The Human Account is led, created and developed by Dalberg with Rockefeller Philanthropy Advisors, and funded by the Bill & Melinda Gates Foundation.

 

Local partners are Lagos Business School in Nigeria, Ashoka University in India, not-for-profit development finance company, Karandaaz in Pakistan, and research and advisory firm, Busara Center for Behavioral Economics in Kenya.

PAKISTAN WOMEN

Confident

Planners

effective, conscientious, investment-minded

17% of adult female population  |  16.2 million women

 

Relatively well educated, affluent, and married, Confident Planners are effective household managers who plan their finances carefully despite limited control within the household

and a tendency towards spending impulsively. They are financially healthy, struggling with relatively few bills and emergencies. They manage money through family, mostly eschewing formal accounts, which most find complex, and informal groups, which most distrust.

They save frequently but less commonly in a disciplined and goal-based manner. Most feel they do not earn enough to save, though do so anyways, and believe what they do manage to put away is vulnerable to the claims of others. They have strong sense of agency and belief in their abilities, but low self-esteem, perhaps due to their struggles exerting control within the household and building towards their long-term goals.

Confident Planners

Pakistan Average

INCOME

self-employed

N/A

N/A

formally employed

N/A

N/A

EDUCATION

primary education

45%

20%

secondary education

23%

22%

PHONE

own smartphone

14%

15%

feature phone

61%

38%

LAND

own land

15%

30%

have access to land

41%

N/A

GENDER (FEMALE)

100%

51%

AGE (25-44)

78%

64%

GEOGRAPHY (RURAL)

61%

59%

SOCIOECONOMIC

73%

SES 3-5

FORMAL ACCOUNT

OWNERSHIP

8%

8%

INFORMAL

FINANCIAL USAGE

17%

16%

MOBILE WALLET

OWNERSHIP

1%

1%

TECH USE

(LOWEST FREQUENCY)

75%

75%

ANALYSIS

 

CONTEXT

Who are they?

HOUSEHOLD FINANCIAL DECISION MAKING

Confident Planners

Pakistan Average

Basic Demographics

Confident Planners are mostly middle to high-income, rural, married women. They are well-educated, but report rarely taking part in household financial decisions, for which they defer to their spouse or someone else in the home.

They are slightly younger than average for Pakistan, skewing towards middle age.

Social Financial Network

 

Compared to other women in Pakistan, Confident Planners have relatively narrow social networks that are likely confined to family. They have relied heavily on these small networks for financial support in emergencies, yet like Pakistani women in general, most are not  confident in the ability to raise emergency funds in the future.

RESILIENCE

Confident Planners

Pakistan Average

 

ASPIRATIONS

What do they want?

Confident Planners would keep the majority of a windfall as cash at rates well above the national average, reflecting their prioritization of daily household expenses and bills. In fact, they report the lowest number of missed bills and the highest levels of confidence in meeting their expenses among Pakistani women. They are dedicated household managers who plan to insure daily household needs are met and bills are covered. They likely also advocate for investments in children’s education, weddings,  and other cultural milestones.

BEHAVIOR

How do they manage their finances?

 

Financial Behavior Overview

Confident Planners enjoy near the highest level of financial health among Pakistani women segments, exhibiting strong financial behaviors across all metrics except for shaping income.

FINANCIAL BEHAVIOR INDEX

Confident Planners

Pakistan Average

FINANCIAL ACCESS

Confident Planners

Pakistan Average

Financial Access

Most Confident Planners primarily manage finances through family. Though they report average rates of bank account ownership, mobile wallet ownership, and informal group membership, their usage rates across each channel is low. Most find financial services complex, which in addition to access barriers may suppress rates of formal account ownership and informal group membership.

Financial Priorities

Confident Planners would keep the majority of a windfall as cash at rates well above the national average, reflecting their prioritization of daily household expenses and bills. In fact, they report the lowest number of missed bills and the highest levels of confidence in meeting their expenses among Pakistani women. They are dedicated household managers who plan to insure daily household needs are met and bills are covered. They likely also advocate for investments in children’s education, weddings,  and other cultural milestones.

HOW THEY PRIORITIZE A WINDFALL

Confident Planners

Pakistan Average

HAS A PLAN TO MANAGE EXPENSES

Confident Planners

Pakistan Average

Shaping Income and Expenses

 

Despite high income volatility, Confident Planners report little trouble meeting expenses and they are confident in their ability to pay household expenses. This suggests they effectively manage liquidity  in the face of volatility to meet daily household needs and pay short-term bills, perhaps owing to their strong planning and reserve building behavior, as well as efficacy at cultivating receivables.

Building Reserves

Among women, Confident Planners are the most effective segment at building reserves and are the most frequent savers across the largest number of channels. Most save monthly or more, primarily through family. They also report the highest overall land and livestock ownership.

