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http://undesadspd.org/Youth.aspx facebook.com/UN4Youth twitter.com/UN4Youth Young people, regardless of their socioeconomic, demographic or geographical situations, face some degree of difficulty or uncertainty as they transition to adulthood.
However, the situation that youth experience in developing countries— some 87 percent of the global youth population—is one of the most difficult in many respects, and the picture is particularly grave for adolescent girls and young women. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Youth are disproportionately affected by high unemployment rates.
The AIDS epidemic in sub-Saharan Africa has already orphaned a generation of youth, and it is expected that 15 to 25 percent of children in a dozen sub- Saharan African countries will have been orphaned by AIDS by 2020.
This generation faces a very difficult transition from childhood to adulthood as they become, in the majority of cases, heads of household at a much younger age than other less vulnerable youth. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
The number of young people will peak in the next 20 years.
This unprecedented demographic growth could be seen as an opportunity but, given the baseline in terms of poverty and lack of opportunities for youth, it could represent a major threat to the future of these youth if their needs are not addressed.
The failure to acquire marketable skills or capabilities for lifelong learning may consign them to persistent, deepening poverty. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
New approaches that support vulnerable youth to proactively realize their full economic potential are gaining attention.
Access to financial and social assets is a key contributing factor to help youth make their own economic decisions and escape poverty. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Providing young people with financial services—whether a safe place to save or an appropriately structured loan for investment in an enterprise or education— 1 http://www.uncdf.org/sites/default/files/Download/87180_UNCDF_Eng_Final_web.pdf 2 http://www.uncdf.org/sites/default/files/Download/MB_CIFY_09MAY13.pdf HIGHLIGHTS • 2.5 billion - more than half of the world’s working adults- are excluded from financial services. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
This is most acute among low-income populations in emerging and developing economies, where approximately 80% of poor people are excluded1.
• Youth are 33% less likely to have a savings account than adults and 44% less likely to save in a formal institution2.
• Saving-account penetration rates for youth vary by geographical region, ranging from 12% in Africa to 50% in East Asia and the Pacific.
• Youth are often excluded from access to formal financial services. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Reasons include legal restrictions, high transaction costs and negative stereotypes about youth.
Regulatory frameworks and inclusive policies that are both youth friendly and protective of youth rights are needed to increase youth financial inclusion.
FINANCIAL INCLUSION OF YOUTH Youth financial inclusion http://undesadspd.org/Youth.aspx facebook.com/UN4Youth twitter.com/UN4Youth Page2 can promote entrepreneurship and asset building, and emphasize sustainable livelihoods. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
The financial component is especially effective for youth when complemented with training in entrepreneurship and financial literacy, and mentorship opportunities.
Despite these benefits, it is estimated that less than 5 percent of youth have a savings account as they face many barriers to access financial services. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Few financial service providers (FSPs) such as banks, credit unions or microfinance institutions, understand and adequately serve the youth market, and regulatory frameworks are not designed to be youth inclusive or protective of youth rights.
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The United Nations and youth financial inclusion The United Nations is addressing these challenges and supporting youth financial inclusion in a number of ways. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
• As the lead agency on financial inclusion, the UN Capital Development Fund (UNCDF) -- UN's capital investment agency for the world's 49 least developed countries -- in 2010 launched, in partnerships with The MasterCard Foundation, YouthStart, a $12.2 million programme aimed at increasing access to financial and non-financial services for low-income youth. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
With a specific emphasis on savings, UNCDF-YouthStart is a performance-based programme that works with FSPs to pilot and roll out sustainable financial and non-financial services tailored to young people.
• The United Nations Children’s Fund (UNICEF) has partnered with Aflatoun, a non- government organization based in the Kingdom of the Netherlands, to promote curricula that facilitate youth learning in the areas of social responsibility and financial competency. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
• Both agencies (UNCDF and UNICEF) have fully endorsed the Child and Youth Finance Movement.
The Movement is a collaborative effort of over 500 organizations and individuals, including national authorities, financial institutions and networks, NGOs and educators, academics and many more, to ensure responsible and sustainable financial services for youth.
