In 2014, Vitas launched a special needs loan program in Iraq, made available to people with disabilities (PwDs), particularly youth. The loan amounts range from US $100 to $3,000. Our current portfolio of almost $200,000 includes nearly 300 clients.
<h3>What was the need for a product to reach this segment?</h3>
We realized that there were huge negative misperceptions around and persistent stigmas associated with PwDs. People who are blind, deaf, partially paralyzed, have missing limbs, or have other special needs were mostly excluded from parts of society. Successive governments have failed to address the problem and the stigma has remained. We believe that PwDs have tremendous potential to be productive contributors to their communities, yet they are not given the tools to do so. Furthermore, natural disasters and conflicts create even greater numbers of PwDs, rendering this problem more acute. However, with a tailored approach to provide support, we believe that many PwDs can reach their full potential and become active and vigorous social and economic participants.
<h3>Young PwDs</h3>
According to the World Health Organization, during the years of war and the various disasters that have followed, the number of PwDs in Iraq has now reached approximately 2 million. A significant number of these are youth. It was vital for us to recognize disabled Iraqi youth as an opportunity rather than a problem. Contrary to the commonly-held belief that PwDs cannot be good clients because of their perceived inability to work, our experience has proven that PwDs do make good clients.
<blockquote>Contrary to the commonly-held belief that PwDs cannot be good clients because of their perceived inability to work, our experience has proven that PwDs do make good clients.</blockquote>
<h3>What is the impact?</h3>
The current political environment in Iraq leaves PwDs completely neglected by the government. Since launching our product two years ago, we are proud to report that the results are extremely encouraging. There has been a positive increase in social capital overall, such as improved self-esteem for PwDs and pride among members who have supported them. More importantly, we have been able to work toward changing social perceptions.
<h3>Scalability</h3>
Vitas’ outlook toward financial inclusion for PwDs is to increase the special needs loan outreach by implementing improved processes and tools, training staff to increase awareness, and continuing to organize and sponsor initiatives aiming at supporting these important members of our society. We want to establish strategic partnerships with various government institutions such as the Ministry of Social Affairs, civil society and local associations, to reach larger numbers of PwDs, and empower them to generate their own incomes and improve their standard of living.

There is a double social impact in changing harmful and ill-informed biases and unlocking the potential of PwDs to live full and productive lives. Given our experience in Iraq, we feel there is an opportunity to offer similar products across the Middle East. To this end, we have also renewed our focus on offering employment opportunities to PwDs at our subsidiaries. Breaking down this entrenched stigma takes time, but it is critical to fulfil our mission that all people should have access to the financial tools they need to improve their lives and become full social and economic participants within their communities.

Read about CFI’s work on the topic of PwDs <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/financial-inclusion-for-persons-with-disabilities/">here</a>.

Why We Serve People with Disabilities: Lessons from Iraq

<h1>Why Benchmarking Matters</h1>
<h5>HOW DO WE KNOW WE'RE BEING EFFECTIVE?</h5>
Achieving financial inclusion requires continuously evaluating how well the industry is progressing and how far we still have to go. Benchmarking activities help us measure progress and identify priorities for research and action. To reach 3 billion people who are left out of or poorly served by the financial sector, a full understanding of progress and setbacks is essential.

&nbsp;
<h1>Approach</h1>
<h5>INDEPENDENT AND CRITICAL PERSPECTIVE</h5>
We are committed to keeping the industry focused on financial inclusion that benefits consumers. CFI assesses public industry data, like the <a href="https://globalfindex.worldbank.org/">Global Findex</a> and the <a href="https://news.gallup.com/reports/233399/gallup-global-financial-health-study-2018.aspx">Gallup Global Financial Health Study</a> with an independent and critical eye, shining a spotlight on where action is most needed. We also participate in joint benchmarking exercises with partners to examine specific aspects of the sector, like the regulatory environment or risk perceptions. In all our benchmarking and research endeavors, we are keen to reality test prevailing narratives, ask tough questions and shine a light on overlooked trends.

&nbsp;
<h1>Results</h1>
<h5>WHAT HAVE WE ACHIEVED?</h5>
<h2>Benchmarking the Enabling Environment</h2>
Together with partners, CFI sponsors and contributes to the Global Microscope—a project led by the Economist Intelligence Unit. Intended to benchmark the enabling environment for promoting financial inclusion, the Microscope assesses the institutional and regulatory ecosystem based on selected indicators across over 50 developing economies. We have helped the Microscope evolve from a study of microfinance in Latin America and the Caribbean into a global study of the broader financial inclusion ecosystem. Additionally, we also look at new indicators on the enabling environment for digital financial services.

With 2018 marking its eleventh edition, the Microscope is one of the few benchmarking tools in the financial inclusion sector that spans a decade or more. Regulators across the world use its scoring and rankings as yardsticks for their own performance. Investors also consult the study when considering investment strategies. Many countries are cognizant of where they stand in the global rankings and are motivated to improve.

Benchmarking Financial Inclusion Progress

<a href="http://smartcampaign.org/"><img class="alignright wp-image-20925" style="border:0 solid #000000" src="https://centerforfinancialinclusionblog.files.wordpress.com/2016/03/sc.png" alt="" width="309" height="199" /></a>&gt; Posted by the Smart Campaign

The Smart Campaign is thrilled to announce that a new milestone for client protection in microfinance has been reached: there are now 50 financial institutions that have been awarded <a href="http://smartcampaign.org/certification/">Smart Certification</a>, recognizing their commitment to fair client treatment and responsible practices. In total, these institutions serve roughly 25 million clients.

The threshold was crossed with a handful of recent certifications – Fortis Microfinance Bank and Grooming Centre in Nigeria; Banco ADOPEM in the Dominican Republic; Fundacion Paraguaya in Paraguay; Pro Mujer in Nicaragua; and AgroInvest in Serbia. Each of these institutions worked over a several month process to assess and upgrade their operations to meet every one of the indicators signifying strong consumer protection practices.

Grooming Centre and Fortis Microfinance Bank collectively reach over a half million clients. Founded in 2006, Grooming Centre operates in 22 states in Nigeria with a network of 376 branches. Grooming Centre offers a range of financial services, including savings and credit, small business loans, agricultural loans, and clean energy financing. Fortis Microfinance Bank, along with offering financial services, provides clients with business support in areas including management, marketing, and administration.

<a href="https://centerforfinancialinclusionblog.files.wordpress.com/2016/03/el-dia-impreso-smart-campaign-pag-10.jpg"><img class="alignright wp-image-20929" style="border:0 solid #000000" src="https://centerforfinancialinclusionblog.files.wordpress.com/2016/03/el-dia-impreso-smart-campaign-pag-10.jpg" alt="" width="250" height="315" /></a>Banco ADOPEM is known in the Dominican Republic as “The Women’s Bank”, as 70 percent of their active clients are women. Ninety-four percent of these women are considered to be economically vulnerable. Banco ADOPEM showcased their status as a newly-certified MFI in an ad in El Dia, one of the most-circulated newspapers in the Dominican Republic, as shown in the image at right.

Fundacion Paraguaya fully integrates the <a href="http://smartcampaign.org/about/smart-microfinance-and-the-client-protection-principles">client protection principles</a> into its practices, while also pursuing the inclusion of historically marginalized populations. CFI is currently working with Fundacion Paraguaya on the <a href="http://cfi-blog.org/2016/02/26/disability-inclusion-progress-in-india-ecuador-nigeria-and-elsewhere/">institution’s disability program</a> to serve more people with disabilities, and the institution was instrumental in helping the Center develop a <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/pwd">Framework for Disability Inclusion</a>.

Pro Mujer in Nicaragua was Pro Mujer’s first expansion outside of Bolivia. Pro Mujer began Nicaragua operations in the poor neighborhoods around Leon and Chinandega and today serves women across 11 municipalities.

<a href="http://www.agroinvest.rs/agroinvest/index.php/en/where-we-work/serbia-agroinvest-fund">AgroInvest Serbia</a> is an affiliate of VisionFund and began work in Serbia in 2001. It focuses primarily on agricultural lending but also disburses other types of enterprise loans.

The Fundacion Paraguaya, Pro Mujer, and AgroInvest Serbia networks' (Accion, Pro Mujer, and VisionFund are members of the <a href="http://microfinanceceoworkinggroup.org/">Microfinance CEO Working Group</a> (MCWG)) participation in the certification program was assisted by the <a href="http://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/home">International Finance Corporation</a> in partnership with the MCWG.

The Campaign would like to congratulate all the certified institutions.

For more on the Smart Certification, you may enjoy hearing the CEOs of certified institutions talk about the certification process and its importance for their institutions and the sector in this video: the full version is <a href="https://www.youtube.com/watch?v=AZqC2R0PBts">here</a>, while an abridged (90-second) version is <a href="https://youtu.be/f2oHXCMdd3Y">here</a>. And please visit the Smart Campaign at www.smartcampaign.org.

Have you read?

<a href="http://cfi-blog.org/2016/02/18/my-turn-to-speak-voices-of-microfinance-clients-in-benin-pakistan-peru-and-georgia/">My Turn to Speak: Voices of Microfinance Clients in Benin, Pakistan, Peru, and Georgia</a>

<a href="http://cfi-blog.org/2015/08/06/three-cheers-for-the-smart-campaigns-certification-summit/">Three Cheers for the Smart Campaign's Certification Summit</a>

<a href="http://cfi-blog.org/2015/08/11/isabelle-barres-on-the-challenges-of-promoting-client-protection-the-thorny-issues-of-profits-and-pricing-and-the-smart-campaigns-next-steps/">Isabelle Barres On the Challenges of Promoting Client Protection, the Thorny Issues of Profits and Pricing, and the Smart Campaign's Next Steps</a>

A Client Protection Milestone: 50 Smart Certified Institutions; 25 Million Clients “Covered”

&gt; Posted by Misha Dave and Jeffrey Riecke, Disability Inclusion Program Manager and Communications Specialist, CFI

Financial inclusion for persons with disabilities (PWD) is a hugely under-addressed area in the quest to bank the unbanked. Estimates indicate that less than one percent of microfinance clients globally are PWD, despite roughly 15 percent of the global population having some sort of disability, and four-fifths of these individuals living in developing countries. The Center’s <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/pwd">Financial Inclusion for PWD program</a>, launched in 2010, has developed steadily since its inception. Here on the CFI blog you might’ve seen us spotlight our <a href="http://cfi-blog.org/2014/01/13/a-how-to-guide-to-realizing-disability-inclusion-at-mfis-is-now-available/">Framework for Disability Inclusion</a>, our <a href="http://cfi-blog.org/2014/05/28/attitudes-toward-persons-with-disabilities-in-indian-microfinance-institutions/">report on attitudes related to disability inclusion among Indian MFIs</a>, or our <a href="http://cfi-blog.org/2014/09/04/13000-pwd-and-counting-receive-financial-access-in-india/">disability inclusion partnerships with MFIs</a>.

The program has been busy over the past year. Let’s take a look at a few highlights.

India Partnerships: The Center’s PWD program provides trainings and resources to sensitize and equip MFIs to service PWD clients. The program recently forged new partnerships with two MFIs in India, Grameen Koota and Micrograam, bringing the total number of partnerships with institutions in the country to five. The other three partner institutions in India are Equitas, ESAF, and Annapurna. Across these three original partners, more than 30,000 lower-income disabled persons, including 2,000 visually impaired individuals (a severely excluded disability segment), have been included.

