Grameen Foundation Savings Seminar by, Debbie Dean and team October 22, 2013

1. Grameen FoundationSavings Seminarby, Debbie Dean and teamOctober 22, 2013

2. Agenda • Overview of morning • Ten lessons • Breakout activities Break (around 10:30 or 11 am)

3. Grameen FoundationMicrosavings Initiative • Partnering with CARD Bank, ACSI, and CASHPOR to create minimum of 650k new active savers with a target of 1.45M new savers • Expand safe access to formal savings accounts ensuring a segmentation of the market includes targeting existing loan clients, non-loan clients, and low income rural savers • Building a sustainable business model for the institution and the client • GF is taking a holistic approach working with the MFI’s in transformation Enabling Field Transactions Institutional Capacity Product Design and Market Research Marketing and Financial Literacy

4. Microsavings InitiativeOur Financial Services Partners

5. Microsavings InitiativeResults * Credit clients , not savers

6. Lesson 1Building the Right Team • Choosing the right Financial Services Partner • Partner Selection Process and Tool • Role of Project Management • Engaging with Implementation Partners Karla Brom Financial Risk Management Social Performance Management Marketing Ruth Jacobs Financial Literacy Internal Controls Tomoko Harigaya Research Behavioral Research Human Resources and Change Management

7. Lesson 2Leading Organizational Change • What is Change Leadership/Management • Why is it important • How we instituted Change • Change Workshops • Lead/Shadow/Follow Methodology • Communication Planning • Human Capital Management (HCM) Assessment

8. Lesson 2Human Capital Assessment Strategic Planning Culture Leadership Practices Talent Acquisition Talent Development Rewards & Recognition Review of the HR Function http://humancapitalhub.org/Human_Capital_Management_Assessment

9. Lesson 2Leading Organizational Change • Key Lessons: • Project Management = Change Leaders • Build trust • Use their language and work culture • Baby steps -- Change takes longer than you think • What would we do differently • Perform the HCM assessment early • Send partners top execs to leadership training • Find the low hanging fruit • Incorporate performance targets and incentives early

10. Breakout Activity Organizational Change Climate Assessment Found on humancapitalhub.org • CONTENT • Landscape Assessment Summary slides • Some notes and translations from CGAP documents • Some notes and translations from UNDP / UNCDF Financial Inclusion Study • Information from Cocoa Study by GF

11. Lesson 3Research – framework, RCTs, and findings • Research is something you do throughout and not just a one time activity. • Many ways to incorporate research into the program • How do we use the findings to guide the work and do course correction

12. Lesson 3Research – framework, RCTs, and findings Behavioral Design Games Randomized Control led Trials (RCTs) Questionnaires Observation Paper Prototypes Surveys Sampling Focus Groups Discussions Usability Studies Impact Landscape Innovation

13. Lesson 3Research – framework, RCTs, and findings Behavioral Design Games Randomized Control led Trials (RCTs) Questionnaires Observation Paper Prototypes Surveys Sampling Focus Groups Discussions Impact Landscape Innovation

14. Lesson 3Research – framework, RCTs, and findings • Cashpor • 70% illteracy rate • 20% own a phone • 60% access a phone • 20% no phone • CARD • 20% preferred manual system • 48% of transactions by older members were made by someone else • Members that used the system least, paid the most

15. Lesson 3Research – framework, RCTs, and findings Tracking key metrics is important!

16. Lesson 3Research – framework, RCTs, and findings Tracking key metrics is important!

17. Lesson 3Research – framework, RCTs, and findings Tracking key metrics is important!

18. Lesson 3Research – framework, RCTs, and findings Number of Borrowers CORRECTLY ^ Tracking key metrics is important! CRITICAL!

19. Lesson 3Behavioral Research • Started with CARD to evaluate the uptake and usage, then found that 58% were not transacting, so refocused our work on usage.  • Also started out focusing on just the new product, Matapat, then realized it was across the board that was going to have a better outcome.

