On 29 June 2016, Bank of the Lao PDR (BoL) hosted the seventh quarterly Digital Financial Services (DFS) Working Group meeting, with the support of the United Nations Capital Development Fund (UNCDF) programme Mobile Money for the Poor (MM4P) and the programme Making Access to Finance more Inclusive for Poor People (MAFIPP). Chaired by Visone Saysongkham, Deputy Director General of the Financial Institution Supervision Department, the event focused on the importance of targeted and innovative marketing initiatives to introduce DFS to rural communities in the Lao People's Democratic Republic (Lao PDR). In a country where 72 percent of the population own a mobile phone and only 47 percent are financially included, DFS hold significant potential to provide accessible and convenient services to Lao people. However, low literacy and limited understanding of technology represent major challenges to penetration and adoption of DFS in rural areas, as Mr. Saysongkham reminded participants in his opening remarks.

Initiated in 2015, the DFS Working Group provides a platform for DFS stakeholders to learn, dialogue and partner to advance DFS in Lao PDR. This seventh meeting gathered over 50 representatives from banks, microfinance institutions, telco operators and the Government. As in previous meetings, this gathering offered an opportunity to spread learning from market research and DFS initiatives from abroad.

David Kleiman, UNCDF-MM4P DFS expert for Lao PDR, presented the 'Lao PDR Annual Monitor 2015’—a sort of state of the nation with respect to DFS. Starting with a global view and looking at the broader opportunities for and growth of DFS, particularly in Asia over the past year, Mr. Kleiman provided some context for the progress made in Lao PDR in 2015. Lao PDR is clearly in an inception phase, with its first and only branchless banking initiative launched within the past year (Banque Pour Le Commerce Exterieur Lao [BCEL] began BCEL Community Money Express [BCOME]). Since the launch, the BCOME agent network has spread to serve customers in every province of the country. In parallel, the market is evolving thanks to the efforts by BoL to build the foundation of a favourable regulatory environment for DFS. An example of this evolution is seen in the engagement of multiple microfinance institutions acting as agents in the BCOME network.

The Working Group also hosted Hnin Nu Hlaing, Marketing Manager of Wave Money, a mobile financial services provider in Myanmar that was jointly established by one of the world’s major mobile operators (Telenor) and a local bank with 20+ years in the market (Yoma Bank). Ms. Hlaing manages Wave Money marketing and promotional programmes that support brand growth, ensure effective brand positioning in the market and increase brand awareness with the aim of enlarging market share through customer acquisition, activation and retention.

Ms. Hlaing presented the below-the-line marketing strategy developed by Wave Money in Myanmar. She shared some of her specific experiences with marketing games to help expose rural customers both to the concepts of financial literacy and the benefits of new services.

One example Ms. Hlaing shared was the game ‘Financial Inclusion Snakes and Ladders.’ Snakes and Ladders, she explained, is a popular children’s game in many countries based on morality lessons: players move up and down the game board, representing their movement through life, and are confronted with vice (snakes) and virtue (ladders). Financial Inclusion Snakes and Ladders presents financial situations commonly faced by target customer groups (unbanked farmers, informal consumers and informal enterprises). Players face situations of poor financial decisions, which make them lose turns, and smart financial moves where they gain financial strength and are propelled towards financial inclusion. The goal of this life-sized board game is to navigate through financial situations and reach financial inclusion first! This example of a game as a way to educate and to build brand recognition for new DFS appeared to resonate with the large group of participants.

Overall, the DFS Working Group has proven to be an excellent forum for Lao stakeholders to enter into discussion with each other while also gaining insights, ideas and understanding about DFS issues from international practitioners. The Working Group has fostered partnerships amongst stakeholders and provided a conduit for a market-development–oriented approach. BoL has strengthened its knowledge of international best practices in DFS while simultaneously taking a leadership role in promoting innovative services. The next Working Group meeting will be held in December and is intended to address the complexities of various types of agent networks.