Developing Behaviorally-Informed, Demand-Driven Digital Services for MSEs in Colombia

TOPICS

MSEs

FIW Year

2024

Transcripts:

English

Spanish

French

Summary + Key Insights

Developing behaviorally informed digital services can enhance the growth of micro and small enterprises (MSEs) in Colombia, addressing challenges like income volatility.

🌐 Understanding MSE Needs: Recognizing the diversity and specific challenges of micro and small enterprises allows for tailored services that better address their unique situations. By identifying specific profiles of MSEs, financial service providers can create targeted solutions that enhance accessibility and usability.

📉 Income Volatility: The significant income fluctuations faced by MSEs create barriers to financial stability and formal service access. This volatility requires innovative financial products that offer flexibility and support to help businesses manage their cash flow effectively.

🏦 Access to Financial Services: Many MSEs rely on informal lending due to a lack of credit histories and insufficient access to formal financial services. Addressing these gaps through improved data sharing and product alignment can enhance their financial health and security.

📈 Digital Tools for Growth: Implementing digital solutions can increase productivity and financial security for MSEs. Training and support are essential to encourage the adoption of these tools, leading to better business outcomes.

📊 Behavioral Insights: Understanding the behavioral challenges associated with income volatility can inform the design of financial products. This approach focuses on reducing cognitive load and simplifying decision-making for entrepreneurs.

🤝 Partnerships for Impact: Collaborative efforts among various sectors can create a supportive ecosystem for MSEs. By working together, stakeholders can leverage their strengths to enhance financial inclusion and promote sustainable economic growth.

🛠️ Innovation in Product Design: Financial service providers need to rethink how they design products for MSEs, focusing on user-centered approaches that prioritize flexibility and align with the realities of their operations. This can lead to increased adoption and better financial outcomes for small businesses.

This session summary was AI-generated using NoteGPT.

The panel will highlight a collaborative effort among various stakeholders to advance the Stive Colombia project which is focused on helping micro and small enterprises (MSEs) manage income volatility and improve their financial wellbeing. This initiative leverages behavioral insights and financial diaries data from MSEs to create financial tools and products that are specifically designed to address the challenges faced by these businesses in Colombia. By bringing together a diverse group of experts, the panel will explore how these behaviorally-informed solutions can be effectively developed, tested, and scaled to better meet the needs of MSEs. Additionally, the discussion will underscore the critical importance of understanding the financial behaviors and requirements of MSEs to create more inclusive and impactful digital financial products. Through this project, the panel aims to showcase the potential of innovative, data-driven approaches to significantly enhance the financial stability and growth of MSEs in Colombia and beyond.

Session Speakers

Luz Magdalena Salas

Vice President, ANIF

Luz Magdalena is currently Vicepresident of ANIF, Think Tank in Colombia. She is an economist from Los Andes University with a Master’s degree from Boston University and a Ph.D. in Economics from the City University of New York. Her research areas are applied microeconomics, development economics, and behavioral economics. She works on the design, implementation, and evaluation of product innovations, strategies, and interventions using experimental methods. Currently, her research is focused on financial inclusion, retirement savings initiatives and labor market.

Luz Gomez

Vice President, LAC, Mastercard Center for Inclusive Growth

Luz leads the Center’s strategy and programs across Latin America and the Caribbean (LAC), activating multi-stakeholder initiatives that drive inclusive growth. She comes to the Center with more than 20 years of experience working with the public and private sectors, including launching successful microfinance programs at Accion International’s U.S. affiliates and conducting research and evaluation of financial services programs and products with the Economic Opportunities Program at the Aspen Institute. Luz has authored or co-authored several studies related to scale and job quality in the microenterprise field. Prior to joining the Center, Luz worked as the research director for Knight Foundation, which involved research and evaluation design for the Foundation’s investment areas in journalism, communities, and the arts. She also initiated and led learning initiatives within the foundation. Luz holds an MA in Political Science from Columbia University and a BA from the University of California, Berkeley.

Veruschka Zilveti Velasco

Colombia’s Country Director & Andean Operations Coordinator, Fundación Capital

Development economist with more than 20 years of professional experience on financial and economic inclusion of vulnerable people in Latin America and Africa. Throughout her professional life, she has tested and implemented several strategies developed using behavioral sciences and human centered design techniques, to foster the financial and digital inclusion of MSEs, as well as to reinforce their capabilities, increase their productivity, improve their access to markets, and contribute to their sustainability. She is currently Colombia’s Country Director at Fundación Capital, which is leading Strive Colombia.

Hans Frech La Rosa

Senior Behavioral Researcher, The Center for Advanced Hindsight, Duke University

Hans Frech La Rosa is a Senior Researcher at the Common Cents Lab (CCL) at Duke University, where he leads behavioral science initiatives aimed at improving financial behaviors, decision-making, and the financial well-being of individuals in global contexts. He currently leads CCL’s initiatives to enhance the financial resilience of independent workers, micro, and small businesses in Latin America. Hans holds a degree in Psychology from the Pontifical Catholic University of Peru (PUCP) and a Master’s in Public Administration and Social Impact (MPA) from the London School of Economics and Political Science (LSE).

FIW REsources

Explore Financial Inclusion Week sessions from previous years.

Hosted annually by the Center for Financial Inclusion, FIW brings together global leaders to exchange ideas, share research, and offer perspectives to inform the future of inclusive finance.

Browse Sessions