UNCDF also supports The Smart Campaign, a global effort to unite microfinance leaders around common responsible finance principles and practices. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
• The UN Secretary-General made public the United Nation’s commitment to the Child and Youth Finance Movement at the first Child and Youth Finance International Summit, which took place in Amsterdam in April 2012.
The summit brought together 364 participants from 83 countries including 70 youth participants from 40 countries.
Progress Traditionally, FSPs have neglected youth or offered them services that were not adapted to their characteristics and needs. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
However, over the last five to ten years, an increasing number of initiatives from different donors and non-governmental organizations are promoting youth access to finance.
These initiatives work through partnerships with FSPs and youth serving organizations that share a long term vision for youth.
Through programmes like UNCDF-YouthStart, more than 110,000 youth have opened a savings account in a formal FSP in sub-Saharan Africa. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
The Child and Youth Finance Movement has ensured Youth financial inclusion http://undesadspd.org/Youth.aspx facebook.com/UN4Youth twitter.com/UN4Youth Page3 outreach to over 18 million children and youth around the world. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
YouthSave—a consortium led by Save the Children in partnership with Washington University in St. Louis, the New America Foundation and the Consultative Group to Assist the Poor, and supported by The MasterCard Foundation— is developing and testing savings products accessible to low-income youth in Colombia, Ghana, Kenya and Nepal with the goal to reach 170,000 youth by 2015. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
UNCDF- YouthStart, the Child and Youth Finance Movement, and YouthSave are three of many programmes, including MEDA’s YouthInvest programme, Plan Canada’s Youth Microfinance in West Africa programme, Silatech youth programme in the Arab world, and Freedom from Hunger’s Advancing Integrated Microfinance for Youth programme, that seek to improve access to appropriate financial services for young people. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Through NGOs like Aflatoun, 1 million children in more than 96 countries have received financial literacy training.
In 2012, 65,000 youth in 8 countries in Sub-Saharan Africa received financial literacy training through UNCDF-YouthStart.
However, for these kinds of initiatives to achieve greater outreach and impact, ideally they should be supported by youth focused financial literacy national strategies. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
It is estimated that 23 countries are implementing a national strategy on financial literacy and 47 are considering developing one.
70 percent of these national strategies have a special focus on youth.
In the Federal Democratic Republic of Ethiopia, for example, there is a distinct unit on saving that is taught every year from grade 5 through 10 in civics class in all government and private schools. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
The unit covers the basics of overcoming cultural barriers to saving, as well as why saving, goal setting, planning, budgeting and bank accounts are useful.
Most of these basic concepts are repeated every year in the curriculum.
In the Pacific Islands, UNCDF and UNDP have supported the integration of financial literacy into core school curricula through the Pacific Financial Inclusion Programme. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
These examples, though still scarce, represent a relevant stride towards more sustainable models to deliver financial literacy, greater outreach to youth and greater impact to improve youth financial capabilities.
The way forward Youth still face many barriers in accessing financial services, including restrictions in the legal and regulatory environment, inappropriate and inaccessible products and services, and low financial capabilities. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Overcoming these barriers and achieving successful youth financial inclusion requires a multi-stakeholder approach that engages government (including policymakers, regulators and line ministries), FSPs, youth serving organizations and other youth stakeholders.
Youth, of course, need to be at the centre of this dialogue.
Below are some recommendations to overcome barriers for policymakers, regulators and other key stakeholders. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Legal and regulatory environment Policymakers should develop legislation that is consistent with the principles of The Smart Campaign and the Child Friendly Banking Principles of Child and Youth Finance International (e.g., provide maximum control to youth within the legal and regulatory framework, minimize age and identity restrictions). | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
These policies, which are both youth friendly and protective of youth rights, should be the outcome of a coordinated effort amongst different policy and line ministries, such as the Ministry of Finance, the Central Bank, the Ministry of Youth and the Ministry of Education.
Multi- lateral and bi-lateral organizations should support such coordinated efforts. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Youth financial inclusion http://undesadspd.org/Youth.aspx facebook.com/UN4Youth twitter.com/UN4Youth Page4 Inappropriate and inaccessible products and services Policymakers should develop legislation that facilitates the development of innovative, cost effective and convenient delivery channels to increase low-cost access of financial services for youth.
