Financial Action Learning System Bridging the Gender Gap

Financial Action Learning System Bridging the Gender Gap in Responsible Finance Towards a Gender Road Map for ASKI Linda Mayoux, Malou Juanito and Jamy/Anna? ? March 2018

Bridging the Gender Gap Philippines implementation Piloting FALS methodology in 2 different types of institutions in different regions - ASKI and NWTF - to: • Adapt the client financial empowerment tools to be useful as possible for clients to use and share with others to upscale • Streamline MFI tools and system linkages between client financial empowerment, product development, SPM and client protection • Establish a solid and sustainable basis and skills for scaling up and replication in Philippines and elsewhere? • FALS Phase 1 Catalyst (September 2017) • FALS Phase 2 Client empowerment deepening (March 2018) • FALS Phase 3 Gender mainstreaming for financially sustainable client empowerment and scaling up (April 2018 onwards) Financial Action Learning System Copyright Linda Mayoux and Oikocredit 18/09/2020 2

3 N o v e m b e r 2 0 1 7 Presentation outline Part 1: Why Bridging the Gender GAP? • Question assumptions around ‘virtuous empowerment spirals’ in the light of experience of ASKI and NWTF clients in Philippines • Business case for gender policy in ASKI • Discuss gender indicators for ASKI going forward in the light of the champion review Part 2: FALS Gender Vision and Frameworks • Empowerment Vision • Client perspectives Part 3: Towards an ASKI gender policy road map • Propose a gender policy framework in the light of global experience • Propose future steps for FALS to support the ASKI gender policy

Micro-finance innovation for poverty reduction • Diversity of financial products – Credit and leasing products – Saving and pensions – Insurance – Remittance transfers • Diversity of non-financial services – Livelihood and business development services – Institution building – Gender strategies

r. Micro. Finance and empowerment: potential virtuous spirals SAVINGS AND CREDIT REPAYMENT WOMEN’S DECISION ABOUT SAVINGS AND CREDIT USE HOUSEHOLD INCOME UNDER WOMEN’S CONTROL CHILDREN’S WELL-BEING WOMEN’S WELL-BEING HOUSEHOLD WELL-BEING Nutrition Health Literacy Happiness MEN’S WELL -BEING POVERTY REDUCTION WOMEN’S ECONOMIC ACTIVITY INCREASED INCOME IMPROVED STATUS AND CHANGING ROLES ACCESS TO MARKETS WOMEN’S ECONOMIC EMPOWERMENT CONTROL OVER INCOME AND RESOURCES ENTERPRIS E GROWTH ECONOMIC GROWTH CONFIDENCE AND SKILLS (POWER WITHIN, POWER TO) MOBILITY AND NETWORKS (POWER WITH) WOMEN’S SOCIAL AND POLITICAL EMPOWERMENT POWER TO CHALLENGE AND CHANGE INEQUALITIES (POWER OVER) WOMEN’S HUMAN RIGHTS

N C 6 Questioning o complacency p v e y rm ib e g r h t 2 0 L i 1 7 n d a M a y o u x Philippines Women are mostly taking loans for their own use May give loan to men on later cycles SAVINGS AND CREDIT ? ? Over-indebtedness? ? Men may take loan but!!! REPAYMENT ? ? Women may give the loan to men WOMEN’S DECISION ABOUT SAVINGS AND CREDIT

Questioning women’s economic empowerment SAVINGS AND CREDIT REPAYMENT WOMEN’S DECISION ABOUT SAVINGS AND CREDIT USE ? Diversion of loan to other uses ? ? Incomes may be very low Philippines Women often managers of household budget ? ? Men may control income WOMEN’S ECONOMIC ACTIVITY INCREASED INCOME ACCESS TO MARKETS WOMEN’S ECONOMIC EMPOWERMENT CONTROL OVER INCOME AND RESOURCES ENTERPRISE GROWTH ECONOMIC GROWTH ? ? Women may work from home with marketing by men ? ? All women’s income may go for consumption Male and female migration and remittances

Questioning women’s N C 8 o well-being Philippines p v SAVINGS REPAYMENT Male and female e y AND CREDIT migration and rm WOMEN’S DECISION ABOUT SAVINGS AND CREDIT USE remittances ib e g r h HOUSEHOLD INCOME t ? ? Women’s decisions UNDER WOMEN’S 2 CONTROL may replicate gender 0 L inequality i 1 CHILDREN’S WOMEN’S ? ? Women may forego ? ? Girls may suffer 7 n WELL-BEING own consumption d HOUSEHOLD a WELL-BEING M a y o u x Nutrition Health Literacy Happiness MEN’S WELL -BEING POVERTY REDUCTION ? ? Men may withdraw their contribution to the household

