Microfinance Opportunities has done extensive work in building financial capabilities of low-income consumers through financial education. Financial education provides a foundation for people to make informed and effective decisions regarding the management of their money. Strengthening people’s financial capabilities enables them to better understand the value proposition of branchless banking and be more equipped and confident in exercising their financial choices.

We’ve already done some research on the barriers to adoption and active use of branchless banking. We found 3 key barriers:

(1) unfamiliarity with formal financial services, i.e. How are paying bills or sending money through a mobile phone better than the way I do it now?
(2) limited understanding of the technology, i.e. What is the purpose of a PIN?
(3) distrust of branchless banking services, i.e. How can a phone give me money?

In a new global project, we will be examining how financial education can support the uptake and effective use of branchless banking and how such programs can be delivered cost-effectively. We will be collaborating with branchless banking providers in Asia, Africa, and Latin America/Caribbean to develop financial education programs for low-income populations, particularly youth, women and the unbanked. For more information, please see:

http://www.microfinanceopportunities.org/docs/MFO-MCF%20Announcement%20of%20Asia%20Partners_FINAL%20%283%29.pdf