The legislation should enable FSPs to bank through agents, mobile phones, schools, etc. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Multi-lateral and bi-lateral organizations should invest in these innovations and support relevant policies or regulatory measures.
To help FSPs design and deliver appropriate financial services, policymakers should make it clear that building the capacity of FSPs that seek to enter the youth financial service market should be a priority area for donors. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
For example, one key area of capacity building is how to conduct market research to identify the socio-economic characteristics, needs and preferences of youth. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Financial capabilities Financial capability is defined as ‘the combination of knowledge, skills, attitudes, and especially behaviours that people need to make sound personal finance decisions, suited to their social and financial circumstances.’ To address the challenge of low financial capabilities of youth and to equip youth with the confidence to make sound financial decisions, effectively manage financial services, and develop and work toward a tangible savings goal, policymakers should develop national financial-literacy strategies for youth, as well as entrepreneurship programmes that increase the financial capabilities of youth. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Governments and donors should support the development and implementation of such strategies, be they school based, community based, technology based or otherwise.
This multi-stakeholder approach to overcoming these three barriers can bring increased attention to the opportunities of youth financial inclusion and capability, attract the resources to invest in those opportunities and share learning to increase the impact of these investments. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Sources for further information • UN website on youth: http://social.un.org/index/Youth.aspx • UNCDF-YouthStart website: http://www.uncdf.org/en/youthstart • UNICEF financial modules on child social and financial education: http://www.unicef.org/cfs/files/CSFE_module_low_res_FINAL.pdf • The MasterCard Foundation learning products on youth financial services: http://www.mastercardfdn.org/what-we-are-learning/publications/youth-financial-inclusion • YouthSave Consortium website: http://www.youthsave.org • Child and Youth Finance International website: http://childfinanceinternational.org/ Youth financial inclusion http://undesadspd.org/Youth.aspx facebook.com/UN4Youth twitter.com/UN4Youth Page5 • The Smart Campaign website: http://www.smartcampaign.org • ‘The Global Financial Inclusion (Global Findex) Database’ website developed in 2012 by the World Bank: http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGRAMS/EXTF INRES/EXTGLOBALFIN/0,,contentMDK:23147627~pagePK:64168176~piPK:64168140~theSite PK:8519639,00.html This Fact Sheet was prepared by the UN Capital Development Fund (UNCDF). | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
It is part of a collaborative effort of the Inter-Agency Network for Youth Development, coordinated by the United Nations Programme on Youth, UNDESA. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756484677.pdf | https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-financial-inclusion.pdf |
Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business i Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business ii ABOUT UNCDF The UN Capital Development Fund makes public and private finance work for the poor in the world’s 46 least developed countries (LDCs). | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
UNCDF’s financing models work through three channels: (1) inclusive digital economies, which connects individuals, households, and small businesses with financial eco-systems that catalyze participation in the local economy, and provide tools to climb out of poverty and manage financial lives; (2) local development finance, which capacitates localities through fiscal decentralization, innovative municipal finance, and structured project finance to drive local economic expansion and sustainable development; and (3) investment finance, which provides catalytic financial structuring, de-risking, and capital deployment to drive SDG impact and domestic resource mobilization. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
DISCLAIMER The designations employed and the presentation of material on the maps and graphs contained in this publication do not imply the expression of any opinion whatsoever on the part of UNCDF or the Secretariat of the United Nations or any of its affiliated organizations or its Member States concerning the legal status of any country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
COPYRIGHT The views expressed in this publication are those of the author(s) and do not necessarily represent the views of UNCDF, the United Nations, any of its affiliated organizations or its Member States or Visa Inc.
This report was made possible thanks to the generous support from Visa Inc. under the ‘Build Back Better – Enhancing Recovery and Resilience of Small and Micro-Businesses (SMBs)’ project.
Copyright @ UN Capital Development Fund.
December 2022.
