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FINANCIAL INCLUSION 2020

Recent FI2020 Publications

FI2020 Progress Report

(October 2015) In the FI2020 Progress Report, we present our assessment of progress toward global financial inclusion through the lens of five topics: Addressing Customer Needs, Client Protection, Credit Reporting & Data, Financial Capability, and Technology. The report provides a qualitative and interactive assessment of who is doing what, celebrating the most significant accomplishments, and highlighting the gaps that constitute the agenda for the coming years. We’ve started each topic of conversation with a scorecard between 0 and 10. We invite you to use the interactive feature on the website to cast your own vote and compare your scores to ours.

FI2020 E-Zine: Three Essential Debates

(August 2015) Will microfinance continue to be relevant in 2020 and beyond? Should regulators or the industry lead on client protection? Will data analytics replace traditional credit reporting systems? A new Financial inclusion 2020 e-magazine explores these three essential questions debate-style, tapping industry leaders from around the world to weigh in with their perspectives.

By the Numbers: Benchmarking Progress Toward Financial Inclusion 

(June 2015) CFI’s quantitative review of the current status of financial inclusion globally, which relies on the two Findex datasets supplemented by data from the EIU Global Microscope 2014, UN, World Development Indicators, IMF, Alliance for Financial Inclusion, and the GSMA State of the Industry.

Aging and Financial Inclusion: An Opportunity (PDF)

(January 2015) Written in partnership with HelpAge International, this report examines the unmet financial needs of the rapidly growing global aging population, particularly in the developing world. The purpose of this report is to highlight the barriers and opportunities related to financial services in older age and throughout the aging process, a relatively neglected area of study.

FI2020 Roundup 2014 E-Zine

(November 2014) One year since Financial Inclusion 2020 Global Forum, CFI is taking this moment to review how the drive for financial inclusion is faring. With this e-zine we bring you highlights of the past 12 months from around the financial inclusion world – new ventures, milestones, and ongoing debates. Inside, you’ll find a snapshot of progress in each of our five “Roadmap to Inclusion” areas, from technology-enabled business models to consumer protection.

 

Financial Capability

Read the Roadmap below or download a PDF version here. 

Have something to say? Share your thoughts and comments at the bottom of the page.

The Main Idea:

Financial capability is about motivating and supporting consumers to make sound financial decisions. Attention to financial capability is essential for successful financial inclusion initiatives. 

Providers and policymakers have strong interests in a financially capable clientele. The scale of the need means that many actors are welcome, including providers, governments, non-profits, schools and others. 

Behavioral research reveals that people who know don’t always do (that is, act in their own best interests). It is important to test and design interventions that use insights from research to support positive behavior. 

Financial capability develops through “learning by doing.” There is a unique and enormous opportunity to deliver targeted financial capability messages at the very times customers are making decisions. 

Technology offers exciting opportunities to give customers financial capability messages at large scale and low cost through diverse platforms such as mobile messages and mass media.

financialcapabilitypullquote

Financial capability is an essential ingredient of financial inclusion. Without it, clients may fail to take advantage of valuable financial services or be harmed by misusing them. Providers benefit  from financially capable clients who actively and responsibly use services. Our goal is to ensure that clients are able to benefit from the expanded access to financial services that they are likely to experience in the coming years.

We define financial capability as:

The combination of knowledge, skills, attitudes and ultimately behaviors that translate into sound financial decisions and appropriate use of financial services.   

The working group’s vision of a financially capable individual is someone who can affirm the following: 

  • I use financial services actively and confidently.
  • I am comfortable attending to my finances and am able to make good, informed financial decisions.
  • I am in control of my financial service usage; my financial services do not control me.
  • I am aware of the consequences of poor financial decisions and am motivated to avoid them.
  • I am committed to remain financially capable throughout my lifetime.
  • When I need more knowledge about financial services, I know how to get it.
  • I can budget, plan, set financial goals, and monitor my progress.
  • I know my financial limits and stay within them.
  • I manage a diverse portfolio of financial services, whether formal or informal, to help me get the most effective use of my scarce resources.
  • I use financial services to reduce my vulnerability and protect my resources.
  • I can choose among financial services and delivery methods (including technologies) to select those most appropriate for me.
  • I know my rights and responsibilities as a financial services consumer and can advocate for them.
  • I know how to identify marketing ploys and financial scams and avoid them.

The working group examined some of the most important challenges in the area of financial capability by asking:

  • How do people become financially capable in their normal lives?
  • What methods work best to build financial capability?
  • What specific actions can advance the vision of capability, and who can take them?
  • How can efforts to develop financial capability be scaled to a level commensurate with the need?

Working Group Members

Jasmine Thomas, Program Officer for International Financial Capability & Asset Building, Citi Foundation (Chair)
Anita Gardeva, Senior Analyst, Center for Financial Inclusion (Facilitator)
Monique Cohen, Founder, Microfinance Opportunities/Independent Advisor
Solana Cozzo, LAC Prepaid Head, Senior Business Leader, MasterCard Worldwide
Sarah Gordon, Vice President, Advisory Services and Nonprofit Investments, Center for Financial Services Innovation
Martin Hintz, Head of Microinsurance, Allianz
Richard Hinz, Program Manager, World Bank Russia Financial Literacy and Education Trust Fund
Claire Innes, Private Sector Development Adviser, UK Department for International Development  
Ida Rademacher, Chief Program Officer, Corporation for Enterprise Development
Robyn Robertson, Financial Capability Development Consultant; Technical Advisor, Microfinance Opportunities  
Beniamino Savonitto, Project Director, Innovations for Poverty Action
Andrea Stiles Pullas, Director, AVAL Consulting

FI2020's Roadmap to Inclusion is generously supported by Visa, Inc.