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PFIPIImid-termreviewreport 1
PacificFinancialInclusionProgramme
(PFIP)II
Mid-terminternalprogrammereview
FinalReportincludingPFIPManagementNotes
February1,2017
ClaudiaHuberIndependentconsultantclaudia.huber@dev-impact.com+41-78-8968560
PFIPIImid-termreviewreport 2
ContentsTableoffigures.....................................................................................................................................................................3Tableoftables......................................................................................................................................................................3Abbreviations.......................................................................................................................................................................4Summaryofobservationsandrecommendations...............................................................................................................61 Programmebackground..............................................................................................................................................8
1.1 PFIPIIobjectiveandindicators...........................................................................................................................8
1.2 PFIPIIprogrammestrategy................................................................................................................................9
1.3 BackgroundanddevelopmentofthePacificFinancialInclusionProgramme(PFIP)........................................10
2 Scopeofreview.........................................................................................................................................................112.1 Objectivesoftheassignment...........................................................................................................................11
2.2 Datacollectionandreviewperiod....................................................................................................................11
2.3 Corereviewdimensions...................................................................................................................................12
3 Assessmentofstrategicreadjustmentofprogrammestrategyandimplementationapproach..............................133.1 Adjustmentofworkstreamsandimplementationapproach...........................................................................13
3.2 Adjustmentofprogrammeobjectiveandindicators........................................................................................15
4 Performanceagainstprogrammeobjective..............................................................................................................184.1 Overviewofobjective-levelindicators.............................................................................................................18
4.2 Individualassessmentofobjective-levelindicators.........................................................................................18
5 Assessmentofprogrammeimplementation.............................................................................................................235.1 Workstream1:Enablingpolicyandregulation.................................................................................................23
5.2 Workstream2:Financialinnovation.................................................................................................................25
5.3 Workstream3:Marketinformationandknowledge........................................................................................29
5.4 Workstream4:Financialcompetency..............................................................................................................31
6 Impact........................................................................................................................................................................337 Relevance..................................................................................................................................................................358 Sustainabilityandfuturedirection............................................................................................................................389 Managementeffectiveness.......................................................................................................................................4010 Recommendations.....................................................................................................................................................42Annex1:Termsofreference..............................................................................................................................................45Annex2:Stakeholderconsultationschedule.....................................................................................................................52Annex3:Interviewguidelinesperstakeholdergroup.......................................................................................................54Annex4:Referencedocuments.........................................................................................................................................58Annex5:ResultsFrameworkHierarchy.............................................................................................................................59
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TableoffiguresFigure1:GraphicdepictionofPFIPIIstrategicreadjustment............................................................................................15Figure2:Numberofclientsreached..................................................................................................................................18Figure3:Outreachbypartner............................................................................................................................................19Figure4:Clientsbygender.................................................................................................................................................19Figure5:Clientsbygender(extrapolated).........................................................................................................................20Figure6:Savingsclients.....................................................................................................................................................20Figure7:Savingsclientsbygenderandpartner................................................................................................................21Figure8:Servicepoints......................................................................................................................................................28Figure9:Outreachbygrant...............................................................................................................................................28Figure10:Clientsbygeographicalarea.............................................................................................................................29Figure11:Clientsbygeographicalarea(extrapolated).....................................................................................................29Figure12:Suggestedrevisedresultsmodel.......................................................................................................................43
TableoftablesTable1:Objective-levelindicatorsforPFIPII.....................................................................................................................16Table2:Overviewofindicatorachievement.....................................................................................................................18Table3:Savingsaccountbalances.....................................................................................................................................21Table4:Usageratesofdifferentproviders........................................................................................................................22Table5:Outputlevelindicatorsforworkstream1............................................................................................................24Table6:Outputlevelindicatorsforworkstream2............................................................................................................27Table7:Clientsformerlyunbanked...................................................................................................................................28Table8:Outputlevelindicatorsforworkstream3............................................................................................................30Table9:Outputlevelindicatorsforworkstream4............................................................................................................32
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AbbreviationsAFI AllianceforFinancialInclusionANZ AustraliaandNewZealandBankingGroupBB BranchlessbankingBFA BankableFrontierAssociatesBPNG BankofPapuaNewGuineaBSP BankSouthPacificBTCA BetterThanCashAllianceCEFI CentreforFinancialInclusion(inPNG)CEO ChiefExecutiveOfficerDFAT DepartmentofForeignAffairsandTradeDFS DigitalfinancialservicesDSS DemandsidesurveyEU EuropeanUnionFNPF FijiNationalProvidenceFundFSP FinancialserviceprovidersFY FiscalyearG2P GovernmenttopeoplepaymentsIC InvestmentCommitteeM&E MonitoringandevaluationMFAT MinistryofForeignAffairsandTradeMM MobilemoneyNFIS NationalfinancialinclusionstrategyNFIT NationalfinancialinclusiontaskforceODTI Otherdeposit-takinginstitutionsPFIP PacificFinancialInclusionProgrammePIC PacificIslandCountryPIRI PacificIslandsRegionalInitiativePNG PapuaNewGuineaRBF ReserveBankofFijiRED2 RuralEconomicDevelopmentProgrammePhase2RIA RegulatoryimpactassessmentRMF ResultsmanagementframeworkSINPF SolomonIslandsNationalProvidenceFundSME SmallandmediumenterprisesSOI SolomonIslandsSPBD SouthPacificBusinessDevelopmentTOC TheoryofChangeUN UnitedNationsUNCDF UnitedNationsCapitalDevelopmentFundUNDP UnitedNationsDevelopmentProgramme
Themid-termreviewconsultantwouldliketothankallinterviewpartnersinFiji,Samoa,SolomonIslandsandPapuaNewGuinea,aswellasinNewZealandandAustraliafortheirtimeandeffortinprovidingtheiropinionandassessmentofPFIPactivities.ManythanksalsotothePFIPmanagementandteamfortheirendlesseffortsinprovidingsupportingdocumentsandansweringquestions,aswellasforsettingupanextremelywell-organizedmission.
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Quotesbystakeholders
� «PFIPisverycollaborative,theyunderstandhowoursystemworks»(MinistryofEducation,Fiji)
� «PFIPsupportisdemand-driven»(AssistantGovernor,CentralBankofSamoa)
� «Theygiveyouownershipandyoudrivetheagenda,itisaverycollaborativeapproachwithnationalpartnersinthedriverseat”(MinistryofTrade,Fiji)
� «PFIPhasbeeninstrumentalforourfinancialinclusiongoals<PFIPhasacceleratedfinancialinclusioninFiji»(Governor,ReserveBankofFiji)
� “WithoutPFIPitwouldhavetakenmuchlongertoroll-out”(DFAT,SolomonIslands)
� «PFIPhashelpedusopeningupfornewideas»(AssistantGovernor,BankofPapuaNewGuinea)
� «PFIPprovidesongoingguidance»(HFCBank,Fiji)
� «WewouldnothavelaunchedtheregionalexpansionwithoutPFIPsupport»(S.Schwall,Bima)
� «IfitwasnotforPFIP,wewouldnotventureintotheseservices”(S.Prasad,Vodafone)
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PFIPManagementNotes
ThismidtermreviewwillincludenotesfromPFIPmanagementsimilartotheconventionemployedinauditedfinancialstatementsandquarterlyfilingsofpubliccompanies.ThisismeanttoprovidestakeholderswithaclearstatementofmanagementviewsonkeyelementsofPFIPstrategyandperformance.Thecorecontentofthedocumentcontainstheindependentreviewofprogrammeperformance.PFIPmanagementbelievesthatthisisthemosttransparentmannertopresenttheprogrammestrategytostakeholders.TheprogrammedocumentestablishedastartingpointwiththefourcoreworkstreamsofPFIP'sstrategyforcreatingaccesstofinance(A2F),andpositedawidearrayofactivitiesaspotentialinstrumentsforreachingtheprogrammeobjective.However,PFIPmanagementandtheInvestmentCommitteehavedevelopedthestrategyduringprogrammeimplementation.Theresultsmanagementframework,thecoreperformanceindicators,thetheoryofchangeandtheannualworkplanshaveallbeendevelopedduringthefirsttwoyearsoftheprogramme.Wefeelthatthemanagementnoteswillprovidethereviewerandthestakeholderswithvisibilityonthedecisionsthathavedriventhatevolutionandwiththataframeworktointerprettheresultsofthereviewassessment.
SummaryofobservationsandrecommendationsThePacificFinancialInclusionProgramme(PFIP)’ssecondphasebuildsonitsachievementsduringthefirstphasefrom2008to2013.Itisco-administratedbyUnitedNationsCapitalDevelopmentFund(UNCDF)andtheUnitedNationsDevelopmentProgramme(UNDP),andfundedbytheAustralianDepartmentofForeignAffairsandTrade(DFAT),theEuropeanUnion(EU)andtheNewZealandMinistryofForeignAffairsandTrade.PFIPIIwaslaunchedinJuly2014foranoperatingperiodoffiveyears.ItsglobalobjectiveistosustainablyincreasefinancialinclusioninthePacific,especiallyforruralandlow-incomewomen,men,youthandmicroentrepreneurs.
Chapter2providesanoverviewoftheobjectiveoftheassignment,thereviewmethodology,aswellasdatacollection.Dataforthisreviewwascollectedthroughadeskreviewofdocuments,andin-personandskypeinterviews.BasedontheTermsofReferenceandtheInceptionReport,thereviewisbasedonthefollowingsevencoredimensions1:readjustmentofprogrammestrategyandimplementationapproachperformanceagainstprogrammeobjectives,programmeimplementation,impact,relevance,sustainabilityandfuturedirection,aswellasmanagementeffectiveness.
Chapter3givesanoverviewofPFIPworkstreamsandimplementationapproachadaptation.Theyhavebeencontinuouslysharpenedandfine-tunedsincethestartoftheprogramme,especiallyinlate2014andearly2016.Theprogrammefocusesonshortcomingsofthefirstprogrammephasebyputtingthedevelopmentoffinancialproductsandservicesthatprovidehighvaluetotheclientonasustainablebasisintothecentreofactivities.PFIP’sresultsframeworkwasdevelopedin2014andfine-tunedintoanindicatorhierarchyin2016.Asetofsixobjective-levelindicatorswasconsolidated.Consistentwiththeredefinedimplementationstrategy,theyconcentrateonworkstream2.
Chapter4assessesPFIP’sperformanceagainstitsobjective-levelindicators.Overall,PFIPhasalreadyachievedorevenoverachievedfiveoutofsixindicators.Fouroutofthesixindicatorshavenotonlybeenoverachievedintermsofwheretheprojectisinitstimeframe,buttheyhavebeenoverachievedinrelationtotargetsdefinedfortheendoftheprogramme.EspeciallyoutreachandusageoffinancialservicesdevelopedwiththesupportofPFIPhavesubstantially
1Thedimension“readjustmentofprogrammestrategyandimplementationapproach”hasbeenaddedlaterduetosubstantialadjustmentbeingmadeafterthestartoftheprogramme.
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increasedandimproved.Theonlyindicatorwhichstillshowssomemarginforimprovementistheindicatorwhichrelatestooverallnumberofwomenclients.Thesub-chaptersprovidefirstanoverviewofachievementlevelsforallindicatorsandsubsequentlyadetailedanalysisofeachoftheindicators.
Chapter5looksattheprogramme’sfourworkstreams.Theseworkstreamstogethercontributetotheoverallobjectiveoftheprogramme,i.e.toexpandaccesstofinancialservices.Whileworkstream2isthecentralworkstreamfocusingonoutreachandusage,theotherthreeworkstreamsprovideessentialsupport.Theysupportthecreationofanenablingenvironmenttoincreasefinancialinclusion.Workstream1(enablingpolicyandregulation)coversthemacrolevel,engagingwithcentralbanks,insuranceregulatorsandotherrelevantauthoritiestosupportaconducivepolicyenvironment.Workstream3(marketinformationandknowledge)supportsthegenerationofknowledgeandmarketinformationforpublicandprivatepartners.Italsoincreasestheavailableknowledgebaseandcapacitybyengagingintrainingofpartners.Finally,workstream4focusesontheclientlevelbysupportinggovernmentauthoritiesandlatelymoreandmoreprivatepartnersindevelopingandimplementingfinancialliteracyinitiativesandbysupportinggovernmentministriesinrevisingconsumerprotectionregulations.PFIPisthereforesupportingalldifferentlevelsofthefinancialsystemwhichplaytogetherinfosteringincreasingfinancialinclusionforlow-incomepopulations.
Anecdotalevidencefromsomeofthesupportedprojectsshowsgoodresultsonimpact(Chapter6).SincePFIPwillnotbeabletoscientificallymeasureimpactofallitsindividualactivities,usageratescanbeusedasagoodandcost-efficientproxyforimpact.PFIPhasnotputdownitsenvisagedlong-termresultschainexplicitlyinwriting.Both,theresultsmanagementframeworkandtheTheoryofChangestopattheimmediateobjectivesoftheprogramme(expandaccesstofinance),withoutmakingthelinktohowaccesstofinancialservicescanultimatelycontributetoimprovingpeople’slivelihoodsthroughaccesstoandusageoftailoredfinancialservices.
PFIPishighlyrelevanttoitsfunders’visionsandstrategies(Chapter7).PolicymakersandregulatorsinpartnercountrieslaudePFIP’ssupportsincefinancialinclusionisofhighrelevancetotheirnationalandregionaldevelopmentagendas.Activitiesaremostlyalignedwithfinancialserviceproviders’strategies;however,theprivatesectormayresisttomovetooquicklywithnewproductstonewmarkets(i.e.ruralareas)whichcanconflictwithsomefunders’short-termobjectives.Implementationreadjustmentswillassureincreasedrelevanceforclients.
PFIPhasreachedsubstantialsustainability(Chapter8)ofitsinterventionsatthepolicylevelbysupportingtheset-upofnationaltaskforcestakingovertheimplementationoftheNationalFinancialInclusionStrategies.SustainabilityhasnotyetbeenreachedwithanyofthefinancialservicesdevelopedwithPFIPsupportbyserviceproviders.Additionalfundingisneededtoassureprojectimplementationuntilprogrammeendandaboveallsustainabilityandfollow-up.
DatacollectioneffortshavebeensteppedupbyPFIPintherecentpastwithmanyindicatorscollectedforeachworkstream.DataqualityisinsomecasesstillanissueandPFIPcontinuestoworkwithprojectpartnersonit.Monitoringinstrumentscouldbeimprovedbydevelopingonesingletoolforperiodiccollectionofindicators.Theteamhasnotbeenfullystaffedduetoexternalandinternalrecruitingissues.PFIPleveragesabout1USDforeachUSDcontributedbyitsfundersandhasmanagedtoestablishmultiplecollaborationswithotherprojects(Chapter9).
Chapter10summarizessuggestionsdevelopedduringthemid-termreviewspecificallyregardingtheTheoryofChange,theresultsmanagementframeworkandindicators.Itissuggestedtorevisetheseinstrumentsbasedontherefocusedandrevisedprogrammestrategyandimplementationandtodefineamanageableandmeasurablesetofindicatorsforeachworkstreamandeachlevel,specificallyoutcomeandoutput.Thischapteralsoincludessuggestionsforimprovingissues,suchasstaffmanagement,anddonorreporting.