India Trainings: The program has trained over 160 field staff in six regions/states in India: Tamil Nadu, Kerala, Odisha, Karnataka, West Bengal, and Jharkhand. Recent inclusion programming and trainings were conducted at Micrograam’s three sub-partners in West Bengal, Jharkhand, and Tamil Nadu. And disability awareness surveys and sensitization trainings were completed with all branch managers of Grameen Koota in Karnataka.

Expansion in India: The India PWD program recently secured funding to expand its core program to three new partners in new regions. The India program is working to develop strong business case materials, collect data and client stories, revamp the core trainings, provide more practical tools for MFIs, and disseminate disability inclusion best practices.

Fundacion Paraguaya: CFI continues to work closely with Fundacion Paraguaya on a two-year expansion of the institution’s disability program to serve more PWD based on the Center’s Framework for Disability Inclusion.

Mental Health: The CFI is also working with Fundacion Paraguaya on the development of a mental health indicator for inclusion in the institution’s Poverty Stoplight tool, which helps assess the quality of life and poverty level of clients. Joshua Goldstein spoke at the 8th Pan-African Psychotrauma Conference, where he <a href="http://cfi-blog.org/2015/08/31/four-interventions-to-help-victims-of-trauma-find-hope-and-dignity/">discussed</a> the potential for victims of trauma becoming microfinance clients.

The Ecuadorian Government continues to receive advisory support from the Center on how to integrate disability best practices in the country’s financial sector.

Nigeria: Accion Microfinance Bank in Nigeria launched the People Living with Disabilities (PLWD) product to provide loans for PWD under the auspices of the Central Bank of Nigeria. The Center’s PWD program provided technical assistance on the initiative. The Center also met with the Vice President of Nigeria on advancing disability inclusion in the financial sector, and provides ongoing support to the Central Bank on how to create disability-inclusive institutions.

BRAC Bangladesh, which the Center provides disability inclusion assistance to, has achieved a client base of 7,000 PWD.

The Framework for Disability Inclusion was recently revamped to increase usability.

The New Client Protection Standards, currently being finalized by the Smart Campaign, include new language on protecting persons with disabilities from discrimination.

This is only a snapshot of the program’s happenings. Stay tuned to this blog for more updates.

For more information on the CFI’s Financial Inclusion for PWD program, <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/pwd/">click here</a>.

Have you read?

<a href="http://cfi-blog.org/2015/03/23/disability-inclusion-in-ecuador-and-around-the-world-an-interview-with-larry-reed/">Disability Inclusion, in Ecuador and Around the World: An Interview with Larry Reed</a>

<a href="http://cfi-blog.org/2015/08/31/four-interventions-to-help-victims-of-trauma-find-hope-and-dignity/">Four Interventions to Help Victims of Trauma Find Hope and Dignity</a>

<a href="http://cfi-blog.org/2014/01/13/a-how-to-guide-to-realizing-disability-inclusion-at-mfis-is-now-available/">A How-To Guide to Realizing Disability Inclusion at MFIs Is Now Available</a>

Disability Inclusion Progress - in India, Ecuador, Nigeria, and Elsewhere

&gt; Posted by Joshua Goldstein aka Mr. Provocative

There are no final victories when it comes to providing equal opportunities for groups that have suffered from historic discrimination and exclusion. This is true in the United States. This is true everywhere else in the world.  Attitudinal barriers that belittle and marginalize, originating in class, racial, or religious prejudice, may triumphantly come down in one generation only to be resurrected in the next – or even sooner if some shock to the body politic is great enough.

Thus, watchdog groups like the Center for Financial Inclusion’s Smart Campaign, the Southern Poverty Law Center, and the Anti-Defamation League can never call it quits and declare victory. Backsliding into bigotry is more likely the rule than the exception with our tribal species.

To bolster this glum supposition is this example of the ongoing difficulties facing another beleaguered minority: Twenty-five years after the passage of the Americans with Disabilities Act (ADA), there is new evidence about employment discrimination from researchers at Rutgers and Syracuse University.

<a href="http://mobile.nytimes.com/2015/11/02/upshot/fake-cover-letters-expose-discrimination-against-disabled.html?_r=0">According to The New York Times</a>, the researchers applied for thousands of accounting jobs, sending resumes and cover letters on behalf of fictitious candidates, some with disabilities, some without. Employers followed up with candidates via phone or email 26 percent less frequently when those candidates disclosed that they had a disability. The study ensured that disability was the only differentiator among the otherwise identically qualified candidates.

But <a href="http://kesslerfoundation.org/kfsurvey15">another study</a> from the Kessler Foundation shows signs of workplace hope. The foundation’s recent national employment and disability survey shows that once on a job about 16 percent of persons with disabilities (PWD) report negative attitudes related to their disability on the part of their supervisor. However, over 41 percent of these same individuals say that they were able to overcome this barrier. How? I believe it is likely that in many cases the employee with a disability gained acceptance because she demonstrated her pride and personal agency in completing tasks that challenged her boss’ presumptions about her inferiority. Attitudes change because of this assertion of self. Once on the job, daily performance makes the difference.

At the Center for Financial Inclusion, we are running the <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/pwd">Financial inclusion for Persons with Disabilities program</a> to encourage the microfinance industry to become more disability welcoming and friendly. Consonant with the Kessler study, the Center has found that the most effective way to change negative attitudes among the staff members at financial institutions is to have them get to know persons with disabilities. Familiarity in this case does not breed contempt but can open new pathways to acceptance. Our work in India, for example, has included the creation of tools and an operating model for MFIs to incorporate PWD, and disability awareness trainings for institutions across the country. Some of our partners now have more than 15,000 clients with disabilities. When given a chance, persons with disabilities make excellent clients.

While many supervisors’ prejudice can be defeated in the workplace when real, multifaceted people take the place of abstractions, a robust law really matters for the other roughly 60 percent of supervisors in the Rutgers/Syracuse sample whose prejudice appeared unshakeable in spite of contact.

The Rutgers/Syracuse study showed that Fortune 500 companies tended to discriminate significantly less than smaller firms. Demonstrating a lack of interest in candidates with disabilities was most prevalent at firms with fewer than 15 employees. Notably, businesses this small are not mandated to be inclusive under the Americans with Disabilities Act.

So a recipe for the greatest success seems to be a combination of laws with teeth and human connection. Neither alone does the trick. And one reinforces the other.

But while incremental societal change certainly does happen, vigilance without end to protect our vulnerable populations is a necessity. A willingness to play well with others is critical for human survival but in most cases the people played with are from the same tribe. The daughters of today’s supervisors, when they move into leadership positions themselves one day, will have to relearn the lessons of nondiscrimination against people who are different, all over again.

And that is why the Smart Campaign, the ADA, and other human dignity watchdogs, along with enforceable laws, are so central to the human rights enterprise.

Have you read?

<a href="http://cfi-blog.org/2015/03/23/disability-inclusion-in-ecuador-and-around-the-world-an-interview-with-larry-reed/">Disability Inclusion, in Ecuador and Around the World: An Interview with Larry Reed</a>

<a href="http://cfi-blog.org/2015/12/03/happy-international-day-of-persons-with-disabilities/">Happy International Day of Persons with Disabilities</a>

<a href="http://cfi-blog.org/2014/05/28/attitudes-toward-persons-with-disabilities-in-indian-microfinance-institutions/">Attitudes toward Persons with Disabilities in Indian Microfinance Institutions</a>

Vigilance without End

&gt; Posted by Center Staff

International Day of Persons with Disabilities is a global occasion to promote awareness and mobilize support for critical issues relating to the inclusion of persons with disabilities (PWD). To mark the day, we wanted to share with you a new Accion video spotlighting the story of Reshma Babu. At five months old, Reshma contracted polio and lost the use of her legs, yet today, she lives independently. That’s partly due to her job at Accion partner Vindhya, where four out of five workers have some kind of disability. Vindhya is a business process outsourcing company that widely employs PWD to deliver high-quality and competitive services to companies spanning multiple sectors, including microfinance. Vindhya exemplifies how inclusion for PWD is a sustainable model for social enterprise at the base of the pyramid.

[facebook url="https://www.facebook.com/ACCION.International/videos/10153683554691136/" /]

Along with partnering with Vindhya, here are some of the ways that Accion and CFI are working to achieve disability inclusion:

<ul>
 	<li>Identify and disseminate best practices related to how persons with disabilities are using financial services today.</li>
 	<li>Implement the <a href="https://centerforfinancialinclusionblog.files.wordpress.com/2015/11/framework_for_disability_inclusion.pdf">Disability Inclusion Framework</a> at a number of highly respected MFIs. Our first such partnership is in its third year with Fundación Paraguaya.</li>
 	<li>Disseminate <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/pwd/framework-for-persons-with-disabilities">disability inclusion tools and trainings</a> for MFIs, developed at Fundación Paraguaya, with the support of Handicap International. These resources are open source and now available for all interested parties to download.</li>
 	<li>Partner with Micrograam, an NGO with 33 sub-partners, and MFIs in India— Annapurna, Equitas, ESAF, and Grameen Koota—covering five regions with the continued support of v-shesh to deliver CFI’s disability inclusion training to the vast Indian market.</li>
 	<li>Develop and share the compelling business case for disability inclusion in mainstream financial services.</li>
 	<li>Establish and form strategic partnerships with global disability organizations, including Handicap International and v-shesh to achieve maximum outreach and scale.</li>
 	<li>Further collaborate with the Smart Campaign and FI2020 to develop practices and tools to implement the newly incorporated Smart principle on non-discrimination.</li>
 	<li>Implement a disability inclusion program with BRAC in Bangladesh and in Nigeria with Accion Microfinance Bank and the Central Bank.</li>
 	<li>Look for innovative ways to include persons with psychosocial disabilities.</li>
</ul>
For more on financial inclusion of persons with disabilities, and our work, <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/pwd">click here</a>.

Have you read?

<a href="http://cfi-blog.org/2015/03/23/disability-inclusion-in-ecuador-and-around-the-world-an-interview-with-larry-reed/">Disability Inclusion, in Ecuador and Around the World: An Interview with Larry Reed</a>

<a href="http://cfi-blog.org/2014/09/04/13000-pwd-and-counting-receive-financial-access-in-india/" target="_blank" rel="noopener">13,000 Persons with Disabilities (and Counting) Receive Financial Access in India</a>

<a href="http://cfi-blog.org/2015/01/22/on-disability-benefits-rand-paul-has-a-point/">On Disability Benefits, Rand Paul Has a Point</a>

Happy International Day of Persons with Disabilities!