All rights reserved. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business iii TABLE OF CONTENTS 6 IV 11 18 26 29 31 8 8 11 13 14 15 17 18 23 26 27 28 9 GLOBAL EXPERIENCES WITH DIGITAL FINANCIAL LITERACY EXECUTIVE SUMMARY APPROACH AND METHODOLOGY RESULTS RECOMMENDATIONS ANNEX I: PRE/POSTTEST TOOL ANNEX II: RAPID NEEDS ASSESSMENT: SURVEY FINDINGS ON THE LEVELS OF DIGITAL AND FINANCIAL LITERACY NATIONAL DIGITAL FINANCIAL LITERACY CONTEXT Digital and financial ecosystem Basic learning modules created Tools to assess learning attained Delivery models and channels identified Social perspective on businesses targeted Outreach achieved Learning outcomes Success and insights Content Delivery pathway Sustainability Project background Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business iv EXECUTIVE SUMMARY Bangladesh has in recent years seen growing adoption of digital financial services. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
However, more than 62 percent of the households do not have Internet access at home.
In rural areas, only 8.7 percent of the poorest 20 percent of households have Internet access at home.
Meanwhile, the COVID-19 pandemic has sharpened the need to support the small and micro businesses (SMBs) that even now endure the consequences of reduced demand as they struggle to cover wages, pay suppliers and stay afloat. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
To date, few digital financial literacy (DFL) interventions have been undertaken on a significant scale in the country.
However, there is a broad institutional agreement in both the public and private sectors on the urgency of this issue.
This study seeks to explore and evaluate the best ways to reach the less digitally and financially literate segments of the community, especially women, to ensure that ultimately no one is left behind in the digital era. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The underlying project is the first in Bangladesh to focus, at scale, on assembling an evidence base to support the analysis of the use of e-commerce as a channel to promote DFL for SMBs.
The project partners reached more than 110,000 SMBs with the basic modules launched in November 2021, impacting 5,202 SMBs.
The partners designed five educational modules (videos) on business planning, creating a budget, saving, planning for financing and creating a digital mindset. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
They also delivered follow-up quizzes, pre- and posttests to quantify learning progress and a satisfaction survey, as well as gathered feedback from trainers.
Not only was virtual platform-based learning deployed, but also in-person training, emails, SMS messaging and social media to deliver the DFL content.
The modules proved effective for participants at any level of education. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Nevertheless, as expected, the educational level of participants was a crucial determinant of knowledge gained and progress made through the modules.
By contrast, and perhaps somewhat surprisingly, gender somewhat less so.
For historical reasons, it might be hypothesized that women’s digital and financial learning performance would lag behind that of men, having accounted for educational and social factors.
However, the project data did not support that proposition. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The difference between genders was frequently marginal, and a nuanced picture emerged, with men performing better on certain topics, but women faring better on others.
To take just a couple of examples, prior to the training, more women than men struggled with a skills-based question about calculating monthly savings needed to meet an annual savings goal. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Yet women scored higher on sources of business capital and having a business plan, bringing to the fore their financial acumen and business management skills.
Despite the instructional and curricular complexity of the project, and practical hurdles encountered during its delivery, largely overcome by the partners, a broad range of practical insights came to light. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
These are summarized here in the form of recommendations and will be worthy of consideration by any private or public sector stakeholder seeking to implement a comparable DFL intervention elsewhere.
Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business v In terms of delivery pathway, especially to reach women, existing partnerships with women- focused non-governmental organizations and district branding networks can be leveraged. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
These existing partnerships can be harnessed to communicate with groups of 50 people at once.
To reach a market segment with lower than average Internet and digital services adoption and comparatively less education, particularly women, a more labour-intensive field-based delivery model alongside a virtual one might be beneficial. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Starting with an open-plan commercial fair with booths where businesses showcase their products and services together with initial in-person group-based learning opportunities could spearhead the implementation of a virtual model.
Relatively small groups of five to seven people can promote learning better than one-on-one training.
It is also important to align the modality of delivery with time constraints and availability – for example, evenings are often unsuitable. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
For a market segment with higher than average Internet and digital adoption and comparatively more education, developing or leveraging a dedicated project platform rather than YouTube as well as public sector relationships to embed modules into existing trainings of line ministries can ensure better outreach and learning.
The pattern of the use of communications channels by target audiences can assist in determining the delivery pathway. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Virtual and field-based models are not mutually exclusive, and combinations of channels can be tailored to suit groups defined in terms of location, business aspiration and education.