20. Lesson 3Behavioral Research • ideas42 partnered with CARD Bank and Grameen Foundation and used behavioral design and a randomized controlled trialto test the effect of applied behavioral economics to the design of savings accounts. • Clients were 60% more likely to use new savings accounts and made depositsthat were 11% larger. These clients maintained larger balances than they would have otherwise. • Clients with existing accounts made larger deposits and withdrawals and increased engagement with their savings accounts • These positive results indicate CARD Bank should implement the new intervention in all branches and that behavioral design is a powerful tool for improved savings behavior.

21. Summary of the ideas42 methodology • Begin by carefully defining the problem in terms of a specific user behavior • Review relevant behavioral research • Develop a detailed contextual understanding – the details matter! • Diagnose behavioral bottlenecks that are preventing user behavior • Design behavioral interventions to address those bottlenecks • Test these interventions with a randomized controlled trial to measure impact. Define the problem Review behavioral research Know the Context Generate Behavioral Diagnosis Iterative Design Process RCT

22. Lesson 4Product Design • Product design is also never truly done and research should be incorporated throughout the product lifecycle • Regulatory Litmus Test • Make adjustments early and think beyond the ‘financial features’ such as the channel, tools to support the clients, etc. • Approvals through a Savings Committee • Concepts and Prototyping ideas before going to market with a pilot product. • Cashpor used a ‘raise the hand’ approach when designing a commitment savings account and a fixed deposit account.

23. Lesson 5Importance of Marketing

24. Lesson 5Importance of Marketing

25. Lesson 5Importance of Marketing BEFORE AFTER BEFORE

26. Lesson 5Importance of Marketing Branch Product Posters AFTER BEFORE

27. Lesson 5Importance of Marketing

28. Lesson 6IT, Data, and Reporting • Loans to voluntary savings • Velocity of Information • Activation and Updates (balance inquiries) • Availability of deposits • Centralized v Decentralized Systems • High Availability (Redundancy, DRS)

29. Lesson 6IT, Data, and Reporting

30. Lesson 6IT, Data, and Reporting • Understand the environment • What are the components and where do they reside? • What are the technical resources? • Formulate what you need and when • Operational or Analytical? • Set realistic expectations

31. Lesson 6IT, Data, and Reporting Why we push the use of data? • Benchmark social performance, and business and market figures • To answer business questions • Better understand customers needs and behaviors • Uncover nuances, discover opportunities, reduce risks and costs • Confirm assumptions and test hypothesis • Provide inputs for business casemodeling • Overall, to take better informed decisions and drive change “The bottleneck is less technical and more human, not statistics but organizational change management. Accuracy is easier to achieve than adoption.”

32. Lesson 7Train, Train, and Train Some More • Amount of training and re-training required for MFI field staff to be effective in delivery savings • Perform early Skills Gap Analysis for FSP project team • Many types of training required • Change management • Sales & promotion • Customer service • Product • Business Process • Mobile Phone Literacy • Language barriers, day of week, and lively interactive sessions are the most effective

33. Lesson 8Benefits of a Trusted Intermediary

34. Lesson 8Benefits of a Trusted Intermediary • Established Relationships • ACSI - 1995 • Cashpor - 1997 • CARD - 1986 • Trust with clients • Knowledge of culture as neighbors and family members • Introduce Products and Services where customers live • Weekly meetings – important interactions

35. Lesson 8Benefits of a Trusted Intermediary

36. Lesson 8Benefits of a Trusted Intermediary

37. Lesson 9Discipline of Project Management How the customer explained it How the project leader understood it How the engineer designed it How the programmer wrote it How the sales executive described it What operations installed How the customer was billed How the project was documented How the helpdesk supported it What the customer really needed

38. Lesson 9Discipline of Project Management • You don’t appreciate or value PM until you have a good one! • 5 Components Project Management • Managing Scope • Managing Schedule and Resources • Communications • Risk Mitigation • Budget • Cross cultural implications when managing a project

39. Lesson 10You Can Build a Business Case • Can build the business case for small savings • 3 Golden Rules • Understand the present before planning the future • Rephrase questions and objectives, often • Keep it simple