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1 ProgrammebackgroundPFIPManagementNotes
ThePFIPisatitscoreaninitiativeto"expandaccesstofinancialservicesforruralandlow-incomewomen,men,youthandmicroentrepreneurs"intheSouthPacific.Theprogrammestrategyisimplementedthroughfourworkstreamsthataremeanttoproduceoutcomesthatcontributetothiscoreaccess-to-finance(A2F)objective:enablingpolicyandregulation,financialinnovation,marketinformation,andfinancialcompetency.TheseworkstreamsarethepillarsofPFIPstrategy.Themidtermreviewwilldocumentthescopeofactivityineachoftheworkstreamsand,mostimportantly,thelessonslearnedabouttheapproachesthataremakingthemostmeasurablecontributionstoPFIP'scoreA2Fobjective.PFIPlaunchedthefourworkstreamsbyimplementingtheinitiallistofactivitiesthatwereidentifiedintheprogrammedocument.TheseactivitiesrepresenttheinitialhypothesisabouthowtoleveragethefirstphaseofPFIPtoaddressthemarketgapsandopportunitiesvisibleatthetime.However,theprogrammedocumentidentifiesanambitiousarrayofactivities,methodologiesandgoalswithoutestablishingprioritiesoranevidencebaseformanyoftheactivities.PFIPmanagementandtheInvestmentCommitteehavesetprioritiesandadaptedtheworkstreamsovertimebasedonprofessionalexperienceandactualresults.Thesestrategicdecisionsarereflectedintheannualworkplansandinthegrantprojects.Theprogrammeresultsmanagementframework(RMF)isthekeyinstrumentformakingthesestrategicdecisions.Itreflectsassumptionsabouthowactivityoutputswillproducetheworkstreamoutcomesthatwillcontributetotheprogrammeobjective,anddefinesthemetricsformeasuringresults.TheRMFistheprincipaltoolforassessingtheoutputsofprogrammeactivities,fordeterminingwhethertheworkstreamoutcomesareinfactcontributingtotheobjective,andforthebottomlineassessmentofwhetherPFIPisexpandingaccesstofinance.TheRMFisincludedintheannexes.
Chapter1summarizesthedevelopmentofthePacificFinancialInclusionProgramme(PFIP).Itsummarizesbrieflythe
achievementandlearningsfromPFIPIandlaysouthowthesetranslateintoPFIPII.Finally,itprovidesasummaryof
PFIPII’sobjectiveandindicators,aswellasthecomponents(workstreams)oftheprogramme’simplementation
strategy.ThechapteralsomentionsotherstrategicdimensionsrelevantforPFIPimplementation,suchasalignment,
strategicpartnerships,aswellasgeographicreach.
1.1 PFIPIIobjectiveandindicators
DuringthedevelopmentofPFIPII’sresultsmanagementframework(RMF)whichhasbeenjointlydevelopedbyProgrammemanagementandtheInvestmentCommitteein2014,theprogrammeobjectivefromitsinitialversionintheprogrammedocumentwassharpenedandfocusedandreadsinitscurrentversion:“Expandaccesstofinancialservicestothelow-incomepopulation.”Duringthisprocess,objective-levelindicatorssuggestedintheprogrammedocumentwereaswellrevisedandconsolidated.ThefollowingindicatorswereapprovedbytheInvestmentCommitteeinlate2014formonitoringprogrammeprogress:1. Totalnumberofclients2. Totalnumberofclients–women3. Totalnumberofclients–savers4. Totalnumberofclients–women,savers5. Averagesavingsbalance6. Activitylevels
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Forallindicators,PFIPaimstodisaggregatedatabygenderandage.Furthermore,itwasenvisagedtoalignPFIP’sstrategywithUNDP’sGenderEqualityStrategyandUNCDF’sstrategyonGenderEqualityandtheEmpowermentofWomen(GEEW)andimplementUNCDFminimumstandards.
1.2 PFIPIIprogrammestrategy
PFIPII’sstrategyisdefinedalongseveraldimensionsandsplitupintofourworkstreams.PFIPII’sfourworkstreams(oroutcomeareas)aspertheprogrammedocumentandagreementbetweenPFIPmanagementandtheInvestmentCommitteearethefollowing:
� Workstream1—PolicyandRegulationprovidessupporttoregulatorsandpolicymakerstocreateanenablingregulatoryenvironmentformassmarketfinancialservices,andleveragegovernmentpaymentstoacceleratetheadoptionofformalfinancialchannels.
� Workstream2—FinancialInnovationfundsfinancialserviceproviderstoinnovatewithnewchannelsandservicesdesignedformassmarketcustomers.
� Workstream3MarketInformationfundsresearchandpublicationofdemandandsupplysidedatatosupportdecisionmakinginallworkstreams,andtoproduceknowledgeproductsrelatedtofinancialinclusion.
� Workstream4FinancialCompetencyfundsactivitiesrelatedtoconsumerprotection,adultfinancialliteracyandfinancialeducationinschools.
Theadditionalstrategicdimensionshighlightedintheprogrammedocumentare:
� Alignmentwithstakeholders’priorities:PFIPIIseekstoalignitsactivitieswithstakeholders’global,regionalandnationalpriorities,suchastheMoneyPacificGoalsendorsedbytheForumEconomicMinistersMeeting(FEMM),orthePacificIslandsRegionalInitiative(PIRI).Atthenationallevel,theprogrammeseeksalignmentwithnationalgovernments’andcentralbanks’prioritiesonfinancialinclusion.
� Geographicreach:PFIPIIaimsatworkinginthesixlargestPICsthataccountfor90%oftheregion’spopulation,PNG,Fiji,SolomonIslands,Vanuatu,SamoaandTonga.Asappropriate,theprogrammewouldexplorethepossibilityofworkingintheremainingtwoLeastDevelopedCountries(LCDs),TuvaluandKiribati.
� Combinationofregionallearningandadaptation:Initiativesaimatbeingtailoredtotheparticularstageofacertainmarket.However,theprogrammepursuestoleveragecross-cuttinggapsandopportunitiesapplyingaregionalapproachwheneverjudgedsensible(e.g.buildingsupervisorycapacity,consumerprotectionframeworks,financialinclusiondatameasurementsystems).
� Partnershipsandlinkages:Asregardspartnershipsandlinkages,theProgrammeDocumentplannedforPFIPtotakeanactiveroleindonorcoordination,establishingleadrolesfordonorsbasedoncomparativeadvantages.Thefollowingpartnershipsweretobeexplored:● AFIandspecificallyPIRItocollaborateonestablishinganenablingpolicyenvironment;● UNWomen’sprogramme“SafeCitiesforWomenandGirlsProgramme”inPNGbycollaboratingwithfinancial
serviceprovidersinofferingbankaccountsandpaymentservicestowomen,especiallymarketwomen;● MicroSave’sAgentNetworkAcceleratorProgramme;● PartnershipsandsynergiesaroundmicroinsuranceandremittanceswithILOandIFAD.UNCDF-fundedprogrammesandpartnerships:● YouthStart:Collaborateincomplementingfinancialliteracytargetedatyouthwithfinancialproductsthat
meetyouth’requirements;● BetterThanCashAlliance(BTCA):Leverageglobalexperienceindrivingcashpaymentsmadebygovernments,
thedevelopmentcommunity,NGOsandprivatesector;● MobileMoneyforPoor(MM4P):Exploresynergiesespeciallyonknowledgegenerationanddisseminationwith
theprogrammewhichsupportsbranchlessandmobilefinancialservicesinaselectgroupofLDCs;● CleanStart:Increasedsustainableaccesstocleanandaffordableenergythroughmicroloans;● TheInclusiveFinancefortheUnder-servedEconomy(INFUSE):ContinueoverseeingimplementationofINFUSE
inTimor-Lesteandsharelessonslearned.
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1.3 BackgroundanddevelopmentofthePacificFinancialInclusionProgramme(PFIP)ThefirstphaseofthePacificFinancialInclusionProgramme(PFIPI)startedin2008,supportedbytheUnitedNationsCapitalDevelopmentFund(UNCDF),theUnitedNationsDevelopmentProgramme(UNDP),andtheEuropeanUnion’sAfrica,CaribbeanandPacificMicrofinanceFrameworkProgramme(EU/ACP).Itsobjectivewastoachievegreaterfinancialinclusioninoneoftheleastbankedregionsintheworld.Bytheendof2013,PFIPIhadreached687,000additionalindividualsand/orsmallandmicroenterprisesinthePacificIslandCountries(PIC)whohadgainedaccesstooneormoreappropriatefinancialservices.Assuch,theprogrammehadachieveditsoutcome,however,itacknowledgedthatthequalityandrangeoffinancialproductsandservicesintroducedneededtobeimprovedtodriveupactiveusage,andmoreimportantlytoachievethebenefitsenvisionedforlow-incomeusers.PFIPeffortshadresultedinhighnumbersofsign-upsformobilemoneyoragentnetworkoffers,butusagelevelshadremainedverylowat7.5%ofsubscribers.
TakingintoconsiderationPFIPI’sachievements,severalgapsandopportunitieswereidentifiedforPFIPII,thesecondphaseofthePacificFinancialInclusionProgrammewhichwaslaunchedinJuly2014foranoperatingperiodof5years(2014-2019):
� Formulateadditionalnationalfinancialinclusionandliteracystrategiesandsupporttheirimplementation;� Strengthensupervisorycapacitiesofregulatorsinareassuchasotherdeposit-takinginstitutions(ODTIs),mobile
moneyandbranchlessbanking(MM/BB),andmicroinsurance;� Deepenusageofthenewlydevelopedfinancialproductsandchannels;� Strengthenconsumerprotectionandsupportmeasureswhichenablemarketconduct;� Supportrobustfinancialinclusiondatameasurementsystemsforevidencebasedpolicy/businessdecisions;� Strengthenagentnetworksforlastmiledeliveryoffinancialservices;� Supportcost-effectiveinternationalremittancechannels;� Supportstakeholdercoordination,learningexchanges,knowledgegenerationanddissemination;� AdoptaresponsiblefinanceframeworksuitedtothePacific;� Instituteamonitoringandevaluationframeworkandperiodicimpactevaluationsoffinancialinclusioninitiatives.
AccordingtothePFIPIIprogrammedocumentthefollowinglearningsfromPFIPItranslatedintoadjustmentsforPFIPII:
� StrengthenPFIP’sinternalsystemsandcapacitiestoadoptamoreholisticapproachtoresultsmeasurement,utilizingpracticesinlinewiththeDCED(DonorCoordinationforEnterpriseDevelopment)Standardsandmeasuringthedevelopmentimpactofprojects;
� Deepentheimpactofproductsandserviceswithemphasisonbuildingrobustagentnetworks,broadeningtherangeoffinancialproducts,catalysingstrategicpartnerships,developingriskmanagementframeworksandclientprotectionguidelinestocreatearelevantandsecuremobilefinancialserviceseco-system;
� Broadengovernmentpartnersbeyondcentralbankstobringgreatergovernmentresources(humanandfinancial)tobearonlargerobstaclestoinclusivefinance(i.e.MinistriesofEducation,NationalPlanning,etc.).
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2 ScopeofreviewChapter2providesanoverviewoftheobjectiveoftheassignment,thereviewmethodology,aswellasdata
collection.Informationwascollectedthroughadeskreviewofdocuments,andin-personandskypeinterviews.
BasedontheTermsofReferenceandtheInceptionReport,thereviewisbasedonthefollowingsixcoredimensions:
performanceagainstprogrammeobjectives,programmestrategy,impact,relevance,sustainabilityandfuture
direction,aswellasmanagementeffectiveness.
2.1 ObjectivesoftheassignmentTheobjectiveofthisevidence-basedexternalmid-termreviewofthePacificFinancialInclusionProgrammeIIistoevaluatetwomaindimensions:
� Assessmentofperformanceagainstprogrammeobjectives.Anevidence-basedreviewofwhetherPFIPIIisdeliveringoutputtargets,achievingoutcomes,andultimatelytheprogrammeobjective.
� Assessmentofprogrammeimplementationandunderlyingstrategicassumptions.Areviewofstrategicassumptionsandhypothesisvalidatingthetheoryofchangeaswellascontributionsofworkstreamstotheimplementationoftheprogrammeobjective.
2.2 DatacollectionandreviewperiodTheconsultantusedavarietyofdatacollectionmethodologiesforthisreviewtocross-checkandtriangulateinformation:
Deskreview.DocumentstobestudiedandassessedwereprovidedbythePFIPteam.Documentsincludetheprogrammedocument,theresultsmanagementframeworkanddiversemonitoringtools,workplans,grantagreementsandprojectappraisaldocuments,aswellasknowledgeproducts.Furtherdocumentshavebeenprovidedbytheteamduringandafterthemission,suchastherevisedPFIPresultsframeworkandInvestmentCommitteemeetingminutesdocumentingstrategicadjustmenttoprogrammemanagement(cf.Annex4foranoverviewofdocumentation).
In-personandskypeinterviews.Qualitativedatawasgatheredbymeansofsemi-structuredinterviewsbasedoninterviewguidelineswithselectedstakeholdersinFiji,Samoa,SolomonIslandsandPapuaNewGuinea.Stakeholdersweredividedinfivetypesofstakeholdersandinterviewsadjustedtotheirspecificengagementwiththeprogramme(cf.Annex3).ConsultationsalsotookplacewiththePFIPteam.Theconsultantconductedinterviewswithover60individualsfrommorethan30organisations.InterviewstookplacebetweenNovember7andNovember24,2016inFiji,Samoa,SolomonIslandsandPapuaNewGuinea(cf.Annex2).
Meetingstookingeneralbetween1and1.5hoursandweredividedintwoparts:aback-wardlookingfirstpart,wherepartnerswereaskedtosharetheirassessmentofcollaborationwithPFIP,aswellasresultsachieved(ornot)andunderlyingreasons.Inthesecondpart,theconsultantaskedforward-lookingquestionstoassesshowpartnersarecapitalizingonthecollaborationwithPFIPandwhetherthereispotentialforfurtherinnovations,orforscalingupactivitieswithorwithoutfurtherPFIPsupport.Forsomeoftheactorswherein-personmeetingswerenotpossible,Skype-conversationweresetupeitherduringorafterthein-countrymission.
Reviewperiod.Althoughthismid-termreviewisexplicitlyassessingtheperformanceofthesecondphaseofPFIPIIwhichhasstartedinJuly2014,itwilltakeintoaccountso-called“legacygrants”fromthefirstphaseofPFIPIwhenthesearestillbeingmonitoredandfollowed-upbythecurrentprogrammeteam.ThisisbasedonadecisionbytheInvestmentCommitteeinSeptember2014tocarryopengrantsintothenewprogrammephase.Specifically,thisisthecaseforDigicel,KlickExandBSPpartnerprojects.
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2.3 Corereviewdimensions
Theprogrammewillbereviewedalongthefollowingdimensions:
Strategicreadjustmentofprogrammestrategyandimplementationapproach:ThisdimensionlooksattheeffortsmadebyPFIPmanagementandtheInvestmentCommitteeinstrategicallyadjustingtheprogrammedocumentintoamanageableprogramme.Italsoassessestheresultsmanagementframeworkdevelopedandthesetofindicatorsdistilledfromprogrammedocument.
Performanceagainstprogrammeobjectives:ThisdimensionassessestheeffectivenessofPFIP.Itmeasurestheextenttowhichtheprogramme’sobjectiveshavebeenorwillbeachievedbycomparingthetargetandactualsituationusingtheindicatorsandtheresultsmanagementframeworkdefinedbyProgrammemanagementandapprovedbytheInvestmentCommitteeinlate2014.Theassessmentincludesthecurrentsituationatthetimeoftheevaluationmission,aswellasapredictiveassessmentofachievementsattheendoftheprogramme.
Programmeimplementation:Thisdimensionlooksinmoredetailatthefourandassessestheirperformance,i.e.whethertheyhavecontributedtotheprogrammeobjective.ThebasisforthisassessmentarethedifferenttopicsdefinedintheProgrammeDocumentandsharpenedduringProgrammemanagementandICconsultationsandwhereclearlydefinedandtrackedbytheteamtherelevantoutcomeandsomeoftheoutputindicators.
Impact:Thisdimensionassessestheunderlyinghypothesisoftheprogrammegeneratingimpact.Further,itlooksattheextenttowhichitcanbeanticipatedthattheprogrammecontributesandwillcontributetoachievingoverarchinglong-termdevelopmentobjectives.Italsoassesseswhethertheprojecthelpstoachievebroadimpactbeyonditsdirectandimmediateobjectiveandwhyitdoesordoesnot.