Questioning women’s social N C 9 o political empowerment and p v e y rm ib e g r h t 2 0 L i 1 7 n d a M a y o u x SAVINGS AND CREDIT REPAYMENT WOMEN’S DECISION ABOUT SAVINGS AND CREDIT USE ? ? May replicate and reinforce existing roles ? ? Women may work from home IMPROVED STATUS AND CHANGING ROLES MOBILITY AND NETWORKS (POWER WITH) CONFIDENCE AND SKILLS (POWER WITHIN, POWER TO) ? ? Debt may decrease confidence WOMEN’S SOCIAL AND POLITICAL EMPOWERMENT POWER TO CHALLENGE AND CHANGE INEQUALITIES (POWER OVER) WOMEN’S HUMAN RIGHTS ? ? May divert attention from wider change

Microfinance and N C 1 disempowerment: o 0 potential vicious v p circles e y ALL ASSUMPTIONS MUST BE QUESTIONED SAVINGS REPAYMENT AND CREDIT ? ? r m ib WOMEN’S DECISION ABOUT SAVINGS AND CREDIT USE e g r h INCOME WOMEN’S IMPROVED STATUS t HOUSEHOLD UNDER WOMEN’S ECONOMIC AND CHANGING 2 CONTROL ACTIVITY ROLES 0 L CONFIDENCE MOBILITY AND i 1 CHILDREN’S WOMEN’S INCREASED ACCESS TO AND SKILLS NETWORKS WELL-BEING INCOME MARKETS WELL-BEING 7 n (POWER WITHIN, (POWER WITH) POWER TO) d HOUSEHOLD a WOMEN’S WELL-BEING ? ? M a y o u x Nutrition Health Literacy Happiness MEN’S WELL -BEING POVERTY REDUCTION ? ? WOMEN’S ECONOMIC EMPOWERMENT CONTROL OVER INCOME AND RESOURCES ENTERPRISE GROWTH ECONOMIC GROWTH ? ? SOCIAL AND POLITICAL EMPOWERMENT POWER TO CHALLENGE AND CHANGE INEQUALITIES (POWER OVER) WOMEN’S HUMAN RIGHTS

1 N C o 1 v p e y rm ib e g r h t 2 0 L i 1 7 n d a Why should MFIs bother about gender? M a y o u x • Large potential and underserved female market • Financial sustainability of FSPs because of high repayment and less cost chasing bad debt • Women's empowerment enables them to graduate to use more profitable products • Men’s gender empowerment reduces destructive masculine behaviours • Client loyalty reduces follow-up costs • Seeing clients prosper increases staff job satisfaction, reducing costs of staff turnover • Management diversity makes better decisionmaking • Ethical branding

What is FALS? FALS is: a client-led methodology that brings women, youth and men clients and financial service providers together as partners in developing and delivering empowering and financially sustainable products and services. Financial Action Learning System Copyright Linda Mayoux and Oikocredit Core tool: Responsible Finance Memorandum of Understanding (RFMOU): a client Financial Management Calendar used and supported an empowering manner as part of the application process through systemic integration of: • client financial empowerment methodology in client and staff training and upscaled through CFAs • • participatory product design and market research using outputs from RFMOU tracking and participatory focus groups social performance management using outputs from RFMOU, Happy Family Tree and participatory focus groups and/or gender event 18/09/2020 12

Client financial empowerment • • • Financial education for livelihood improvement Gender and generational empowerment Pyramid peer sharing in families and communities for network strengthening Identification of better and more profitable products Ability to use and repay more profitable products Ability to bring in more reliable clients • Win-Win Cycle • • Better partnershi with clients Client Protection Guidelines Thriving economic environment for new businesses Sustainable MFIs • Financial Action Learning System Less time and cost wasted chasing bad debts • Happier staff • SPM justifies ethical branding • Profitable and sustainable expansion to reliable and loyal clients Copyright Linda Mayoux and Oikocredit 18/09/2020 13

