> Posted by Amanda Lotz, Financial Inclusion 2020 Consultant, CFI
The Financial Inclusion 2020 campaign at the Center for Financial Inclusion at Accion is building a movement toward full financial inclusion by 2020. This blog series spotlights financial inclusion efforts around the globe, shares insights from the FI2020 consultative process and highlights findings from “Mapping the Invisible Market.”
If you are new to the financial inclusion industry, or just looking to uncover more about some of its key action areas, there’s a new online portal sharing resources that we at the Financial Inclusion 2020 project believe are essential: the FI2020 Resource Library.
The FI2020 team compiled some of its favorite resources on financial inclusion, including publications, blog posts, white papers, websites, data, and policy sources. The resources are organized around FI2020’s five focus areas – Financial Capability, Technology-Enabled Business Models, Client Protection, Credit Reporting, and Addressing Customer Needs – as well as the areas of policy, data, and general financial inclusion discussion.
We invite you to explore our suggestions, each featuring its own annotation, and contribute your own. In line with the consultative approach of the FI2020 movement, we are eager to hear what your recommended resources are and continue to build the library. You can submit them to us at the library webpage.
Here are a few resources to get you started in your reading:
1. Those actively engaged or interested in client protection should check out the following report – with important lessons for all financial inclusion actors.
Client Protection: A Three-Legged Stool? (April 2012)
Analistas Financieros Internacionales
Authors: Virginia González Pérez, Verónica López Sabater
This report identifies key stakeholders that make up the three-legged stool of client protection: authority, industry, and clients. It proposes that client protection is not possible unless all three stakeholders are equally engaged. Client protection principles, standards, and practices should be fully applied by providers, with utmost transparency. The authority should exercise its role as provider of regulation, institutional capacity, supervision, and financial education of clients.
2. To better address customer needs, many financial services providers are exploring opportunities to innovate and address client feedback. Speaking directly with clients can help providers to provide a customized service offering. This publication highlights one model from India.
The Pursuit of Complete Financial Inclusion: The KGFS Model in India (May 2012)
Consultative Group to Assist the Poor, IFMR Trust
Authors: Bindu Ananth, Greg Chen, Stephen Rasmussen
This publication describes the Kshetriya Gramin Financial Services (KGFS) operating model in India, which includes a village and household mapping exercise. This innovative model trains front-line staff as “wealth managers” who conduct detailed interviews to diagnose financial needs and offer advice. Wealth managers then propose a customized mix of financial products that address the unique needs of each household, which includes savings, credit, and insurance. They also utilize sophisticated analytics of local economic data. Discusses the client response so far, reviews how far the financial viability of the model has progressed, and explores the applicability of KGFS principles to contexts beyond India.
3. This resource is a financial capability classic which has helped shift industry thinking from financial education (as knowledge acquisition) to financial capability (promoting sound financial choices and behavior).
Financial Capability: What is It, and How Can It Be Created? (2010)
Center for Social Development, Washington University
Author: Margaret S. Sherraden
Proposes an alternative to financial literacy, financial capability, which includes when clients have both the ability and opportunity to act. Addresses how people traditionally acquire financial knowledge and skills through financial socialization, financial education, and financial advice/counseling. It then explains how financial inclusion can only be achieved if financial services are accessible, affordable, appealing, simple, secure, and reliable. Knowledge, skills, and inclusion are linked.
Stay tuned, as we’ll soon feature resources on inclusion of underserved and/or vulnerable client groups (e.g. older adults or women). Happy reading!
For more information on Financial Inclusion 2020, sign up for campaign updates.
Image credit: Accion
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