Concern Worldwide's Gabrielle Smith presents on research findings surrounding new technology that can help enhance humanitarian cash and voucher programming.

1. New Technology
Enhancing
Humanitarian
Cash and
Voucher
Programming
Main Findings and
Ways Forward
7th June
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2.
Electronic
Payments
in
Development
Where? Why? What?
Programs that are There are many benefits There are many types of
disbursing funds associated with using e- technology that can
directly to beneficiaries payments facilitate e-payments
• Humanitarian • Operational Cost
Programs Savings • Pre-Paid Cards
• Micro Finance • Potential donor • Smart Cards
institutions preference
• Mobile Money
• Utility programs • Improved collection
• Mobile Vouchers
• Agricultural Vouchers • Better beneficiary
identification • Electronic Fund
• Training/Educational Transfers
Vouchers • Financial Inclusion/
Access
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3. Today’s
Presentor
Gabrielle
Smith
Social
Protec,on
and
Safety-­‐Nets
Advisor
Concern
Worldwide
Co-­‐Author
of
the
study,
New
Technologies
in
Cash
Transfer
Programming
and
Humanitarian
Assistance,
a
report
done
for
the
Cash
Learning
Partnership
Ø
Prior
to
Concern
she
was
Programme
Development
Coordinator
for
a
Madagascar-­‐based
NGO
and
consulted
on
design
of
the
DFID-­‐funded
Chars
Livelihoods
Programme
in
Bangladesh
and
Expanding
Social
Protec,on
Progamme
in
Uganda.
Ø
She
recently
developed
a
global
strategy
guiding
cash
transfer
programming
within
Concern
and
is
embarking
on
an
organisa,onal
social
protec,on
strategy
in
2011.
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4.
Background
to
the
Research
Ø The
humanitarian
sector
engages
with
the
poorest
people
in
challenging
environments.
A
reliance
on
technology
un,l
recently
was
considered
an
addi,onal
burden,
rather
than
a
tool
for
improving
programme
effec,veness.
Ø Advances
in
technology
in
low
income
countries
has
led
to
interest
from
donors,
prac,,oners
and
governments
in
how
technology
can
serve
humanitarian
response.
Ø
One
area
of
humanitarian
programming
driving
this
change
is
the
rapidly
expanding
field
of
cash
and
voucher
programming.
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5.
Research
ObjecEves
A
review
of
the
current
use
of
new
technology
in
humanitarian
aid
applied
to
CTP
encompassing
every
stage
of
the
programme
cycle.
•Targe,ng
•
Registra,on
•Delivery
of
payments
•Monitoring
and
evalua,on
Exploring
the
following
themes:
1. Precondi,ons
for
use
2. User-­‐friendliness
3. Accountability
4. Broader
consequences
of
using
new
technology
Within
this,
to
highlight:
• evidence
of
cost
effec,veness
of
using
new
technology
• bo@lenecks
and
barriers
to
upscale
• possible
‘next
steps’
in
adop,ng
technologies
to
enhance
aid
provision
5

6.
Research
Parameters
&
Methods
Context
Ø Low
income
and
disaster-­‐affected
countries
experiencing
humanitarian
crisis
in
last
5
years
(Kenya,
Niger,
Zimbabwe,
Somalia,
DR
Congo,
Pakistan,
Philippines,
HaiE)
Ø Slow
onset
and
rapid
onset
emergency;
conflict;
early
recovery
Ø Include
lessons
from
the
use
of
technology
in
other
contexts
where
appropriate
AcEviEes
Ø Literature
Review
&
Mapping
Ø Interviews
with
+100
key
stakeholders,
including
visits
to
Niger
and
Hai,:
• Interna,onal
NGOs
• Agencies
(WFP,
UNICEF,
UNHCR,
UNOPS,
FAO,
OCHA,
IFRC)
• Service
providers
(Telecoms;
Financial
Services;
Open
source
and
commercial
co’s)
• Consul,ng
(Accenture,
Financial
Sector
Deepening,
CGAP)
• Bodies
(CALP;
GSM
AssociaIon;
NetHope)
• Donor
(USAID,
DFID,
ECHO,
Gates
FoundaIon)
• Research
(TuJs,
IDS,
ODI)
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7.
Electronic
Payment
SoluEons
Pre-paid card Smart card Mobile money Mobile
voucher
Description Debit card read Plastic card with chip, Cash transferred between Voucher code
in any valid read in any valid Point ‘mobile wallets’ on mobile and unique ID
ATM or POS of Sale machine phone via sms sent via sms
Initiatives Philippines Kenya Kenya Syria
included Chile Zimbabwe Niger Zambia
Pakistan Malawi Philippines Zimbabwe
Niger Cote d’Ivoire Kenya (under
DR Congo (under Haiti development)
development)
Context Flood response Social Protection Displacement Food
Food insecurity Early recovery insecurity
Displacement Food insecurity Displacement
Livelihoods
Urban, Rural Urban, Rural Urban, Rural Urban
Scale (HH) 300 <> 1.3m 1000 <>60,000 100<>8,000 1000<>20,000
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8.
Experiences
Benefits
Accountability Reduces leakage, increases likelihood cash reaches recipient
Increased transparency
Security Reduces exposure of staff and beneficiaries
Partnership Service provider reduces burden of implementation
Active partner contributing skills and resources
Accessibility User friendly: Generally understood; people want it
Convenience: Reduced opportunity cost
Cost Cost efficiencies over time
Is possible delivered without significant investment in hardware
Efficiency Can function without network connectivity
Generally technology performed well
Time savings for agency
Wider impacts Potential for wider usage of technology by recipients/ agencies
Time saving leads to greater programme impact
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9.
Experiences
Challenges
Accountability Still some potential for corruption/deception
Increased ‘Control’ for agency reduces choice for recipient
Some problems with accuracy
Partnership Capacity issues of service provider
Accessibility User friendly: Literacy is a barrier to full usage; trust
Convenience: Delays in cash flow or long distance to agents
Barriers to access: Lack of formal ID, political environment
Cost Initial set up costs can be high
Efficiency Lack of network connectivity impacted on programme
Technical glitches: new system, technology not fool proof
Technology didn’t perform well in the context
Set up (service selection, contracts, preparation) takes time
Wider impacts Data protection and privacy issues
Barriers to wider uptake of technology or services
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10.
Lessons
Learned
(Headlines)
Suitability: Engaging with the private sector:
• Experiences over all have been positive • Realistic expectations based on
• People want it capacity of both partners
• No single solution: assess the options • Proactive approaches to the private
available to select the best for the context sector can generate results
• Cost/efficiency gains increase with scale
and duration Preparedness:
• Contractual negotiations take time
Factors key to success include: • After an emergency is too late
• Strong delivery partners • Build on what exists
• Functioning branchless banking
• On the ground support
• Adequate training for all stakeholders
• Reliable connectivity
10
.