Relevance:RelevanceassessesPFIP’scomplianceandalignmentwiththedifferentstakeholders’relevantstrategiesandpolicies,suchaspartnercountrygovernments,programmefunders,financialserviceprovidersandclients.
Sustainabilityandfuturedirection:SustainabilityassessestheprobabilitythatPFIP’spositiveresultscontinuebeyondtheendoftheprogramme.Italsolooksatwhethertheprogrammeconsiderspossibleriskfactorsthatmightinfluencethelong-termsustainabilityofresults.ThisdimensionincludesanoverviewofPFIP’savailablefundingwithaviewoncontinuingimplementationuntiltheendofthecurrentprojectphase.
Managementeffectiveness:Thedimensionmanagementeffectivenessassessestheprogramme’soverallprojectmanagementincludingtopicssuchasstaffing,reporting,communication,aswellasdatacollectionandmonitoring.Finally,itaddressescomplementarityandcoordinationwithotherdonorsanddevelopmentpartners.
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3 Assessmentofstrategicreadjustmentofprogrammestrategyandimplementationapproach
PFIPManagementNotes
PFIP’sprojectswithfinancialserviceprovidershaveevolvedintofocusedeffortstocreatecustomervalue.Thisisforemostaresponsetotheprimaryshortcomingwiththefirst-generationeffortsofmostprovidersintheregion.Lowusageratesareareflectionofpoorcustomervalue.Andourassessmentofthefirst-generationimplementationrevealageneralandglaringlackofattentiontomakingservicesusefultothedailyfinanciallivesoflowincomecustomers.Inshort,mostfirstgenerationeffortscreatedthetechnologytosolvetheservicedistributionproblem,butstoppedshortatdesigningproductsandcreatingauserexperiencethatiscompellingtotheunbankedpopulation.Othermarketshavepassedthroughthesamecycleanddevelopedtechniquesforcreatingmoreviablecustomervaluewithfocusedservicedesignefforts.PFIPisnowemployingtheseapproachesinallprojectswithserviceproviders.Insum,projectsarestructuredaroundshorttermdesigninitiativesthatareresourcedtodesign,testandvalidateservicesthatworkforpeopleandarecommerciallyscalable.Scaleupfollowsvalidation.Thisapproachiswellalignedwiththecorporatedynamicsoftheservicedeliverypartners.Asmostofthemhavenotgeneratedaviablebusinessmodelfromtheirfirst-generationefforts,investorsnowrequirerobustvalidationofviabilitybeforemakingasecond-generationinvestment.Thenewprojectapproachvalidatesthebusinessmodelinatestpilotpriortoscaleup.Equallyimportant,thisapproachfocuseseffortsdirectlyonthecustomer.Thisproducesmorevisibilityandresultsrelatedtotheimpactoftheserviceonthecustomers,andcreatestoolsforaddressingtheneedsofspecificcustomersegments,womeninparticular.
PFIPworkstreamsandimplementationapproachhavebeencontinuouslysharpenedandfine-tunedsincethestartof
theprogramme,especiallyinlate2014andearly2016.Itfocusesonshortcomingsofthefirstprogrammephaseby
puttingthedevelopmentoffinancialproductsandservicesthatprovidehighvaluetotheclientonasustainable
basisintothecentreofactivities.PFIP’sresultsframeworkwasdevelopedin2014andfine-tunedintoanindicator
hierarchyin2016.Asetofsixobjective-levelindicatorswasconsolidatedwhichconcentratesonworkstream2.This
isconsistentwiththeredefinedimplementationstrategy.
3.1 Adjustmentofworkstreamsandimplementationapproach
PFIP’sProgrammeDocumentisextensiveonPFIPI’sachievementsandlearnings.ItalsosummarizeswellthefocusforPFIPIIbasedonlearningsandgapsandopportunitiesidentifiedduringthefirstphaseoftheprogramme.However,thedocumentistechnicallynotverycoherent.PFIP’sstrategyforthesecondphaseaslaiddownintheprogrammedocumentrecognizestheshortcomingsofthefirstphaseintermsofdevelopingproductsthatdeliverhighclientvalueonasustainablebasis.Therefore,itfocusesonclients’usageoffinancialservices,asopposedtooutreachwhichwasthefocusofthefirstphase.However,theprogrammedocumentfailsinprovidinganadequateresultsmanagementframework.Also,basedondiscussionswithstakeholdersonthegroundaswellaswithInvestmentCommitteemembers,thenecessityarosetosharpenandfocusactivitiesundereachworkstream.ArevisedresultsmanagementframeworkaswellasadjustmentstoworkstreamshavebeenapprovedbytheInvestmentCommitteeinlate2014(cf.InvestmentCommitteemeetingminutesfromNovember2014).Furtherfine-tuningtotheimplementationapproachisdocumentedinthe2016/17workplanwhichhasalsobeenapprovedbytheIC.
Thelatestrevisionsfromearly2016arebasedonlearningsfromPFIPIwhereclientssignedupforproductsbutthenrefrainedfromusingthem.Therefore,theprogrammedevelopedanapproachtoassureproductsareasclient-centricandtailoredtotheirneedsaspossible.Theworkplanandbudget2016-2017documentsummarizesthissharpenedstrategicfocusbasedonfourassumptions:1)productandserviceinnovationwilldriveadoption,2)regulationfollows
PFIPIImid-termreviewreport 14
themarket,3)informationneedstobeaninputtoinnovation,4)financialcompetencycomesfromdoingmorethanlearning.
Activitiesundereachworkstreamhavebeenredefined.Redefinitionofactivitieshavebeenpartlydocumentedintheresultsframeworkhierarchydocument(asofQ32016).
� Workstream1:Thisworkstreamaspertheprogrammedocumentdelineatedfivetopicareasofintervention:nationalfinancialinclusionandfinancialliteracystrategy;strengtheningregulatoryandsupervisorycapacitiesofcentralbanks;greaterintegrationoffinancialinclusioninnationaldevelopmentagenda;financialinclusiondatameasurementstandardsandsystems;andinteroperability.PFIPhasnotdevelopedaworkstreamrelatedtointeroperabilityduetoanagreementwiththeWorldBankPaymentSystemsDevelopmentGroupwhichhasthenecessarytechnicalexpertise,andiscurrentlyengagedwithgovernmentsontheunderlyingreformsnecessarytofacilitatenational-levelinteroperability.Theremainingactivitieswereconcentratedaroundtwomaintopics:1)enablingpolicyandregulatoryenvironmentand2)government-to-people(G2P)payments.
� Workstream2:Topicareasoriginallydefinedunderthisworkstreaminclude:incubatinginnovativefinancialservicesdeliverymodel;productandchanneldeepening;strengtheninganddeepeningcommunitybasedfinancialservicesdeliverymodel;andfinancialservicesforthemarginalized–women,youth.Therevisedresultsmanagementframeworkdefinestheoutcomesforthisworkstreamas“Financialserviceneedsoflow-incomeconsumersmet&FSPsaresustainable”.Itdoesnotdivideactivitiesintothecategoriesmentionedbytheprogrammedocument,butsummarizesthemunder“accessandoutreach”.However,accordingtotheevaluator’sjudgement,noactivitiesortargetgroupshavebeenleftout.ThisworkstreamhasbecomethecentrepieceofPFIP’simplementationapproach(seebelow).
� Workstream3:Thefocusforthisworkstreamhasnotbeenchangedandcontinuestofocusonenhancedsectorunderstanding.Itincludesknowledgegeneration(studies,researchandassessments)aswellasdissemination(communicationeffortsbytheprogrammeandtrainingsandworkshops).
� Workstream4:ActivitiesdefinedunderthisworkstreamintheprogrammedocumentincludesupporttoextensionoffinancialeducationtootherPICs,innovativefinancialliteracydeliverymodels,andworkonconsumerprotectionandmarketconduct.PFIPisplanningtoexitfinancialeducationactivitieswithMinistriesofEducation.Inthefuture,PFIPplanstofocusonfinancialliteracyinitiativesembeddedwithproductdesigninitiativesfocusingonspecifictargetcustomersfortheseproducts.Thisapproachwillallowcustomerstouseandapplylearnedknowledgeimmediatelyandthusresultsshouldbeabletobeseenmoredirectly.Theoutcomeforthisworkstreamremainsthesame:“competentandempoweredconsumers”.
Asmentioned,thelatestfine-tuningtotheimplementationapproachputsastrategicpriorityonworkstream2(Financialinnovation)bysupportingproviderstodevelophigh-valueproductsandservicesforclients.Activitiesunderworkstreams1,3and4arere-definedassupportactivitiesforfinancialinnovationthathelpcreatinganenablingenvironmentorecosystemforfinancialservicestoflourish(cf.Figure1fromthe2016-2017workplan).
PFIPIImid-termreviewreport 15
Figure1:GraphicdepictionofPFIPIIstrategicreadjustment
Withinworkstream2,substantialweightisgiventoanewimplementationapproachintermsofproductdevelopment,theso-called“innovationlabapproach”.Incollaborationwithfinancialserviceproviders,productinnovationwillgothroughthreestageswithdefinedoutputsandmilestonesattheendofeachstagewhichconditionaprojecttomovetothenextstage.Thethreestagesare:learning,testingandscaling.Thefirststagecomprisesresearchprojectstolearnaboutclientneedsanddemands.Thesecondphase(testing)aimsattestinghypothesistovalidatebasicassumptionsaboutcustomerdemand,operationalfeasibilityandprofitability.Duringthethirdphase(scaling)validatedsolutionswillbeimplemented.
Theapproachwhichiscurrentlybeingimplementedinafirstroundofcollaborationswithseveralserviceprovidersenvisagestoquicklydevelopfinancialserviceprototypesbasedonresearchaboutclientneeds,testthemwithalimitednumberofclients,captureclients’feedbackandintegrateitintotheproductbeforetestingagainandeventuallyscalingaproductthathasgonethroughroundsofcustomerfeedbackloops.
Atthesametime,thisnewapproachwillincludespecifictargetsegments(women,youth,ruralpopulations)withinthedesignapproach.Also,financialliteracyandeducationeffortsforclientswillbeincludedinthedesignoftheappropriatecustomerjourneyforaproductandwillthusbegearedtothespecificunderstandingandusageofthenewproduct.Thelatestworkplanalsosuggeststoputmoreemphasisonmetricsregardingcustomeradoptionandbusinesscaseanalysis.
Thisstrategicreadjustmentisjudgedaverysensibleandwell-thoughtapproachfocussingexplicitlyonwhatPFIPIIseekstodo,i.e.fosteringusageoffinancialservices.Also,thisapproachwhichmightonaveragetakeabout18monthstogetfromresearchtoaproducttobelaunched,isexpectedtobemoreeffectivesincethereisagreaterchancethatclientspickupnewproductsandthattheseeffectivelygenerateimpactonclients’lives.However,sincethisnewapproachhasonlybeenimplementedforthepastapproximatelysixmonths,concreteresultsareyettobeseen.Also,somedesigninitiativescanandwillfailandPFIPaswellasitsfundingandprivatesectorpartnershavetobepreparedforthis.
3.2 Adjustmentofprogrammeobjectiveandindicators
PFIP’sobjective2asdefinedintheprogrammedocumentisquitevagueandleavesroomforinterpretation.Atthesametime,theprogrammedocumentdefinesindicatorsforPFIPIIinthreedifferentpartsthroughoutthedocument:somearelistedintheresultsandresourceframework,someinthemonitoringframework,andasubsetorsummaryofmain
2PFIP’soriginalobjectiveasdefinedintheProgrammeDocumentreads:“TheoverallaimoftheprogrammeistorespondtocurrentandemergingchallengesintheinclusivefinancespaceinthePacificinordertoplayacatalyticroleinexpandingaccesstofinancialservicesforruralandlow-incomewomen,men,youthandmicroentrepreneurs.”
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indicatorsislistedintheexecutivesummary.Intotal,itincludesabout40indicators,someofwhichaimatroughlythesameobjective,arehoweverphrased(slightly)differently.Manyindicatorsarenotconsistentandsomeareevencontradicting.Indicatorsarealsonotclearlyattributedtothedifferentlevelsoftheresultsmodel,i.e.dividedintooutcomeindicatorsandoutputindicators.
Basedonthisanalysisandtherefocusedimplementationapproach,PFIPmanagementrevisedandupdatedtheresultsframeworkinlate2014andearly2016.Thelatestupdateincludesamorestraight-forwardprogrammeobjective:“Expandaccesstofinancialservicestothelow-incomepopulation”.PFIPalsocarriedoutanexercisetoputtogetheraninventoryofindicatorsfromtheprogrammedocument.Itdefinedin2014threedifferenttiersofindicatorsdependingonwhethertheywerementionedintheprogrammedocumentornot.In2016indicatorswerefurtherstreamlinedintoanindicatorhierarchy(cf.Annex5).Themainprogrammetargetshavebeenconsolidatedintoasetofsixindicatorsattheobjectivelevel:
Table1:Objective-levelindicatorsforPFIPII
Accordingtointernationalpractice,thequalityofindicators,i.e.theirformulation,isanalysedbasedontheSMART-criteria,i.e.whetherindicatorsarespecific,measurable,achievable,relevantandtime-bound.
� Specific:FiveoutofsixPFIPIIindicatorsarespecific.Indicator6(activitylevels)isnotspecificsinceitdoesnotindicateifactivitylevelsrefertoactivitywithin30or90days.Allindicatorshavedefinedtargetvalues.BaselinevaluesareimplicitlyunderstoodbybeingachievementsorendofprogrammevaluesfromPFIPI(thebaselinevalueforindicator6isalsonotclearlydefined).
� Measurable:Allindicatorsaremeasurable.Aggregationofsomeofthenumbersfordifferentpartnersdoesmakenumberslessunderstandable,mayhoweverbeconvenientformonitoringpurposes,thoughnotforprogrammemanagementorsteering.Datacollectionoverallisachallenge.
� Achievable:Allindicatorsareachievable,andsomehaveevenbeenoveroverachievedhalf-waythroughtheprogramme.
� Relevant:Allindicatorsarerelevant.However,basedontheprogrammedocumentanditsexplicitfocusonclientvalueandusageforPFIPII,itcouldhavebeenexpectedtohavemoreobjective-levelindicatorsthatgobeyondaccessnumbers.Furtherindicatorsonusageandclientvaluecouldhavebeenaddedtothelist.Additionally,PFIP’sfocusoncommerciallyscalablefinancialservicesisnotrepresentedinthelistofindicators.
� Time-Bound:Indicatorsareboundbythetime-frameoftheprogramme.
Overall,thesetofindicatorshasbeensimplifiedandconcentratesonachievementsrelatedtoworkstream2whichisconsistentwiththeredefinitionofworkstreamsandtheirrespectivehierarchyandimportance(seebelow).IndicatorscoveraccessandusageoffinancialproductsandserviceswhichistheultimategoalofPFIPandrelateswelltoitsprogrammeobjective.IndicatorsmeasuringdevelopmentorrevisionsofNationalFinancialInclusionStrategies,financialeducationcorecurriculaimplementationandfinancialliteracystrategyimplementationhavebeenreclassifiedasoutputindicators.
Nevertheless,comparedtotheinitialsetofindicatorsfromtheprogrammedocument,afewaspectsarenolonger
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includedinindicatordefinition,suchas:
� Theexplicitmentionof“low-income”peoplefortheoutreachindicator(indicators1and2);� Thereferenceto“previouslyunbanked”peoplefortheindicatorsonsavings(indicators3and4);and� Thespecificreferenceto“branchlessbankingandmobilebankingsolutions”fortheusageindicator(indicator6)
whichisonlymentionedinthetargetvalue,butnotinthecoreoftheindicator.
