Perspectives 2020-2021 Public Sector

Citi Perspectives for the Public Sector 24 25 As the pandemic reached its initial peak, the advocacy organization Global Citizen organized an online concert to encourage people to stay home and recognize the efforts of frontline workers. Global Citizen hosted an online broadcast called ‘One World: Together at Home’ curated by Lady Gaga, with A-list stars, interviews with health professionals, and touching footage of people coming together around the world to help one another. While not a telethon, the event encouraged support for the COVID-19 Solidarity Response Fund and raised $55 million; Global Citizen also raised $72 million for local relief efforts. Donations should be digital, simple, safe and seamless As development organizations seek to diversify and raise funds globally through crowdfunding and electronic channels, they need to consider a number of issues. Leading with a clear cause- based campaign message is critical to reaching citizens and encouraging them to give. Equally important is understanding how, when and where citizens decide to give: in recent years this has become increasingly digital. Institutions need to consider citizens’ mindsets when seeking to crowdfund, and make the experience simple, safe and seamless – it should be as easy as ordering an Uber or an item on Amazon. As organizations seek to establish long- term donation relationships with citizens, they must also be aware of e-commerce payment trends and consumer behaviors, including: • Decrease in cash and check payments • Decrease in larger amounts and increase in miniaturized payments • Increase in demand for instantaneous payments • Increase in cross-border payments • Increase in bank transfers, cards, eWallets and other digital methods • Increase in transparency, security and reporting demands While every country has causes with specific relevance and citizens have a variety of donation preferences, more than 50% of donors worldwide prefer to give online with a credit or debit card. 5 In the U.S., credit card donations are most common, although alternative payment methods, such as PayPal and QR codes, are increasing. Donors’ payment preferences worldwide 6 • 54% Online with a credit or debit card • 11% Direct mail • 11% Cash donations • 10% Bank or wire transfer • 9% PayPal • 4% Mobile app or wallet • 1% Text message Another means of donations is telethons and text-to-give schemes, where citizens text to donate via their mobile provider, which then passes on the funds to the fundraisers. For example, over $43 million was raised by the Red Cross’s Haiti earthquake relief text-to-give campaign. 7 In other countries, bank transfers, checks or cash remain the most popular way for citizens to donate. Ultimately, institutions need to ensure they can receive consumer donations in a simple, safe and seamless way, by applying a digital strategy that aligns with consumer behaviors in each market. Citizens who donate want to know how their money is spent. Development organizations and NGOs that seek donations from citizens must therefore measure the impact of funds raised and communicate it effectively. From donations to disbursements, organizations can demonstrate accountability and efficiency using new technology and digital solutions. Mobile money best practice: Inspiring examples In developing countries, there are a wide variety of financial ecosystems and market infrastructures; some lack mobile solutions or adequate regulation. However, there are also pockets of excellence across Africa, Asia and the Americas, where financial services and mobile money for the poor or most vulnerable populations offer valuable best practice guidance for humanitarian banking during COVID-19. 8 In order to increase the spread of best practice, the World Food Programme (WFP) and GSMA, the industry association of over 750 mobile network operators, recently expanded their partnership to help the world’s most vulnerable people. The GSMA Mobile for Humanitarian Innovation program, which has been funded by the UK Department for International Development since 2017, focuses on the use of mobile money to deliver cash-based transfers to save lives in global emergencies, including pandemics and natural disasters, such as COVID-19. “As humanitarian crises become more frequent, complex and protracted, the need to devise services that are scalable, replicable and efficient for humanitarian organizations has become crucial,” said John Giusti, Chief Regulatory Officer at GSMA. “With over one billion mobile money accounts worldwide, the use of digital technology – specifically mobile money services – can provide the foundation for rapidly scaling cash transfers to safely and effectively deploy desperately-needed resources.” Another key benefit is that mobile- based cash transfers can deliver essential support, while adhering to social distancing advice in compliance with COVID-19 guidelines. 9 Colombia reaches three million using mobile wallets As COVID-19 cases increased in Colombia, the government needed to disburse subsidies to vulnerable populations living under the poverty line rapidly in order to sustain their livelihoods, while also adhering to social distancing guidelines. The government wanted to collaborate with the private sector to digitize subsidies and make government-to-person (G2P) pandemic payments, while also promoting digital financial inclusion. This public-private collaboration quickly mobilized a new digital transfer program called Ingreso Solidario. The ecosystem consisted of various key actors, including the Ministry of Finance, national planning, regulators, and financial and mobile services providers, such as banks, fintechs and telecom companies. Given the ongoing impact of COVID-19, the program has been extended until the end of the year. Using mobile wallets, Ingreso Solidario reached three million vulnerable households, of which more than half were headed by women and almost one million were previously unbanked. 5 https://nonprofitssource.com/online-giving-statistics/#Mobile 6 https://nonprofitssource.com/online-giving-statistics/#Mobile 7 https://nonprofitssource.com/online-giving-statistics/#Mobile 8 https://www.gsma.com/newsroom/press-release/gsma-and-world-food-programme-accelerate-the-use-of-mobile-financial-services- for-humanitarian-assistance/ 9 https://www.gsma.com/newsroom/press-release/gsma-and-world-food-programme-accelerate-the-use-of-mobile-financial-services- for-humanitarian-assistance/ COVID-19 Catalyzes Digital Donations and Disbursements Digital campaigns can appeal to citizens through social media and the ease of making donations using a variety of traditional and alternative payment methods. Benefits of Mobile Money During The Pandemic • Promotes cashless economies and ‘no touch’ digital payments • Promotes social distancing • Promotes collaboration between public and private sector • Promotes efficiency and safety • Promotes propensity to adopt through consumer behavior