CGAP and Microsoft Research India (MSRI) are collaborating on joint research to better understand the needs of people who have low levels of literacy when it comes to technology. In plain English, this means we all want to know how to design something that would be of use to an illiterate person.

In addition to the focal research on User Interface design, the MSRI-CGAP collaboration will also involve joint explorations in understanding the social and economic context and impact of mobile-banking on poor households.

What we learn will be shared with everyone. Aishwarya Ratan is with MSRI and joined us in Washington at our conference this week to talk about the work envisioned and some of the things MSR has already learned in India. Here are her thoughts.

This three-day conference has covered a good set of issues relevant to the expansion of formal financial services to currently underserved populations – incorporating credit/payments reporting and scoring tools into microfinance provision, using technological channels to enable low-cost information and cash exchanges, and establishing suitable policy environments to allow new and improved methods of conducting financial transactions. However, I felt there could have been more discussion of the operational issues involved in implementing these changes, particularly for small players, as well as the specific set of impact measurements that might allow practitioners to assess whether the new systems and channels are indeed enabling lower-cost, more-efficient operations for themselves, and significant improvements in the lives and livelihoods of ‘the poor’ being reached and served.

The response to our work at Microsoft Research India was very encouraging. I discussed issues around cost realism, social context, and user interface design in effectively deploying mobile phones to enable various aspects of microfinance delivery to the poor (data management, payments/ transfers, etc.). The central theme of thinking about ‘mobile phones for microfinance’ as not a single category, but as a composite of several categories of applications and services conditional on variations in context and usage, echoed with many people in the audience. This presentation will soon be available on our project website, and more information on the TEM group’s ongoing work can be found here.

Looking forward, specific understandings on what differentiates poor clients from rich ones, and what changes in approach and product design are needed to serve low-income households based on their behavioral preferences, economic constraints, and social networks will not only be useful, but vital to realize the ‘development’ potential of these efforts without compromising on the security and soundness of the local financial sector. The research partnership between Microsoft Research India and CGAP will work towards exploring and sharing insights in these important areas.

-Aishwarya Ratan, Microsoft Research India