Digital Frontiers

Customer needs and HCD

ARTICLES

Instant Payments and Guidelines for the Brazilian Instant Payments Ecosystem

Here the Central Bank of Brazil discusses instant payments, highlighting implementation, ecosystem and benefits. Where this paper builds on the discussion, offering guidelines for Brazilian instant payments.

Case Study: Modernizing the Customer Experience Through Communications Technology

FINCA Forward implemented a four-month proof-of-concept (POC) of the Salutat solution in Guatemala to explore if their features could deliver a rich, modernized, and personalized customer experience in which individual needs are known and satisfied. The POC proved that Salutat’s solution had the potential to strengthen engagement with customers.

Living on Little – Kenya Financial Diaries

Living on Little, by Julie Zollmann, illuminates the many deep and overlooked ways that scarcity shapes the lives of ordinary Kenyans. Drawing on four years of systematic research with nearly 300 low-income families, this book offers readers a new and intimate perspective on poverty. Living on very little money doesn’t just mean that you worry…

The Future of Commerce – Consumer Protection Attitudes Study 2020

As digital commerce gains traction in Hong Kong and Macau, cashless payments become more ubiquitous in our everyday life. We have seen the emergence of challenger banks and fintechs, more innovation from incumbents, and advancement into open data. This is a perfect storm of innovation. What exactly do consumers think about recent developments in mobile…

Behavioral Design for Digital Financial Services

This playbook is a guide for financial service providers to use behavioral design to increase engagement with digital tools. All of the strategies are rooted in behavioral science—the study of how people act and make decisions in the real world. It outlines design principles for common barriers to adoption that take into account how people process…

Capabilities in Digital Financial Services

This white paper from ONOW Myanmar discusses their efforts to build capabilities in digital financial capabilities. The paper encompasses efforts in digital and financial literacy, tied to real world uptake and use of DFS.

Consumer Insights Research in Malaysia

The consumer insights research series is designed to inspire providers, regulators and other financial market facilitators to design financial services and markets that respond to the aspirations of low-to-moderate income (LMI) people and improve their financial health. Why financial health? Financial health matters because our research shows that financial pressures prevent LMI people from having a…

The Human Account

The Human Account is a public information resource and tool aimed at enabling better design of products and policies to help people live a healthier financial life.  Around the world, whether rich or poor, we all share similar goals for our financial lives: security and the opportunity to create a better future for ourselves and…

Examining Customer Journeys at Financial Institutions in Cambodia

This study encourages a shift in focus from examining access to finance to understanding actual usage of financial products. The study demonstrates the potential of Big Data analytics to generate granular sex- and youth-disaggregated information on the use of financial services, and to apply insights to inform product development and policy making.

Charting the Customer Journey in the Digital Age

This report by CFI looks at how mainstream financial institutions are creating effective digital customer journeys for underserved clients. It explores the three primary phases involved in digital transformation and provide examples of how innovative financial institutions are addressing its challenges with creative solutions for emerging customers. The report includes helpful case cases studies from…

OECD/INFE High-level Principles on National Strategies for Financial Education

Within a fast evolving financial landscape where access to financial services is made easier while more risks are being transferred to citizens, financial literacy has become a key life skill for individuals as well as micro and small businesses. Financial education can help enhance financial literacy by increasing financial knowledge, skills and attitudes. In turn,…

Behavioural Interventions that Advance Financial Inclusion

This report by Cenfri, looks at behavioural interventions that influence financial decisions or behaviours of customers. These kind of interventions can reduce the cost of acquisition, increase retention and use of financial services, but of course the interventions come at a cost to the financial service provider. The cost-benefit analysis is discussed and some recommendations…

The Effectiveness of Short-Term Financial Education Workshops in Rural Areas: The Case of Armenia

A randomised control trial was conducted in Armenia, to assess the short-term impact of classroom based financial education workshops. Download the case study  to learn their strengths and limitations and ideas for measuring the effectiveness of financial education.  

