How Digital Wallets are Reworking Remittances as an Entry-point for Home Staff into Formal Monetary Providers

That is the third in a three-part sequence inspecting a contemporary strategy to digital remittances in Indonesia.

By Angela Ang, Elwyn Panggabean, and Ker Thao

During the last six months, we launched a pilot program with DANA, considered one of Indonesia’s largest e-wallet suppliers, to offer a digital remittance resolution for home employees to ship a refund residence in a protected and safe method. The pilot resolution was initially designed to focus on DANA’s present customers who may very well be potential employers of home employees and leveraged them as the primary touchpoint in introducing DANA as a viable remittance channel. By method, employers would assist educate their employees about the advantages and values of utilizing DANA, offering a less expensive, quicker, and safer digital avenue for employees to ship cash residence.

Taking an iterative strategy within the pilot implementation

Image1 page1

Initially, the pilot mission was deliberate to be launched throughout a three-month, three-part section: the primary and second with a give attention to focusing on employers as a touchpoint to achieve home employees, serving to them sign-up their home employees for DANA accounts, and instructing them about DANA and use DANA to switch cash residence; whereas the third section spanned during the last two months, instantly focused the home employees with a give attention to constructing buyer’s confidence and expertise in utilizing DANA. Whereas the primary and second phases confirmed constructive leads to serving to home employees with entry and use of DANA as a remittance service, the third section confirmed a big enhance in engagement and use.

Key learnings from the pilot

Program Consciousness
Lots of the members of the home employee remittance program realized about this system by way of a wide range of totally different channels and media comparable to by way of word-of-mouth referrals, the most well-liked and trusted methodology between employees, from different customers who have been collaborating in this system (buddy, neighbor, relative, or employer) and thru DANA’s Instagram web page and tales. The analysis highlighted extra avenues to achieve a bigger home employee viewers, with prospects suggesting extra ads and messages in locations that they frequented: accomplice retailers (comparable to comfort shops); social media (YouTube and TikTok, which they use for leisure); and leveraging influencers to assist get the message throughout.

Image2 Page2 This system used messaging that was focused in direction of home employees comparable to “Program untuk Mbak ART” or Program for home helpers, which helped employees really feel appreciated in a way that this was a program made particularly for them. We additionally included taglines that talked about sending cash to their “household, village, or again residence”, which resonated with prospects. Consequently, they got here to know the advantages and values of utilizing DANA and thought of it as a handy software that may very well be used at their fingertips, it was simple to make use of, and supplied 10x free transfers a month.

Program Signal-up and Onboarding
It was evident throughout the first two phases of this system that employers weren’t the best method to assist home employees sign-up for an account. This was additional validated within the pilot analysis. We found that employees who wished to take part in this system have been prepared, in a position, and able to signing themselves up for their very own account, with the caveat that the majority of those that have been in a position to take action are usually extra tech-savvy and digitally literate. They have been resourceful and in a position to entry movies and tutorials that which have been supplied throughout the program to assist them full the mandatory steps. The remainder of the home employees realized with the assist of relations or their employer.

Whereas employers didn’t develop into an excellent sign-up touchpoint, they have been efficient in offering training and serving to their employees to make use of DANA. Nonetheless, the employers have been confronted with challenges of their very own. A number of the main challenges have been because of employees not having smartphones or not being as tech/digitally-savvy, which discouraged employers from collaborating and assist their employees take part as nicely. One other problem was that employers didn’t have the time and/or data to show their employees. Many employers had no objections in assuming the instructing position, however most popular somebody who was a lot nearer to the employees (like household, buddies, or friends) to show them with some saying that the academic piece ought to come instantly from DANA.

Transacting with DANA and different Use-cases

Image3 Page3

Total, the answer program proved to achieve success. It helped educate home employees use DANA to make remittance transfers again residence and with the development of customers who began to know the advantages and values of utilizing DANA, they turned extra considering exploring different use-cases. We noticed as a direct end result, prospects who participated in this system began utilizing DANA for invoice funds (electrical energy tokens and water payments), top-ups, and on-line procuring. Moreover, they even began to make use of DANA Objectives—a short-term financial savings purpose characteristic in DANA.

Drivers and Detracting Elements for Utilization
As part of the analysis, we recognized particular components that helped drive using DANA for remittance providers and past, in addition to detracting elements that stops prospects from utilizing DANA.

Drivers Detractors
Focused messaging and communications helped prospects see and really feel that this system was geared toward them

Reminder messages and in-app notifications helped to nudge prospects on the proper time to remind them to make use of DANA to ship cash residence

Ease of use and transacting made prospects wish to discover different use instances

Program incentives (raffles and rewards) additionally helped to drive use


Prospects who didn’t have assist or a instructor to assist information them prevented them from studying and utilizing

Prospects who didn’t have a smartphone or shared their smartphone with others resulted in them not with the ability to take part

Prospects who didn’t perceive the Phrases and Situations of this system (the mandatory steps wanted to be accomplished with the intention to qualify for this system and to qualify for modifications to win incentives)



Incentives for Utilization Past Raffles and Rewards

The pilot analysis confirmed that the best resolution elements have been a mixture of key advertising/messaging, reminders, and incentives to assist drive utilization. The focused advertising and messaging have been efficient to relay the values and advantages of utilizing DANA for home employees and struck a chord with a program that was designed particularly for them. The communications about DANA’s values and advantages have been clearly understood by prospects. Reminders performed a essential position within the resolution as nicely. It helped to nudge prospects who could have forgotten about utilizing DANA and helped remind prospects that DANA may very well be used for a lot of different transactions past remittance transfers.

By the pilot analysis, we additionally found that whereas many purchasers have been initially interested in this system because of the probability to win money prizes and rewards. Nonetheless, upon additional utilization, many began to see the precise advantages and values of utilizing DANA. It was seen as a quick, simple, and free strategy to transact. As well as, it was additionally seen to be a safe and protected strategy to ship cash residence; whereas on the similar time simple to be taught. These have been the true incentives for utilizing DANA as a remittance channel. It’s encouraging to see as this system helped construct person confidence and digital monetary capabilities by way of a learn-by-doing strategy which gave them the digital instruments to transact and handle their very own cash.

Subsequent Steps: Scaling for Affect for all Home Staff

The mission offers evidences on the effectives of utilizing remittances to assist convey migrant employees, on this case, home employees, into formal monetary providers, in addition to showcasing the vital position of digital wallets, like DANA, to drive digital remittance providers in Indonesia. The enterprise alternative on (home) remittances is big and is usually a robust use-case to focus on the low-income phase, notably migrant employees.

With the success of this pilot program with DANA, Girls’s World Banking is trying to scale this resolution to the remainder of the home employee group in Indonesia. We plan on creating an answer that particularly targets them to offer a protected, safe, and straightforward strategy to ship cash residence. As well as, we wish to measure the influence of the answer on the lives of girls prospects and plan to conduct an outcomes analysis. The upcoming analysis will measure the impacts of the answer within the brief and long-term durations in direction of ladies’s (financial) empowerment.

Our ongoing efforts are to maintain buyer engaged and proceed to be taught to make use of digital monetary providers for his or her every day monetary wants by constructing their digital monetary capabilities and confidence in order that they can also develop into advanced and multi-case customers. It’s our hope, at Girls’s World Banking, that options comparable to this may assist assist low-income ladies develop to develop into extra assured and impartial customers who can enhance their monetary well being, monetary resilience, and monetary independence to make their very own monetary choices within the long-term.

Recent Articles

Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here