Gender Justice Vision Women are intelligent actors, not victims Women’s rights in CEDAW are non-negotiable A world where women and men of all ages realise their full potential as economic, social and political actors, free from all gender discrimination, for empowerment of themselves, their families, their communities and global humankind Men are potential partners in change towards a just society Redefine ‘culture’ in terms of underlying values of respect, inclusion and equity

Gender Justice Framework 1. Promotion of women’s human rights as stated in UN CEDAW to enable both women and men to move forward in a just society – – – Right 1: Freedom from Violence Right 2: Gender Equality in Decision-making Right 3: Equal property rights Right 4: Freedom of thought, movement and association Right 5: Equal rights to work and leisure 2. Gender justice for men to enable them to challenge and change gender stereotypes and constraints preventing men and women from achieving their full human potential.

GENDER TRANSFORMATION POWER WITH Po Wo w m co er w en as nfid ith pir en in: at ce ion s W Po om we en re skil r to : so ls ur ce s STRATEGIES FOR WOMEN to change gender inequality ALL POWER OVER = BAD en M er to in w with o P er w Po STRATEGIES FOR MEN to change gender inequality

1 N C o 7 v p e What do women y want? rm ib ASKI Philippines e g r h t Joint land 2 Joint car 0 L Reduce time on i 1 7 clothes washing by n d getting a washing a machine Reduce M unnecessary a expenditure on y clothes and o u cosmetics x Stop family and friends asking for free goods

Gender empowerment is fun! For staff as well as clients new ways of being human together

1 N C o 9 v p e y rm ib e g r h t 2 0 L i 1 7 n d a M a y o u x Financially sustainable mainstreaming strategy Steps which all FSPs can take: • ‘Walking the talk’: organizational gender policy • Participatory market research for empowering products • Gender and empowerment mainstreaming in non -financial services • Building on group activities/client networks for action learning and collective action • Macro-level focus and advocacy

2 N C o 0 v p e y rm ib • e g r h t • 2 0 L i 1 • 7 n d a • Organisational Mainstreaming Vision and institutional culture Mainstreaming women’s language Equal opportunity policies for staff Recruitment, training and promotion policies M a • Information systems y o • Using forms of u communication and x modes of delivery accessible to women

2 N C o 1 v p e y rm ib e g r h t 2 0 • L i 1 7 n d • a Mainstreaming empowerment in core services Application process for products Basic savings-and-credit training and group M mobilization a y • Extension services and business advice sections o u x

2 N C o 2 v p e y rm ib • e g r h t 2 0 • L i 1 7 n d a More empowering products Longer-term credit or leasing to build women’s assets eg land, housing in women’s names Flexible credit to maximise investment in profitable activities • Pension/long term savings M • Graduation for the ultraa poor from grants linked to y training and employment o u creation x • Value chain finance

2 N C o 3 v p e y rm ib e g r h t 2 0 L i 1 7 n d a ‘Credit-plus’ non-financial services • Microfinance and literacy • Microfinance and health- and HIV/aids-awareness • Women’s rights training and legal aid • Advocacy and ‘Gender Justice events’ on domestic M violence, women’s property a rights, women’s political y o participation u x • Can be done through partnerships and collaboration

2 N C o 4 v p e y rm ib e g r h t 2 0 L i 1 7 n d a M a y o u x Possible gender indicators for SPM CLIENT LEVEL • (all FSPs) percentage of women clients who know and understand the terms of the MFI’s financial services and those of their competitors • percentage of women clients who are themselves managing the economic activity, able to invest in growth of the activity and control decision on use of the income • (mixed-sex FSPs) percentage of women accessing larger loans and higher-level services; percentage of women in leadership positions in group-based programmes; STAFF LEVEL • gender equality of pay; • • • percentage of senior staff who are women existence of a written gender policy produced through a participatory process with staff aware of its contents and mechanisms for implementation accessed.

Resources Philippines BGG blogpage: http: //www. gamechangenetwork. org/philippines Oikocredit FALS Toolkit: http: //gamechangenetwork. org/fals-toolkit-oikocredit-aski-nwtf-philippines/ Other resources on FALS: http: //gamechangenetwork. org/empowerment-methodology-pals/financial -action-learning-system/ Other resources on gender mainstreaming in micro-finance: http: //gamechangenetwork. org/gender-mainstreaming/financial-services/ Financial Action Learning System Copyright Linda Mayoux and Oikocredit 18/09/2020