap and the 8 million figure represents a rapid rise in recent years. In 2008 only 3 million individuals had microinsurance. MicroEnsure, for example, offers <a href="http://www.microensure.com/news.asp?id=283&amp;start=0">calamity insurance</a> for retailers as a part of its “Triple 10” package. The product costs 205 pesos (about US$6) a year and provides life insurance, burial assistance, medical reimbursement, and fire and calamity assurance of 10,000 pesos each. This service fulfilled claims of Filipino clients in response to both Tropical Depression Maring and a monsoon this August. For more on calamity insurance in the Philippines, see this note prepared by the <a href="http://www.microinsurancecentre.org/milk-project/milk-docs/doc_details/913-condensed-milk-17-doing-the-math-with-calamity-microinsurance-in-the-philippines.html">MicroInsurance Centre’s MILK Project.</a>

The <a href="http://devplan.neda.gov.ph/">Philippine Development Plan</a> (2011–2016) suggests the government’s willingness to further innovate and reform in order to increase the reach of financial services through the promotion of inclusive finance. However, as indicated in the ADB report, there’s more that the government can do. The report specifically points to the following:
<ul>
 	<li>Address remaining regulatory challenges and build the capacity of the country’s Insurance Commission</li>
 	<li>Promote the innovation of products that address more than one risk</li>
 	<li>Harness public-private sector partnerships</li>
 	<li>Promote the development of climate change-linked microinsurance products</li>
</ul>
This last point is most intriguing to me. The government could encourage competition among providers to develop innovative products linked to climate change and disasters, as this market is largely untapped. Perhaps it could increase foreign investment, particularly in light of the opening represented by new legislation that allows foreign investors to own up to 60 percent equity of rural banks.

The microinsurance industry is looking for ways to help low-income Filipinos rebuild and prepare for future disasters. How can they tap into this underinsured market and more effectively reach the poor?

Image credit: <a href="http://www.flickr.com/photos/31565856@N07/10797254835/" target="_blank" rel="noopener">Mans Unides</a>

Have you read?

<a href="http://cfi-blog.org/2011/04/14/the-philippines-wants-to-be-first-can-it-get-there/" target="_blank" rel="noopener">The Philippines Wants to Be First. Can It Get There?</a>

<a href="http://cfi-blog.org/2013/09/18/how-financial-literacy-can-help-build-the-market-for-microinsurance/" target="_blank" rel="noopener">How Financial Literacy Can Help Build the Market for Microinsurance</a>

<a href="http://cfi-blog.org/2013/12/05/a-smoother-road-to-building-quality-insurance-at-scale/" target="_blank" rel="noopener">A Smoother Road to Building Quality Insurance at Scale</a>

Amanda Lotz

Latest by Amanda Lotz