WOMEN, MOBILE PHONES, AND SAVINGS
A Grameen Foundation Case Study
INTRODUCTION Grameen Foundation builds innovative solutions that enable the poor and poorest to gain access to essential financial services and information. Many of these solutions are delivered via the mobile phone, which is gaining widespread popularity as a means to bridge the “last mile” – to bring information and financial services to people without ready access to them. Though enthusiasm for the mobile phone as a way to deliver these services is justified, there is evidence that poor women have limited access to and literacy with mobile devices, creating a gap in their access to financial and other services delivered this way. This case study sets out to examine a microsavings program to identify some gaps in service and further understanding of how women, men and their families use mobile technology. Grameen Foundation’s Microsavings Initiative and Cashpor have worked together since 2009 to bring savings accounts to Cashpor’s ultra-poor female credit clients via mobile phone. For a complete look at the case study and its findings, click here.
Poor women have limited access to and literacy with mobile devices…
SUMMARY During the case study, a representative sample of 68 Cashpor clients in the greater Varanasi area were interviewed about the savings program and their use of mobile technology. In this case study, women were asked to self-select into one of three categories of mobile phone ownership, telling us whether they own a phone, borrow a phone or have no access to a phone. The interviews focused on three main themes: How women use mobile phones; savings services; and how knowledge about the phone is shared among their community, particularly with children. We found that mobile phone access, family member dependency and technology are important factors determining women access to financial services.
CASE STUDY STRUCTURE OVERVIEW
1 SNAPSHOT
2
3
4
5
THEME 1 FINDINGS
THEME 2 FINDINGS
THEME 3 FINDINGS
LESSONS LEARNED
BASIC CONCEPTS BUSINESS CORRESPONDENT (BC) A model to promote branchless banking and financial inclusion. The legal rela8onship between the BC and the bank is that of an Agent and Principal.
WOMEN, MOBILE PHONES, AND SAVINGS
MOBILE FINANCIAL SERVICE (MFS) The delivery of financial services to people without ready access to them using features of the mobile phones
PAGE 3
MOBILE ACCESS & BC MODEL
Women are
There are
27% less likely
124 mil. FEWER
to own phones than man There are
300 mil. LESS
female subscribers than male
28%
women than men who own a mobile phone
Women own mobile phones
Barriers includes
Barriers includes Needs
Technology access in school Late beginning in school Cultural factors Religion & Caste
40% Men own mobile phones
Cost of Handset
Permission Expense of Monthly Service
Other (e.g fear of technology)
Cashpor ICIC Bank Bank
Agent Correspondent
Eko
Technology Partner
Poor Clients Beneficiary of 0% savings account
THEME 1: MOBILE PHONES USAGE
2
Knowledge Though more women who own a phone know how to use a phone than women who borrow or do not have access to a phone, an overall majority of women cannot use a phone independently
Dependency Surrounded by people who know how to use a phone, there is little need for women to learn the skill on her own. Lack of education creates an additional barrier to mobile phone knowledge, aecting confidence and leading women to rely on those around her for help
Illiteracy
Most of the women who said they cannot use a phone cite illiteracy and lack of numeracy as the main reasons. For the most part, women do not know how to use SMS features to check their balances, due to literacy issues
THEME 2: TECHNOLOGY & FAMILY
3
Husband Half of the women who borrow phones reported that there were times they wanted to use the phone but did not have access to it. However, women whose husband owns a phone were less likely to report having restricted access to a phone than the others
Children Women use their phone with both their sons and daughters who know how to use a phone. Women who own phones and borrow phones ask their children for help with using their phones and are dependent on their children
Knowledge
Children are not exposed to mobile phones and technology in class. They learn how to use phone independently and share knowledge with their mothers
THEME 3: SAVINGS PATTERNS
4
Deposit frequency Women who own phones are slightly less poor than women who borrow phones. With access to their own phones, women deposits more frequently
Savings issues Women who have issues with accounts relating to center manager or phones technicalities reported not having saved since opening their account
Deposits patterns Women who borrow phone said owning a phone would not make a dierence to their savings deposits. They cannot use phones independently and do not know when they have money to deposit
Savings decision Women without phone save at home or in another bank. Some say they would save with Cashpor if they had a phone. Some say the phones is a barrier preventing them from saving with Cashpor
LESSONS LEARNED
1
Financial and mobile literacy Clients need help using their mobile phones, particularly to check their savings balances. Mobile and financial literacy can address this gap.
3
Household spending patterns Women say they do not save regularly because they do not have money. More research should be done to understand household spending patterns among Cashpor’s clients.
5
5
1
Children technology literacy Cashpor’s clients children are more technology-adept than their parents, which will help sustain Cashpor’s mobile financial services into the future.
WOMEN, MOBILE PHONES, AND SAVINGS
Family members dependency 2 Women use the phones primarily to call family members. They reported asking their children or other household members to dial the numbers for them, pointing to numeracy issues.
Mobile phone access
4
This is a barrier for Cashpor’s business in the short term. Helping women to easily acquire a phone or finding an alternative method can solve this.
Alternative savings services
6
Women without access to a phone want to save with Cashpor. Cashpor may consider alternative ways to deliver its saving services to these women.
PAGE 8
Mobile phone literacy empowers women and create a sense of ownership over product. It demystifies the mobile phone and transfer knowledge to enhance future use of mobile financial service