Notmentioningtheseattributesspecificallyinindicatorformulationdoesnotmean,theyarenottakenintoconsiderationanymore.Onthecontrary,PFIPmanagementconfirmsthatallactivitiestheprogrammeimplementsfocusonlow-incomepopulation.Currently,thesearehowevernotconsistentlymeasuredormonitoredbytheteam,respectivelybyalprojectpartners.
Theteamhasnotconsistentlydefinedindicatorsattheoutcomelevelforallfourworkstreamsyet.Thereisacompletesetofoutputindicatorsforeachworkstream.
PFIPIImid-termreviewreport 18
4 PerformanceagainstprogrammeobjectiveChapter4assessesPFIP’sperformanceagainstitsobjectives.Overall,PFIPhasalreadyachievedorevenover
achievedfiveoutofsixindicatorsattheobjectivelevel.Fouroutofthesixindicatorshavenotonlybeenover
achievedintermsofwheretheprojectisinitstimeframe,buttheyhavebeenoverachievedinrelationtotargets
definedfortheendoftheprogramme.Especiallyoutreachandusageoffinancialservicesdevelopedwiththe
supportofPFIPhavesubstantiallyincreasedandimproved.Theonlyindicatorwhichstillshowssomemarginfor
improvementistheindicatorwhichrelatestooverallnumberofwomenclients.Thefollowingchaptersprovidefirst
anoverviewofachievementlevelsforallindicatorsandsubsequentlyadetailedanalysisofeachoftheindicators.
4.1 Overviewofobjective-levelindicators
Anoverviewofobjective-levelindicatorsandtheirlevelofachievementattheendofQ32016ispresentedbelowinTable1.Greenarrowsindicateindicatorachievementattimeofmeasurement(Q32016),yellowarrowsindicategoodprogressandpotentialtoachievetheindicatorattheendoftheprogrammephase.
Overall,PFIPhasmadeexcellentprogresstowardsachievingitsobjectiveindicators.Outofthesixindicatorstrackedbasedonavailablemonitoringdata,fiveindicatorshavetodatebeenover-achieved.Oneindicator(2)isonitswayofbeingachieved.Adetailedanalysisofindividualindicatorsfollowinthenextchapter.
Table2:Overviewofindicatorachievement
4.2 Individualassessmentofobjective-levelindicators
Indicator1“totalnumberofclients”hasadefinedtargetof500,000clientstobereachedbytheendoftheprogramme.AttheendofQ32016,thisindicatorshowsanachievementlevelof433,761clientsreachedbyPFIP.Thisrepresentsalmost87%ofachievementhalf-wayintotheprogrammeduration.ClientoutreachhasincreasedsteadilysincethestartoftheprogrammeasshowsFigure2below.
Figure2:Numberofclientsreached
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Thefollowingchart(cf.Figure3)showsthecontributiondifferentpartnersmaketooutreachnumbers.Theportfolioiscomprisedofsevendifferentpartnersofferingavarietyofproducts,suchasmobilebanking,agentbanking,villagesavingsandloanassociations,savingsandloansproductsandmobileinsurance.AlargenumberofcustomersareattributabletoBIMA’sinsuranceproducts(61%),aswellastoDigicel(26%).Theotherpartnerscontributeabout13%altogethertooutreachnumbers.Furthermore,PFIPiscurrentlydevelopinganumberofnewproductswithnewpartners,suchassolarloanswithMiBankinPNGandmobilepaymentservicesformembersofthecoconutvaluechaininSolomonIslands.
Figure3:Outreachbypartner
Additionally,takingintoaccountthecumulativenumberofPFIPIandPFIPIItodate,theprogrammeshasreachedtodateatotalof1,121,381clientsacrossthePacificrepresentingabout12%ofthetotalpopulationofthePacificIslandsinwhichitoperates.
Indicator2“totalnumberofclients–women”isreportedbytheteamat41%(respectively177,603)oftotalclients.Thesefiguresshowthattheteamisonitswayofachievingthetargetof50%oftotalclientsbeingwomen(cf.Figures4and5).Thenumberreportedisbasedonanextrapolationofwomenclientsforsomepartners,sincecurrentlynotallpartnerscandisaggregatetheirclients’databygender.
Figure4:Clientsbygender
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Figure5:Clientsbygender(extrapolated)
Toprogressonthisindicator,thePFIPteamsuggeststwoactions.Ontheoneside,itwillfocusmoreexplicitlyondesigningfinancialservicesspecificallyservingtheneedsofwomeninthePacificthroughitsup-scaleddesigninitiatives.Againstthisbackground,theteamisdevelopinganewgenderstrategytobefinalizedinJune2017.Ontheotherside,theteamisalsoworkingwithitspartnersonimprovingdataqualityreportedbyproject.Thisshouldleadtomorerobustnumbersforthisindicator.Howeveroverall,theevaluatorisoftheopinionthatIndicator2–giventhespecificconditionsregardinggenderinthePacificregion–showsasignificantachievementandwillmostprobablybeachievedattheendoftheprogramme.
Indicator3measures“totalnumberofclient-savers”andsetsthetargetatprogrammeendat150,000.PFIPreportsinQ32016159,565clientswithsavingsproducts,anachievementof106%half-waythroughtheprogramme.ThisnumberincludesclientsfromBSP,Digicel,ANZ,WVandSPBD(cf.Figure6).Sincetheindicatortargethasalreadybeenover-achievedandprojectswillcontinuetoaddclients,aswellasnewprojectswillbeaddedtoPFIP’sportfolio,itismostprobablythatthisindicatorwillshowsignificantover-achievementbytheendoftheprogramme.
Figure6:Savingsclients
Indicator4focuseson“totalnumberofclients–women,savers”withatargetof50%oftotalsaversbeingwomen.PFIPmonitoringdatashowsanover-achievementofthisindicatorwith55%ofsavingsclientsbeingwomen.Figure7belowdepictsthecontributionofdifferentprojectpartnerstothisindicator.3
3NumbersforallprojectpartnersbesidesDigicelarereportedinagender-disaggregatedway.NumbersforDigicelhavebeenextrapolated.
PFIPIImid-termreviewreport 21
Figure7:Savingsclientsbygenderandpartner
Indicator5tracks“averagesavingsbalances”withatargetvalueof10USD.Thisindicatorhasbeenoverachievedonaverageandatthesametimeforeachindividualpartnerprojectinvolvingsavings(cf.Table3).Theaveragebalanceisquitesubstantiallyabovethetargetvaluesincethe10USDtargetwasdefinedduringprogrammedesignasatargetformobilewalletswhereitisusuallymoreofachallengetogetpeopletostoresubstantialfundsoveraperiodoftime.Over-achievingthistargetwithmobilewalletproducts(ANZ,BSP)showsthatclientshavetrustinthesystem.AveragebalancesendupbeingmanifoldhigherthanthetargetvaluesincePFIPsupportedanumberofprojectsproposingsavingsproductsoutsidemobilewallets.
Table3:Savingsaccountbalances
Forcomparison,GSMAreportsfor2015ashareof46%ofmobileaccountsthathaveapositivebalanceandamedianamountheldontheseaccountsof4.70USDwithsevenoutof38individualprovidersreachingabalanceof10USD.4
Indicator6measures“activitylevel”withatargetof15%activityofbranchlessbanking/mobilemoneyclients.AttheendofPFIPI,activitylevelforPFIP-supportedprojectswasreportedat7.5%andhasbasedonPFIPmonitoringdatabyQ32016increasedtoaweightedaverageof43.8%(30days)and59.8%(90days).5The30-dayactivitylevelshowsanincreaseby484%ascomparedtoPFIPIdataandaconsiderableoverachievementof192%comparedtothetargetvalueforprogrammeend.The90-dayactivitylevelshowsanincreaseby697%comparedtoPFIPIdataandanoverachievementof299%comparedtothetargetvalueforprogrammeend.Asacomparison,in2015globally32.6%ofmobilemoneyaccountswereactiveona90-daybasis.6Highactivityrates(especiallyifmeasuredbythe30-daymetric),areasignofthehighvalueclientsattributetoacertainproduct.
4Cf.GSMA,2015StateoftheIndustryReportMobileMoneyathttp://www.gsma.com/mobilefordevelopment/wp-content/uploads/2016/04/SOTIR_2015.pdf.5Theindicatordefinitiondoesnotspecifyifitrelatesto30-dayor90-dayusage,neitherdoesthebaselinevalue.6Cf.GSMA,2015StateoftheIndustryReportMobileMoneyathttp://www.gsma.com/mobilefordevelopment/wp-content/uploads/2016/04/SOTIR_2015.pdf.
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Formorein-depthanalysisitisrecommendabletolookatactivityratesbrokendownbyprojectpartnersofferingdifferentservices,includingmobilemoney,branchlessbanking,VSLAsavings,aswellasinsuranceproducts:
Table4:Usageratesofdifferentproviders
DigicelusageratescontinuetobeverylowwhereasBSP’sbranchlessbankingusagerateisveryhigh.KlickExusageratearedefinedastotalnumberofuniqueclients(sendersandreceivers)andthereforeareat100%.UsageratesforBIMAandWorldVisionareconsiderablyhighaswell,however,theseservicesaredifferentfrommobilemoneyorbranchlessbankingservicesandcanthereforehardlybecompared.Especiallyforinsuranceproducts,activityratesdonotnecessarilyreflectclientvalue.Internationallyacceptedmeasurestoassessandbenchmarkclientvalueofinsuranceproductsareclaimsratiosandrenewalrates.7
7RefertotheFinancialandSocialKeyPerformanceIndicatorsHandbookdevelopedundertheumbrellaoftheMicroinsuranceNetwork(www.microfact.org/microinsurance-tools/).
Q32016KlickExSamoa
KlickExFiji
KlickExTonga
BSP BIMA DigicelSamoa
DigicalVanuatu
DigicelTonga
DigicelFiji SPBD WorldVision
ANZ
#ofuniquecustomerstransactingin30days(includingbaseline) 4,442 603 5,768 39,395 272,762 1,356 187 2,735 767 - 533 6,581Total#ofuniqueclients(includingbaseline) 4,442 603 5,768 75,694 371,854 70,907 18,809 55,139 104,413 7,085 971 48,690Activityrate(30days) 100.0% 100.0% 100.0% 52.0% 73.4% 1.9% 1.0% 5.0% 0.7% 0.0% 54.9% 13.5%#ofuniquecustomerstransactingin90days(includingbaseline)
4,442 603 5,768 46,280 374,103 2,369 279 4,705 1,391 0 438 16,902
Total#ofuniqueclients(includingbaseline)
4,442 603 5,768 75,694 371,854 70,907 18,809 55,139 104,413 7,085 971 48,690
Activityrate(90days) 100.0% 100.0% 100.0% 61.1% 100.6% 3.3% 1.5% 8.5% 1.3% 0.0% 45.1% 34.7%Simpleaverage(30days) 41.9%Weightedaverage(30days) 43.8%Simpleaverage(90days) 46.4%Weightedaverage(90days) 59.8%
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5 AssessmentofprogrammeimplementationChapter5assessestheprogramme’sfourindividualworkstreams.Theseworkstreamstogethercontributetothe
overallobjectiveoftheprogramme,i.e.toexpandaccesstofinancialservices.Whileworkstream2isthecentral
workstreamfocusingonoutreachandusage,theotherthreeworkstreamsprovideessentialsupport.They
contributetothecreationofanenablingenvironmenttoincreasefinancialinclusion.Workstream1(enablingpolicy
andregulation)coversthemacrolevel,engagingwithcentralbanks,insuranceregulatorsandotherauthoritiesto
supportaconducivepolicyenvironment.Workstream3(marketinformationandknowledge)supportsthe
generationofknowledgeandmarketinformationforpublicandprivatepartners.Italsoincreasestheavailable
knowledgebaseandcapacitybyengagingintrainingofpartners.Finally,workstream4focusesontheclientlevelby
supportinggovernmentauthoritiesandlatelymoreandmoreprivatepartnersindevelopingandimplementing
financialliteracyinitiativesandbysupportinggovernmentministriesinrevisingconsumerprotectionregulations.
PFIPisthereforesupportingalllevelsofthefinancialsystemwhichplaytogetherinfosteringincreasingfinancial
inclusionforlow-incomepopulations.
5.1 Workstream1:Enablingpolicyandregulation
PFIPManagementNotesPacificIslandcountrieshaveelevatedfinancialinclusiontothefirstorderofpolicypriorities,andthisisdueinlargeparttoPFIP'sdiligentsupporttoanexpandingpolicydialogueprocessanddirectcapacitybuildingsupporttoregulators.Mostimportantly,regulatorshaveadoptedanenablingapproachtonewproductsandchannelsasastrategyforpromotingfinancialinclusionthroughfinancialinnovation.PFIPhassupportedspecificpolicyactionshavedirectlyenabledsomeofthekeynewfinancialinnovationsintheregion.Theregion'sregulatorsarenowrecognizedbytheirinternationalpeersinAFIassomeofthemostinnovativeandcommittedregulatorsintheworldtofinancialinclusion.PFIPhasassistedallofthecountriesindevelopingtheirnationalfinancialinclusionstrategiesandtaskforces.Weareconvincedthatthisworkhascontributedtotherapidmainstreamingoffinancialinclusionasanationalpolicyobjective,andacceleratedconversationswithotherpublicsectorentitiestoplaytheirrespectiveroles.Webelievethatfirstgenerationeffortshavecreatedmomentumthatwillcarrythetaskforcesandstrategiesforyearstocome.Therefore,futurePFIPsupportwillfocusonspecificpolicyactionsthatcontributedirectlytoA2F,notablygovernment-to-personpayments.PacificIslandregulatorsallcollectauniformsetofcorefinancialinclusiondatatheydefinedtogether.Thiscreatesasolidbasisfortimeseriesandcross-countrycomparisonsthatwillbeusefulasPFIPsupportsthenextgenerationofmoregranulardatacollection.
Workstream1hasmadegoodprogressinenablingpolicyandregulationinpartnercountriesthroughthe
developmentofNationalFinancialInclusionStrategies(NFIS)andNationalFinancialInclusionTaskForces(NFIT).
Furthermore,PFIPhasplayedanimportantroleforfinancialinclusiontobecomeaprioritytopicinitspartner
countrieswithsomehavingintroducedfinancialinclusionunitsandevendedicatedbudgetlines.Centralbanks
overallareopentoinnovationandsupportnewproductinitiatives.
Workstream1aspertheprogrammedocumentfocusesonsupporting“anenablingpolicyandregulatoryenvironmentbackedbyarobustfinancialinclusionstrategythatfacilitatesexpansionofappropriate,innovativeandsecurefinancialproductsanddeliverychannelsforlow-incomePacificIslanders,particularlywomenandyouth.”Workstream1focusesontwomaintopics,1)creatinganenablingpolicyandregulatoryenvironmentforfinancialserviceprovidersand2)workingwithgovernmentsonpromotingG2Ppaymentsthroughdigitalchannels.
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PFIPdidnotdefinequantitativelymeasurableoutcomeindicatorsforthefirstpartofthisworkstream,butmeasuresitssuccessviarespondingtoaquestion:“AreFSPsabletoinnovatewithmassmarketservices?”.Anindicatorrespondingtothisquestioncanbefoundinthesetofindicatorsdefinedforworkstream2:thetotalnumberofnewlyintroducedproductswhichisreportedat10products.
Anoutcomeindicatorforthesecondsetofactivitieswasdefined(“%ofG2Ppaymentsthroughdigitalchannel”).Thisindicatorishowevernotyettrackedandmonitoredbytheteamsinceimplementationactivitieshavestartedonlyrecently.
PFIPdefinedasetofoutputindicatorsforworkstream1(cf.Table5).Indicatorsinboldarethosetakenfromtheprogrammedocument,whereastheadditionalindicatorsweredefinedbytheprogrammeteamtobeabletomoreaccuratelymonitordevelopmentsandprogress.