<a href="https://www.flickr.com/photos/worldbank/2652377697/in/album-72157601463875207/"><img class="alignright wp-image-20072" style="border: 0 solid #000000" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/11/2652377697_7cd2f08d4e_o.jpg" alt="2652377697_7cd2f08d4e_o" width="349" height="224" /></a>Aging is an issue that we all hope to face personally, if we haven’t already. As we prepare to participate in <a href="http://www.e-mfp.eu/microfinance-week">European Microfinance Week</a>, we are more convinced than ever that this is a critical topic for the financial inclusion community to address. (If you are planning to be at European Microfinance Week too, make sure to <a href="https://event.neimenster.lu/ehome/emw2015/308192/?&amp;">check out our panel</a> on the Sustainable Development Goals and financial inclusion!) In Europe, the aging of the population is well acknowledged. With average life expectancy in Europe among the highest in the world, at 77 years, the proportion of the population reaching older age is naturally growing. About 25 percent of Europe’s population is now over the age of 60, and that percentage is set to rise. The aging of the population is well understood in Europe, but what is less recognized is that the middle and lower-middle income countries of the world – the countries that encompass most of the world’s population – are already beginning to experience the same older age population boom. In most middle income countries, from Mexico to China, over-60s are the fastest growing cohort of the population. Aging is a product of successful development. Increased life expectancy, better family planning mechanisms, and higher quality of life all contribute to growth in the proportion of the population that is older.

Aging is a reality, but can it also represent an opportunity for financial institutions? The smart money is on providers who recognize that the answer is yes, and work to figure out how to respond.

We’ve created a list of activities, some practical and some research-oriented, we think would be valuable to close the gaps in financial inclusion for older people and for younger people who want to prepare for their older age. And, frankly, we would love for you to steal these ideas!

Develop a toolkit for becoming an age-friendly institution. We hear of a few financial institutions—from MFIs to commercial banks—that are using age as a lens through which to segment product offerings. From long-term savings products for people in their primary working years to credit designed for older people, being age-friendly across the life course allows a focus on life transitions and the diverse financial needs that accompany them. Case studies and toolkits would help financial institutions follow proven approaches. As part of becoming an age-friendly institution, there are a few starting points that would make a big impact:
Age-proof channels and technology. Financial institutions recognize that new technology, new channels, and new products must be built with the user experience in mind. There are existing vehicles for testing channels and technology to ensure that they work for older people. As part of vetting channels and technology, financial institutions can leverage older persons’ associations, assuring the technology’s validity for later life.
Ensure that staff members are not discriminating based on age. Financial institutions and support organizations can test the customer experience through mystery shopping in order to better understand how people of different ages are treated when they walk into a branch. An exercise like this could inform market-specific training modules to dispel myths about aging for staff of financial institutions.
Use existing data to create better products. Financial institutions have a wealth of data on clients that goes unused, and age is one data point that is collected because of the way that AML/CFT laws are translated into institutional policy. Financial institutions can use the data they have on clients to better understand how age influences client behavior. From this data, financial institutions have the opportunity to create better products to serve people across their life cycle, and especially into their older age.
Enhance financial security in older age by leveraging G2P and P2G early on. The shift toward electronic government-to-person and person-to-government payments presents an opportunity for creating “on-ramps” to inclusion. Leveraging these products could include automatically diverting funds sent through electronic channels to help people save funds for older age (which is already happening in many parts of the world) or using electronic G2P payments that go to older people as collateral for loans (older people are often seen as higher risk). Financial institutions which provide the accounts through which electronic payments are channeled have the positioning to capitalize on this opportunity.

Raise or eliminate age caps on credit and insurance. Over half of the institutions we <a href="http://cfi-blog.org/2015/09/10/aging-and-financial-inclusion-a-client-protection-issue/">surveyed earlier this year</a> reported that they impose upper age restrictions on their products. Many age caps at microfinance institutions are based on outdated actuarial tables, and are ripe for being challenged or creatively eliminated. Many people who are older may be willing to pay more for credit. And financial institutions could find highly receptive clients if they responsibly raise age caps on credit products. A dedicated loan guarantee fund could help mitigate perceived risk during a pilot phase, accompanied with careful performance monitoring to provide more data about actual risks of lending to older adults.

Enable people to save for their older age. Pension systems were designed for a largely formal labor force, and the current reality of the size of informal markets does not match the intention of pensions systems. More progressive governments have begun to reform their pension systems to account for the more informal labor force, by creating alternative channels for contributions at places like corner stores and through mobile phones. Financial institutions can also play a role, either serving as channels to collect funds for the pension system or by setting up independent long-term savings programs that promise a competitive interest rate.

We are confident that there are a hundred more ideas that are just as good (or better). More importantly, though, we look forward to seeing a world in which age is not a barrier to people having access to a full range of quality financial services.

If you end up stealing one of these ideas, or if you’re already doing something to advance industry thinking on aging, let us know—we would love to champion your work.

Image credit: <a href="https://www.flickr.com/photos/worldbank/2652377697/in/album-72157601463875207/">World Bank</a>

Have you read?

<a href="http://cfi-blog.org/2015/02/20/moving-to-action-on-aging-and-financial-inclusion/">Moving to Action on Aging and Financial Inclusion</a>

<a href="http://cfi-blog.org/2015/02/10/aging-and-financial-inclusion-an-opportunity/" target="_blank" rel="noopener">Aging and Financial Inclusion: An Opportunity</a>

<a href="http://cfi-blog.org/2015/09/10/aging-and-financial-inclusion-a-client-protection-issue/">Aging and Financial Inclusion: A Client Protection Issue?</a>

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Aging and Financial Inclusion: Steal These Ideas!

&gt; Posted by Eric Zuehlke, Web and Communications Director, CFI

[caption id="attachment_19808" align="alignright" width="350"]<img class="wp-image-19808" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/10/pwd_nigeria_loan-disbursement_sm.jpg" alt="" width="350" height="232" /> Accion MfB staff explaining the PLWD product to clients[/caption]

Last month, Accion Microfinance Bank (MfB) in Nigeria launched the People Living With Disabilities (PLWD) product to provide loans to a marginalized group that has largely been left out of the financial system – people with disabilities (PWD). To mark the occasion, some of the first clients of these loans including a member of the albino community and visually impaired clients attended an opening ceremony, which also included officials from the Central Bank of Nigeria (CBN).

The PLWD launch was the result of close collaboration across organizations and continents. CFI’s Joshua Goldstein and Bunmi Lawson, Managing Director/CEO of Accion Microfinance Bank, met with officials from the Central Bank of Nigeria to garner their support. In addition, CFI’s PWD team in India, including CFI partner v-shesh, advised Accion Microfinance Bank.

At the launch, Bunmi Lawson stated that, “Many people living with disabilities are financially excluded. We are pleased to be able to give them the opportunity to improve their means of livelihood to give them a brighter future.”

I asked Emeka Uzowulu, Head of Business and Product Development at Accion Microfinance Bank in Nigeria to share how this product came about and what their future plans are for reaching PWD.

1. Congratulations on the launch of the PLWD product! Can you give a brief background on how this product came about? What was the history of developing this outreach to persons with disabilities and what was key to getting it off the ground?

At Accion Microfinance Bank, our mission is to economically empower micro-entrepreneurs and low income earners by providing financial services in a sustainable, ethical, and profitable manner. We realize that a sizable number of this group are living with one form of disability or another which limits or frustrates their efforts to be productive, as well as that of their families. In consideration of these challenges, we are committed to identifying and partnering with them in making their futures brighter by providing access to loans, savings, and insurance at a very minimal cost.

The development of this product would not have been possible without support from the Central Bank of Nigeria, who established N220 billion of seed capital, with 2 percent of the wholesale component of the funds going to economically active PWD (excluding mental disabilities) at 9 percent per annum inclusive of all charges. With the availability of the funding window and at a lower interest rate, the market was ready and waiting with open arms. Accion Microfinance Bank in conjunction with the Secretariat of the People Living with Disabilities Association and the Albinos Foundation was able to design and develop a special product for PWD. We interacted with the People Living with Disabilities Association’s leadership on nearly a weekly basis, getting to know PWD, their economic daily activities, sources of livelihoods, banking relationships, and financial needs.

The product design and development was achieved through collaboration with P. Rajasekharau, Misha Dave, and Abhishek Agrawal in Accion’s India office, Joshua Goldstein of CFI, and Adebiyi Olunbunmi of the Central Bank of Nigeria.

2. Can you discuss the stigma against PWD in Nigeria? How does it manifest, especially in terms of access to employment, social services, etc.?

Nigeria, with a population of over 170 million, is estimated to have around 25 million people living with one form of disability or another. Regardless of this large number of people living with disabilities, very little if any support is given to them and they are often excluded from social, political, and economic affairs. The most common avenue of aid for these people is through families, and non-governmental and religious organizations. But, the present administration led by President Mohammad Buhari has promised to improve the lives of PWD by reviewing the law.

[caption id="attachment_19812" align="alignright" width="350"]<img class="wp-image-19812" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/10/pwd_nigeria_asst-director-cbn-addressing-audience.jpg" alt="" width="350" height="232" /> Jonathan Tobin (CBN), Bunmi Lawson (Accion MfB), Temitope Akin-Fadeyi (CBN) at the PLWD launch event[/caption]

The stigma associated with PWD stems mostly from the public’s unawareness and/or disregard for the cause of the disability, and such poor understanding has only helped to prolong age-long, problematic, traditional beliefs about disabilities.

3. Do PWD receive their own unique services or outreach from Accion? How does your approach to PWD differ from working with other client groups?

At Accion MfB, we have tailored the PLWD product to suit them perfectly. With a very low interest rate and no administrative fee applicable, they are assured that the cost of funds is basically next to nothing. Compared to applicable interest charges on regular products, some people will term this “free funds.”

We have also designed means to disburse funds to an eligible PWD at his/her place of business if the disability is shown to prevent such person from accessing the bank premises.

4. Is Accion Microfinance Bank working with PWD on products other than loans? How about insurance or client education programs?

Apart from loans, we encourage them to save through a wide range of savings products already put in place, and ensure they have access to other banking needs such as use of ATMs, POS, etc. We also provide them with insurance covers and are still working on creating an informative forum where they would benefit from client education programs.

5. Did you learn from others' experiences working with PWD - from CFI’s work in Paraguay, India, and other countries?

Extensive research was carried out here in Nigeria through group discussions, and major informational contributions were shared from Accion International and CBN. Putting all these together helped us roll out what we believe will be a reference point for many more PLWD products to follow suit.

6. This program is supported by the Nigerian central government and CBN officials attended the launch event. Can you talk a bit about their role and the significance of the national government taking this on in a public way?

Along with the funding from the Central Bank of Nigeria, a special monitoring team was set up to ensure that all funds as approved by the CBN were utilized accordingly. In addition, the Secretariat of the Financial Inclusion Department of the CBN, headed by Temitope Akin-Fadeyi, working with Adebiyi Olubunmi, was instrumental to the success of the project by monitoring, supervising, and providing other support. This is a bold approach which will hopefully help stem the negativity and stigma associated with living with a disability in this part of the world.

7. What are your future plans for PLWD? How would you like to see this product and overall outreach to persons with disability evolve over the next few years?

We will continue to ensure that as many PWD as possible are aware of the existence of this product. It is also our expectation that while we continually reach out to them either individually or through their associations, they will continue to be receptive and allow us to support making their futures brighter. In the near future, Accion Microfinance Bank will be the leading microfinance institution in Nigeria in the provision of financial services to PWD.

Have you read?