Certificates can incentivize progression through the entirety of a learning course while the use of email, SMS text, Facebook and other social media can help distribute post-learning satisfaction surveys to all participants at scale, following up with participants individually. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In terms of content, a narrative format with engaging characters and realistic scenarios, including a storyboard framework to keep the narrative flow of the modules coherent so that a participant completes each module before proceeding to the next helps to impart learning.
Enabling participants to learn what they want and need by eliciting feedback during exploratory pilots and adapting material accordingly before scaling up is equally important. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Some of the DFL areas SMBs were interested in included: first, promoting a business in the digital space: basic choices about medium of promotion, international payment and target audience; second, funding, loans and savings: where and how to apply for a loan, any alternative sources of funding, types of loans and interest rates, articulating long-term savings goals and identifying appropriate savings products; third, business management: adopting a realistic vision of business growth and planning for it; fourth, e-commerce: nurture professional ICT skills to include account opening, product uploading, domain hosting and product presentation; fifth, accounting: budgeting, product pricing and bookkeeping; and sixth, soft skills: communication, negotiation and problem-solving, and how these skills underpin the exploration of business opportunities and network expansion. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In terms of the sustainability of interventions, adopting a clear product-oriented and solution-driven approach geared towards the real-world problems encountered by participants and leveraging existing infrastructure with modules embedded within existing services used by SMBs and integrating modules with other programmes can have a long- lasting impact.
Trainers and field staff who have already been trained during earlier phases can better deliver subsequently refined and expanded modules. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The project intended to identify sustainable ways in which DFL content could be delivered to SMBs, and leveraging existing infrastructure and digital training can enhance reach and re-iteration.
Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business 6 GLOBAL EXPERIENCES WITH DIGITAL FINANCIAL LITERACY Mass literacy has been pursued by humanity for at least 200 years, with ever-increasing, albeit gradual, success. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Digital and financial literacy (DFL), by contrast, is a 21st century phenomenon, and the early pages of its educational history are still being written.
There is a broad global consensus on the urgent need to expand it, demographically, and among certain groups of women in particular, but there is a plurality of views on how exactly to achieve that. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Even a standardized definition of DFL has proved elusive, though a brief encapsulation would be: acquiring the knowledge, skills and confidence to make safe and informed decisions using digitally delivered financial products and services.
Worldwide, interventions to increase DFL are multiplying.
Data, experience and insights are accumulating from multiple sources, but the question of what works best is still being answered. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
This document describes the first stage of a two-phase exploration of that question.
In general, according to the Alliance for Financial Inclusion (AFI), a successful DFL intervention requires the participation of a host of actors from within the financial system and beyond. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In 70 percent of countries that took part in a DFL survey conducted by AFI, the central bank is reported to be the leading institution in charge of coordinating the financial education agenda in the country, followed by the ministries of education and finance. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In addition to the central banks and other financial sector regulators, private sector stakeholders were also reported to be implementing DFL initiatives across different jurisdictions.1 Many governments across the globe have signaled their understanding of the centrality of DFL through legislation that creates a regulatory framework2 to drive forward the expansion of capacities, while many others run multi-year programmes with the same objective to enhance financial capabilities For example, Jordan is forging ahead with its efforts to expand DFL for children and young people. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In 2014, the Ministry of Education began a multi-year scale-up of its Financial Education Programme, with the ultimate goal to deliver the programme in all grade 7-12 classrooms.
Currently, Jordan’s Real-Time Scaling Lab3 approach presents an interesting long-term case study of scaling success via a coalition of diverse stakeholders working with schools around the country. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
This approach involves continual adaptation and refinement of curriculum content and teaching methods, tailored to the relevant age cohort.
1 See Annex of AFI Guideline Note No.
45, May 2021, for tables listing content and modality of DFL interventions to date, worldwide. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
For example, interventions in the following countries are described as prioritizing women: Afghani stan, Bangladesh, Burundi, Costa Rica, DRC, Egypt, Fiji, Honduras, Ivory Coast, Jordan, Mexico, Nigeria, São Tomé and Príncipe, South Sudan, Timor Leste, Tunisia, Uganda, and Vanuatu.
