๐ฏ Inclusive FinTech Knowledge Bites [Week #42]
๐ฏ Inclusive FinTech Knowledge Bites [Week #42]
Uganda's Shared Banking Platform expansion, strategic digital payment partnerships in Francophone Africa, and how smallholder farmers leverage mobile tech
This week on The Barefoot Economist:
๐ 404 Farmer Not Found: How Smallholders Use Their Phones is Key
๐ธ Shared Banking Platform in Uganda to Expand Services and Reach
โ๏ธ Digital Payments in Francophone Africa: Strategic Partnerships
Enjoy your reading!
Hugo Pacheco, The Barefoot Economist
๐ Why Agricultural Information Services Must Consider How Smallholders Use Phones
In low- and middle-income countries, the rise of mobile phones has connected rural communities, especially smallholder farmers, to vital agricultural information. This digital revolution has sparked interest from various sectors, leading to the development of numerous digital services aimed at enhancing farming practices. While these services, particularly mobile information platforms, have shown promising benefits in improving yields and resilience, there remains a significant gap in adoption among farmers.
๐ง ๐๐ฒ๐ ๐๐ฎ๐ธ๐ฒ๐ฎ๐๐ฎ๐๐
Behavioural barriers to the adoption of digital information services among farmers can be addressed and mitigated through several strategies:
๐๐ป-๐ฑ๐ฒ๐ฝ๐๐ต ๐จ๐๐ฒ๐ฟ ๐ฅ๐ฒ๐๐ฒ๐ฎ๐ฟ๐ฐ๐ต: Conducting extensive user research is crucial to understanding how farmers engage with mobile phones and what specific barriers they face. This involves observing diverse farmers in their natural settings to identify their habits, preferences, and challenges when using technology.
๐จ๐๐ฒ๐ฟ-๐๐ฒ๐ป๐๐ฟ๐ถ๐ฐ ๐๐ฒ๐๐ถ๐ด๐ป: Involving farmers in the design process is essential. By engaging them in exploring ideas and testing prototypes, developers can ensure that the services are tailored to local realities and meet the actual needs of the users .
๐๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐๐ถ๐ป๐ด ๐๐ผ๐บ๐บ๐๐ป๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป ๐๐ต๐ฎ๐ป๐ป๐ฒ๐น๐: Providing information through multiple channels can help reach a broader audience. This includes using various formats (text, voice, visual) and delivery methods (push messages, on-demand services) to cater to different technological capacities and preferences among farmers.
๐๐ผ๐ป๐๐ถ๐ป๐๐ผ๐๐ ๐๐๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป ๐ฎ๐ป๐ฑ ๐๐ฒ๐ฒ๐ฑ๐ฏ๐ฎ๐ฐ๐ธ: After launching a service, it is important to maintain communication with users to gather feedback and insights. This allows for continuous improvement of the service based on real-life experiences and challenges faced by farmers .
๐๐ป๐๐ฒ๐ด๐ฟ๐ฎ๐๐ถ๐ป๐ด ๐ก๐ผ๐ป-๐๐ถ๐ด๐ถ๐๐ฎ๐น ๐๐ผ๐บ๐บ๐๐ป๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป: Recognizing that not all farmers are reachable through digital means, integrating traditional communication methods can help disseminate information effectively. Engaging respected community members or local leaders to share information can enhance trust and reach .
๐ง๐ฟ๐ฎ๐ถ๐ป๐ถ๐ป๐ด ๐ฎ๐ป๐ฑ ๐ฆ๐๐ฝ๐ฝ๐ผ๐ฟ๐: Providing training sessions and ongoing support can help farmers build their digital skills and confidence in using new technologies. This can reduce the cognitive load associated with using unfamiliar tools.
๐ฏ The Barefoot Insight
As mobile phones connect rural communities to essential services, particularly in agriculture, we often overlook the behavioural complexities that affect digital adoption.
๐ The "Elephant, Path, Rider" framework (by Jonathan Haidt) sheds light on how low-income segments perceive and engage with digital financial services (DFS). In this analogy, the "elephant" represents the emotional side, the "Rider" the rational side, and the "Path" the environment that can either ease or obstruct adoption.
In comparison to fully digital solutions, agent networks offer an immediate and tangible support system that addresses both emotional hesitations and practical complexitiesโfilling the gap between traditional banking familiarity and the future of digital finance.For many low- and middle-income (LMI) customers, the emotional "Elephant" is tethered to the trust and familiarity of traditional banking systems. There's an inherent comfort in established, cash-based methods, which is hard to shake even when DFS offer tangible benefits, such as marginal transaction costs or improved access to financial services. Meanwhile, the rational "Rider" recognizes the advantages of digital solutionsโwhether it's the efficiency of mobile wallets or the convenience of payments. However, change does not come easy when the "Path" is riddled with obstacles. Barriers such as lack of digital literacy, complex user interfaces, and fear of financial fraud make it difficult for the "Rider" to steer the "Elephant" down the digital path. This is where human agent networks offer a critical alternative. By providing trusted, face-to-face interactions, agent networks serve as a reliable guide for navigating this complex "Path."