<a href="http://cfi-blog.org/2015/08/31/four-interventions-to-help-victims-of-trauma-find-hope-and-dignity/">Four Interventions to Help Victims of Trauma Find Hope and Dignity</a>

<a href="http://cfi-blog.org/2014/09/04/13000-pwd-and-counting-receive-financial-access-in-india/" target="_blank">13,000 Persons with Disabilities (and Counting) Receive Financial Access in India</a>

<a href="http://cfi-blog.org/2014/01/13/a-how-to-guide-to-realizing-disability-inclusion-at-mfis-is-now-available/">A How-To Guide to Realizing Disability Inclusion at MFIs Is Now Available</a>

A New Path to Financial Inclusion for People With Disabilities in Nigeria

&gt; Posted by Larry Reed, Director, the Microcredit Summit Campaign, and Jesse Marsden, Research and Operations Manager, the Microcredit Summit Campaign

<a href="https://www.flickr.com/photos/106853342@N04/10666354605/"><img class="alignright wp-image-19542" style="border: 0 solid #000000" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/09/10666354605_d44199b1de_z.jpg" alt="" width="315" height="210" /></a>

In collaboration with the CFI’s process to develop the <a href="http://www.fi2020progressreport.org/">Financial Inclusion 2020 Progress Report</a>, the Microcredit Summit Campaign recently conducted interviews with microfinance leaders* around the world committed to reaching the most excluded. In this post, we share some of the insights from these conversations about how to ensure that the most invisible clients are financially included, directly drawn from the experiences of those who are doing it.

To set the stage, Luis Fernando Sanabria, General Manager of Fundación Paraguaya, made this central point: "Our clients need to be the protagonists of their own development stories. Our products should be the tools they use to meet their needs and empower their aspirations." With that reminder of the purpose of financial inclusion, we begin the discussion by asking who are the most excluded.

In each country, people living in extreme poverty (below US$1.25 a day) make up the largest segment of those excluded from the financial system. We spoke with leaders from organizations that make intentional efforts to reach this large excluded market: Fundación Paraguaya; Pro Mujer; Fonkoze; Plan Paraguay; Equitas; Grama Vidiyal; and TMSS. These organizations not only address poverty, but also a host of other dimensions that lead to exclusion, including literacy, race, gender, physical disabilities, and age. Less frequently-discussed reasons for exclusion include sexual orientation, language barriers (especially among indigenous populations), and mental or emotional health issues. In India and Bangladesh, for example, those interviewed noted that the lack of personal identification often drove exclusion, especially among women, persons with disabilities, and the socially excluded, such as transgender individuals.

In order to reach the most excluded, you have to know who they are. “Often the poorest families are invisible in their own communities,” said Steve Werlin of Fonkoze in Haiti. “When we do the wealth rankings in a community, they aren’t even mentioned.” Fonkoze takes steps to make sure that all households get included in their surveys so that the community can see who they have left out. Creating this visibility is essential. On a wider scale, in government statistics on economic activity, data on people over 65 is simply discarded or never collected.

Everyone, and every client, is unique. One of the messages of the FI2020 Progress Report is that the base of the pyramid (BoP) is not a monolithic bloc. Arjun Muralidharan of Grama Vidiyal in India noted that “You need to have a particular and unique strategy to seek out and serve these groups. This begins with deciding who you are going after. Different populations have very different problems.”

Two key elements for including the most excluded populations are building trust and overcoming prejudice. Not only do the financially excluded need to become confident in their services providers’ ability to responsibly manage their money, but they often have to become comfortable participating in a society that has regularly closed its doors to them. “Working with disenfranchised groups is hard. We need to provide extra training and services to help overcome their self-exclusion,” said Muralidharan. Grama Vidiyal provides health services and legal rights training to members of the Dalit group (formerly known as untouchables) before including them in savings and lending groups. On the other side of the equation are financial services staff attitudes. “In order to include people with disabilities, we need to train our staff first, to get them to overcome their prejudice,” said John Alex of Equitas in India. Equitas provides disability awareness training for its staff and clients and encourages them to find people with disabilities in their communities to include in the institution’s borrowing groups. Equitas also adapted its training and application systems to be accessible for people who are blind, deaf, mute, or face other physical limitations.

Excluded groups may have financial needs that do not fit the typical cash flows of other clients. TMSS asked rural farmers in northern Bangladesh what programs the farmers felt would be best to introduce. This client-first approach led to new programs that combined loans and savings in sync with the growing season. TMSS also changed its policies and products to meet the needs of an aging population - eliminating its age limit for borrowers. The institution also provides savings services for these clients and training for the next generation of family members to make sure they will be cared for as they age.

Those excluded from financial services often face many other types of exclusion as well, leaving them with a range of constraints that they need to address:
<ul>
 	<li>Both Fonkoze and Plan Paraguay employ the <a href="http://tup.brac.net/">Ultra Poor Graduation Model</a> developed by BRAC that provides a combination of cash transfers, training, savings, an asset, mentoring, and access to credit.</li>
 	<li>Equitas works with homeless people and provides housing and financial capacity training before providing loans.</li>
 	<li>TMSS provides health services, financial capability training, and vocational training.</li>
</ul>
These organizations often partner with the government and others to make sure their clients have access to the range of services they need. Fundación Paraguaya uses its <a href="http://www.fundacionparaguaya.org.py/?page_id=490">Poverty Stoplight</a> monitoring system to assess its clients on a checklist of 50 items related to poverty, health, education, and employment. It uses this data to bring in government services for common areas of need. Equitas partners with local hospitals, and Grama Vidiyal works with the government health insurance system to provide for the health needs of clients.

Achieving financial inclusion requires consistent energy to attain, maintain, and measure progress. Fundación Paraguaya uses its Stoplight system to enable clients to define and measure their own achievements over time, and provides incentives to its staff based on these clients’ achievements. Equitas provides incentives to its account officers for including persons with disabilities and measures the progress of its clients along consumption and health indicators. Plan Paraguay and Fonkoze measure the success of their Ultra Poor Graduation programs based on the numbers of clients who “graduate,” having met a comprehensive set of indicators related to food security, income security, asset ownership, school enrollment, housing quality, etc. and having reached a level at which they can use unsubsidized financial services.

Financial inclusion has always been about going where others wouldn’t go, addressing the needs of people who were excluded because it was too hard to serve them, or too risky, or too unsustainable. The people we spoke with represent the many financial pioneers who use innovation to expand the boundaries of inclusion, reaching those assumed to be impossible to reach.

For more on addressing client needs, check out the interactive <a href="http://www.fi2020progressreport.org/">FI2020 Progress Report</a>.

Persons interviewed for this post: Luis Fernando Sanabria, Fundación Paraguaya; Carmen Velasco, co-founder of Pro Mujer; Steve Werlin, Fonkoze, Haiti; Mariella Greco, Plan Paraguay; John Alex, Equitas, India; Arjun Muralidharan, Grama Vidiyal, India; Munnawar Reza, TMSS, Bangladesh.

Image credit: <a href="https://www.flickr.com/photos/106853342@N04/10666354605/">Department of Foreign Affairs and Trade</a>; Anowara Begoum (pictured) lives in Kazipara village in Bangladesh, and is a participant in BRAC's Special Targeting Ultra Poor Program.

Have you read?

<a href="http://cfi-blog.org/2015/09/28/fi2020-progress-report-launches-in-three-days/">FI2020 Progress Report Launches in Three Days!</a>

<a href="http://cfi-blog.org/2015/07/21/the-supply-centricity-of-customer-centricity/">The Supply-Centricity of Customer-Centricity</a>

<a href="http://cfi-blog.org/2015/08/19/the-ebb-and-flow-of-customer-centricity-in-financial-inclusion-part-one/">The Ebb and Flow of Customer-Centricity in Financial Inclusion - Part One</a>

Addressing the Financial Needs of the Most Excluded

&gt; Posted by Sonja E. Kelly and Misha Dave, CFI

[caption id="attachment_19480" align="alignright" width="350"]<img class="wp-image-19480" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/09/equitas_pwd_dhanalakshmi-e1442518477325.png" alt="" width="350" height="215" /> Dhanalakshmi (far right), client at Equitas[/caption]

If there is one thing we have learned from working on disability and age inclusion in financial services, it is that including these populations in financial services is in some ways easier than practitioners expect it to be but, in other ways, harder than it looks.

In our research on aging and financial inclusion, one of the key insights was that financial service providers of all sizes often apply age caps on credit products. However, many institutions we talked with did not know exactly where these standards came from. Some attributed them to concerns about life expectancy of older clients, some to institutional history (“that’s just the way we do it”), some to the increase of credit portfolio insurance it would incur, and some to a perception of older people as economically dormant.

Many of these concerns can be mitigated by better research and dispelling myths about the creditworthiness of older people. Easy, right? In fact, there are some institutions that apply creative ideas to providing credit to older people. Group guarantees and automatic withdrawal payments on loans from publicly administered pensions through government partnerships are both examples of this.

However, such institutions providing credit to older people seem to be the exception rather than the rule. Worse, convincing institutions to care about this population is not easy. One institution we spoke with in India was baffled by the idea of providing credit to people over the age of 55. “But [the older people] could die and wouldn’t pay the loan,” the product developers insisted. Doing the research and <a href="http://www.centerforfinancialinclusion.org/fi2020/mapping-the-invisible-market/aging-financial-inclusion" target="_blank" rel="noopener">articulating the issue</a> was the easy part — now the hard work begins of advocating on behalf of older people.

Similar attitudinal barriers exist in financial institutions for serving persons with disabilities. Let’s take stock: over one billion people around the world — 1 in 7 of us — have a disability and four-fifths live in developing countries like India. Despite this and the fact that many microfinance institutions (MFIs) claim to be dedicated to “serving the world’s financially excluded people,” less than 1 percent of their clients are persons with disabilities.

In India, disabled persons have limited or no access to formal credit and other financial products for education, housing, skills development, business, and such. In addition, insurance companies in India do not cover assistive technology like wheel chairs and hearing aids that disabled persons need to be mobile, avoid further injury to themselves, and work and live full lives. The gap between demand and supply is enormous, and this creates a dangerous hotbed for informal credit and loan sharks to exploit an already vulnerable and marginalized population, dragging them further into poverty.

Disabled persons and older people have similar physical challenges (mobility, visual, and hearing impairment) and misperceptions about their capabilities to work and run businesses. Therefore, helping to financially include one group will serve to make positive changes for the other. Whether it be through changing attitudes and perceptions or implementing universal design principles in their operations, financial institutions can better serve all clients with physical challenges by becoming disability inclusive and friendly.

Through financial inclusion of disabled persons in India, we see a compelling story of social inclusion at the community level. Leveraging the group-based model in microfinance, disabled persons, mostly women, receive community support and social acceptance from other group members. Dhanalakshmi, an Equitas client, exemplifies this.

Dhanalakshmi was not born blind. She was badly burnt and lost her vision 23 years ago when her husband poured acid over her, her two sisters, and mother. While her sisters recovered with minor injuries, got married, and have families of their own, Dhanalakshmi lost her vision and sustained major burns on her right-hand side. Constrained by her disability, she confined herself to her home for many years.

Four years ago, Dhanalakshmi joined Equitas as a member. She took out a small loan and started her garments business, buying clothes from the wholesaler and selling them door-to-door. Dhanalakshmi’s group has fully included her by using very simple accommodation measures like reciting the MFI pledge aloud and taking turns to assist her in attending meetings. This has given her the confidence and the ability to support herself and her mother financially. Along with economic independence, she has also been socially accepted by people around her.

Group members often help support disabled persons in their businesses, as well. For example, they may purchase raw materials, sell/distribute products, and collect and repay loans on behalf of the disabled client. This inclusion is creating role models by empowering disabled persons to be economically self-sufficient while also empowering communities to break down social stigmas and attitudinal barriers on what a disabled person can and cannot do.