A SHIFT in Focus: How to Transform Financial Access into Use

UNCDF’s Shaping Inclusive Finance Transformations (SHIFT) programme looked for ways to use existing data to measure usage of financial products – taking it a step beyond just measuring access. The data available gave a great insight into use of products and services within Cambodia and allowed practical and insightful recommendations to be developed for improvements…

Hidden constraints to digital financial inclusion: the oral-literate divide

This paper looks at the role of literacy in financial inclusion. The vision that digital finance can achieve universal financial inclusion is premised on the rarely questioned assumption that the world is rapidly moving towards universal literacy and numeracy. In fact, text and arithmetic notation shape the relationship between formal finance and about a billion…

Customer-Centric Guide

The CGAP Customer-Centric guide explores retention, acquisition, and expansion of product use by customers, making recommendations on how to move to a customer-centric model which benefits the organisation and customer.    

Best practices in big data analytics

To be successful, providers must develop a deep understanding of customer needs and behaviors and the ability to engage with customers using technology. In this context, customer data is paramount to effective product development and delivery. However, while there are emerging opportunities, there are also challenges around collecting, maintaining, and analyzing customer data. Organizations cannot…

What is the commercial landscape of digital finance?

This Snapshot focuses on the changes in the landscape of digital commercial offerings, with particular emphasis on the rise of digital data trails and alternative lenders. It also discusses business case considerations for digital finance providers. Download the snapshot here.

How can advances in user experience help meet user needs and enhance user engagement?

To attract and maintain new users, digital finance providers have strived to lower the barrier to entry at every point of interaction. Providers largely believe that easy to use applications can persuade customers to transact more frequently, build trust through transparency, and drive the customer to engage in positive financial habits, such as saving. This snapshot discusses…

How do clients use digital finance

This snapshot from FiDA focuses on the use or digital and non-digital financial services in the daily life if low-income individuals, and draws some insights as to how we can drive more effective use of digital financial services. Access alone is not reaching the ultimate goal of meaningful financial inclusion. Download the snapshot here.

Which attitudes, behaviors, experiences, and beliefs influence digital finance adoption?

One of the most durable challenges in the global economy is converting a prospect into a customer. This snapshot by FiDA focuses on attitudes and behaviours that influence the adoption and ongoing use of digital financial services (DFS). It discusses the challenges and opportunities in understanding unique behaviors, and the state of the art of connecting with…

Paying Attention to the Poor

This study looks at advertising within emerging markets, and how this impacts on digital business and growth, particularly those that are mobile based. Facebook is discussed as an example who faced challenges and adapted its approach in emerging markets, and theories of how the industry will develop are discussed. Download the study here.    

Money, Decisions, and Control

This working paper by Ignacio Mas and Gayatri Murthy, explores how people make decisions and choices with money. It then applies this to look at how to create a customer-centric approach to digital financial services that then helps and meets the needs of the poor. Download here

Considerations for Modernising South Africa’s Low Value Payments Infrastructure

This document is the final artefact in a major research effort on payment system modernisation sponsored by BankservAfrica and PASA. The research is divided into two parts: Phase 1A compares the goals, drivers, features, and processes of low value payments infrastructure (LVPI) modernisation across ten countries, including South Africa. While Phase 1B provides a substantiated…

Customer Segmentation Toolkit

Financial service providers have traditionally categorized low-income customers into a single market segment. But many organizations are beginning to see expanded business potential as they learn that low-income markets are far from just a single segment. People’s worries, wants, needs, and behaviors are nuanced, and customer segmentation is the method that explores and identifies opportunities in these…

Currency of Trust: Consumer Behaviors and Attitudes Toward Digital Financial Services in India

In the past few years, India has made tremendous progress in building infrastructure and regulatory frameworks that encourage digital innovation in financial services, but adoption and usage of new offerings have been slow to take hold and scale. This report aims to bring the voice of the consumer to the forefront of the discussion around…

