Finpowerment

Finpowerment is an inclusive financial education platform which can be accessed without internet.

Finpowerment is a financial education platform which allows users to access it with or without internet. Finpowerment provides a curriculum which users can follow based on their age, prior financial knowledge, employment status and other metrics. It provides definitions, teachings and recommendations of suitable available financial products for the user. The curriculum is available on an online platform – a website – which users can access either via a web browser (those who have access to internet) or via a phone (for those without internet access). For users who do not have access to internet or a smartphone, this platform may be access via Unstructured Supplementary Service Data (USSD) technology. The user can simply dial a USSD code on their cell phone (i.e., *123#), which will fetch information from the website and present it to the user through text messages. The user can then input their answers by replying to the text messages, and follow prompts such as "PRESS 1 to CONTINUE, PRESS 0 to go BACK".

The problem I am seeking to solve is the lack of financial literacy in Botswana. Statistics indicate that only 50% of Batswana adults are financially literate, which means that only 1 in 2 Batswana adults have the skills, knowledge, awareness, behaviours and attitudes to make sound financial decisions and ultimately achieve financial well-being. The factors which contribute to this low financial literacy rate include lack of unbiased financial education information, lack of internet access – mobile internet penetration in Botswana stands at only 47%, and lack of financial education materials which are tailored to the local market. Research shows that there is  a limited of understanding of the attributes of financial products and how they operate in most market segments and that this low understanding is a huge barrier for financial product providers. Ultimately, the need for financial literacy is across all segments to ensure products are understood and used effectively by consumers.

The consequences tied to the problem include the high poverty rate in Botswana, the poverty rate in Botswana is estimated to have reached 60% by now, which has been further exacerbated by the COVID-19 pandemic.

The solution serves anyone with access to a phone in Botswana, whether or not they are able to access internet. Mobile penetration in Botswana is currently 164% of the population, which corresponds to 3.89 million mobile connections within a population of 2.35 million people. Statistics indicate that 32% of Batswana are not formally served, with 24% being totally excluded. Totally excluded individuals do not use any form of financial services or products, whether formal or informal. One major cause of this is the lack of understanding of financial products and financial services.

In Botswana, no financial financial education exists, whether it be in the school curriculum or in the workplace. By equipping Batswana with financial literacy skills, they will be better positioned to achieve well-being and this will, in turn, alleviate the current poverty rate.

Financial literacy has been identified as the biggest driver of financial inclusion, and financial inclusion is an enabler of 8 out of 17 Sustainable Development Goals, namely: SDG 1 – no poverty, SDG 2 – zero hunger, SDG 3 – good health and well-being, SDG 5 – gender equality, SDG 8 – decent work and economic growth, SDG 9 – industry, innovation and infrastructure, SDG 10 – reduced inequalities and SDG 17 partnership for the goals. This highlights the importance of financial literacy in reducing inequality and bringing us closer to achieving the SDGs.

Currently, I volunteer with an organization called Economy of Francesco, which aims to bring together researchers, economists and changemakers with the view to use finance for good. I am a part of the Financial Education team, which is responsible for developing and implementing a financial education project in three locations: Nigeria, Brazil and Cuba.

Secondly, from 2018 to 2019, I served as the Botswana Coordinator at SheVestor, an international social enterprise which aims to impart financial education to young millennial ladies. Through this program, I collaborated with financial service providers to host the first financial literacy workshop in Botswana. The feedback from all stakeholders in this program have informed my decision to begin this project. 

I currently run a social initiative which teaches the youth financial literacy and entrepreneurship skills. This program offers interactive, age-appropriate ways to deliver financial education to the youth: small group discussions, workshops, interactive games etc. Through this program, we collaborated with various schools, and youth NGOs in two locations.  We consulted with schools and NGOs on the average financial knowledge of the students and their strengths and weaknesses. Following the program, we performed a feedback survey which also gave as insight into this, as well as the impact of the program.