11.
Constraints
to
Wider
AdopEon
of
New
Technology
Theme Issue
• Whilst the landscape is changing rapidly network coverage is lacking especially in Africa
FINANCIAL TECHNICAL
• Limited coverage and cash flow of branchless banking systems
• Concerns over error rates of fingerprint recognition technology
• Lack of business case to justify expansion of network services to remote areas
• High set up cost is at odds with the time horizons of humanitarian programming
• Donors tend to restrict capital costs to a percentage of the total budget
• Lack of agency knowledge of the options available in a rapidly changing market place
INSTITUTIONAL
• Institutional inertia within agencies in terms of adoption of new ways of working
• No organisation with a mandate to moderate the pros and cons of new technology or
promote adoption of technical standards
• Limited capacity of service providers to scale up
• Low levels of education amongst recipients
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12.
Constraints
to
Wider
AdopEon
of
New
Technology
Theme Issue
• Researching, costing, selection and set-up of new technology requires time and
OPERATIONAL
resources
• Undertaking these activities post-disaster interferes with rapid response
• Lack of willingness of agencies to share information, experiences, systems
• Donor focus on ‘innovation’ and competition for funding fuels this
LEGISLATIVE ATTITUDINALPOLITICAL
• Concerns about data protection issues
• Wariness of involving private sector actors in the humanitarian sphere
• Tendency of humanitarian agencies to be risk averse
• Technology seen as a ‘black box’ requiring specialist knowledge outside of programme
remit
• Regulatory environment can constrain roll out of branchless banking and other
technology
• Lack of clear national policies or humanitarian standards on data protection
• Proprietary issues around custom-designed solutions can limit uptake
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13.
SupporEng
Wider
AdopEon:
Improving
the
Technological
Environment
Ø Proac,ve
approaches
by
agencies
to
service
providers
to
inform
the
development
of
branchless
banking
and
network
to
where
it
is
needed.
Ø Collec,ve
approaches
have
greater
influence.
Ø Consider
co-­‐financing
arrangements
between
donors,
governments
and
mobile
network
operators
to
support
the
extension
of
networks.
Ø Where
feasible,
realise
efficiencies
by
‘piggy
backing’
emergency
payments
on
the
e-­‐payments
systems
of
government
such
as
those
used
to
deliver
social
protec,on.
Ø Advocate
for
improvements
in
the
regulatory
environment
for
new
technology.
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14.
CoordinaEon
benefits:
an
illustraEon
Investment
Coordina,on
mechanism
Sharing
arrangements
Exis,ng
infrastructure
Required
for
Individual
organisa,ons’
investments
. new
tech
14

15.
SupporEng
Wider
AdopEon:
Develop
the
Capacity
of
Stakeholders
Ø Increase
familiarity
of
staff
with
technology
solu,ons
that
are
available,
through
prac,cal
training
use
of
these
systems
in
everyday
work.
Ø This
would
also
mean
new
technologies
become
cost
effec,ve
more
quickly.
Ø Invest
in
ac,ons
to
build
recipients’
capacity
to
use
mobile
technology
and
branchless
banking.
Ø Invest
in
building
capacity
of
service
providers
Ø Investment
in
mobile
literacy
programmes.
Ø Build
the
evidence
base
to
fill
cri,cal
gaps:
value
for
money
of
technology-­‐based
systems
wider
social
impacts
of
the
increased
u,lisa,on
of
technology
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16.
SupporEng
Wider
AdopEon:
New
Ways
of
Working
Ø Partner
with
external
exper,se
Ø Incen,ve
structures
for
the
private
sector
to
develop
technology
pladorms
that
meet
humanitarian
needs
Ø Establish
commitments
with
service
providers
as
part
of
con,ngency
planning
and
develop
preparedness
frameworks
between
all
stakeholders.
Ø Donors
to
finance
and
coordinate
adop,on
and
scale-­‐up
of
technological
solu,ons
by
their
implemen,ng
partners
and
disseminate
lessons
learned.
Ø Consolidate
experience
to
move
towards
a
‘tool
box’
of
standard
approaches.
Ø Develop
codes
of
conduct
for
the
management
and
sharing
of
personal
data.
Ø Linking
humanitarian
and
development
funding.
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17.
Overcoming
funding
constraints:
an
illustraEon
Emergency
Proposed
Total
funding
horizon
funding
horizon
cost
Manual
Hi-­‐tech
Time
Setup
costs
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18.
Thank
you
gabrielle.smith@concern.net
Find
the
report
here:
http://www.cashlearning.org/resources/library/272-
new-technologies-in-cash-transfer-programming-
and-humanitarian-assistance
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