CMF in partnership with Good Return (Asia-Pacific regional microfinance initiative of World Education Australia Ltd.) and World Education Inc., Nepal is implementing the CAFE (Consumer Awareness and Financial Empowerment) initiative pilot project in Nepal. Our partners in this program are Swarojgar Microfinance Development Bank (in Chitwan) and Sahara Nepal Saving and Credit Cooperative Society (in Jhapa).
The CAFE initiative is an innovative technique intentionally focuses the intervention on the shared responsibility of the financial service provider (FSP) and consumer working together through a dynamic interactive process, to ensure responsible financial inclusion, consumer protection and financial capability development. CAFE is unique in Nepal as it leverages existing channels to deliver training and targeted messaging that are linked to the Smart Campaign’s 7 Client Protection principles and designed to influence the money management behavior of FSP clients.
The goal of the CAFE Initiative is to support FSPs and consumers working together to strengthen client protection and financial behavior, ultimately enhancing the financial wellbeing of low-income households.
The CAFE curriculum is based on five modules that support the development of financial capability and consumer awareness. Using tools such as Learner Needs Assessment and in-depth Smart Assessment, CAFE takes the findings to inform the design of the distinct but mutually reinforcing models: CAFE Accelerator and CAFE Face-2-Face.
CAFE Accelerator is targeted at the FSPs entire client base (similar to a mass-media or mass-marketing approach). It uses existing product or service delivery and communication channels to embed key messages that prompt clients to follow desired financial behaviors strengthening consumer protection.
CAFE Face-2-Face (F2F) is targeted at a subset of FSPs clients who are identified as being vulnerable (e.g. at risk of over indebtedness or high incidence of relative poverty). Using an interactive training method, participants are supported over an extended period to close the “intention action gap” of consumer protection and positive financial behaviors. This is achieved through positively re-framing their money perceptions and coaching participants to develop new habits that apply to their real-life money management decisions.
With the introduction of new technology as CAFE mobile app for F2F, it is easy to monitor the change week after its implementation and foresee the changes required.
Donor: Good Return Australia Project Length: December 2013 - March 2016 Location: Chitwan and Jhapa districts
The programme works with both the public and private sector to leverage access and facilitate financial sector development for small and medium enterprises and for the rural poor people specifically in the mid-and-far-western regions of Nepal.
To do so, the programme focuses on three main outputs:
1. Improved SME finance as banks and other financial institutions provide more and better products and services to these enterprises;
2. Strengthened capacity of microfinance financial institutions as well as other formal and semiformal financial institutions to provide services in selected districts and,
3. Improved financial capability of enterprises and households in priority districts.
The overall impact of the programme will be improved livelihoods in Nepal through the creation of around 88,000 sustainable new jobs, or job equivalents.
Donor: DFID Project Length: 60 months Location: Mid and Far Western Regions