Finpowerment is currently at the concept stage of development. This is because a business model has been developed and preliminary research has been done behind the project, however, the product has not reached testing phase as of yet.

The core technology that powers Finpowerment is the Unstructured Supplementary Service Data (USSD) technology. This technology allows a user to access information from an online platform without the need for internet or a smartphone. 

The user dials in a USSD code, e.g., *123# and follows the prompts to connect them. From there, they receive the information in the form of text messages or prompts, and are able to perform functions by pressing numbers on their keypads, e.g. PRESS 1 TO CONTINUE, PRESS 0 TO GO BACK.

Presently, USSD technology is widely used, predominately in Africa, for mobile banking, mobile money and as a way to access school notes. This is an existing technology, which we are looking to implement in a new way - teaching financial education.

The solution hasn't yet launched, however we plan on serving at least 2500 users in the the next year.

The impact goals for the next year are as follows:

1. To increase the financial literacy of users of the platform. We plan on doing this by offering a robust financial education curriculum both through our online platform and through the USSD technology.

2. To empower users to make sound financial decisions and take up the appropriate financial services and products. We will do this by recommending financial services and products to the customers based on their age, employment status, income level, prior financial knowledge and other metrics.

Following completion of the curriculum, users will be required to fill out a post-training survey. These surveys, which will make use of indicators such as financial knowledge, financial behaviour, and financial attitudes as stated by the International Network on Financial Education.

The impact will be measured based on the number of users who completed the training who feel that their financial knowledge has increased and that they are able to apply those concepts practically.

In terms of the UN Sustainable Development Goals, the impact indicators are as follows:

Target 1.4 is to ensure that all men and women, in particular the poor and the vulnerable, including appropriate new technology and financial services, including microfinance.

Target 1.5 is to build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to amongst economic, social shocks and disasters, amongst others. 

Target 4.4is to substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.

In number terms, these indicators are as follows:

1. The number of users on the platform

2. the number of users who successfully complete the training on the platform

3. the number of return user and the number of users who report increased financial literacy following the program.

The barriers to exist for accomplishing our goals for the next year are as follows:

1. Cultural barriers. As this is a new use of an existing technology, users are not accustomed to accessing a skills training programme via USSD technology. Presently, USSD technology is used to access mobile money services, and to access school material at primary and secondary school level.

2. Financial barriers. The cost of implementing the solution will result in financial barriers. Implementing the solution will result in costs for developing the online platform, partnering with the 3rd party USSD technology provider, marketing and promotional material.

3. Legal barriers. Meeting the legal requirements set out by the Non-Bank Financial Institutions Regulatory Authority for delivering financial advice through a mobile platform.

Entle Mmipi, the team leader has experience in financial literacy and skills training. She holds a bachelor's degree in Finance and a postgraduate qualification in Enterprise Risk Management. She is currently a part of the Financial Education team under the Economy of Francesco initiative, which is responsible for developing and implementing a financial education project in three locations: Nigeria, Brazil and Cuba. Previously, Entle served as the Botswana Coordinator at SheVestor, an international social enterprise which aims to impart financial education to young millennial ladies. Lastly, she founded a social enterprise which teaches the youth financial literacy and entrepreneurship skills. This program offers interactive, age-appropriate ways to deliver financial education to the youth: small group discussions, workshops, interactive games etc. Through this program, we collaborated with various schools, and youth NGOs.

Mandipa Makhumalo has a bachelor's degree in Law and a postgraduate qualification in Compliance Management, and has work experience in regulatory compliance law, corporate law and commercial law, amongst others. She has + 3 years' experience carrying out financial education skills training both through SheVestor, AIESEC and Finpowerment Botswana. She led a microfinance and entrepreneurship training programme in Tanzania through the AEISEC program. Mandipa is one of the founding members of Finpowerment Botswana. She is well-positioned to advise and interpret the regulatory requirements for this project and contribute to the project's financial education curriculum.

We currently do not partner with any organizations at the moment.