2 Such as in Bolivia and El Salvador in AFI Guideline Note No. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
45, May 2021 Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business 7 There are many predominantly private sector initiatives.
Across the Pacific, the Australia and New Zealand Banking Group (ANZ) has since 2010 been rolling out MoneyMinded,4 a flexible education programme for adults seeking to build money management skills, knowledge and confidence.
The programme was adapted to local contexts from the original initiative in Australia. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
For example, the digital financial services and mobile banking module delivered by ANZ in Solomon Islands has now reached several vulnerable populations, such as rural women, micro entrepreneurs and seasonal workers before their departure to host countries.
Notable financial education efforts are also underway in Sri Lanka, Malaysia and Thailand. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In October 2022, the Colombo Stock Exchange and the Chartered Financial Analyst Institute jointly issued a financial literacy book for distribution in schools and universities.5 Sri Lankans can now make well-informed choices and attain better protection against unscrupulous operators in the financial space.
In Malaysia, the Credit Counselling and Debt Management Agency (AKPK), under Bank Negara Malaysia, offers online courses, public events, books and courses and surveys. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Its financial education modules are designed to address the different needs and circumstances that arise at different life stages, from young adults in tertiary education, entering the workforce and starting a family, to senior citizens in retirement.
Financial education programmes also aim to address the specific challenges faced by more vulnerable groups in the lower- and middle-income groups. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Key topics covered include the importance of savings, setting financial goals, selecting financial products that match needs and goals, budgeting, basic borrowing and debt management. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In Thailand, the National Financial Literacy Plan, developed by the Ministry of Finance and Ministry of Education alongside the Bank of Thailand, aims to provide a capacity- building programme in the form of training and activity, using educational material and communication media for different target groups, including children and youth, first jobbers, salary workers, low-income earners, informal workers and older people. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
While there are few examples of financial literacy interventions leveraging digital channels of delivery along with physical ones, not many interventions exist that look at DFL in totality as more and more financial products are now available digitally to more and more people.
3 Improving financial literacy skills for young people: Scaling the Financial Education Program in Jordan.
Brookings Institute, November 2022.
4 MoneyMinded 5 Nanayakkare, Sanath. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
4 MoneyMinded 5 Nanayakkare, Sanath.
“Sri Lanka accelerates financial literacy drive amid scams.” The Island Online Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business 8 NATIONAL DIGITAL FINANCIAL LITERACY CONTEXT DIGITAL AND FINANCIAL ECOSYSTEM Bangladesh has in recent years seen growing adoption of digital financial services.
However, more than 62 percent of the households do not have Internet access at home. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In rural areas, only 8.7 percent of the poorest 20 percent of households have Internet access at home. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
These people are at risk of being left behind in the digital age, particularly women, who already are less likely than men to have a mobile phone (58 percent versus 87 percent, thus a 34 percent gap) or Internet access (here a large 62 percent gap).10 Until gender-specific barriers are carefully dismantled, women entrepreneurs will struggle to access the support and resources needed to establish and develop their business.11 That is why it is critical to support the population with appropriate and gender-specific knowledge and tools so they can access and use digital (and indeed non-digital) services to lead healthy and productive lives, grow their businesses and build resilience. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The COVID-19 pandemic not only served to emphasize the urgency of such work but also demonstrated that those can leverage digital tools are likely to be better equipped to persevere through this crisis, and likewise through other challenges that could occur in the future; in sum: they will be much more resilient.
Aside from the UNCDF/Visa project described below, there are a few DFL pilots largely driven by the private sector. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
However, there have been financial literacy interventions undertaken on a significant scale in the country.
For example, the Bangladesh Securities and Exchange Commission (BSEC) has set up its own financial literacy programme, served by a dedicated department. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
BSEC intends to make individuals understood at their level of needs, imparting the role of money in their lives, the need and use of savings, the advantages of using formal financial mechanisms, various ways to convert their savings into investments, and how to develop self-protection through an understanding of risks and a realistic evaluation of options. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In March 2022, Bangladesh Bank, the central bank of Bangladesh, issued a directive12 on financial literacy guidelines for banks and financial institutions (in this context, Bangladesh Bank refers to these as financial literacy providers). | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Through this directive, Bangladesh Bank seeks to strengthen people’s financial knowledge; capacitate people towards DFS; raise awareness against fraud and associated risks; reduce the gender gap in financial services; ensure delivery of synchronized financial literacy based on the needs of different target 10 Barriers to Digital Services Adoption in Bangladesh, Kevin Hernandez, Institute of Development Studies, 2019. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The author discusses digital access in terms of availability, affordability, awareness, ability and agency, all intersecting with a gender gap of 34% in mobile phone ownership and a gender gap of 62% and 66% in Internet and social media usage respectively.
