1. FINANCIAL EDUCATION FOR CLIENTS LESSONS LEARNT AND BEST PRACTICES

2. Institutions & their FE objectives  Consumer protection & awareness Objective : to change consumer interaction with the market e.g. FE as a tool to introduce the public to basic FE concepts & to promote FE for the “unbanked” Actors : networks, government agencies, NGOs  Product uptake & improved product use Objective : to teach consumers about appropriate products & services, thereby boosting uptake & use e.g. MFIs perceiving improved portfolio quality as a result of less risky clients Actors : MFIs, banks, and other financial institutions  Personal development for improved livelihoods Objective : FE is a means to improve financial decision-making, social well- being & general livelihoods Actors : NGOs and personal development & training organizations (e.g. MFO)

3. Target Audience Usual target of FE: - young people, vulnerable groups & low- income populations in developing countries - living in urban or rural areas - with limited formal education - surviving by managing their cash-flow on a day-to-day basis Recommendation: FE providers should segment their markets so that the programme reflects variances in FE needs and priorities (learner’s stage in life, demographic & cultural differences)

4. Financial education content Content and messages need to be : - practical & useful for the target audience - refreshed and updated regularly A sequential development process should be followed: - market research - concept testing - pilot testing - refinement - roll-out Other key factors: - provide FE to financial services staff - pedagogy : interactive learning so that the clients can practice the newly acquired skills

5. FE delivery channels Depend on socio-economic characteristics of the audience : educational level, geographic locations, etc.  Face-to-face training : - allows close relationship - strong impact on long-term behavioural change  Mass media : television, public campaigns, radio programmes - large number of people reached - radio programmes can reach low-income people - no impact on long-term behavioural change has been assessed  Tools : brochures, flyers, posters, or training videos/DVDs - potential to lower the cost per person - effective to encourage conversation

6. FE delivery channels (2) Example of a comic leaflet (FAULU, Kenya)

7. FE delivery channels (3) Example of a posters (AMFIU, Uganda)

8. What works in FE ?  What factors facilitate scale? - partnerships and networks - use of mass-media technology - Institutionalization : FE, an integral component of an organization’s interaction with its community & clients  What is scale in FE programmes? 4 main routes to reaching scale : - national/regional consumer education campaigns - financial service providers - school-based programmes - Personal development and training

9. What works in FE ? (2)  How FE initiatives define sustainability? Sustainable FE programmes are those that can be successfully continued, after external funding is withdrawn  What are the costs ? Usually difficult to quantify. 2 main categories : - programme design & development (market research, FE messages, modules, pilot testing, etc) : higher cost - dissemination of FE (e.g. training, learning events, etc)  Which solutions help sustain FE? - profit-driven programmes - FE subsidised by the financial service provider as a value-added component of its business model

10. What works in FE ? (3)  How to enhance impact ? Examples of positive benefits : increase in nb of bank accounts, in nb of savers, incresed clients’ self esteem

11. What works in FE ? (4) Impact with regards to improved knowledge, skills and attitudes is dependent upon 4 key factors : - quality and frequency of FE - relevance of the FE to the target audience - opportunity to apply this FE - location/context where people can exercise their new financial behaviours, such as access to appropriate product and services

12. Conclusion - A nb of key practices highlighted for successful, sustainable and high-impact FE - But the newness of many programmes means that long-time results may not be apparent yet - Much of what is happening is exploratory and experimental - Funding should include gathering reliable data that can help the sector as a whole understand how to effectively roll-out FE programmes to scale