Table5:Outputlevelindicatorsforworkstream1
Creatinganenablingpolicyandregulatoryenvironmentforfinancialserviceproviders.RegulatorsinFiji,SolomonIslandsandPNGhavebeendeeplyinvolvedinupdatingtheirNationalFinancialInclusionStrategies(NFIS).SamoaandTonga(thelatterexpectedfor2017)havedevelopedNFISforthefirsttime.Thesestrategieswereinthreecountries(Fiji,Samoa,SolomonIslands)basedondemand-sidesurveys(DSS).DSSforVanuatuandTongaarefinalizedandcurrentlypreparedforprinting.TheoutputindicatoronNFISisthereforefullyachievedwithtwonewstrategiesdevelopedandthreestrategiesupdated.Consequently,fiveofthesixPFIPinterventioncountries(exceptforVanuatu)haveup-to-dateNFIS.
WiththeconsolidatedsupportofPFIPIandII,sixcountrieshaveputinplacemulti-sectorNationalFinancialInclusionTaskForces(NFIT).Thesetaskforceshavesubstantiallyincreasedawarenessatthenationallevelandhaveprovidedaplatformforbringingcountry-levelstakeholderstogethertoexchangeandcoordinate.NFITshavetakenresponsibilityforimplementingtheNFISintheirrespectivecountries.PFIPandcentralbankshavecollaboratedcloselywithAFIanditsPIRIgroupinsettingupNFITandelaboratingNFIS,especiallywithregardstoregionallearningandsharing.Duringconsultationmeetings,centralbankshavelaudedPFIP’ssupporttotheirfinancialinclusioninitiativesfromearlyon(referringalsobacktoPFIPI)whichhashelpedthemunderstandthetopicoffinancialinclusionanditsimportancefortheeconomicdevelopmentoftheircountries.
Fijihasdevelopeda2013-2015FinancialLiteracyStrategybasedontheFinancialCompetencyofLow-incomeHouseholdsinFijireportfrom2012.FinancialliteracyismentionedintheupdatedNFIS;however,anupdatedspecificfinancialliteracystrategywasnotdeveloped.InotherNFISfinancialliteracyismentionedasa(key)areaandtargetsaredefined,however,astrategicapproachonhowtotackletheissue,includingwhowilltackleit,withwhichapproaches,aprioritizationoftargetgroups,etc.,isnotdefined.SomeNFISmentionthatastrategyshouldbedefinedbyaworkinggroupsubsequentlytoapprovalofNFIS.Accordingtotheevaluator’sopinion,theoutputindicatorinfinancialliteracystrategieshasnotbeenachievedtodatesincealthoughfinancialliteracyhasbeenintegratedintoNFIS,nospecificfinancialliteracystrategieshavebeendevelopedinanyofthecountries.ThePFIPteamhaschosento
PFIPIImid-termreviewreport 25
includefinancialliteracyintoconcretepartnerprojectsinthefutureasopposedtosupportingoverallnation-widestrategies.
Furthermore,PFIPhassupportedcentralbanksinbuildingregulatorycapacitybyorganizingregionalworkshops,suchasonmicroinsuranceregulation(inApril2016).SolomonIslands’centralbankhasbeensupportedinreviewingtheInsuranceActandvariousregulatorydiagnosticswerecarriedout(e.g.RIAinFiji,DFSregulatoryassessmentinSolomonIslands).PFIPstaffishighlyappreciatedbycentralbanksandoftentimesprovidesinformaladvice.Noinitiativesoractivitiessupportingspecificallysupervisoryactivitieshavebeenidentifiedbythemid-termreviewconsultant.
RegulatorsinFiji,Samoa,PNGandSolomonIslandshaveshownveryhighcommitmenttothetopicoffinancialinclusion.Fiji,SamoaandSolomonIslandshaveevenattributedhumanandfinancialresourcestoit.Allthreecentralbankshavesmallteams(3-4staff)anddedicatedbudgetlines(asperPFIPmonitoring,Fijihadadedicatedbudgetof1.3millionFJDin2015,SolomonIslandsrespectivelyof1millionSBD).In2013,PNGfoundedtheCentreforFinancialInclusion(CEFI)whichtakesovertheroleNFITstakeinothercountries.TheBankofPapuaNewGuinea(BPNG)hasdetachedhumanresourcestoCEFI,however,CEFIdoesnotyethaveitsownbudgetline.Moreover,threePICshaveacceptedPIRIindicatorsandsixreporttotheMoneyPacificGoals.SixcountriesareaswellsignatoriestoAFI’sMayaDeclaration.
WhereasNFITandNFISundoubtedlyhavecontributedtoincreasingawarenessamongstakeholders,itisunclearifandtowhatdegreeactualincreaseinfinancialinclusionnumbersisattributabletothem.TheonlyPICthatreceivedaformalRegulatoryImpactAssessment(RIA)isFiji.Theassessmentshowsthatmostspecificpoliciesdesignedandimplementedtofosterfinancialinclusionwereeithernotdesignedtoconductanevidence-basedimpactassessment(policystatementsforbanksonlocaladvisoryboards)orhadlimitedimpact(microfinancepolicy).AccordingtotheRIAreport,theimpactofthebankingagentguidelinecannotbemeasuredbasedondata,however,seemstobepositiveasthreebankshaveimplementedagentnetworksandthereseemstobeacorrelationwiththeincreasednumberofdepositaccounts.Althoughwithoutclearandmeasurableobjectives,theReserveBankofFiji’s(RBF)lettersofapprovaltomobilenetworkoperatorsmarkanimportantachievementsincetheyallowedtwooperatorstosignupover400,000peopletomobilemoneyaccounts.Additionally,certainkeyprovisionshavenotbeenenforcedbytheRBF.
AtthestageofdevelopmentwherePacificIslandcountriesfindthemselvescurrently,regulatoryinitiativesifimplementedprematurelymightdomoreharmtomarketdevelopmentthanprovidesupport.Assuch,centralbanksintheregionhavetobegivencreditforabstainingfrominterveningtooearly.
PromotingG2Ppaymentsthroughdigitalchannels.Onearea,wheregovernmentscanplayanactiveroleinpromotingfinancialinclusionisthepromotionofgovernmenttopeople(G2P)paymentsthroughdigitalchannels.ThistopichasbeentakenupbyPFIPrecentlybydevelopingindicatorsfordiagnosticsstudies.AfirstdiagnostichasbeencompletedinSolomonIslandsandsuggestsideassuchasengagementwiththeSINPFandthecustomsdepartmentfor“quickwins”.InFiji,PFIPworkswiththeMinistryofFinancetopromotedigitalG2Ppayments.PNGhasalreadycommittedtotheBetterThanCashAlliance(BTCA),andFijiandSolomonIslandsareabouttosignup.
Overall,privatesectorpartnersinterviewedduringthemid-termreviewunanimouslyjudgedcentralbanksintheirrespectivecountriesasveryopenforinnovationandsupportivewithregardstonewproductinitiatives.ThisopennesstowardsinnovationsinfinancialservicesandproductsiscertainlytoalargedegreeattributabletoPFIP’scontinuoussupportandadvicetocentralbanks.
5.2 Workstream2:Financialinnovation
PFIPManagementNotesWorkstream2includesthecoreactivitiesthatcontributedirectlytoPFIP'sA2Fprogrammeobjective.PFIPspends83%oftotalworkstreambudgetonworkstream2activities.
PFIPIImid-termreviewreport 26
PFIPpartnershaveachievedsignificantresultsinenrollingnewcustomersand,withoneexception,maintaining
robustusagerates.PFIPfundingto"single-purpose"serviceprovidershasresultedinthehighestusageratesandcommerciallysustainablebusinessmodels.Thisincludesprovidersofmicroinsurancepolicies,savingsgroups,moneytransferservices,andmicrocredit.Thebankshaveachievedfairlyrespectableusageratesintheirbasiccurrentaccounts,whereasthemobilemoneyprovidershaveonlycultivatedsmallgroupsofenthusiasticusersaroundveryspecificusecases.However,neitherthebanksnorthemobilemoneyoperatorshavecultivatedacustomervaluepropositionthatiscommerciallyviable.Wemaintainourbeliefthatthecommerciallyorientedproviderswillplaythekeyroleinexpandingfinancialinclusion.BIMA,forexample,isresponsiblefor61%ofnewclientswitha75%activerate,duetoitsabilitytorapidlyscaleitsinitialmicroinsurancepilotprojects.BIMAisnowfaroutperformingthesmallertraditionalmicrofinanceproviders.Webelievethatthemicrofinanceandsavingsgroupmodelswillonlyreachsignificantnumbersofcustomerswhentheyadoptdigitaldistributionchannels.Overall,weseethemostpromisingresultsinthoseprovidersthatinnovatewithnewproductsandchannelstomeetspecificcustomerneeds.Thisresultsinhighusageratesandinrobustbusinessmodels.PFIPhasrecentlydevelopedanapproachforassistingallpartnerprovidersachievetheseresultswithintensive,customer-centric,servicedesigninitiatives.ThiswillalsoenablePFIPtosupportprojectsthatfocusontheneedsofspecificcustomersegments,womeninparticular.
Workstream2focusesonfinancialinnovationandhasmadegoodprogressonoutreachandusageasanalysedin
moredetailinChapter4.forsustainabilityorcommercialviabilityofproductsPFIPdefinedindicatorsbutisstill
workingwithpartnerstocollectrespectivedate.Anecdotalevidencecollectedduringthemid-termreviewshows
thatformostproductsthereisstillworktobedoneintermsofmakingthemcommerciallyviableforprovidersand
thusasustainableofferforclients.PFIPhastakenupthischallenge.
Workstream2aspertheprogrammedocumentfocuseson“Deepeningfinancialaccessthroughproduct/channelinnovationsthatmeetthefinancialserviceneedsoflow-incomePacificIslanders,includingwomenandyouth,andatthesametimeresultinsustainabilityoffinancialservicesdelivery.”Workstream2focusesmainlyonmeetingfinancialserviceneedsoflow-incomeconsumersandthesustainabilityoffinancialserviceproviders.PFIPdefinedoutcomeindicatorsbasedonaccessandusageforthisworkstream(overlappingwithindicatorsattheobjectivelevel).
Also,PFIPdefinedasetofoutputindicatorsforworkstream2(cf.Table6).Indicatorsinboldarethosetakenfromtheprogrammedocument,whereastheadditionalindicatorsweredefinedbytheprogrammeteamtobeabletomoreaccuratelymonitordevelopmentsandprogress.Sixoftheindicatorsbelowareactuallydefinedasobjectiveindicatorsandshouldnotfigureatthesametimeattheoutputlevel.TheseindicatorsarediscussedindetailinChapter4whereperformanceagainstindicatorsisassessedandwon’tbediscussedinthischapteranymore.
PFIPIImid-termreviewreport 27
Table6:Outputlevelindicatorsforworkstream2
PFIPdefinedanumberofindicatorsaimingatestablishingwhetherdevelopedproductsandservicesaresustainable.However,itreportsthatcurrentlyitisnotabletocollecttherespectivedatafromFSPs.New“innovationlabapproaches”willaccordingtoPFIPassurethatdatacollection,includingdataonsustainabilityofservices,willbecollectedrightfromthestartofaproject.Nevertheless,anecdotally,fromdiscussionswithfinancialserviceproviders,especiallythosefromthefirstgenerationofgrants(“legacygrants”fromPFIPI),itdoesnotseemthatfinancialserviceprovidershavebeenabletodevelopcommerciallyviablebusinesslines.BSPmanagement,forexample,isquiteclearaboutnotseeingtheiragencybankingasacommerciallyviableproductwithintheirbusinesslines,butratherasacontributiontothecountrywithintheframeworkofCSR.Forthepasttwoyears,theyhavebeenlosingagents(from70downto40)duetoproblemswithPOSdevices.BIMAisaccordingtoconsultations“moreorlessprofitable”aftertwoyearsinPNG.However,claimsratiosforBIMAare(basedonPFIPmonitoringdata)stillveryerratic8andonaverageonthelowersidecomparedtowhatwouldinternationallybeconsideredaclaimsratioprovidinggoodcustomervalue.Also,BIMAisfightingwithahighlevelofcustomerfraudwhichnegativelyimpactsitsP&L.AnotherexampleisSPBDwheremanagementcomplainedaboutextremelyhighoperationalcostswhenmovingoutofSolomonIsland’scapitalHoniaraduetothechallenginggeographytheislandcountrypresents.So,thejuryisstilloutforBIMA’scommercialviability,theself-sustainabilityofSPBD’sexpansiontoruralareasandsomeoftheothernewproducts.PFIPiswellawareofthesechallengesandhastakenvariousstepstoworktogetherwithFSPsonimprovingsustainabilityofproducts.Assuch,thenew“innovationlabapproach”includessustainabilityfromthebeginningintoproductsdevelopment.OnlyifproductsarecommerciallyviableinthelongrunandintegratedintomainstreambusinesslinesofFSPs,willtheybeofferedbeyondPFIP’sinvolvementandfunding.
Intermsofoutreach,theprogrammedefinesafewmoreindicatorsadditionallytothosemonitoredattheobjectivelevel:numberofservicepoints,numberofsavingsclubs’membersandtotalnumberofproductsdeveloped.PFIPpartnersprovidetogetheratotalof1,210servicepointstotheircustomers.Thisnumberhasincreasedbyabout71%fromaround700servicepointsatthebeginningofPFIPII.Itiscomposedofanumberofdifferenttypesofservicepoints,suchasPOS,agents,branchesandATMs(cf.Figure8).Therearenoconsistentnumbersorbenchmarksavailabletoeasilycomparethesenumberstootherregionsoftheworld.
8AccordingtoPFIPmonitoringdata,claimsratios(definedastotalclaimspaid/totalpremium)forBIMAinPNGhavebeen16%inJuly,61%inAugustand28%inSeptember2016.
PFIPIImid-termreviewreport 28
Figure8:Servicepoints
PFIPcurrentlycollaborateswithsevenfinancialserviceprovidersdevelopingtenproducts(cf.Figure9).Projectsincludeinnovativedeliverymodels,suchasmobileinsurance,mobilemoneyservicesandbankingagents.Partnerprojectsincludecommunity-basedfinancialservices,suchastrainingandsettingupvillagesavingsandloanassociationsinSolomonIslands(withcurrently971membersin46savingsgroups).Twofurtherprojectsfocusonprovidingsolarenergytourbanandruralclientsofmicrofinanceinstitutions(SPBDinSolomonIslandsandMiBankinPNG).
Figure9:Outreachbygrant
Outreachdataattheobjectivelevelincludesoutreachtowomenspecifically.Outputindicatorsforworkstream2includealso“transformational”clients,aswellasruralclients.Currentlydataontransformationalclients,i.e.clientsthathavebeenunbankedbefore,isnotbeingcollectedconsistentlyduetoprojectpartners’inabilitytocollectthisdata.However,fortwopartners(BSPandBIMA)thedatawascollected(cf.Table7).WhereasforBSPallclientshavewerebankedbefore,BIMAreachedconsiderablenumbersofclientswhohaveeithernothadanyexperiencewithfinancialproductsatallorhavenothadaninsuranceproductbefore.
Table7:Clientsformerlyunbanked
Dataonoutreachtoruralareasisbeingcollectedbyalargenumberofpartners.PFIPextrapolatesdatafromclients
totalclients firsttimebanked firsttimetoproductBSP 33,056 - -BIMAPNG 256,392 185,927 218,430BIMAFiji 6,991 - 6,991
PFIPIImid-termreviewreport 29
whosegeographicdataisunknown.Numberssuggestthatruraloutreachincreasessteadily,thoughmoreslowlythanoutreachtourbanareas;36%to64%inQ32016(cf.Figures10and11).