To help further financial inclusion for persons with disabilities, CFI’s <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/pwd" target="_blank" rel="noopener">Disability Financial Inclusion Program</a> in India has provided trainings and resources to sensitize and equip microfinance institutions to serve this marginalized and underserved population. The program provides disability awareness and sensitization trainings, inclusion assessments, and recommendations to make operations and processes more disability inclusive and friendly.

In the past two and a half years, the program has helped sensitized three microfinance partners (Equitas, ESAF, and Annapurna Microfinance) in three states (Kerala, Tamil Nadu, and Orissa). These three MFIs have financially included more than 30,000 low-income disabled persons, including over 2,000 visually impaired individuals, a severely excluded disability segment. Last year, the program won an award for its innovation in promoting accessibility and universal design to “ensure a life of equality and dignity for disabled persons.”

This year, we are expanding to three more financial partners in four new Indian states (Karnataka, West Bengal, Jharkhand, and Uttar Pradesh). One partner organization has a network of 33 sub-partners providing social and as well as financial support, spreading the seed of inclusion across India. We are also developing strategies to expand disability inclusion with our partners and other stakeholders through advocacy and awareness. We are facilitating partnerships between the financial industry and disability organizations in India, many of which provide livelihoods training, skills development, and other social supports to disabled clients. In sum, we are helping provide a strong ecosystem for sustainable financial inclusion for persons with disabilities.

We remain convinced of the value of including persons with disabilities and older people in financial services outreach. Indeed, financial inclusion is a valuable instrument to equip people with the tools they need to manage and grow their income. As we continue to pursue this goal — despite how challenging it can be at times — we eagerly look forward to the day when <a href="http://www.centerforfinancialinclusion.org/our-definition-of-financial-inclusion" target="_blank" rel="noopener">all people who can use financial services have access to a broad range of quality financial tools</a>.

This post was also published on the Microcredit Summit Campaign's <a href="http://100millionideas.org/2015/09/18/how-to-be-disability-inclusive-and-age-friendly/">100 Million Ideas blog</a>. Almost a year ago, CFI launched two <a href="http://www.microcreditsummit.org/commitment-makers.html" target="_blank" rel="noopener">Campaign Commitments</a> for further research and action on the inclusion of persons with disabilities and older people in financial services.

Have you read?

<a href="http://cfi-blog.org/2015/09/10/aging-and-financial-inclusion-a-client-protection-issue/">Aging and Financial Inclusion: A Client Protection Issue?</a>

<a href="http://cfi-blog.org/2015/04/30/aging-in-latin-america-and-the-caribbean-challenge-meets-opportunity/">Aging in Latin America and the Caribbean: Challenge Meets Opportunity</a>

<a href="http://cfi-blog.org/2015/08/31/four-interventions-to-help-victims-of-trauma-find-hope-and-dignity/">Four Interventions to Help Victims of Trauma Find Hope and Dignity</a>

How to Be Disability Inclusive and Age Friendly

Elissa  McCarter Laborde

Misha Dave

Josh Goldstein

Sonja Kelly

Susy Cheston

Eric Zuehlke

Apis Partners

Iraq

Bangladesh

Ecuador

Peru

China

Colombia

Dominican Republic

Europe and Central Asia

Ghana

Guatemala

India

Mexico

Nigeria

Paraguay

Tanzania

United States

Zambia

Haiti

Kenya

Rwanda

Pakistan

Uganda

Persons With Disabilities

Access Usage Gap

Enabling Environment

Trends

Underserved Groups

Banks

Consumer Protection

Smart Certification

Financial Inclusion Strategy

Microfinance Institutions

Agent Banking

Aging and Older Adults

Credit

Financial Capability

Fintechs

Housing Finance

Impact Investing

Microfinance

Payments

Risk Management

Saving

Social Performance

Women

Youth

Customer Centricity

Alternative Data

MSME/SME Finance

Agricultural and Rural Finance

Remittances

Transparency

Digital Financial Services

Mobile Banking

Blog Post

Case Study

China’s economy has experienced tremendous growth in recent years, with a booming micro, small, and medium enterprise (MSME) market. There are over 50 million MSMEs in China that collectively account for over 60% of China’s GDP and over 50% of the government’s tax income. These businesses create 80% of total employment in China’s urban areas.

Despite China’s overall economic growth, the need to foster full financial inclusion is still imperative. In 2010, 38 million MSMEs lacked access to formal financial services, forcing them to borrow informally from friends, family, and moneylenders.

India is a global leader in financial inclusion. For over a decade, Accion has worked with and learned from India’s innovators, investors, and policymakers to expand economic opportunity for its people and businesses.

Most of Mexico’s people lack access to a formal bank account. Accion has worked in Mexico for decades to create a thriving and competitive financial sector that embraces innovation and protects its clients.

Though Nigeria’s government has set ambitious goals for financial inclusion, the majority of its people lack a formal bank account. Accion has worked in the country since 2007 to expand access to financial services.

The majority of Kenyans have mobile money accounts; their activity demonstrates digital financial services’ potential. Accion helps Kenyan innovators harness emerging technologies to create new financial services.

<img class="alignright wp-image-19214" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/08/mg_4216.jpg" alt="" width="350" height="254" />“Over a sixth of the world’s population has directly experienced armed conflict, torture, terrorism, sexual and gender-based violence, ethnic cleansing or genocide,” states the website of the Peter C. Alderman Foundation (PCAF). I recently attended the <a href="http://www.pcafnairobi2015.or.ke/">8th Annual PCAF Pan-African Psychotrauma Conference</a> in Nairobi, a multidisciplinary event that focuses on psychological trauma in Africa’s war-affected societies. PCAF operates mental health clinics in Cambodia, Kenya, Liberia, and Uganda and conducts trainings for mental health professionals. At the conference, I was surrounded by global leaders from health care, academia, and a litany of organizations working in the mental health space.

At first blush, my participation at such an event might seem odd as my work focuses on disability inclusion for microfinance. But, I’d argue that’s more of a reflection of how society, and our industry, views mental disabilities – with reductive biases – rather than how they fit within microfinance.

I had the privilege of presenting a keynote to the attendees. I discussed whether it’s possible for trauma patients who have gone through a successful course of treatment that includes counseling, medication, and livelihood trainings to become clients of microfinance institutions (MFIs) and build small-sized enterprises. Immediately below is an abridged version of my speech, with the complete text linked at the end.

Can MFIs help victims of trauma find hope and dignity through self-employment?

As a post-traumatic stress disorder (PTSD) survivor myself from the U.S., who received treatment, I believe with all my heart that in a just society poor people with mental health challenges should get the help they need so they can flourish as human beings. Unfortunately, in the international development world I come from, this great cause is barely on the radar—in spite of the fact that reaching the most destitute is at the urgent core of all international development work. Indeed, I share your outrage at the paucity of funding and support for community mental health from governments and foundations.

But, why self-employment for those with mental health issues like PTSD? Why not go find a job and work for a business that provides a regular paycheck? Isn’t that easier and more secure? Of course it is. Most clients of MFIs are what we call “necessity entrepreneurs” and would rather have such jobs than start their own businesses. But, the sobering reality of limited formal sector employment opportunities across Africa makes finding such jobs for persons with physical disabilities, let alone psychosocial disabilities, even more challenging than it would be otherwise. Even in my country, the United States, unemployment of persons with disabilities in the formal workplace remains unconscionably high.

But are such financial products like credit or savings a good idea for someone with PTSD? For example, would the effort to save or borrow money bring greater stress? There is no easy answer based on my cursory review of the very limited research studies to date – the results are ambiguous and prove nothing conclusive one way or the other. What we do know, thanks to PCAF Uganda Program Director Dorothy Kizza, is that relapsing back into mental illness is often caused by a lack of employment. So, on balance, the stress of not working may be equally or more stressful than paying back a working capital loan which at least holds the promise of a more hopeful future. My own hunch is that the answer will only be decided on a case-by-case basis and so no generalization is really possible.

What seems beyond doubt, as Crick Lund, a professor at the University of South Africa and CEO of PRIME, a consortium of research institutions and ministries of health, has <a href="http://www.healthnettpo.org/files/725/prime-policy-brief-mental-health-and-poverty.pdf">written</a>, “is [the] growing international evidence that mental ill health and poverty interact in a negative cycle. This cycle increases the risk of mental illness among people who live in poverty and increases the likelihood that those living with mental illness will drift into or remain in poverty.” A <a href="http://www3.weforum.org/docs/WEF_Harvard_HE_GlobalEconomicBurdenNonCommunicableDiseases_2011.pdf">big picture study</a> from the Harvard School of Public Health and the World Economic Forum estimates that the cumulative global impact of mental disorders in terms of lost economic output will amount to US$16.3 trillion between 2011 and 2030.

I am happy to say that the Center for Financial Inclusion (CFI) and its allied partners working on disability inclusion have begun to demonstrate significant success in including persons with physical disabilities in microfinance in Bangladesh, Ecuador, India, Nigeria, Paraguay, and Uganda, and I hope we can expand this initiative to include persons with mental health issues.

However, achieving the progress needed to financially include people with physical disabilities is not the same as that of including people with mental health issues. Persons with psychosocial disabilities in Africa and in many other places in the world are, in the words of Nigerian healthcare advocate Ifesinanchi Sam-Emurwa, “doubly stigmatized” for having a disability and for that disability being a mental one.

And, to paraphrase remarks by Columbia University psychiatrist Dr. Evaristo Akerele, who spoke this past June at the only mental health session on psychosocial disabilities at the <a href="http://www.un.org/disabilities/default.asp?id=1625">U.N. Conference of State Parties annual disability conference</a>: The person with mental health issues is blamed for bringing what psychiatrists call depression, or anxiety, on themselves. Beliefs such as that God is upset with them, that drug use is to blame, that witchcraft is at work, are all common. In most places, the term “depression” is not culturally acceptable or even understood; there is not an accepted and shared nomenclature for describing mental suffering.

An interesting example of how this “double stigma” plays out also comes from Nigeria, in the financial services arena. The Central Bank of Nigeria recently earmarked US$20 million to financial service providers to make loans to persons with disabilities—a great step forward. But, it explicitly excluded persons with mental health disabilities as recipients of these loans.

So, what can be done to improve the situation? I want to suggest five of the biggest challenges we face and interventions that I believe we can undertake together to answer these challenges and improve the livelihood possibilities of persons with psychosocial disabilities. I hope this will form the beginning of an action plan.

Challenge 1: How can the staff of an MFI with no training in psychology even begin to identify clients with mental health issues if there are no common, agreed on terms of reference for describing distressed states of mind? How do we sensitize staff to work with this client segment?

It is relatively easy to determine a baseline of the numbers of persons with physical disabilities who are clients, by asking medically non-invasive questions (or just through observation) about their state of wellness. Unless a person with mental health issues self-discloses, it is impossible to know if they are suffering from a depressive, anxiety, or other disorder.

