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Moving Beyond Credit: Why Savings Should Take Center Stage in Digital Financial Inclusion
As mobile money continues to overtake traditional banking in emerging markets, putting financial services within reach of the unbanked, credit remains front and center in the conversation. But Buhle Goslar at JUMO says it's time to focus on an important yet underutilized tool that could help promote a well-rounded, healthy financial life for excluded customers – savings. She details how new tech and training programs can go beyond simple access and towards a new culture of savings.
- Categories
- Finance, Technology
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Don’t Fear the Algorithm: The Risks and Benefits Of Machine Learning in Finance
Billions of people around the world lack access to basic financial services, and far too many promising entrepreneurs are deprived of financial opportunities simply because they don’t have a credit history. As JUMO founder and CEO Andrew Watkins-Ball sees it, this lack of access is fundamentally a technology problem – and machine learning can help solve it. But algorithm-assisted banking is not without risks: Watkins-Ball discusses its benefits and downsides, and how it's powering JUMO's work in Africa and Asia.
- Categories
- Finance, Technology
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Turning Saris into Stainless Steel: How the Companies of the Future Can Learn from Business Models of the Past
In India in the 1970s, tens of thousands of itinerant street vendors carried stainless steel kitchenware products from door to door, bartering them for saris and other old clothes in a complex, multi-tiered supply chain. According to Prashant Yadav at Harvard Medical School, these vendors’ business model – like others from past decades – holds valuable lessons for modern enterprises working in challenging markets. He shares some of these insights – and encourages others to do likewise – in this fascinating article.
- Categories
- Entrepreneurship
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The Impact of Inconsistency: Uncovering the Hidden Cost of Variable Work Schedules
There’s no shortage of apps and initiatives intended to help low-income people budget their money and boost their savings. But for millions of Americans, no amount of budgeting or discipline can overcome a lack of stable income. Studies show that almost 40 percent of working adults experience a drop in income at least one month per year, making it difficult to cover expenses like food, rent and other necessities. Analysts at Duke's Common Cents Lab explore the often-hidden impact of this problem – and discuss some ways product developers and employers could help.
- Categories
- Finance
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How Employers in Poor Countries Are Using Nudges to Help Employees Save Money
The idea is simple: people save more in retirement accounts when they are automatically enrolled by their employer than when they have to sign up themselves.
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Press release: Fenix International’s inclusive employee ownership programme gives first-of-its-kind pay-out in Africa
The ‘Fenix Flames’ programme extends benefits to employees in lieu of traditional company stock options. As part of an employee benefits programme, the scheme was designed to offer a pay-out in the event of an acquisition or public listing.
- Region
- Sub-Saharan Africa
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Behavioural Nudges: Mildly Paternalistic or a Threat to Economic Justice for the Poor?
"Nudges” – ie: the use of behavioral science insights to steer human behavior – are increasingly seen as a cheap and effective way to achieve social goals. But according to social researcher Sally Brooks, there are some troubling questions about whether the use of nudges for business purposes is good for the poor. She explores the issue through the prism of digital financial inclusion in the era of fintech and big data.
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How Incorporating Behavioral Science into Cash Transfer Programs Is Changing Lives
More than $200 million in direct cash payments is distributed daily to fight poverty in over 120 developing countries. Evidence shows that the programs are working – but there is new pressure on them to enhance their effectiveness. Josh Martin and Laura Rawlings discuss how ideas42 and the World Bank, with funding from the Global Innovation Initiative, are leveraging behavioral science to help families make the most effective use of cash payments to achieve their goals.
- Categories
- Finance, Technology
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