Hernandez also looks at social norms governing connectivity, especially as experienced by adolescent girls.
11 UNESCAP (2013).
Enabling Entrepreneurship for Women’s Economic Empowerment in Asia and the Pacific. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
12 See March 2022 report Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business 9 groups through effective tools and monitoring mechanism; and establish a sustainable financial literacy infrastructure at the community and national levels through creating enabling environment for financial literacy programmes. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
That directive builds on the Bangladesh Bank’s Financial Literacy Guidelines,13 which list a wide range of communication tools available to FLPs that consider the needs of different age groups and educational levels including: training booklets, leaflets, brochures, banners and posters; presentations; financial comics and stories; simulation games; smartphone applications; advertisements, instructional videos and infographics. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The Guidelines also list the following communication approaches to be adopted by FLPs: develop target-specific modules that exploit real-life examples; make the language and tools appealing and accessible; consider readily-accepted multimedia channels such as social media, television, radio, audio-visuals, digital display and kiosks; use simulation systems to familiarize participants with various banking services (money transfer, e-banking, account opening, digital payments, ATM operation and grievance redress); emphasize financial literacy initiatives aligned with the digital transformation in the financial landscape of Bangladesh, thus stress cashless banking, the cashless payment environment, e-banking, mobile banking, mobile financial services, fintech and techfin. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
PROJECT BACKGROUND In Bangladesh, the COVID-19 pandemic has sharpened the need to support small businesses.
Small and micro businesses (SMBs) are grappling with the consequences of reduced demand, straining to cover wages, pay suppliers and fulfill credit obligations.
The daily revenue of SMBs dropped by nearly 70 percent during the pandemic and most enterprises were drawing on their savings to cope with the effects of the crisis. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
In response to the gaps in digital and financial literacy, the overall objective of UNCDF’s Build Back Better – Enhancing Recovery and Resilience of Small and Micro-Businesses project is to develop a mechanism and tools that support acquisition of the financial and digital literacy skills needed to adopt and leverage digital services, with a focus on women-led SMBs. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The project seeks to empower entrepreneurs in Bangladesh with the skills to confidently adopt and leverage these new services to improve their competitiveness and performance. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The main components of the project include the following: • A Rapid Needs Assessment • Development of e-learning modules, including audiovisual and app-based tools (basic modules covered in this report; advanced modules to be delivered in the next phase) • Building of entrepreneurs’ capacity to use digital tools to support their businesses 13 Financial Literacy Guidelines: Striving for a Financially Literate Society. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Financial Inclusion Department, Bangladesh Bank Head Office, Dhaka, February 2021 Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business 10 The major targets of the project are: • First – Reach more than 200,000 SMBs including women-led SMBs • Second – Impact 5,000 individual SMBs In the initial phase of the project, UNCDF, with support from Visa, partnered with ShopUp, a leading full-stack business-to-business (B2B) platform, and ekShop, an e-commerce aggregator platform - two of the most prominent SMB integrators in the country. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
They commissioned a Rapid Needs Assessment to evaluate the existing level of financial and digital literacy of SMBs.
The Assessment focused on the ekShop and ShopUp ecosystem, including SMBs on these platforms, associated fintech partners and commercial enterprises.
Additionally, the SMB network and stakeholders at the national and sub-national levels were explored to maximize outreach. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The Assessment learnings were then applied to the development of a customized set of financial and digital literacy modules.
The Assessment set out a baseline against which the success of programme outcomes may be judged.
The Assessment offered insights into the needs of SMBs in terms of financial inclusion, particularly women entrepreneurs, rural and peri-urban enterprises and companies newly engaged in the e-commerce sector. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The study identified substantial gaps in the digital and financial literacy levels of entrepreneurs in Bangladesh.