Intervention: Volunteers from the mental disability space, like attendees of these annual PCAF Conferences, can help financial service providers design survey questions that allow MFI staff to get a better count of current clients with mental health issues. These volunteers along with PTSD survivors themselves can help sensitize MFI staff on how to best reach out to persons with mental health disabilities. They can connect MFIs with community mental health leaders and, in particular, patient advocates. These learnings can then be incorporated into the <a href="http://www.centerforfinancialinclusion.org/programs-a-projects/pwd/framework-for-persons-with-disabilities">Framework for Disability Inclusion</a> so that a set of best practices can be developed and shared with MFIs from around the world.

Challenge 2: Access and support for basic capital and business training for persons with psychosocial disabilities is largely lacking.

Intervention: Connect PCAF graduates, and those of other mental health clinics that include business training, to microfinance providers, credit unions, self-help savings groups, and other providers offering group-based financial services as well as enterprise-building support to professionalize the business training and operations of the clinic patients. The natural intermediary to make first contact with the MFI or other provider might be the PCAF social worker, during their weekly or monthly follow-up outreach to former PCAF patients in their villages, homes, and workplaces.

Just as CFI identified two or three institutions in India that were eager to do a pilot to include persons with disabilities in their programs, we can work to identify two or three MFIs in the PCAF countries of Cambodia, Kenya, Liberia, and Uganda who want to be leaders in including persons with psychosocial disabilities in credit and/or savings groups. Success is promising here since a portion of PCAF livelihood trainings are done in groups, suggesting that the transition to group lending methodologies could prove to be quite natural and comfortable.

Challenge 3: The United Nations (U.N.) does not do enough to recognize the importance of mental health disabilities -- when it comes to collecting good statistics, when it comes to prioritizing it as a Sustainable Development Goal to reduce extreme poverty, when it comes to seeing therapeutic intervention as a significant part of the Constitution on the Rights of Persons with Disabilities treaty.

Intervention: Those working in this field and other interested parties should lobby the Washington Group on Disability Statistics (the U.N. body charged with disability statistics) to include a specific question on mental health in its so-called “short set” of questions that it provides to governments that do censuses and disability surveys. Similarly, while they’re still being shaped, pressure should be applied to modify the Sustainable Development Goals to include much stronger language on mental health.

Finally, there must be concerted lobbying by PCAF, and others, to ensure that in implementing the articles of the U.N. Convention on the Rights of Persons with Disabilities, the right to receive treatment for mental health ills gets equal billing with assuring the right to vote and enjoying equal protection before the law. If this does not happen, it will be much harder for mental health practitioners to obtain funding from governments and foundations to expand their community mental health programs--something critically important in countries like Burundi that have only one psychiatrist in the whole country!

Challenge 4: To create a new set of global standards and indicators for microfinance institutions and other financial service providers to follow that will establish the importance of and offer guidance on serving PTSD survivors and other persons with psychosocial disabilities.

Intervention: The CFI will work collaboratively to push the microfinance industry-wide standard-setters to add mental health indicators. With the help of key industry standard-setting groups, I believe that we can help to break down the attitudinal barriers that keep persons with psychosocial disabilities in extreme poverty unbanked and stigmatized. For example, I am delighted to announce that the <a href="http://www.fundacionparaguaya.org.py/?page_id=490">Poverty Stoplight</a> has offered to take the lead in creating a mental health indicator for its assessment tool. The Poverty Stoplight set of indicators, pioneered by Fundación Paraguaya and now used around the world, sees poverty as multidimensional and have developed a tool that allows the poor to measure their own poverty, broken down into different categories. Adding a mental health indicator could be a source of data that could be used not only by MFIs but by local community mental health leaders and other public health providers.

Freedom from Hunger in conjunction with the Microcredit Summit Campaign has just published a new guide called “Healthy, Wealthy, and Wise: How Microfinance Can Track the Health of Clients,” in which they share experiences in selecting and pilot-testing health indicators among four MFIs. The researchers asked questions around six health indicators: food security and nutrition, preventive health care, poverty, curative health care, sanitation and safe water, and attitudes. The results demonstrated the added value of health indicators when combined with poverty measurement in helping MFIs understand client well-being. Their “theory of change” is that with greater financial resources, the clients will be able to meet their essential needs as outlined above—like having clean water or improved nutrition. I have consulted with the guide’s author, Bobbi Gray, and she is very willing to work with us to see if we can help her develop a seventh indicator around mental health--which is great news.

My conclusion is that self-employment can offer dignity and hope to persons recovering from mental illness. And, that like persons with physical disabilities, many can make excellent clients. I think it is worth exploring how we can do more to connect PTSD survivors with MFIs and other financial service providers to open their doors to PCAF clients and those of other clinics. At the very least, this initiative will help fight stigma and bring down attitudinal barriers. Let us see what works and what sticks. It is certainly worth a try.

The full text version of Joshua's speech can be found, <a href="https://centerforfinancialinclusionblog.files.wordpress.com/2015/08/pcaf-plenary-7-14-2015-by-joshua-goldstein.pdf">here</a>. 

This post was concurrently published on the Microcredit Summit Campaign's <a href="http://100millionideas.org/">100 Million Ideas blog</a>. The CFI has made a <a href="http://www.microcreditsummit.org/featured-commitments.html#CFI2014">Campaign Commitment</a> to bring greater attention to the issue of aging and financial services and further support the inclusion of those with disabilities.

Have you read?

<a href="http://cfi-blog.org/2015/03/23/disability-inclusion-in-ecuador-and-around-the-world-an-interview-with-larry-reed/">Disability Inclusion, in Ecuador and Around the World: An Interview with Larry Reed</a>

<a href="http://cfi-blog.org/2014/09/04/13000-pwd-and-counting-receive-financial-access-in-india/" target="_blank" rel="noopener">13,000 Persons with Disabilities (and Counting) Receive Financial Access in India</a>

<a href="http://cfi-blog.org/2014/01/13/a-how-to-guide-to-realizing-disability-inclusion-at-mfis-is-now-available/">A How-To Guide to Realizing Disability Inclusion at MFIs Is Now Available</a>

Four Interventions to Help Victims of Trauma Find Hope and Dignity

&gt; Posted by Alvina Zafar, Deputy Manager, Financial Education and Client Protection, BRAC Microfinance

<a href="http://cfi-blog.org/category/financial-inclusion-2020/"><img class="alignright wp-image-8901" style="border: 0 solid #000000" src="https://centerforfinancialinclusionblog.files.wordpress.com/2012/12/blogseries.jpg" alt="Financial Inclusion 2020 Blog Series banner image" width="326" height="72" /></a>Financial Inclusion 2020 (<a href="http://www.centerforfinancialinclusion.org/fi2020" target="_blank" rel="noopener">FI2020</a>) is a global multi-stakeholder movement to achieve full financial inclusion, using the year 2020 as a focal point for action. This blog series will spotlight financial inclusion efforts around the globe and share insights from key thought leaders in financial inclusion, with a specific focus on quality beyond access.

“I am not sure if I can repay more loans, and I don’t want to be overburdened by debt.” That was how Noyon, a small grocery shop owner with a physical disability, replied when <a href="http://www.brac.net/">BRAC</a> asked whether he would like to take a loan to expand his business. This is a common response we hear from clients with disabilities when they’re offered credit products. Many prefer to avoid taking loans unless absolutely necessary. They guard their reputations closely against a society that sees persons with disabilities as less capable, and defaulting on a loan is not a risk they are willing to take. This insight raises an important question with regard to the financial inclusion of persons with disabilities: Is access the biggest barrier?

In 2015, BRAC scaled up its Engaging People with Disabilities project with <a href="http://www.add.org.uk/bangladesh">ADD International</a>, an organization that focuses on campaigning for equal rights and ensuring social justice for people with disabilities. The objective of this partnership is to leverage the access and coverage that ADD International has with people with disabilities in Bangladesh and provide financial services (e.g. savings, loans, insurance, etc.) to interested beneficiaries. As of May of this year, the project has a client base of over 7,000 people with disabilities, with an average loan size of US$ 282 and a repayment rate of 100 percent. Clients are saving on a regular basis, with an average saving account balance of US$ 50. The majority of the clients are entrepreneurs—they own and operate grocery shops, tea stalls, small vending businesses, and the like. One objective of BRAC’s is to empower all clients by building their financial capabilities. A by-product we see in many of our clients from this pursuit is, on top of enhancing their knowledge about financial management, it raises their confidence and self-respect. Since the early days of BRAC's disability inclusion work, we've been grateful to receive technical, advocacy, and other support from CFI.

[caption id="attachment_18846" align="alignright" width="325"]<img class="wp-image-18846" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/07/pic-of-noyon_1.jpg?w=490" alt="" width="325" height="244" /> Noyon and his grocery shop[/caption]

<a href="http://cfi-blog.org/2014/08/07/financial-inclusion-of-disabled-people-in-bangladesh-the-broken-promises-of-mfis/">Commentary</a> on the lack of financial services available to people with disabilities often cites financial services providers’ reluctance to have them as clients. Furkan, a client with a disability and owner of a small tea stall, expressed his thoughts about BRAC’s initiative:

“It’s a good start since it provides access to financial services with the backing of a well-known organization! I think it is a step towards getting positive attention from society not as a disabled person but rather as a potential client. However organisations need to understand the needs of disabled people because not everyone wants to be an entrepreneur…those who want to support us need to provide options, opportunities, and skills training so that we can choose according to our needs.”

These are real concerns from an organizational or service delivery perspective and need to be addressed to enable more people to benefit from access to financial services. For example, BRAC is hoping to prioritize people with disabilities in its new skills training initiative.

While progress has been made in Bangladesh in terms of extending access, full financial inclusion of people with disabilities requires skills training and financial literacy that enhance their ability to understand financial products and use them most productively. Currently, both financial service providers and persons with disabilities are losing out. BRAC’s preliminary experience demonstrates that financial inclusion for people with disabilities is in reach. There is no reason why this group shouldn’t become a fully integrated and highly-productive part of providers’ clientele.

For more on developing services to best fit client needs, the <a href="http://microfinance.brac.net/research-and-development">research and development</a> unit of the BRAC Microfinance program has developed similar projects to address clients’ needs like credit shield insurance, medical treatment loan, and many more.

Alvina Zafar is a Deputy Manager at Financial Education and Client Protection unit of BRAC’s Microfinance programme in Dhaka, Bangladesh.

Have you read?

<a href="http://cfi-blog.org/2015/03/23/disability-inclusion-in-ecuador-and-around-the-world-an-interview-with-larry-reed/">Disability Inclusion, in Ecuador and Around the World: A Conversation with Larry Reed</a>

<a href="http://cfi-blog.org/2014/09/04/13000-pwd-and-counting-receive-financial-access-in-india/" target="_blank" rel="noopener">13,000 Persons with Disabilities (and Counting) Receive Financial Access in India</a>

<a href="http://cfi-blog.org/2013/10/22/combatting-exclusion-for-persons-with-disabilities-in-india-and-mexico/" target="_blank" rel="noopener">Combatting Exclusion for Persons with Disabilities in India and Mexico</a>

Financial Inclusion of People with Disabilities - Is Access the Biggest Barrier?

&gt; Posted by Tyler Aveni, Positive Planet China

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In an industry that is constantly evolving due to new technology and abundant knowledge-sharing opportunities, practitioners of socially-driven microfinance and inclusive financial services are also helping to drive new innovation. Accompanying research critically assists this process, especially in evaluating the impact of these new methods and initiatives. This presents a problem for countries like China where a dearth of credible (or existing) data resources makes a critical review of practices far harder to manage. As such, researchers interested in the world’s second-largest economy often must settle with statistics that may suffice but rarely meet higher standards found elsewhere.

