In the quest to enhance financial inclusion and economic empowerment, the Africa Digital Financial Inclusion Facility (ADFI) has adopted innovative research approaches, particularly human-centered design, to understand and address barriers faced by marginalized groups, including women, youth, rural dwellers, and small-business owners. The focus is on creating digital financial solutions that are not only accessible and affordable but also culturally and socially relevant.
Innovative Initiatives by Yello Digital Financial Services
One notable initiative involves Yello Digital Financial Services Ltd, a fintech subsidiary of MTN Nigeria Communications Plc, which has developed gender-focused mobile money (MoMo) agent networks. These networks aim to empower women entrepreneurs by providing them with training on digital financial solutions, overcoming challenges posed by cultural and social norms. This initiative enables women like Judith Laokwali to better manage customer payments and improve their economic activities.
Illustrative Image: Empowering Financial Inclusion: ADFI’s Human-Centered Design for Gender-Focused Digital Financial Solutions in Africa
Image Source & Credit: African Development Bank Group
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Human-Centered Design Approach
Human-centered design research has played a pivotal role in shaping digital credit solutions offered by M-KOPA. By involving women in the design process, M-KOPA has tailored loan repayment options and facilitated access to digital credit using pay-as-you-go smartphone services as collateral. This approach has been piloted in Kenya, leading to increased women’s participation in a PAYG financial inclusion pathway.
Similarly, Pula Advisors has utilized ADFI grants to conduct research and develop gender-centric microinsurance solutions for women smallholder farmers in Kenya, Nigeria, and Zambia. The research focuses on understanding social, cultural, and economic factors affecting women farmers’ access to microinsurance. The outcome is expected to be the creation of insurance products and services aligned with the specific needs of women farmers, ultimately closing the gender gap in microinsurance adoption.
Innovative Initiatives by Yello Digital Financial Services:
ADFI’s overarching strategy involves catalytic and strategic investments in digital financial solutions across three main pillars: digital infrastructure, policy and regulation, and products and innovation, with gender inclusion and capacity building as cross-cutting themes. By involving participants in the design process and addressing specific needs through research, ADFI aims to break down barriers to digital financial solutions’ growth and uptake, thereby accelerating financial inclusion and reducing gender disparities.
Through initiatives like these, ADFI is not only empowering individuals like Judith Laokwali and women smallholder farmers but also contributing to the development of replicable and innovative human-centered design frameworks for digital financial services. The goal is to enable individuals to champion their own needs, actively participate in product design, and influence their communities on the benefits of digital financial solutions. This approach holds the promise of fostering sustainable economic growth and resilience among traditionally underserved populations.
The African Research (AR) Index is a comprehensive scholarly directory and database focused explicitly on journal publishers that publish and disseminate African research.