Figure10:Clientsbygeographicalarea
Figure11:Clientsbygeographicalarea(extrapolated)
5.3 Workstream3:Marketinformationandknowledge
PFIPManagementNotes
PFIPeffortsinworkstream3fallintofourgeneralcategories:marketstudiesthatsupportthegeneralpolicydialoguearoundfinancialinclusion,topicspecificresearchtoassistregulatorsandpolicymakers,assessmentsdesignedtoassistserviceproviderswithservicedevelopment,andgeneralcommunicationsactivities.Therelationshipbetweenthestudiesandspecificoutcomesisadmittedlyindirectanddifficulttomeasure.However,wedobelievethatpublishingmarketinformationelevatesPFIPstatusasastrongtechnicalpartnerandthatthisenablesPFIPtoplayamoreassertivetechnicalroleinthedesignandmonitoringofprojects.
PFIPhasprogressedonworkstream3(marketinformationandknowledge)byinitiatingandfundingseveraldemand
andsupplysidestudies,aswellasmorespecificresearchsupportingdirectlyaspecificpublicorprivatepartner.
Furthermore,PFIPhasorganizedorco-organizedanumberofworkshopsandthusgiventheopportunitytolearnto
PFIPIImid-termreviewreport 30
manyprojectpartners.Theprogrammehasalsosteppedupitscommunicationeffortsandisactivelycontributingon
socialmedia.
Workstream3aspertheprogrammedocumentfocuseson“enhancingsectorunderstandingonproducts,channels,businessmodelssuitedtotheneedsoflow-incomePacificislandersthroughdemand,supplyandimpactevaluationstudies”andincludesknowledgegenerationanddissemination.TheresultsframeworkforPFIPsummarizestheoutcomesaimedatbrieflyas“enhancedsectorunderstanding”.
PFIPdefinedanoutcomeindicatorforthisworkstreamwhichreads“#ofknowledgeproductsusedinaninitiative”.PFIPreports14knowledgeproductsusedinaninitiative(5DSSreports,3DFSreports,1RIA,1FSSA,1reportonmicropensions,1insuranceresearchand1financialeducationscopingreportsforSamoaandSolomonIslands,respectively).PFIPalsodefinedasetofoutputindicatorsforworkstream3(cf.Table8).
Table8:Outputlevelindicatorsforworkstream3
PFIPproduced14knowledgemanagementproductstailoredtomeetstakeholdersneedsbyQ32016(outputindicator).Assuch,PFIPhassupportedcentralbankpartnersincarryingoutdemandsidesurveys(DSS)inthreecountrieswithtwofurthercountriesunderway.Thesehavebeenverywellreceivedbypartners(especiallytheNFITs)andhavebeenintensivelyusedasinputsforthedevelopmentofnationalfinancialinclusionstrategies.DSSarehoweveronlypartlyknownbyprivatesectorpartnersandareaccordingtopartnersnotusedintheirdailywork.AmorespecificassessmenthasforexamplebeencarriedoutfortheReserveBankofFijithrougharegulatoryimpactassessment.Financialserviceproviderswhendevelopingnewproductsdoingeneralnotrelyonthirdpartydata,butcarryouttheirownresearchgearedtowardstheirspecifictargetgroupsorproducts.ForfinancialserviceproviderscollaboratingwithPFIPundertheinnovationlabapproach,specificandtailoredresearchhasbeenincludedinthefirstprojectphase(e.g.researchcarriedoutwiththeFijiNationalProvidentFund(FNPF)andtheSolomonIslandsNationalProvidentFund(SINPF)).
Tostepupknowledgedissemination,PFIPengagedacommunicationsspecialistin2016afterhavingfilledthepositionwithshort-termexpertsinthepast.Sincethen,communicationeffortshavevisiblybeenconsolidatedandhaveoverallincreased.PFIP’swebpagehasbeencompletelyrevampedinQ22016witheasieraccesstoinformationaboutindividualinitiativesandknowledgeproducts.Thenumberofwebsiteviewshassinceincreasedtoanaverageof9,899viewsperquarter.InQ32016aloneithadjumpedto17,472viewsasaresultofthewebpagere-launch.PFIPhasbeencited174timesinarticlesorforumssince2015.Additionally,PFIPisactiveonsocialmedia,withmorethan430followersonTwitteractivelytweetingaboutinitiativesandmorethan2,600“likes”onFacebook.PFIPpublishesapproximatelyonepressreleasepermonth.
FeedbackfromdonorrepresentativesonPFIPcommunicationeffortsismixed.Whereasrecenteffortsinimprovingcommunicationsarewidelyrecognized,somerepresentativessuggestedmoretarget-grouptailoredcommunicationstohelpthemcommunicatewiththeirconstituenciesathome.Otherswouldliketoseemoretestimonialstories.Ingeneral,donorsdesireahighervisibilityofPFIPandtheirowncontributiontotheprogramme.
4,038participantsfrompartnershaveattendedoneofthe440PFIPorganizedworkshops,62%ofwhomarewomen.AllPFIPpartnersappreciatedthepossibilitytoparticipateinworkshopsandtrainingsorganizedorco-fundedbythe
Workstream Indicator Targets (2019) Q3 2016 (monitoring data PFIP)
# of articles/forums in which PFIP is sited n/a 174# of workshops/trainings n/a 440# of workshop participants n/a 4,271 # of women workshop participants n/a 2,660# of scholarships n/a 56Website unique v isitors per quarter n/a 9,899 (average), Q3: 17,472# of KM Products tailored to meet stakeholder needs n/a PFIP 2: 13A
cc
ess
to M
ark
et
Info
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&
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PFIPIImid-termreviewreport 31
programme.Specifically,those56havingreceivedascholarshiptoparticipateinglobalmicrofinancetrainings(e.g.trainingsondigitalfinancebytheHelixInstituteorinternationalconferences)havebeenextremelypositiveabouttheirparticipation.However,asformosttrainings,immediateresultsfromtrainingparticipationarehardtoseeandisnotbeingmonitoredbytheteam.Especiallyifatrainingparticipantremainstheonlypersonfromanorganisationhavingparticipatedand,althoughcomingbackhomewithahostofideas,faceschallengesinconvincingmanagementtofollowsuitorisjustoverwhelmedbyday-to-dayworkagain.
PFIPhasbeenworkingwithpartnersinimprovingtheirdataquality.InPNG,aDataManagementWorkshopwasheldaimingatimprovingthequalityofdatareportedtoBPNGbyfinancialserviceproviders.
5.4 Workstream4:Financialcompetency
PFIPManagementNotesPFIPhassupportedallofthecountriesinthedevelopmentoffinancialliteracypolicies,aswellasarangeofapproachestofinancialeducation.Byalloutputindicators,PFIPhasbeenverysuccessfulwithworkstream4activities.Atthesametime,wederivesomeimportantlessonsfromourattemptstomeasuretheimpactoftheseefforts,specificallytheircontributiontofinancialcompetency,behavioralchange,andultimatelyusageoffinancialservices.Inshort,weencounterverysignificantchallengesassociatedwithbroadfinancialeducationefforts.Forexample,theintegrationoffinancialeducationintheK-12curriculuminFijiwasanotableachievement.However,PFIPcaneasilyobservethenegativeimpactoffactorsinternaltotheeducationsystem,andPFIPhasnoinstrumentformeasuringanyoftheaforementionedoutcomeswithinthetimeframeoftheprogramme.Similarly,theeffectivenessoffinancialliteracyinitiativesaredifficulttomeasure,unlesstheyareintegratedintoafinancialservicedeliverymodel.Forallofthesereasons,PFIPwillfocusoninitiativesthatbuildfinancialcompetencybyintegratingcustomerlearningdirectlyintotheservicedeliveryprocess.
Replicationofsuccessfulinitiativeintermsofintroducingfinancialeducationinschools’corecurricula(workstream
4)havestartedinthreefurthercountrieswithlessinvolvementbyPFIP.Twoofthesecountries(SolomonIslandsand
PNG)areprogressingwhereasSamoashowslessinterestmostlyduetopoliticalchangeswithintherespective
authority.PFIPhasdevelopedandimplementedseveralfinancialliteracyinitiativestogetherwithprojectpartners
andwillfocusevenmorestronglyonthisapproachinthefuture.ConsumerprotectionactivitieshavestartedinFiji
bysupportingtherevisionoftheConsumerCreditAct.
Workstream4aspertheprogrammedocumentfocuseson“strengtheningfinancialcompetenciesofclientssothattheycanbetterleveragebusinessandfinancialaccessopportunitiestoimprovetheirlivelihoods.”ActivitiesunderthisworkstreamincludedoriginallysupporttoextensionoffinancialeducationtootherPICs,innovativefinancialliteracydeliverymodels,andworkonconsumerprotectionandmarketconduct.TheresultsframeworkforPFIPsummarizestheoutcomesaimedatbrieflyas“competentandempoweredconsumers”.
PFIPdidnotdefineoutcomeindicatorsforthisworkstream.Nevertheless,PFIPdefinedasetofoutputindicatorsforworkstream4(cf.Table9).Indicatorsinboldarethosetakenfromtheprogrammedocument,whereastheadditionalindicatorsweredefinedbytheprogrammeteaminordertobeabletomoreaccuratelymonitordevelopmentsandprogress.
PFIPIImid-termreviewreport 32
Table9:Outputlevelindicatorsforworkstream4
Duringitsfirstphase,PFIPengageddeeplyinFijitointroducefinancialeducationinprimaryandsecondaryschools’corecurricula.In2015,thefinancialeducationprogrammeinFijitrainedalmost3,500teachersreachingapprox.200,000students.AfterPFIPI’shugesuccessinFiji,theteamsupportedsimilareffortsinPNG,SolomonIslandsandSamoa.SolomonIslandshasdevelopedthecurriculumandlearningoutcomeswhichhavebeenapprovedbytheMinistryofEducation.InPNG,theMinistryofEducationisdraftingthecurriculumandresourcesandwillbepilotingtheprojectnextyear.TheprojectinSamoahasnotadvancedsignificantlymostlyduetostaffchangesinpartnerinstitutionsafterelections.AccordingtoconsultationsinSamoa,thenewCEOoftheMinistryofEducation,SportsandCulture’sCurriculumDevelopmentDivisionisoftheopinionthatanewcurriculumisnotnecessarybecausethecurrentcurriculumincludeseverythingneededtoteachpupilsfinancialeducation.
ReplicatingthesuccessachievedinFijiwouldalsorequirehavingasimilarextentofresourcesatone’sdisposal.TheFijianprojecthadreceivedadditionalfundingbyDFATofapproximately2.5millionUSDandhasbeenimplementedoveralifespanofmorethanfiveyears.Additionally,aspointedoutbefore,theworkishighlydependentonthecollaborationwiththerespectiveMinistryofEducation,anon-traditionalactorinthefinancialsectorwithconflictingprioritiesintermsofnewtopicstobeintegratedintocorecurricula.Also,changesduetopoliticalshiftsafterelectionsarerealitiesprojectsoftenhavetodealwith.Mostlythebestsolutionistostepbackuntilprojectpartnersvoiceaspecificdemandagain.Afurtherchallengewithfinancialeducationinitiativesatschoolsisthattheimpactofaninitiativecanonlybeseeninthelong-term,probably10to15yearsdownthelinewhenchildrenenteradulthood,startmanagingtheirpersonalandfamilyfinancesandareabletoaccessandusefinancialproductsandservices.PFIPisplanningexitstrategiesfromengagementswithMinistriesofEducationinthecountriesinvolvedinduetotheabove-mentionedchallengesandrestrictions,specificallybudgetandtiming.
PFIPhasimplementedfourproduct-linkedfinancialliteracyinitiatives.Thesehavebeenimplementedtogetherwithprojectpartnerswhenlaunchingandsellingfinancialservices.Forexample,WorldVisiontrainstheirgroupsinfinancialliteracybeforetheystartsaving.ANZ’sthirdpartynetworkmanagertrainsagentsaswellasclientsinfinancialliteracywhentheyexpandtheirservicestoanewarea.Onabroaderlevel,PFIPhassupportedtheFijianNFITindevelopingandlaunchinganinsuranceawarenesscampaignwhichturnedouttobeverysuccessfulwithapproximately2,000followersonFacebookandvideotestimonialswithupto22,000individualviews.Theteamistrackingsign-upnumberstogetherwithinsuranceprojectpartnerBIMAtoassesswhetherthecampaignhasmeasurableimpactonpeople’sinterestinanduptakeofinsurance.
Inthefuture,PFIPwillfocusonfinancialliteracyinitiativesembeddedwithactualproductdesigninitiativesandfocusingonspecifictargetcustomersfortheseproducts.Thisapproachwillallowcustomerstouseandapplylearnedknowledgeimmediatelyandthusresultsshouldbeabletobeseenmoredirectly.
Additionally,PFIPhasstartedextensiveworktosupporttheMinistryofIndustry,TradeandTourism(MITT)inFijitodraftanewConsumerCreditAct.
Workstream Indicator Targets (2019)Q3 2016 (monitoring data
PFIP) Comments PFIP
# of countries which have FinEd curriculum 3 additional PICs 1 (FJ) as of Dec 2015
# of students involved in financial education n/a 199,350 (2015 only) as of Dec 2015 # of girls n/a 97,681 (2015 only) as of Dec 2015# of financial literacy - product linkage programs n/a 4 (ANZ, BIMA, SPBDx2)Government budgetary allocation n/a 2 PICs: FJ 38,000 (FJD); PNG
6.2m kinaas of Dec 2015Fi
nanc
ial
Co
mp
ete
ncy
PFIPIImid-termreviewreport 33
6 ImpactPFIPManagementNotes
PFIPisdevelopinganinnovativetoolforassessingtheimpactoffinancialservicesoncustomers.Theapproachmeritsexplanationhere.ThePFIPwasresourcedandstructuredtoincreaseaccesstofinance.ThejustificationfortheprogrammeisanchoredintheassumptionthatA2Fincreasesthelivelihoodofpoorpeople,andthatassumptionissupportedbyasignificantbodyofqualitativeandquantitativeresearch.Sincethatresearchrequiresextensiveresourcesandtimeframes,PFIP,likemostfinancialinclusionprogrammes,didnotaspiretomeasureimpactwithindustry-standardmethods.ThePFIPresultsframeworkusesusageindicatorstomeasurecustomeradoptionasaproxyforthekindofimpactthathasbeenvalidatedthroughtheaforementionedmethodsinternationally.PFIPisdevelopingatooltoassesswherecustomersareintheirjourneytowardsimpactfulaccesstofinance.Thistoolwilldrawfrominternationalresearchtoidentifytheusecasesthatmarkatypicalcustomerjourneytowardsadoptionoffinancialservices,anduseassessmentmethodstomeasuretheroleofPFIPfundedprogrammesonmovingcustomerstowardsmoreimpactfulusecases.WefeelthisapproachwillprovideactionableassessmentofPFIPprojects,andserveasausefultooltootherfinancialinnovationprogrammesthatfacesimilarmeasurementchallenges.
Anecdotalevidencefromsomeofthesupportedprojectsshowsgoodresults.SincePFIPwillnotbeableto
scientificallymeasureimpactofallitsinitiatives,usageratescanbeusedasagoodandcost-efficientproxyfor
impact.PFIPhasnotputdownitsenvisagedlong-termresultschainexplicitlyinwriting.Both,theresults
managementframeworkandtheTheoryofChangestopattheimmediateobjectivesoftheprogramme,without
makingthelinktohowaccesstofinancialservicescanultimatelycontributetoimprovingpeople’slivelihoods
throughaccesstoandusageoftailoredfinancialservices.
