BANCO BHD LEÓN USES WOMEN-CENTERED DESIGN TO GROW ITS MARKET IN THE DOMINICAN REPUBLIC BANCO BHD LEÓN USES WOMEN-CENTERED DESIGN TO GROW ITS MARKET IN THE DOMINICAN REPUBLIC WOMEN-CENTERED DESIGN Project Overview program; BHDL created them by using the processes The partners applied Human Centered Design described below: (HCD) principles to gain insights on how to best M arketing to women isn’t just about promoting goods and services serve women and to develop a targeted customer ■■ Analyzing women’s needs: The bank’s gender- to them. It requires an understanding of women’s needs, as well value proposition (CVP). HCD is a methodology smart solutions are grounded in user-centric market as preferences, across various market segments. Working with that puts the user of a product front and center research, which recorded women’s financial, social, IFC, Banco BHD León (BHDL) identified four specific segments and ends with new solutions that are tailor made and personal needs. With IFC, BHDL identified four of female customers who had unmet needs and could help grow to suit her needs. By focusing on womens’ specif- groups of women customers: small and medium the financial services sector in the Dominican Republic. Based on this ic needs and preferences, BHDL and IFC have enterprise (SME) owners, independent professionals, knowledge, BHDL was able to create a new women’s business line, applied an innovative, women-centered design salaried employees, and heads of household. yielding a return of 35 percent. approach. This process identified that, along ■■ Designing for women: The World Bank’s Innovation with gaps in access to financial services, women Accelerator worked with IFC and BHDL to use entrepreneurs also faced gaps in health care and Challenges human-centered design (HCD) methodology to trans- form insights from market research into products and other services. HCD enabled the bank to pilot an innovative offering to draw in more clients while services. The project team identified services that also addressing women’s needs. Women make up 70 percent of all university graduates and are the would differentiate BHDL’s offerings from its compet- primary financial providers in over half of all households. Nevertheless, itors and meet women’s preferences by bundling demand for financing among women and women-owned businesses is specific sets of nonfinancial services along with key largely unmet. Banks sometimes lack knowledge of their female clients as accounting, taxation, law, and labor law—among product offerings. These services address women’s and have limited capacity to develop flexible channels and products other benefits. concerns of saving time; promoting individual and suited to women’s needs, preferences, and behaviors. To address family well-being, including education and health; ■■ Marketing to women: Campaigns highlighted these issues, IFC’s Banking on Women (BOW) program partnered with and growing their businesses. women’s needs, aspirations, and satisfaction with the BHDL, one of the largest banks in the country, to achieve its goal of new offerings. Advertisements included empowering becoming the nation’s bank of choice for women. Examples of innovative products include the Tarjeta messages and depictions of women achieving their Mujer (Woman’s Credit Card) and the Tarjeta goals and advancing in the areas they identified as Emprendedora (Woman Entrepreneur Credit Card), important, such as their children’s education and Gender-Smart Solutions both of which come bundled with nonfinancial reaching more business prospects. In less than a services. The Tarjeta Mujer, for example, includes year, more than 30,000 customers have benefited With IFC, BHDL defined the specific needs of segments within the insurance coverage for illnesses such as breast and from insurance and assistance policies tailored to women’s market. This enabled the bank to design and market targeted ovarian cancers, as well as plumbing and locksmith women’s needs. Many customers for the new policies financial and nonfinancial services to better serve each segment. The services. The Tarjeta Emprendedora includes are men, who are also interested in coverage for their services are marketed under the bank’s Mujer Mujer (“Woman Woman”) comprehensive technical assistance in areas such children’s health and education. Today, 64 percent of the BHDL’s senior managers MUJER MUJER INITIAL RESULTS are women. To improve the working conditions for IFC AND BANKING ON WOMEN (BOW) ■■ IRR: 35 percent women, BHDL opened lactation centers at two of its IFC’s BOW program plays a catalyzing role for partners and financial offices. It was the first private entity in the country to ■■ Individual ROA: 20 percent institutions by helping them to profitably and sustainably serve sign onto the UN Women’s HeForShe initiative. women-owned businesses. Since the launch of BOW in late 2010, ■■ Small Business ROA: 14 percent IFC has made over 40 investments in financial institutions with a ■■ Medium Business ROA: 12 percent Business Case cumulative committed portfolio of over $1.4 billion. ■■ Commercial Loan Growth: 26 percent By targeting women’s needs and preferences, BHDL was ■■ Car Loan Growth: 19 percent able to innovate, become more profitable, and receive ■■ Public recognition: BHDL has received local and ■■ Consumer Loan Growth: 8 percent public recognition. international awards for promoting women’s financial services. The Global Banking Alliance for Women ■■ Product innovation: BHDL has developed savings, conferred its 2015 Women’s Market Champion award credit, and insurance products to meet the needs on BHDL. It was also recognized by the president of ■■ Recognizing women: In 2015, the bank launched of the four segments within the women’s market. the Dominican Republic for its initiative, Women Who a nationally recognized awards program: Women BHDL has extended its standard products by offering Change the World. Who Change the World. By rewarding women who nonfinancial services, such as legal assistance via the solve social challenges in their communities, BHDL Tarjeta Mujer and Tarjeta Emprendedora. Both cards demonstrates its commitment to gender equality. have proved to be a draw for women consumers. After one year, BHDL has received more than 130 PUTTING THE BUSINESS CASE INTO ACTION WITH IFC ■■ Profitability and growth: Within its first year, Mujer nominations, and employees are interviewing and Mujer contributed to BHDL’s profitability and Recognizing that equality of economic opportunity between women and evaluating the nominees. growth. The program produced an internal rate of men drives productivity, profitability, and performance, IFC’s Gender ■■ Promoting internal gender equality: BHDL’s efforts return (IRR) of over 35 percent, along with a return Secretariat helps clients achieve gender-smart solutions to their business to establish itself as the bank of choice for women in on assets (ROA) of 20 percent for individuals, challenges. We work with clients to better manage talent in their the Dominican Republic are supported by internal 14 percent for small enterprises, and 12 percent workforce and supply chains and to design products that tap the earning measures to close gaps between male and female for medium-sized businesses. In addition, between potential of the women’s market. Our motivating force is the knowledge employees. These include validating equal pay for December 2015 and July 2016, BHDL’s credit portfo- that when companies and people—no matter their gender—can reach men and women, monitoring of hiring and promotion lio grew 26 percent in commercial loans, 19 percent their full potential, families, communities, and economies can achieve by gender, and providing gender-sensitivity trainings. in car loans, and 8 percent in consumer loans. sustainable growth and prosperity. What BHDL says What BHDL clients say What IFC says Hiring IFC to advise us in the development of our Women’s Women have real economic power. What the bank is doing Not all female customers are the same. IFC’s work with Banco Program was definitely a key success factor. Women are playing for us is important. We want to advance and to make use of BHD León demonstrates how companies can benefit from an increasing role in household and business decisions. Banks financial products and services that provide real solutions for us. taking a nuanced approach to the women’s market. that recognize this and serve women effectively will have a Violeta Díaz Guillermo Villanueva competitive advantage for the future, motivate their own teams, Banco BHD León Client Resident Representative in the Dominican Republic, IFC and contribute to their country’s development. Steven Puig CEO, Banco BHD León Contact Information IFC 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA +1 (202) 458-2262 Bmurti@IFC.org www.IFC.org/gender @WBG_Gender 10953