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102 FINANCIAL INCLUSION FOR INDIVIDUALS GLOBAL FINANCIAL DEVELOPMENT REPORT 2014 NOTES 1. There are a few variants of debit cards, including delayed debit cards, whereby the payment instruction resulting from the use of the debit card for a payment results in placing a hold on the funds in the underlying account, as opposed to resulting directly in a debit. 2. While the terms prepaid card and stored-value card are frequently used interchangeably, differences exist between the two products. Prepaid cards are generally issued to persons who deposit funds into an account of the card issuer. During the prefunding of the account, most issuers establish an account and obtain identifying data from the purchaser (name, phone number, and so on). Stored-value cards do not typically involve a deposit of funds into an account because the prepaid value is stored directly on the cards. 3. Data of World Development Indicators (database), World Bank, Washington, DC, http:// -development-indicators; Global Financial Inclusion (Global Findex) Database, World Bank, Washington, DC, http://www.worldbank .org/globalfindex. See also Demirgüç-Kunt and Klapper (2012). 4. The focus here is on mobile technology because of its growth and its promise to increase inclusion, but, to put matters in perspective, the bulk of the agent-based transactions mentioned in this paragraph can be and still are carried out through payment cards rather than mobile phones. 5. Data of the Reserve Bank of India, at http:// 6. Global Financial Inclusion (Global Findex) Database, World Bank, Washington, DC, 7. See Markswebb Rank & Report website, at [in Russian]. 8. See “e-Commerce in Russia: What Brands, Entrepreneurs, and Investors Need to Know to Succeed in One of the World’s Hottest Markets,” East-West Digital News, http:// 9. See “Product Design Case Studies,” International Finance Corporation, Washington, DC, /connect/industry_ext_content/ifc_external _corporate_site/industries/financial+markets /publications/product+design+case+studies. 10. Carpena and others (2011) examine a microlender’s shift from individual to group liabil- 11. 12. 13. 14. 15. 16. 17. 18. 19. ity. This is useful in the context of a push of microlenders who are trying to move toward individual liability, especially on bigger loans. See “Bank On San Francisco,” San Francisco Office of Financial Empowerment, San Francisco, See also Department of the Treasury (2011). Another relevant example, Mexico’s Banco Azteca, is discussed in chapter 3, box 3.3. See “Product Design Case Studies,” International Finance Corporation, Washington, DC, /connect/industry_ext_content/ifc_external _corporate_site/industries/financial+markets /publications/product+design+case+studies. See “Product Development,” CGAP Topics, Consultative Group to Assist the Poor, World Bank, Washington, DC, http://www.cgap .org/topics/product-development. Human-centered design refers to a process whereby products are designed taking into account the needs of the people and communities for which the products are intended. See “Human-Centered Design Allows Us to Create and Deliver Solutions Based on People’s Needs,” HCD Connect, http://www The same factors that have focused more attention on financial capability are also behind a growing emphasis on financial consumer protection regimes. This includes activities by the Financial Stability Board, the G-20, and the Organisation for Economic Co-operation and Development (OECD). The World Bank has also organized Financial Capability and Consumer Protection surveys, which build on the World Bank–Russia Trust Fund questionnaire and complement it with financial knowledge and consumer protection questions. The results of this expanded survey are not yet available. Financial literacy surveys using different questionnaires were previously undertaken by the World Bank in countries such as Azerbaijan, Bosnia and Herzegovina, Bulgaria, Romania, and Russia. There is extensive research finding that financially capable behavior is influenced by psychological traits and not merely by the individual’s financial knowledge. On the United Kingdom, De Meza, Irlenbusch, and Reyniers (2008) analyze a survey of financial capability and find that psychological differences (such as the propensity to procras-

Global Financial Development Report 2014

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