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Taking Financial Health Tools to the Customer in Eastern Europe and Central Asia

Why it is important?

Time and time again we observed that personal money management skills are crucial for survival of microenterprise, while building up the savings significantly improves the resilience towards economic shocks of the family and helps pursuing the family’s dreams. Thus for years MFC has been working on improving financial health of the low income people.

Today, the behavioral economy research shows, that only very small percentage of behavioral change in terms of money management can be assigned to financial education trainings [1]. The automatization of behavior serves much more the purpose – for example, an micro entrepreneur, who automatically puts aside 1 Euro of its daily revenue, is much more likely to build up her or his saving.

[1] After Common Cents Lab

What is the project about?

In this action research project, MFC partners with Accion create a digital tool (mobile phone application or responsive web site), that will support microfinance clients changing their financial behavior. The mobile solution will be a mean for financial providers to interact with their clients.

The project seeks to develop and test practical applications to assist consumers to better understand their financial health status and offer behaviorally-informed nudges, reminders and suggestions on how to improve it. Additionally, the project will work to optimize and embed these applications into the practises of financial institutions and NGOs carrying out financial education work to increase their programs’ cost-effectiveness and create knowledge about the financial health of their clientele that can be used to tailor and refine products to address the needs of specific client groups.

The project commenced on September 1, 2017 and will last till June 30, 2020. The project activities involves MFC members and partners in Poland, Romania, Armenia and Serbia, as well as involves MFIs from other European and Central Asia countries.

Who is involved?

The partner ogranizations taking part in first phase:
Poland: Rural Development FoundationFoundation for Innovation and Knowledge Citizens Advices Bureau
Armenia: Finca
Romania: good.bee
Serbia: Opportunity Bank

Want to learn more?

If you would like to know more or join the project, please contact us: microfinance{@}mfc.org.pl.

Project News:

The productive workshops on digital tool for financial health improvement took place in Warsaw