Over 50 percent of SMBs under consideration showed a poor understanding of how digital and financial services could help them.
Financial literacy gaps were even more pronounced for women entrepreneurs. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
These gender gaps remain despite women-led SMBs’ increasing awareness of the need to be financially literate, plan and actively manage their personal and business finances.13 Overall, digital literacy was rudimentary or patchy.
Respondents showed a positive view of the use of social media, adoption of technology and awareness of digital services.
However, they did not use digital services for business, work, learning or training. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
On the other hand, 96 percent of SMBs reported having an email account, all respondents reported using a smartphone and nearly all participants had either a broadband or mobile Internet connection.
Although respondents were aware of mobile and online financial services, only a small share benefited from them, with financial products used by fewer than half of respondents. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Women showed greater willingness to save and invest money – 83 percent of women preferred saving money instead of spending, compared to 67 percent of men.
There were lower levels of financial numeracy among women – only nine percent of women were able to carry out interest rate calculations compared to 52 percent of men.
The Assessment was launched at an online event on 24 May 2021, with participants from across the leading public and private organizations globally and in South Asia. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
UNCDF also engaged policymakers and regulators in dialogue to address key issues around gaps in digital and financial literacy in the SMB sector. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
13 (UNCDF, 2021) Digital and Financial Literacy in the Bangladesh SMB Sector Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business 11 APPROACH AND METHODOLOGY BASIC LEARNING MODULES CREATED Further to the Assessment, UNCDF worked with ekShop and ShopUp to identify and prioritize module topics and to build partners’ capacity in adult learning principles to ensure alignment of modules with global best practices. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Together with the two implementing partners, UNCDF developed a framework and storyboard for the basic video modules based on the Assessment and leveraging Visa’s Practical Business Skills (PBS) financial educational programme.
Based on the Assessment, UNCDF and Visa, along with ekShop and ShopUp, developed a custom suite of basic e-learning modules that can be accessed on the ekShop and ShopUp platforms on finance and business management, including audiovisual and app-based tools. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
The e-learning modules will be continually updated with additional content.
These basic modules were launched in November 2021 and included the following key topics: 1.
Creating a business plan: Defining vision and mission, objectives and business strategy, and basic financial projections 2.
Financial basics: Creating a budget, saving for success, planning for financing, and building business credit 3. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Financial management: Managing cash flow and expenses, profit and loss calculation, payment options and banking services 4. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
Promoting a business: Creating a digital storefront, enabling site searches, utilizing social media and metrics for marketing success 5. Business to e-business: Onboarding online customers, inventory management and logistics and promotions for e-businesses The partners have already developed advanced modules in the next stage of the project based on the assessment of the basic modules.
This two-pronged iterative approach promotes learning and sequencing, moving from more basic to advanced DFL concepts. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
CAPTION | Left: screenshot of ekShop module; Right: screenshot of ShopUp module Digital financial literacy via e-commerce: Implications in Bangladesh, especially for women in business 12 There are two major targets for the project across the two stages of content development.
The first is to reach 200,000 SMBs through both the basic and advanced modules or roughly 100,000 through the basic modules and 100,000 through the advanced modules. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
To date both partners have reached more than 110,000 SMBs with the basic modules towards the first target.
The second target is to impact 5,000 SMBs through both the basic and advanced modules.
In fact, the project partners have already surpassed this goal, impacting 5,202 through the basic modules.
This report focuses on the progress the partners have achieved so far and describes how the basic modules were leveraged and impacted the SMBs on both platforms. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |
It will first explain the approach and methodology, comprising: • Basic learning modules (as outlined above); • Tools to assess learning attained; • Delivery models and channels identified; • Social perspective on businesses targeted; and • Outreach achieved.
The report will then consider results in terms of: • Learning outcomes; and • Success and Insights.
The report will conclude with a series of key recommendations on: • Content; • Delivery pathway; and • Sustainability. | https://docs-lawep.s3.us-east-2.amazonaws.com/1696756487976.pdf | https://bangladesh.un.org/en/download/123529/212331 |