Internal preparation:

1. Internal preparation: • Objective: • Present our approach to Consumer Protection and the contents of the resource manual produced • Establish our experience developing mass media resources • Target audience: • NGOs and Foundations that form part of Solidarios Network, MFIs, funders • Timing: 15 minutes • How much does the audience know about FE? Some Solidario members already implement FE programs. Other participants might have a limited understanding of what FE is • Considerations: Presentation will be virtual. It might take longer to go through slides if internet connection is weak Microfinance Opportunities

2. Microfinance Opportunities XII SeminarioInternacional “Microfinanzas, Desarrollo e Inclusión: Soluciones en Tiempos de Cambio La Educación Financiera y La Protección al Consumidor - Novedades y Aportes Julio 8,2011 Microfinance Opportunities

3. Content: • Background on MFO • Financial Education and Consumer Protection • Experience working with mass media channels Microfinance Opportunities

4. About Microfinance Opportunities (MFO) MFO is a microenterprise resource center that promotes client-led microfinance: • Understands the financial realities of low-income households • Develops consumer-focused solutions • Shapes the design and delivery of financial products and services • Enhances the capacity of low-income consumers to make informed financial decisions • Conducts research and offers expertise help to increase consumer access to finance

5. Financial Education communicates the knowledge, skills and attitudes that poor people need for good money management, behavior change and informed choice of financial products and services.

6. Examples of behavior change Current/Actual Desired Financial Education • Savings • Saving informally • Distrust of banks • Wasteful expenditures • Irregular savings • Savings not linked to goals • Savings • Saving formally • Relationship with bank • Avoid unnecessary expenditures • Save regularly • Have a savings plan

7. Core Curriculum Specialized Modules Global financialeducationresources • Budgeting • Savings • Debt Management • Bank Services • Financial Negotiations • Risk Management and Insurance • Young People • Remittances • Housing Consumer Protection Resource Manual

8. Why is Financial Education important for Institutions and Clients? • Ensure products respond to client’s needs • Deliver information to clients in accessible ways • Gain competitive advantage • Improve portfolio performance • Enhance position as socially responsible institution • Better understand financial options • Use financial resources more effectively • Build self-esteem and confidence • Shift from reactive to pro-active decisions • Successfully try out products and technology Microfinance Opportunities

9. Clients Holistic Perspective on Consumer Protection Priorities Financial Service Providers Avoidance of over-indebtedness Transparent and Responsible Pricing Appropriate debt collection practices Ethical Staff Behavior Mechanisms for redress of grievances Privacy of Client Data Good treatment and respect Transparency and truthful information Appropriate debt collection practices Mechanisms for redress of grievances

10. Consumer Protection Resource Manual: Balancing Rights and Responsibilities • Rights and Responsibilities • Right to Respect, to Privacy and to be Heard • How Much Debt Can I Afford • Choose the Best Financial Product for You • Compare Two Loans • Two Ways to Calculate Interest Rates • What to Ask before Signing a Contract • Debt Collection Practices • A Justified Complaint Benefits Everyone

11. How can institutions use the Consumer Protection Resource Manual • Integrate its content as part of your delivery of microfinance through a client-centered approach • Train bank staff –> • Rights and responsibilities of staff and of clients • Define what respect and dignity mean in actual practice • Areas where clients need advice and how to direct them to the right resources • Develop resources for clients: • Identify where your clients are today: what are their needs • Develop a campaign & materials that can build progressively the knowledge, skills and attitudes that clients need Microfinance Opportunities

12. Experienceusingmass media channels Monique Cohen, Microfinance Opportunities

13. Common Channels to Deliver FE Mass media (TV, Print, Radio) Community event: street theater, comics, hand outs for customers Number of people reached Group training Individual counseling Depth of messages Microfinance Opportunities

14. Quality and frequency of education • Relevance of education to the target population • A context in which people can exercise their new financial behaviors • The opportunity to use this education • Appropriateness of available financial products What makes financial education effective?

15. IntegratedStrategycombiningdifferentchannels Makutano Junction –Kenya: • Developed 2 series of 8 episodes each • Audience encouraged to send SMS to request flyer • Flyer provided more information on topics covered in the episode • Application form for partner MFI was sent as well • DVDs were also developed for Faulu Kenya  bank halls, group training Microfinance Opportunities

16. Money Managmentforwomenmicroentrepreneurs • Central America - Redcamif • 25 episodes: mini-drama programs • Lessons learned: • Keep the FE messages short and simple • Pilot test the storyline and content • Workshop with communications experts: market needs, content • Strong marketing campaign to promote the radio program Microfinance Opportunities

17. Microinsurance Radio Program - Kenya Objective: • Educate the public on microinsurance and develop an insurance culture. • Build the capabilities of low-income Kenyans to be informed consumers of risk management products and services Microfinance Opportunities

18. Structure of the program: 1. Frequency: • 13 programs, 14 minutes each, broadcast weekly over 13 weeks: • Short features 3 times/day; 5 times/week; • Long feature 1x/week during evening business program • 2 radio stations - Outreach: 70% of population 2. Relevance to target population: • Short drama • Advice from an industry expert • Testimonials 3. Opportunity to use this education: • Question-and-answer session. 12% of clients mentioned calling the program Microfinance Opportunities

19. Mixed method Evaluation: • Quantitative survey of listeners and non-listeners: • Baseline and endline: 300 respondents • Treatment group: daily listeners to radio stations in program • Comparison group: daily listeners of other stations • Qualitative: FGDs at endline with listeners and non-listener Microfinance Opportunities

20. Lessons learned- Radio program: • Radio can be used to increase awareness of insurance • And to increase trust in insurance • “Dosage” of radio education is key to achieve impact • Identify market needs, learning objectives and develop a Framework that will guide content • Production company must ensure stories translate content into relevant and effective messages for clients • Engaging-Drama: make it intriguing, entertaining  will create social interaction around program and a multiplier effect. Microfinance Opportunities

21. Consumer Protection Video http://www.youtube.com/user/microfinanceopps Monique Cohen, Microfinance Opportunities

22. Consumer Protection Video Monique Cohen, Microfinance Opportunities