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non-bank financial services

What India’s successful rural development programs can teach the world?

Ethel Sennhauser's picture

In India’s southern state of Tamil Nadu, I met young ex-farmers who had moved out of farm jobs and were now working in factories and government offices.  Their day to day circumstances weren’t all that different from millions of others around the world.

But yet, the people I met were remarkable.  There was the disabled young man who, with skills training, found an IT job and a life outside his home, and is now supporting his mother.  There were also women Self Help Group (SHG) members who, with support from their female Panchayat Leader, Pushpa, were helping to better the lives of their communities. They worked to improve water supply, build toilets and boost sanitation, and also found jobs in agro-processing.

My time in India made it clear to me that opportunity can change lives - especially in rural areas, where 78% of the country’s poor people live. 

Opportunity can come in various forms. It can come in the form of social empowerment - by giving voice to groups that are often marginalized, such as women, youth and disabled people.

It can also come in the form of jobs - through skills training, job placement programs and other services that help people secure formal employment. 

Jobs and social empowerment are two different opportunities. But they can be related: They both share transformative effects that are positive, and can multiply in unexpected directions.

For example, as women gain more confidence, their voices are listened to on a variety of matters within the home - such as on family planning and how to spend family incomes - improving the lives of their children and their families. Collectively, the power of their voices expressed through SHGs and other groups can bring about change on a larger scale, impacting the wider community as a whole.
 
Photo credit: Irina Klytchnikova



Jobs, too, are known to have transformative effects. They give people the economic resources to improve their quality of life, open up new opportunities and enable them to engage with the outside world.

Want to empower women? Digital Financial Services are the way to go!

Duncan Green's picture

Sophie Romana (left) and Shelley Spencer (right) report back from the June 8 high level roundtable organized by NetHope and USAID, which brought together mobile banking and gender champions to reflect on how Digital Financial Services (DFS) can galvanize women’s empowerment.

Women’s empowerment is often measured by their access to resources and ability to make decisions over how they are used.  Recent evidence shows that DFS delivered through mobile phones deserves solid A's against each metric. This is not just hopeful musing by us as two empowered women with banking apps on our mobile phones, it is the consensus of a cross section of thought leaders with a seat at the table in Washington including USAID, the Bill & Melinda Gates Foundation, the Better than Cash Alliance and UNCDF, CGAP, and Women for Women International, as well as our own organizations, Oxfam and NetHope.  We recently spent a morning reflecting on rigorous academic and implementation research on DFS use by women — all to be published soon — and pathways to close the gender gap in DFS product use.

Oxfam has long known that women play a central role in financing family and community needs. What we are now finding is that DFS tools can enhance their role.  To study the impact of DFS on Saving for Change (SfC) savings groups in Senegal, Oxfam divided up 210 SfC groups (over 5,000 women) into 2 cohorts: one who participated in the project and the other as a comparison set.  Women who participated in the pilot saved and borrowed more than the comparison groups. The differences are not marginal.  There is a significant difference in savings.

 
Graphs: Saving for Change Mobile Banking, First Assessment & Learning Review, March 2016, Oxfam America

Watch out for SIFIs - One size won't fit all

Ahmed Rostom's picture

 
The failure of SIFIs could set off a global financial disaster  (Credit: istock photo, BrianAJackson)

The Global Financial System can’t stand another systemic shock. Even as efforts are rallying to accelerate the recuperation of global financial systems, regulators should remain vigilant for possible deterioration. Restoring financial stability through recovery plans and extended interventions using public funds mandates closer monitoring of the financial markets as well as additional measures to minimize the likelihood and severity of potential outcomes if systemically important financial institutions (SIFIs) were to fail.