The work of Li Gan, a Texas A&amp;M professor who also heads the Survey and Research Center for Household Finance at Southwestern University of Finance &amp; Economics (SWUFE) in Chengdu, China, is helping to address the problem. Professor Li has spent much of the last four years spearheading an effort to gather more data on the financial condition of Chinese households and businesses. Through generous funding by SWUFE and support from the PBOC, China’s central bank, Professor Li has set into motion two key multi-year surveys: The China Household Finance Survey (CHFS) and the “ChinaPnR-SWUFE SME Index” which looks at small enterprises.

Prior to the household survey, the main source of data available on household finance in China came from the National Bureau of Statistics (NBS), a government-sponsored research department. These reported statistics, while comprehensive, are sometimes met with a certain degree of skepticism. Researchers question the integrity of the data collection methods, and some analysts raise concerns about number-tinkering. Any alternative, private surveys were collected on a much smaller scale.

The CHFS is filling the void. Results of the CHFS first began being published in 2012 and are now becoming an increasingly rich and pliable resource for research as additional years of data capture shifts in China’s social and financial landscape. The CHFS started with more than 8,000 households from across mainland China (Tibet and Xinjiang AR excluded) and has been gradually expanded every year. In 2013, some 1,600 SWUFE students were hired and trained to conduct surveys, with the number expected to grow to more than 2,500 for the 2015 survey. Nearly 28,000 households (or 100,000 individuals) are expected to be included in this year’s survey.

Out of approximately 3,000 counties in China, 260 are randomly selected. This selection is then controlled to insure that the sample is both nationally and provincially representative of the population. Within each of these 260 counties, 4 neighborhoods (consisting of villages and communities) are randomly selected. Among the households in the 1,000-plus neighborhoods, between 20 and 50 are randomly selected to be interviewed. The ChinaPnR-SWUFE SME Index works on a very similar system wherein counties and neighborhoods are randomly selected; neighborhood businesses are recorded and then some are randomly selected to participate in the survey.

According to Li Gan, households could be very reluctant to participate but to avoid bias, persistence (i.e. many returned trips) with the support of the local governments and neighborhood committees, has given the CHFS the tools necessary to collect accurate mass-market results. High participation levels (only 11 percent refused to participate in the survey after repeated visits) attest to this earnestness.

Li Gan’s data have shown that wealth is far more concentrated at the top of the socioeconomic pyramid than the NBS figures suggest. It also illustrates that the big picture savings figures are skewed since most of the total dollar amount comes from high income savers.

Interestingly, the survey may also hint at changes in the role of China’s small businesses, since micro-businesses and household finances are often intertwined. In fact, this subset of interest inspired Li Gan and his team of researchers to create the new micro, small, and medium-sized enterprise (MSME) index  in collaboration with a Chinese technology payment services company, ChinaPnR Limited. Used to capture information about China’s roughly 60 million small unlisted companies, data from the ChinaPnR-SWUFE SME Index has now been collected for more than a year. Government and research bodies have strongly encouraged the program, because, as Li Gan points out, any existing lists on these organizations that are currently available are completely outdated. Mass movements of migrant workers to cities and changing economic conditions have relentlessly re-shaped businesses. New shops crop up daily, and turnover is high.

Li Gan sees both the household and microenterprise survey as crucial for microfinance both directly and indirectly. In his view, policies related to microenterprises or small enterprises could even be affected by the survey results. The data keeps relevant information updated by addressing many important questions like: What is the current demand for loans? How much debt can micro and small businesses afford? What financing channels are currently available? Why do micro-entrepreneurs start their businesses? Do they use internet? How knowledgeable are they with internet technology and other innovation?

Answers to these questions may hold implications for what microfinance institutions offer clients and how they deliver services. In addition to researchers digging into past changes and effects, practitioners and organizations may find that the data hold new insights. In recent years there has been a move to holistically evaluate client needs and rethink product and services design to become more appealing for new and existing clients, which in turn, also benefits the institution. This approach, coined “human center design” (HCD) stands to benefit from data, such as the CHFS and SME indexes, which may serve as a broad platform to improve practices and their core offerings.

As of a July 1 update on the CHFS research center’s website (which oversees both surveys), results of the MSME index were officially <a href="http://www.chfsdata.org/detail-26,28-109.html">released</a> last month on June 26. Updates and new results will be published quarterly, with plans made for at least an additional 5-10 years of data collection for both the MSME and household finance indices. As is the case with the CHFS, this data is planned to be made freely available as a public asset for the research community.

Have you read?

<a href="http://cfi-blog.org/2014/01/07/ratings-to-loosen-the-regulatory-noose-on-chinas-microcredit-companies/" target="_blank" rel="noopener">Ratings to Loosen the Regulatory Noose on China’s Microcredit Companies</a>

<a href="http://cfi-blog.org/2015/01/06/the-role-of-microfinance-ratings-in-the-sustainable-development-of-chinas-financial-inclusion-sector/">The Role of Microfinance Ratings in the Sustainable Development of China's Financial Inclusion Sector</a>

<a href="http://cfi-blog.org/2014/10/27/gender-dynamics-in-rural-china-illuminate-the-need-for-financial-education/" target="_blank" rel="noopener">Gender Dynamics in Rural China Illuminate the Need for Financial Education</a>

&nbsp;

New Surveys Fill Data Void in China’s Microfinance Industry

&gt; Posted by Center Staff

<a href="http://newsfeed.financialinclusion2020.org/"><img class="aligncenter wp-image-18655" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/07/fi2020-issue-five.png" alt="fi2020 issue five" width="614" height="329" /></a>

Good afternoon! Freshly published is this week’s Financial Inclusion 2020 News Feed, sharing the big news in banking the unbanked. Among its stories are a new partnership between MetLife Foundation and Opportunity International to expand financing and skills training in rural China, the launch of a World Food Programme initiative that integrates climate risk reduction with financial services, and the release of the first annual Consumer Banking PACE Index, which gauges bank performance to consumer expectations. Here are a few more details:
<ul>
 	<li>MetLife Foundation and Opportunity International have embarked on a three-year partnership to support thousands of small businesses in rural China with financial services and business development training via banks, mobile vans, and rural service centers.</li>
 	<li>The World Food Programme launched the R4 Rural Resilience Initiative, which helps smallholder famers in Zambia navigate environmental demands using index-based agricultural insurance, improved natural resource management, credit, savings, and productive safety nets.</li>
 	<li>The new Consumer Banking PACE Index, drawing on input from over 9,000 consumers, examines bank performance in a handful of countries around the world to conclude that, among other findings, fair and transparent pricing falls below consumer expectations, and trust in banks remains an issue.</li>
</ul>
For more information on these and other stories, read the fifth issue of the FI2020 News Feed <a href="http://newsfeed.financialinclusion2020.org/">here</a>, and make sure to subscribe to the weekly online magazine by entering your email address in the right-hand menu so you can be notified when the latest issue comes out.

Have you come across a story or initiative you think we should cover? Email your ideas to us at <a href="mailto:ezuehlke@accion.org">ezuehlke@accion.org</a>.

&nbsp;

Rural Finance in China, Climate Risk Reduction, Meeting Consumer Expectations – the Latest FI2020 News Feed

&gt; Posted by Center Staff

<a href="http://newsfeed.financialinclusion2020.org/"><img class="aligncenter wp-image-18544" style="border: 1px solid #000000;margin-bottom: 3px" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/06/fi2020-news-feed-three.png" alt="" width="614" height="326" /></a>

Hot off the press! We published the third issue of the Financial Inclusion 2020 News Feed, our new weekly online magazine on the big news in financial inclusion. What’s been happening in the world of banking the unbanked?

Among its stories, the new issue of the FI2020 News Feed spotlights the following:
<ul>
 	<li>The State Bank of Pakistan ordered all commercial banks in the country to create a new account category, Asaan Account, which targets the base of the pyramid by simplifying account opening requirements</li>
 	<li>Mybank, a new online bank in China, was launched by Ant Financial, utilizing transaction records on Alibaba to extend credit to individuals and small businesses</li>
 	<li>In Tanzania, agent and mobile phone-based banking continues to grow steadily in both the volume and value of transactions</li>
</ul>
For more details on these and other stories, read the third issue <a href="http://newsfeed.financialinclusion2020.org/">here</a>, and make sure to subscribe by entering your email address in the right-hand menu so you can be notified when the latest issue comes out.

Have you come across a story or initiative you think we should cover? Email your ideas to us at <a href="mailto:ezuehlke@accion.org">ezuehlke@accion.org</a>.

&nbsp;

Pakistan’s New Asaan Account, the Alibaba-Enabled Mybank, Mobile Progress in Tanzania – the Third Issue of the FI2020 News Feed

&gt; Posted by Center Staff

[getty src="548562315?et=NPh9qrbAQeJ1tJ0-Cb0Bpw&amp;viewMoreLink=off&amp;sig=RtB6vX-iLJHDJNaJjon4hPcIdiPIMx5S2Uee6_sJ2Ig=" width="508" height="339"]

Can you confidently speak to the financial inclusion of persons with disabilities (PwDs)? How about the proportion of PwDs that live below the poverty line? …The prevalence of disabilities?

The financial and economic hardships of PwDs don’t get much mainstream attention. You, if you’re like most, don’t know that in the United States, for example, about one-fifth of the population (roughly 60 million) has a disability, PwDs are twice as likely to use informal financial services like payday lenders and check cashers, the unemployment rate for PwDs is more than double the national average, and about one-third of adult PwDs live in poverty. These statistics are severe. Not to mention, current demographic shifts will result in larger older adult populations and position the incidence of disability, and the magnitude of these unmet inclusion needs, to grow.

Last week the Consumer Financial Protection Bureau (CFPB), a mainstream U.S. financial player, announced an initiative that will work in concert with financial empowerment and disability organizations to tackle these pressing issues.

The initiative, <a href="http://www.consumerfinance.gov/blog/working-to-improve-the-financial-lives-of-people-with-disabilities/">ROADS to Financial Independence</a>, targets PwDs who are working or transitioning into the workforce and is built around in-person financial counseling that is integrated within other disability support services – for example, independent living and employment assistance. Harnessing the outreach and high-touch in-person interfacing of its partner disability organizations, ROADS enables individuals to work towards their greater financial stability, with experts, and in accessible and trusted venues.

With steep challenges to accessing formal financial services and employment, money management for persons with disabilities can be an uphill battle. In the United States, for example, four out of five PwDs don’t have an emergency fund they can turn to during times of crisis. ROADS, following an initial assessment of each participant’s financial standing, engages participants to work with their counselor to set goals and devise plans to reach them, and provides guidance on things like setting a budget, opening a bank account, improving credit, and increasing savings. Participants will also have access to tools and trainings to further support financial capability building.

ROADS is piloting in six communities across the United States. Nineteen partner organizations are involved, including United Way Central Alabama, Capital Area Asset Builders of Washington, D.C., Goodwill Industries of Central Texas, and the Ithaca Housing Authority of central New York State.

Throughout the initiative, participants’ financial statuses and behaviors will be tracked to better discern which interventions are working, and which aren’t. ROADS will share lessons learned to support disability inclusion and economic empowerment broadly. For greater disability inclusion in the United States, and globally, we’ll look forward to these insights!