SAVINGS CHANNELS USED

Confident Planners

Pakistan Average

CONFIDENCE IN ABILITY TO RAISE EMERGENCY FUNDS

Confident Planners

Pakistan Average

Cultivating Receivables

Confident Planners cultivate receivables more effectively than any other women segment. About half borrow and over one-third borrow frequently (monthly or more). However, nearly three-quarters have relied on friends and family for support in emergencies over the past two years, more than any other segment, and over two-thirds are not confident in their ability to raise emergency funds in the future. They likely rely on close family for emergency support, leading to lower confidence as financial emergencies tend to affect entire households. Yet, perhaps because of their strong planning, effective income and expense management, and healthy reserves, they face the fewest financial emergencies of any segment.

Financial Planning

Confident Planners are conscientious and effective financial planners, with most reporting they have a plan to manage expenses despite saying that they do not make financial decisions within their households. They may plan as a way of mitigating their impulsiveness (see self-perception and financial attitudes in psychometrics) or to fulfill their role as household managers. Most however are not strongly deliberate savers, perhaps driven in part by their lack of decision making authority in the household, as well as their feeling that they don’t earn enough to save and that their savings are vulnerable to the claims of others.

HAS A PLAN TO MANAGE EXPENSES

Confident Planners

Pakistan Average

PHONE USAGE

Confident Planners

Pakistan Average

Technology Use

Confident Planners use technology at an average rate among Pakistani women, but they are the second most frequent owners and users of mobile phones and the most frequent TV watchers.

PSYCHOLOGY

How do they think?

 

Self-perception

 

Most Confident Planners report a moderate to high sense of agency, but low self-esteem and they split evenly on their expectations for the future. Because Confident Planners are relatively well-off at the household level, their low self-esteem and mixed expectations for the future may reflect a dissatisfaction with their personal achievement or status. After all, they report the lowest level of participation in household decisions despite being strong and active financial planners.

SELF-EFFICACY

Confident Planners

Pakistan Average

CONSCIENTIOUSNESS
SPENDING IMPULSIVITY

Confident Planners

Pakistan Average

Financial Attitudes

Conscientiousness, Impulsiveness & Openness

Most Confident Planners are conscientious and effective financial planners, yet over two thirds consider themselves highly impulsive spenders. This suggests they plan to mitigate their impulsivity, but feel they could do a better job, a view reinforced by their strong sense of agency and low-self esteem.

Financial Attitudes

Debt

Most Confident Planners are uncomfortable holding debt, fearing reputational harm and loss of collateral, and do not consider themselves dependable. These characteristics, together with their low rates of bank account ownership and strong belief that financial services are complex, may explain why they so infrequently borrow from banks and informal groups relative to their account ownership and group membership rates. Instead, they prefer to borrow from family, which can be more flexible and carries lower reputational risk.

COMFORT WITH DEBT

Confident Planners

Pakistan Average

Financial Attitudes

Savings

About half of Confident Planners definitively are not deliberate, goal-oriented savers, though slightly less than half are moderately so. Nearly two-thirds feel they do not earn enough to save and identify as impulsive spenders, while roughly half feel their savings are not safe from the claims of others. These factors may help explain why few are strongly deliberate savers. Moreover, given their lowest rates of participation in household financial decision making, despite have a strong sense of agency and planning orientation, many in the segment may feel that setting and maintaining strong savings goals is somewhat beyond their control. It may be that many, especially those measuring moderately deliberate savers, would like to save more deliberately, but are unable to.

SAVINGS DELIBERATENESS

Confident Planners

Pakistan Average

Trust in People

 

Most Confident Planners have low to the lowest trust in people overall and belief in the equality of their community. In fact, they measure lowest amongst Pakistani women on these metrics.

Most also have low to the lowest trust in their social financial networks. Yet, they have relied more heavily on social sources of support in emergencies than any other segment and have the second highest confidence in their community to support investments in their business and education. Moreover, they save and borrow from family at the highest rates in Pakistan, and have average rates of informal group membership, reflecting their narrow trust (three-quarters report trusting people with whom they have had long-standing relationships more easily those they know less well).

TRUST IN PEOPLE

Confident Planners

Pakistan Average

TRUST IN BANKS

Confident Planners

Pakistan Average

Trust in Institutions

Driven, in part, by their feelings that financial services are complex and by their paltry respect for authority figures, Confident Planners report relatively low trust in banks, and the lowest trust in media and government among women in Pakistan.

Gender Attitudes

Most Confident Planners believe that men are better financial managers than women, though they feel very strongly that wives and husbands should know each others financial affairs, and that girls and boys should be educated about money in the same way. This suggests that they may hope to see a change in the status quo for women, and may want a deeper view into household finances. Moreover they feel that women learn new technologies faster than men. Perhaps reflecting their lack of exposure, they do not believe that formal financial providers exhibit bias against women when issuing loans.

WOMEN UNDERSTAND NEW 
TECHNOLOGIES BETTER THAN MAN

Confident Planners

Pakistan Average

OPPORTUNITY

How might we provide products that support Confident Planners’ deft management of household expenses and frequent saving and borrowing behavior, while overcoming their low trust in people and institutions?