Juntos Finanzas: A Case Study

The engagement gap between customers and providers is among the key challenges to increasing uptake and use of financial services and ultimately achieving financial inclusion. Juntos has developed a tool that aims to address this gap by taking advantage of behavioral research and design, technology, customer data analytics, and “real-time customer interaction.” The automated and…

Using Behavioral Science

There has been growing momentum to design financial and nonfinancial services for lower-income populations around the world that would meet the specific needs of these clients. CGAP’s “Clients at the Center Financial Inclusion Research Fund” (Fund) has been playing a catalytic role by supporting research focusing on understanding clients’ needs and delivering services that respond…

Learning from Customer Centricity in Other Industries

This Primer by CGAP is based on research undertaken to determine whether customer centricity could be an approach for FSPs to tackle the urgent customer and company value creation challenges they face.

Searching for Metaphors of Household Financial Management

This report from Ignacio Mas summarizes the intent, activities, outputs and key lessons from an ambitious program of field research which sought to capture vividly and succinctly the essence of how ordinary people think about the management of their money and resources. We wanted to come up with simple constructs which could be stretched, by…

Design Kit: The Field Guide to Human-Centered Design

The Field Guide is the latest in IDEO.org’s suite of teaching tools and a step forward in sharing the practice and promise of human-centered design with the social sector. A full-color, 192-page book, the Field Guide comes with 57 design methods, the key mindsets that underpin how and why IDEO.org believes design can change lives, a…

How Absa Bank Empowered its Customers through Games

Commercial banks serve poor and low-income customers largely through transactional and savings accounts. This customer is always keenly interested in their balance, as any overspend brings penalties and embarrassment. Many poor customers find it so onerous and expensive to use their accounts, that they withdraw all the money once a month, and uses cash rather…

An Introduction to Human-Centered Design: The Design Process

A workshop on Human-Centered Design (HCD) covering an overview of HCD, design thinking for social innovation, a case study on the Clean Team, and optional readings and videos. Human-centered design is about believing you can make a difference, and having an intentional process in order to get to new, relevant solutions that create positive impact. Human-centered…

Insights Into Action What Human-Centered Design Means For Financial Inclusion

After seven globe-spanning projects, we have come to the conclusion that human-centered design is a fantastic way to engage, understand, and find consistently innovative ways to bring the unbanked into the world of formal finance. A huge benefit of HCD is how it captures critical customer insights and synthesizes them down to design principles—clear, instructive…

Enabling Customer Empowerment: Choice, Use, and Voice

The use of digital channels is changing the way financial services can be delivered to poor people. Growing mobile phone usage and the development of agent networks enable customer access to timely, low-cost digital financial services (DFS)1 (World Bank 2014). Despite this, active use of DFS is relatively low. This Brief, addresses the inactivity problem…

Electronic Payment Systems: a User-Centered Perspective and Interaction Design

This thesis has described research activities aimed to investigate how e-commerce EPSs could be designed from the user-centered perspective in order to achieve user acceptance. The research has explored what validated design knowledge that should be communicated to designers of EPSs, so that end users will be willing to use the newly introduced EPSs for…

Recourse in Digital Financial Services : Opportunities for Innovation

This case highlights the importance of an efficient customer recourse system. Recourse systems can help consumers overcome the challenges related to product adoption and continued use by helping resolve initial problems or challenges quickly, which can build trust in providers and their products, and increase uptake and customer retention. Effective recourse, and the key principles…

Doing Digital Finance Right: The Case for Stronger Mitigation of Customer Risks

This Focus Note explores consumer risk in digital finance—particularly through the lens of lower-income and less-experienced consumers—by asking three related questions: What risks do consumers and customers perceive and experience when using DFS? What are the consequences of those risks for consumers, providers, and financial inclusion? How can those risks be addressed?

Empower the Customer to Choose and Use Financial Services

Empowered customers, as defined in this paper from CGAP, are able to make informed choices, to use services that are of value to them, and to have greater control over their financial lives. By building trust and confidence through an interactive relationship, both providers and customers can benefit. It would be incorrect to equate this notion…