Have you read?

<a href="http://cfi-blog.org/2014/03/21/cfpb-gives-voice-to-clients/" target="_blank" rel="noopener">CFPB Gives Voice to Clients</a>

<a href="http://cfi-blog.org/2014/01/23/barriers-persist/" target="_blank" rel="noopener">Barriers Persist in Financial Inclusion for PwDs</a>

<a href="http://cfi-blog.org/2015/01/15/americans-dont-shop-for-mortgages/" target="_blank" rel="noopener">Americans Don't Shop for Mortgages</a>

Roads to Financial Independence for Persons with Disabilities in the U.S.

&gt; Posted by Debashis Sarker, Centre for European Research in Microfinance (CERMi) and University of Mons, Belgium

[getty src="473876642?et=iat8NTfPTmZNzohuUhcoeA&amp;viewMoreLink=off&amp;sig=v-cawvrogc3JlCwEpB_yfdCRQvOBPa1k52htRcvruVs=" width="594" height="426"]

With estimates indicating that less than 1 percent of microfinance clients around the world are persons with disabilities (PwDs), it’s clear that sizable barriers exist to the financial inclusion of this largely unbanked population segment. One such barrier is discrimination on the part of microfinance institutions. Two features of microfinance lending make it especially hard to reach definitive statistical estimates of discrimination. One is the complex stages of the microfinance lending process. The second is the self-reinforcing cycle of exclusion that results from the legacies of discriminating microcredit organizations.

A <a href="http://dsq-sds.org/article/view/168/168">pilot project conducted in Uganda</a> in partnership with the Association of Microfinance Institutions in Uganda (AMFIU) and the National Union of Disabled Persons of Uganda (NUDIPU) demonstrates the discrimination that often occurs in microfinance practices. The project worked with AMFIU microfinance institutions, applying interventions to combat practices discriminatory to PwDs. Along with addressing PwD exclusion by microfinance staff, the initiatives targeted exclusion by other microfinance clients, low self-esteem, product design, and informational and physical barriers. In two years, since the sensitization and accessibility efforts began, attitudes of MFI staff towards PwDs improved and, across eight queried MFI branches, there was an average 96 percent per MFI increase in clients with disabilities. <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0CCMQFjAA&amp;url=https%3A%2F%2Fwww.aeaweb.org%2Faea%2F2011conference%2Fprogram%2Fretrieve.php%3Fpdfid%3D137&amp;ei=q4dkVZubH4jggwTx_IGADA&amp;usg=AFQjCNGWbCn4qql9zkV9a0wjKf2DxRpSnA&amp;sig2=XQUoS2bKn1u2i0IYdkMY2g&amp;bvm=bv.93990622,d.eXY" target="_blank" rel="noopener">Another study</a>, also based in Uganda with AMFIU and NUDIPU, examined biases against PwDs across different MFI staff. Surveying eight MFIs between 2008 and 2009, staff were asked questions on aspects including risk of loan default among PwD clients. The responses of credit officers indicated they were more biased against PwDs than other MFI staff.

Given these findings, what measures can be taken to combat this?

First, let’s take a closer look at discrimination within the stages of the lending process, noting that discrimination in one stage has the power to influence the characteristics and resources of potential borrowers at a subsequent stage. For instance, if microfinance institutions systematically divert disabled people to apply for government lending facilities, while non-disabled people are encouraged to apply for conventional loans, then records and analysis of loan approvals become complicated and ineffectual.

Here’s an overview of the stages in the lending process in terms of discrimination of persons with disabilities:

Accessing Offices and Staff: Microcredit organizations usually do not lend to disabled people, and loan officers might even try to avoid them due to perceived risk of interfacing with them. MFIs use an array of communications tools for outreach to non-disabled customers, but these might not be effective in reaching persons with disabilities. Disabled people often face challenges in accessing and navigating the microcredit provider’s office premises. It’s very rare that special facilities are provided to ensure PwD clients’ access.

Credit Inquiries and Evaluation: Along with potentially receiving less attention from the office personnel in querying on the terms and conditions of a loan, PwDs may be assessed for different kinds of loans, or receive dissimilar encouragement and assistance on how to deal with the application process and approval. PwDs might receive biased consideration of their creditworthiness. If the lender approves a loan, the amount might be less than what was demanded or the loan product not up to the borrower’s expectation. Research shows that disabled people get lower loan amounts even if there is no income difference.

Loan Administration and Renewal: It is possible, though not proven, that disabled people might be especially vulnerable to unnecessarily harsh penalties for missing one or more installments, or they might receive lower loan amounts or be unable to renew their loans even after repaying well.

Capacity Building: Disabled clients might not have access to MFIs’ capacity building initiatives for enterprise building or other kinds of competency development training. Along with challenges in MFI willingness to train PwDs, disabled people have limited capacity to travel to capacity building training sites.

Complaint Management: As complaint management is a shortcoming of many microfinance institutions, this is an area of concern.

Based on our analysis at the Centre for European Research in Microfinance we offer a handful of recommendations for PwD-inclusive policy development in the microcredit market. Studies show that race-based discrimination in loan approval rates decreases as the number of employees that are racial minorities goes up in a lender’s overall workforce or its management staff. Similarly, research finds that when one has a disabled relative, the chance of discrimination decreases, suggesting that discrimination is not static. Accordingly, microcredit institutions could institute policies on employing disabled people (as well as minorities) in their workforces.

To promote accessibility, repayment installments could be collected in locations where disabled people have easy access. Perhaps this function could be completed by competent disabled staff.

Institutions should institute anti-discrimination internal policies. Loan officers and other staff involved in the lending process should be trained on the possibilities of discrimination and on such organizational policies.

Minor changes in terms of collateral or flexible repayment rates given transportation challenges could be necessary for some PwD client cases. Cross cutting loan review could be useful to ensure there isn’t discrimination by the direct reviewer. Tandem to this, when there is an effective flow of information from finance providers to industry stakeholders about credit assessment criteria, explanations for rejecting loan applications would help to address misconceptions about discrimination.

Building profitable marketing relationships using accessible communication channels would help lenders and clients achieve win-win benefits. Micro-lenders need to invest more in developing relationships with disabled borrowers.

Interest rate caps set by the regulators and effective monitoring can reduce the chance of discrimination in the form of high interest rates. Regulators can also make it mandatory for MFIs to include disabled people as a specified portion of their mainstream programs – both as staff and clients.

Have you read?

<a href="http://cfi-blog.org/2014/01/13/a-how-to-guide-to-realizing-disability-inclusion-at-mfis-is-now-available/" target="_blank" rel="noopener">A How-To Guide to Realizing Disability Inclusion at MFIs Is Now Available</a>

<a href="http://cfi-blog.org/2014/09/04/13000-pwd-and-counting-receive-financial-access-in-india/" target="_blank" rel="noopener">13,000 Persons with Disabilities (and Counting) Receive Financial Access in India</a>

<a href="http://cfi-blog.org/2014/05/28/attitudes-toward-persons-with-disabilities-in-indian-microfinance-institutions/" target="_blank" rel="noopener">Attitudes toward Persons with Disabilities in Indian Microfinance Institutions</a>

Combating the Discrimination of Disabled People in Microfinance Lending

&gt; Posted by Nelly Agyemang-Gyamfi, Program Coordinator, CFI

<img class="aligncenter wp-image-18030" style="border: 0 solid #000000" src="https://centerforfinancialinclusionblog.files.wordpress.com/2015/04/hbs_yes.png" alt="" width="620" height="374" />On the 6th of April, 68 financial inclusion stakeholders from 23 countries across the globe arrived in (a thankfully snowless) Boston to commence the 10th annual <a href="http://www.centerforfinancialinclusion.org/collaborators-a-sponsors/harvard-business-school-accion">HBS-Accion Program on Strategic Leadership in Inclusive Finance</a>. Over the past decade, the deeply immersive, week-long program has trained over 660 high-level executives from more than 250 organizations spanning 90 countries. As in past years, this year’s program was held on the beautiful campus of the Harvard Business School and led by world-renowned HBS professors Michael Chu and V. Kasturi Rangan. As a Center for Financial Inclusion staff member who helped organize the course, I was privileged to take part, and I offer these reflections on what I saw and learned.

Participants were exposed to a wide range of issues pertinent to inclusive finance, from managing political uncertainty to impact investing and measurement. This year, reflecting the changing landscape of inclusive finance, the course included seven new sessions including cases on China’s <a href="http://english.creditease.cn/">CreditEase</a>, Massachusetts’ <a href="http://payforsuccess.org/">Pay-for-Success</a>, and Peru’s <a href="http://www.edyficar.com.pe/">Edyficar</a>.

To be an observer of all the happenings was exhilarating. Discussions were extremely lively with points and counterpoints that reflected the unique perspectives of the various industries represented – microfinance providers, technology companies, regulators, investors, and so forth. For me, one of the best parts was when lessons learned from cases that seemed far from financial inclusion were applied in tangible terms to the industry.

From my humble point of view, four of the main takeaways from the week were:
<ol>
 	<li>Make sure you are addressing your customers’ pain points. Do not just offer them products YOU think they need. In the session on mobile banking, for example, what Kenya’s population wanted was a way to transfer money to the rural areas to support their families. M-Pesa met this need and a study conducted showed that M-Pesa users were twice as likely to have had a bank account and be wealthier than non-users.</li>
 	<li>Addressing your customers’ pain points can lead to increased sustainability as your customer becomes your advocate. Such was the case with the Manila Water Company where members of the community showed up to a regulatory committee hearing to support the company’s request to increase its rates.</li>
 	<li>There is a need to boil down financial inclusion into a manageable piece for your organization. Decide on what you want to achieve and focus on it. Not every organization can effectively tackle all the dimensions of financial inclusion (e.g. offering not just savings, but also credit and insurance and so on). This was illustrated in the healthcare context through the <a href="http://en.wikipedia.org/wiki/Aravind_Eye_Hospital">Aravind Eye Hospital</a>. The hospital determined that their expertise in the fight against blindness in India was curing the problem as opposed to preventing it. Now, the hospital system has seen upwards of 32 million patients and conducted nearly 4 million cataract surgeries.</li>
 	<li>Once you decide what you want to achieve, do not be afraid to explore other avenues within that focus. Stretch your mission but do not drift from it. At the Aravind Eye Hospital, having decided that their expertise in the fight against blindness was providing cures, leaders decided to expand by offering optometry services in addition to cataract surgeries.</li>
</ol>
If you are interested in experiencing the HBS-Accion Program for yourself, look out for announcements about the 2016 application period which opens in November.

Have you read?

<a href="http://cfi-blog.org/2014/05/16/seventy-global-leaders-convene-for-hbs-accion-program-on-strategic-leadership-in-inclusive-finance/" target="_blank" rel="noopener">Seventy Global Leaders Convene for HBS-Accion Program on Strategic Leadership in Inclusive Finance</a>

<a href="http://cfi-blog.org/2010/04/08/1427/">Dispatch from Harvard Business School — Relating Social and Financial Value</a>

<a href="http://cfi-blog.org/2009/04/24/optimism-in-the-wake-of-crisis-a-week-at-hbs-accion-program/" target="_blank" rel="noopener">Optimism in the Wake of Crisis: A Week at the HBS-Accion Program</a>

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