Financialinclusionisnotagoalinitself.Financialinclusionisameanstoreachgoalssuchasmoreself-determinationand(financial)independenceforwomen,moreopportunitiesforyouthtoenterthelabourmarketaswellasmorepossibilitiesformicroentrepreneursandsmallfarmerstoinvestintheirenterprises.Thesearewaystoincreasepeople’savailablefinancialmeansandthusimprovetheirlivelihoods,anoverarchinggoalofmostdevelopmentprogrammes.Improvementinlivelihoodscanshowthroughavarietyofthings,suchasbettereducationformoreofafamily’schildren,betterhousingconditions,orimprovednutrition.However,itisimportanttotakeintoconsiderationthatimpactontheclientlivelihoodisnothingthatcanbegeneratedwithinthelifetimeofatypicalproject.Especiallyactivitiesatthepolicylevel,suchastheintegrationoffinancialeducationintocorecurriculaortypicalregulatorychanges,takealotoftime,oftentimesyears,totrickledowntotheclientlevel.
Usageinthecontextoffinancialservicescanbeconsideredausefulproxytoimpact.Ifclientsfrequentlyusefinancialservices,thereisarealisticchancethattheseservicesareusefultothemandcontributepositivelytotheirlivelihoods.Iftheywerenotbeneficialtothem,clientswouldnotusetheseproducts.IncreasingaccessandspecificallyusageforPFIP-developedproductsthereforeshowsthatclientsseevalueintheuseofproductsandassociatethemwithanimprovementintheirlivingconditions.Also,anecdotalevidencefromPFIP-supportedinitiativesshowspositiveimpact.Forexample,clientsparticipatinginsavingsgroupsinruralSolomonIslandsarereportedtohaveincreasedschoolattendanceintheirvillageswithmoreparentsbeingabletopayschoolfeesduetothesavingsmechanismnowavailabletothem.SimilaranecdotalevidencehasbeenreportedforSPBDclientsinSolomonIslands.ReportsabouthowtheyperceivefinancialeducationlessonsbystudentspublishedinFijiannewspapersshowearlybehaviouralchangesinstudents’lives.
However,PFIP’sresultsmanagementframeworkanditsTheoryofChangedoesnotclearlyspellouttheselinks,i.e.howtheprogrammecontributestolong-termdevelopmentobjectivesthroughitsworkonincreasingaccesstofinancialservices.Themodelismissingaclearlinktooverarchingdevelopmentgoalsandimpact;alinkthatdepictshowaccesstofinancialservicescontributestosocialandeconomicdevelopmentandhowfarrealisticallyPFIPcanassume
PFIPIImid-termreviewreport 34
responsibilityinassuringthisimpact.Itstopsattheimmediateobjectiveleveloftheprogramme.Thereisalargebodyofresearchontheimpactofaccesstofinancialservicesonclients’wellbeingwhichformsthefoundationforthefundamentalhypothesesaboutthepositiveimpactoffinancialinclusiononlivelihoodsformostprogrammes.
PFIPdoesnotengageinquantitativeimpactmeasurementasisequallythecaseformostfinancialinclusionprogrammesworld-widesincerobustimpactmeasurementishighlyresourceandcost-intensiveandaspointedoutimpactatthehouseholdwell-beinglevelcanrealisticallyonlybemeasuredtoacertainextentwithinafive-yearprogramme.Globally,themajorityoffinancialinclusionprogrammesbuildonavailableresearchtoestablisharesultschainfromaccesstousageoffinancialservicesandtoimprovementinlivelihoods.
Basedondiscussionswithitsfundersandrequestsregardingmoreemphasisonimpactmeasurement,PFIPisabouttoconceptualizeanassignmentaimingatdepictingthearchetypalstagesofacustomerjourneyandlinkingthesetoavailableresearchandultimatelytoempowermentandchangesoflivelihoods.Theultimateobjectiveofthisresearchistodevelopatooltoassesswherecustomersareinthisjourneytowardsaccesstofinance.ThistoolwilluseassessmentmethodstomeasuretheroleofPFIPfundedprojects.
PFIPIImid-termreviewreport 35
7 RelevancePFIPishighlyrelevanttomostofitsfunders’visionsandstrategies.Policymakersandregulatorsinpartnercountries
laudePFIP’ssupportsincefinancialinclusionisofhighrelevancetotheirnationalandregionaldevelopment
agendas.Activitiesaremostlyalignedwithfinancialserviceproviders’strategies;however,theprivatesectormay
resisttomovetooquicklywithnewproductstonewmarkets(i.e.ruralareas)whichcanconflictwithsomefunders’
short-termobjectives.Implementationreadjustmentswillassureincreasedrelevanceforclients.
RelevanceforPFIPfunders.PFIPissupportedbythreefunders,theDepartmentofForeignAffairsandTrade(DFAT)ofAustralia,theMinistryofForeignAffairsandTrade(MFAT)ofNewZealand,andtheEuropeanUnion(EU).
PFIPisalignedwiththeAustraliangovernment’svisionfordevelopmentanditsoverarchingpolicyonpovertyreductionwhichisbasedontwopillars,humandevelopmentincludinghealthandeducation,aswellasprivatesectordevelopment.TheOctober2015StrategyforAustralia’saidinvestmentsinprivatesectordevelopmentputsemphasisoncollaborationwiththeprivatesector,leveragingtheprivatesectorasan“engineofeconomicgrowth,particularlyindevelopingeconomies”.DFAT’sstrategyexplicitlymentionsprivatecompaniesasprovidersof“anever-increasingshareofessentialservicesandproductsthatdirectlyreducepoverty,suchasaccesstofinance”.
NewZealand’sMFATjoinedPFIPin2014foritssecondphaseprovidingfundingforthreeyearsaspartofitsprivatesectordevelopmentprogramme.MFAT’sfundingwaschannelledtowardssmallerPacificIslandcountrieswhichwerenotcoveredbyPFIP’sotherfunders,especiallySamoaandTonga.SincethenMFAThasgonethroughastrategicreviewanddevelopedanewstrategicplan2015-2019whichdefines12investmentpriorities.FinancialinclusiondoesnoteasilyfitintoanyofthenewcategorieswhichmakesongoingfundingforPFIPunclear.
AsfortheEU,thecontributiontoPFIPhasbeenconceptualizedascomponent2oftheRuralEconomicDevelopmentProgrammePhase2(RED2)focusingonPNGonly.ThespecificobjectiveaccordingtotheEuropeanUnionContributionAgreementisto“increasefinancialinclusionforthelow-incomesegmentintheHighlandsRegionandtofosterimprovedrelationsbetweenfarmers,farmers’groups,andtraders/processers/transportersthroughbetterfinancingaccess.”Specifically,activitiesdefinedunderthementionedagreementaresupporttoruralmicrofinanceinstitutionsthroughagrantmakingfacility,includingthedevelopmentofmicroinsuranceandmicroleasing,mobileandbranchlessbanking,financialliteracyandeducationandcommunityengagementandlocalcapacitybuilding.Allactivitiesfocusonvulnerablesegmentsofthepopulation,includingwomen,youthandlow-incomeearners.PFIPisalignedwiththesetargetsandactivitiesandreportsoverallgoodprogressonallactivitylevels.However,arecentRED2mid-termreviewconcludesthatPFIPbeneficiariesarenotentirelyinlinewithRED2targetgroupsfornotentirelyfocussingonPNG’shighlandswhereotherRED2programmecomponentsareactive.
Relevanceforpolicymakersintheregion.PFIPII’sobjectiveisalignedwiththeregionalobjectivesaswellasthenationalstrongcommitmenttoandpriorityoffinancialinclusion.ThetopichasbeentakenupatthehighestlevelinPICcentralbanksandinmostcasesresourceshavebeenallocatedfordevelopmentandimplementationofNFIS.MosttopicareaswhichareconsideredrelevantandaredefinedascoreobjectivesbyPICgovernments,especiallydigitalfinancialserviceswithafocusonusage,improvingthequalityoffinancialservicesoverall,financialeducation,consumerprotectionanddata,arecoveredbyPFIPactivities.Asmentionedearlier,centralbankshavebeenverypositiveaboutPFIP’ssupporttotheirfinancialinclusioninitiativesandmentionedthattheyhavehelpedthemunderstandthetopicoffinancialinclusionanditsimportancefortheeconomicdevelopmentoftheircountries.
Onaregionallevel,SouthPacificcentralbankgovernorsendorsedtheMoneyPacificGoalsattheForumEconomicMinistersMeeting(FEMM)in2009recognisingthehighlevelsoffinancialexclusionintheregion,andtheimpactthishasonfinancialstabilityandgrowth.
Theregionalgoalstobeachievedby2020include:
� Allchildrentoreceivefinancialeducationthroughcorecurricula
PFIPIImid-termreviewreport 36
� Alladultstohaveaccesstofinancialeducation� Simpleandtransparentconsumerprotectiontobeputinplace� HalvethenumberofPacificIslanderswithoutaccesstobasicfinancialservices
AllPFIPcountriesaremembersoftheAllianceforFinancialInclusion(AFI).TheAFIregionalplatform,ThePacificIslandsRegionalInitiative(PIRI)wascreatedin2014attheAFIGlobalPolicyForum(GPF)inTrinidadandTobagoandofficiallylaunchedinMay2015inTimorLeste.AllsevenmembersofthePacificIslandshavemadecommitmentstotheMayaDeclaration.WithPFIP’ssupportandguidance,PIRIhasdefinedfourregionalpriorityareas:smallandmediumenterprises(SME),inclusiveinsurance,consumerprotectionanddata.
Attheindividualcountrylevel,therelevanceoffinancialinclusionhasbeenconfirmedbythecountries’policymakersdevelopingorrevisingtheirNationalFinancialInclusionStrategies.Individualcountryprioritiesoverlaptoalargedegree.
Fiji’soverallnationalgoalsemphasizeincreasingtheadultpopulation’saccesstoformalfinancialservices,withaspecifictargetonwomenandyouth.AnotheroverallgoalaccordingtoitsNFIS2016-2020istheestablishmentofapolicyframeworkforSMEtogrowSMEcontributiontoGDP.Fiji’semphasisonSMEwasalsostronglyemphasizedbytheCentralBankgovernorduringtheconsultationmeetings.Furtherprioritypolicyareasincludedigitalfinancialservices(focusonusageandG2P),financialeducation(includingentrepreneurialtrainingintotertiaryeducation),greenfinance(communityresponsetoclimatechange)anddatameasurement(forSMEanddatadisaggregationbyage,genderandethnicity).
Samoa’sNFIS2017-2020hasfiveoverarchinggoals:increasingandimprovingaccesstoformalfinancialservicesforadultsincludingatleast50%womenand50%ruralpopulation,increaseaccesstoformalsavingsaccounts,increaseusageoffinancialservicesandensureatleast10%activityrateforDFS(90days),improvethequalityoffinancialservicesandprovidefinancialeducationtoallchildren,aswellasfinancialliteracyamongadults.
TheSolomonIslands’NFIS2definessixobjectiveseachofwhichincludesseveralkeyareas:reachandqualityofdigitalfinancechannels,financialservicedeliverytotheMSMEsector,focusonwomen,youthandruraladults,microinsuranceandresilienceinhouseholdsandcommunities,financialempowermentandconsumerprotectionaswellasstakeholdercoordinationanddatamonitoring.
PNG’snewNFISstrategy2016-2020liststhefollowingstrategicobjectives:digitalfinancialservices,inclusiveinsurance,financialliteracyandfinancialeducation,financialconsumerprotection,SMEfinance,datacollectionanddissemination,resourcessectorengagementandgovernmentengagement.
AtopicthatisprevalentinseveralPIC’sNFISisaccesstofinancefor(M)SMEwhichcurrentlyisnotcoveredbyPFIP.GreenfinanceismentionedbytheFijianNFISandseemstomeritspecificattentionbasedonthegeographicconditionsofPICs.AtargetgroupcurrentlynotspecificallycoveredbyPFIP(althoughinitsprogrammedocument)mentionedbyseveralNFISandduringconsultationmeetingsareyouth.
Alignmentwithobjectivesoffinancialserviceproviders.PFIP’sfocusisondevelopingcommerciallyviablefinancialservicessinceonlythentheseserviceswillbesustainableinthefuturebeyondtheinterventionoftheprogramme.Thisisinalignmentwithserviceproviders’objectives.However,duringconsultationsseveralfinancialserviceprovidersmentionedthatforthemasforanybusinessthatisdevelopinganewproduct,themostsustainablewayistostartwithanewproductinamarketthatisknowntothecompany.Oncefirstexperienceshavebeenmade,theirusualstrategywouldbetomoveslowlytowardsnewmarkets.Basedoninternationalexperience,thisalsoreflectsthewayfinancialserviceswillandhavebeensustainablydeliveredtoruralareas.Experiencehasalsoshownthatserviceproviderswhichmovewithnewproductsintonewmarketstooquicklyandwithoutgatheringenoughexperience,oftenarenotsuccessfulandwillconsequentlymovebackoutfromthenewmarkettoprotecttherestoftheirbusiness.
However,thisstrategicapproachofmovingwithnewproductsfirsttoknownmarketsandonlyinasecondsteptonewmarkets(i.e.ruralareas)whichismeanttoassuresustainabilityandscalabilityofservicesbeyondtheavailabilityof
PFIPIImid-termreviewreport 37
publicfunds,cancontradictsomefunders’developmentobjectives.Forsomefundersreachinganewmarketwithanewproduct(i.e.newfinancialserviceforanewruralmarket)canbetheshort-termobjective.
Relevancetocustomers.ThispointaddresseswhetherthefinancialservicesandproductsdevelopedbyPFIPandpartnersareclientcentric,i.e.iftheyprovideasolutiontocustomers’coreproblems.TherelevanceoffinancialservicestoclientshasinthepastbeenanissueforPFIPIevidencedforexamplebyverylowusagerates(around2%)ofdigitalfinancialservicesdevelopedwithPFIPI-support.However,PFIPIIhaslearnedfromthischallengeandhasbeendesignedintegratingsolutionstothischallenge.UsageratesasdiscussedinChapter4havealsoshownthatuptakebyclientshasincreasedsubstantiallythusprovingproducts’relevancetocustomers.
Recently,PFIPhasintroducedsomemorestrategicandoperationalchangesandreadjustmentsgivingastrongerweighttoworkstream2(financialinnovation)aswellasredesigningthecollaborationapproachwithfinancialserviceproviders.The“innovationlabapproach”focusesonathree-step-approachincludingtesting,learningandscaling(cf.Chapter3).
PFIPIImid-termreviewreport 38
8 SustainabilityandfuturedirectionPFIPManagementNotes
FromPFIP’sperspective,thesustainabilityoffinancialinclusionhingesonthecommercialviabilityofservicemodelsinthemarket,andthefundingofasupportorganizationlikePFIPthatcatalysesinnovations.ThePacificIslandmarketsareearlystageanddespitemanysignificantprivateinvestmentsinalternativedeliverychannels,noneofthemajorprovidershavedevelopedamassmarketservicethatiscommerciallyscalableenoughtoreachtheentirepopulation.Someofthesmallernicheplayershaveachievedsustainability.Andweseegreatpotentialinsomeoftheexistingmodels,aswellascommercialinterestinamassmarketmodel.However,ourexperienceindicatesthatmarketplayersareunlikelytomustertheskillsortheinvestmenttoinnovatethesolutionwithoutthesupportofanorganizationlikePFIP.ThesustainabilityofPFIPislinkedtoitsfunding.Theoriginalfundersareawarethatprogrammeresourceswillbeexhaustedin2017.AdditionalfundingisrequiredforPFIPtocontinueitscurrentworkplanthroughtotheplannedendoftheprogrammein2019.
PFIPhasreachedsubstantialsustainabilityofitsinterventionsatthepolicylevelbysupportingtheset-upofnational
taskforcestakingovertheimplementationoftheNationalFinancialInclusionStrategies(NFIS).Sustainabilityhas
notyetbeenreachedwithanyofthefinancialservicesdevelopedwithPFIPsupportbyserviceproviders.Additional
fundingisneededtoassureprojectimplementationuntilprogrammeendandaboveallsustainabilityandfollow-up.
Sustainabilityatthepolicylevel.Atthemacrolevel,PFIPwasinstrumentalinbuildingcapacityandsupportingcentralbanksinsettingupNationalFinancialInclusionTaskForces(NFIT),platformsincludingavarietyofstakeholdersinvolvedinfinancialinclusion.Theseplatformsarechairedbytherespectivecentralbanksandassurecontinuedexchangeonthetopic,aswellastheimplementationofthecountries’NFIS.Mostcentralbankshavededicatedhumanandfinancialresources(dedicatedbudgetlines)allocatedtofinancialinclusionwhichwillassurecontinuityoftheworkbeyondPFIPinvolvement.Somestakeholders,however,questionedhowmuchfurtherfacilitationbyPFIPisnecessarytoassurethatNFITactivitiescontinuetoperformsustainably.Attheregionallevel,allPFIPpartnerPICsaremembersofPIRIandactivelyinvolved.TheyhaveallpubliclymadecommitmentstotheMayaDeclarationwhichassuresandreinforcestheircommitmentatthegloballevel.
Asfortheactivitiesonfinancialeducation,especiallywiththeMinistriesofEducationinFijiandSamoa,exitstrategiesarecurrentlybeingdeveloped.EspeciallyforFiji,thisishappeningquitelateintheprocess.
Sustainabilityattheleveloffinancialserviceproviders.AsdiscussedinChapter5,attheleveloffinancialserviceproviders,atthisstagenoorganisationsupportedbyPFIPhasbeenabletodevelopasustainableandcommerciallyscalablebusinessmodel.Forsomeofthelargercommercialentities,suchasANZorBSP,theengagementandtheirowninvestmentsseemtoberatherclassifiedascorporatesocialresponsibility,thanhavetheintentiontobedevelopedintoabusinessmodel.ThisleavesproductsandservicesatagreatriskofbeingdiscontinuedoncebudgetsneedtobecutorPFIPmovesout.
PFIP’sinvolvementwithprivatesectorpartnersisusuallyshort-termandfocussed.EmphasisonthecommercialviabilityofaproductcontributestoassuresustainabilityoffinancialproductsdevelopedincollaborationwithPFIPsincetheprobabilitythatpartnerscontinuetoofferandpotentiallyscaleaproductontheirownifitisfinanciallysustainableismuchhigher.PFIPhastakenupthischallengethroughitsfocussed“innovationlabapproach”whichwillincludevalidationofthebusinesscase,i.e.thecommercialviabilityandscalabilityofaproduct,intothedevelopmentfromthestart.
Ingeneral,PFIPhasaccesstoandstrongrelationshipswithtopleveldecisionmakersininmostpublicandprivatepartnerorganisationswhichassuresmanagementbuy-inandthusisastrongindicatorforfuturesustainability.
PFIPIImid-termreviewreport 39
Financialresources.PFIPprogrammefundingisassuredforfiscalyear2016-17andhalf-waythroughfiscalyear2017-18.However,availableprogrammefundingwillnotcovertheentire2017-18workplanandnoneofthe2018-19workplan.Tobeabletoimplementtheworkplanasplannedandabovealltobeabletoassuresustainabilityandfollow-upofprojects,PFIPneeds13.6millionUSDinadditionalfunding(5.2millionforFY2017-18and8.4millionforFY2018-19).
PFIPIImid-termreviewreport 40
9 ManagementeffectivenessDatacollectioneffortshavebeensteppedupbyPFIPintherecentpastwithanumberofindicatorscollectedfor
eachworkstream.DataqualityisinsomecasesstillanissueandPFIPcontinuestoworkwithprojectpartnerson
this.Monitoringinstrumentscouldbeimprovedbydevelopingonesingletoolforperiodiccollectionofindicators.
Theteamhasnotbeenfullystaffedduetoexternalandinternalrecruitingissues.PFIPleveragesabout1USDfor
eachUSDcontributedbyitsfundersandhasmanagedtoestablishmultiplecollaborationswithotherprojects.
Datacollectionandmonitoring.PFIPcollectsalargenumberofindicators,however,itdoesnotuseonesingledocumentwherecollecteddatapointsaretrackedperiodicallyandbyindicatorlevel.Thiswouldmakeiteasyfortheteam,fundersandevaluationsaswelltoassessdevelopmentofindicatorsovertime.
Datacollectionfromfinancialserviceprovidershasbeensteppedupwiththecollectionofanincreasingamountofnumbersbeyondsimpleoutreachdata,includingtransactionandusagedata,afocusofPFIPII.Datacollectioneffortsarestronglyfocusedonworkstream2whichreflectsitsincreasingimportance.PFIPisstillworkingwithFSPstocollectdataonbusinessmodelsorcommercialviabilityofproducts.
CollectingdatafrompartnersisreportedlydifficultsincepartnersareweakincollectingdataingeneralandspecificallyforsomeofthedataPFIPneeds,especiallygenderdisaggregateddata,agedata(toassesswhetherthetargetgroupyouthisbeingserved)orgeographicaldataofclients.PFIPisawareofthesechallengesandhasintroduceddatacollectionintotheinnovationlabapproachithasstartedtoimplementincollaborationwithpartners.
Donorreportingandprojectproposals.PFIPdoesnotreportonallobjective-levelindicatorsinaconcisemannerinitsquarterlyorbiannualreportsorinitsannualworkplans.Thisshouldfromanevaluation’spointofviewbeincluded.
Reportingtodonorsaswellasprojectproposalshavebeenjudgedsatisfactorybyfundersoverall,includingshowingconsiderableimprovementovertime.Ithastobetakenintoconsiderationthatdifferentdonorshavedifferentreportingstandardsandrequirementswhichwillmakeitachallengeforaprogrammetosatisfyallinvolvedpartiesentirelywithonereport.SomerecommendationsregardingreportingimprovementsaresuggestedinChapter10.
Geographicapproach.PFIP’sregionalfocusishighlyvaluedbypublicandprivatepartners.Asforprivatepartners,itallowsthemtoscaleandreplicatetheirproductsinothercountriesoftheregion.Suchanapproachisespeciallyhelpfulforcountrieswhicharepotentiallytoosmalltoattractprovidersontheirown(e.g.BIMA’sregionalexpansion).Onthepubliclevel,approaches,suchastheNFITandNFIS,canbesharedforlearningaswellasreplicationpurposes.
Humanresources.PFIPiscurrentlystaffedwithateamof12andhastwoopenpositionsforcountry-levelfinancialinclusionspecialistsinSolomonIslandsaswellasinPNG.PFIP’scurrentprogrammemanagerhasonlycomeonboardlessthan12monthsago.Before,theteamhadbeengoingthroughatragiclossofitsformerprogrammemanagerandhadbeenmanagedad-interim.Theteams’organisationisbasedonamatrixstructurewherebycountryspecialistsaremanagingclientrelationshipsandcancountontopicexperts(e.g.formicroinsurance,financialeducation,etc.).IntheprogrammedocumentthreeadditionalkeypositionsforPFIPweredefined,anM&Especialist,amicroinsurancespecialistandagenderspecialistwhowillassistPFIPandpartnerswithprojectandproductdesign,delivery,monitoringandevaluationtofacilitategendermainstreaming.TheM&Eandthemicroinsurancespecialistshavebeenhired,whereastheteamcurrentlydoesnotincludeagenderspecialist(hashoweverhad50%stafftimeofagenderspecialistfortwoyears).
ThecountryrepresentativeinPNGhasleftabout18monthsago,buthasstillnotbeenreplacedduetothetwosubsequentfinalcandidatesnotbeingabletosignthecontractandlongandtediousUN-internalhiringprocedures.PartnersandstakeholdersinPNG,includingfunders,aredissatisfiedaboutthissituation.However,programmemanagementconfirmsthathiringhasadvancedandanewstaffwillbeabletostartinPNGinearly2017.TheSolomonIslandscountryrepresentativehasleftinAugust2016tojointheteaminFijiasdeputyprogrammemanager.Hehasnotbeenreplacedyet,however,recruitmentisongoingandshouldbefinalizedforanewstaffmembertostartinQ12017.Stakeholdersareimpatientforthenewpersontojoinandpickupcoordinationeffortssuccessfullystartedbythe
PFIPIImid-termreviewreport 41
formercountryrepresentative.
PFIP’soverallsupporttopartnersaswellasindividualstaff’sengagementwithpartnershasbeenvaluedveryhighlybythelargemajorityofpartners.
Leveragingofprivatesectorfunds.PFIP’sprincipleistoleveragefundsofprojectpartnerstoassurebuy-inandcommitmentofpartners(matchinggrantelement).PartnercontributionforPFIPoverallisat48%,withprivatesectorpartnerscontributingonaverage55%ofprojectfundsandpublicsectorpartnersapproximately36%offunds.Overall,leveragingofpartnerfundscanbeconsideredsatisfactoryandisconsideredsatisfactorybymostfunders(differentopinionsoffunderrepresentativesmightderivefromdifferentcountrycontexts).However,fundersseeaneedforunderstandingbetterthespecificcontextsinwhichpartnersarecontributingdifferentlevelsofco-funding.
Underthenewimplementationapproach(innovationlab),theprogramme’sideaistoscaleco-fundingdependingontheprojectstage,i.e.duringlearnandtestphases–whenprojectsuccessisstilluncertain–PFIPmightcontributealargerfundinglevel,whereasduringscalingphaseswhenhypothesishavebeenvalidated,partnersshouldbecontributingalargershareoffunds.
Coordinationandcollaborationwithotherpartners.PartnershavewithoutexceptionbeenverypositiveabouttheircollaborationwiththePFIPprogramme.PFIPhasbeenacknowledgedasacoordinationpointfordonorsbypublicpartnersconsolidatingfundsbyvariousfunders.FeedbackshowsthatPFIPappliesacollaborativeapproachwhichleavespartnersinthedriverseatandthusgeneratesimportantownership.PartnersacknowledgetheflexibilityofPFIPfundingandtheprogramme’sagilityindefiningprojects.CoachingbyPFIPexpertsduringprojectdesignandimplementationhasbeenhighlyvaluedbyprivateandpublicpartnersalike.
PFIPcooperatessuccessfullywithotherinitiativesattheglobalandregionallevel,suchastheAllianceforFinancialInclusion(AFI)anditsregionalSouth-PacificcoordinationgroupPIRI.PFIPpartnershavebeensponsoredtoparticipateinMicroSave’sAgentNetworkAcceleratorProgrammeandintheBoulderMicrofinanceTrainingProgrammeinTurin,Italy.AnenvisagedpartnershipwiththeUNWomen’sprogramme“SafeCitiesforWomenandGirlsProgramme”inPNG(collaborationwithfinancialserviceprovidersinofferingbankaccountsandpaymentservicestowomen,especiallymarketwomen)hasnotbeenrealized.
Atthegloballevel,PFIPcollaborateswiththeUNCDF-fundedBetterThanCashAlliance(BTCA).OtherpotentialcollaborationswithUNCDF-fundedprogrammes(suchasYouthStart,MM4PorCleanStart)havenotbeenrealized.Overall,collaborationwithotherdevelopmentpartnersactiveintheregion,suchastheAsianDevelopmentBank,hasnotgonebeyondexchanges.
PFIPIImid-termreviewreport 42
10 RecommendationsThischaptersummarizessuggestionsdevelopedduringthemid-termreviewspecificallyregardingtheTheoryof
Change,theresultsmanagementframeworkandindicators.Itissuggestedtorevisetheseinstrumentsbasedonthe
revisedprogrammestrategyandimplementationapproach.Thischapteralsoincludessuggestionsforimproving
issues,suchasstaffmanagement,anddonorreporting.
ReviseTheoryofChangeandresultsmanagementframework.ItwouldbehelpfulforPFIPtoreviseitsmonitoringinstrumentstomoreexplicitlystipulatehowaccesstofinancialservicescontributestoimprovinglivelihoodsofPacificIslanders(cf.Chapter6).Atthesametime,itisimportanttoclearlyspelloutatwhatleveloftheimpactchainPFIP’sdirectresponsibilityendsandwherecontextfactorsgenerateaso-calledattributiongap.Thismeansthatfromacertainlevel,PFIP’sinfluencediminishesandfurtherhypothesesofpositiveimpactonthelivesofPacificIslandersarebasedonageneralbodyofknowledgeandresearchbytheinternationalfinancialinclusioncommunity.ThisdoesofcoursenotkeepaprogrammelikePFIPfromprobingintoimpactanalysisonalimitedscaleasisplanned.
Figure12belowdepictsarevisedversionoftheTheoryofChangeorresultsmodelforPFIPII.9Startingfromthebottomandworkingtowardstheobjectiveattheoutcomelevel,outputsfromthefourworkstreamsaredepicted,alreadyincludingthestrategicshifttowardsfocusingonfinancialinnovation(workstream2).Throughtheworkonthefourworkstreams,PFIPwillcontributetotheoutcome.OutputsfromtheworkstreamswillenablemorePacificIslanderstohaveaccesstosustainableandneeds-basedfinancialproducts.Allfourworkstreamscontributeinthefollowingwaytogeneratingtheoutcome:
� Workstream1workswithcentralbanks,regulatorsandotherministriestoimprovetheregulatoryenvironmentandmakeitmoreconducivefornewandinnovativefinancialproductsandalternativedeliverychannelsand,atthesametime,toassureconsumersarereasonablyprotected.10
� Workstream2focusesondevelopingtailor-madeandhigh-valuefinancialservicesandproductsthatarecommerciallyviableandthussustainablebeyondPFIPinvolvement.
� Workstream3contributesdataandinformationaboutdemandandsupplysidesofthefinancialsystemsinPICs.Thisdatafeedsintotheotherthreeworkstreamsandinformsregulatoryinitiativesaswellasfinancialliteracyactivities.Additionally,specificdatacansupportthedevelopmentoffinancialproducts.
� Workstream4supportsthedemandside(clients)inimprovingtheirunderstandingandabilitytousefinancialservicesandassuchcomplementstheotherworkstreams.
Thereareofcourseoverlapsbetweendifferentworkstreams,especiallyworkstreams3and4whichwillflowintodevelopmentinitiativesofworkstream2.
9Thenotions«resultsmodel»and«theoryofchange»areusedinterchangeablyforthepurposeofthisreport.10Consumerprotectionactivitieshavebeenintegratedintoworkstream1(policyandregulation)whichseemsmoreconsistentthanincludingtheminworkstream4sincethemainpartnersonthisworkareregulatorsandotherpublicauthorities.
PFIPIImid-termreviewreport 43
Figure12:Suggestedrevisedresultsmodel
ItisattheoutcomelevelwherePFIP’ssystemborderends(seeblueishpartofFigure12),i.e.fromwherePFIPcannotassumeentireresponsibilityanymore.Beyondthesystemborder,severalothercontextfactorswhicharebeyondtheinfluenceofPFIPimpacttheprobabilityofwhetherthedesiredimpactwillactuallybeachieved.Betweenoutcomeandimpactlevel,thereisinsomecasesalsoasignificanttimelag,i.e.betweenusingfinancialservicesandconcretelyseeingthebenefitsofimprovedlivelihoods,whichoftenistoolongtobeshownduringafive-yearprogramme.
However,thehypothesisforaccessandusageoffinancialservicescontributingtoanimprovementinthemanagementofpoorpeople’sfinancialliveshasbeenprovenbyvariousimpactstudies.Tailor-madesavings,credit,insuranceandpaymentoptionshelppeoplesmooththeirincomeandbebetterpreparedforfinancialshocks.Eventually,accessandusageoffinancialproductscontributestoincreasingincome,eitherthroughsavings,loansorthroughmoreconvenientandlesscostlypaymentservices.Thus,clientsareabletoinvestmoreintheir(micro)businessesandultimatelyintheirlivelihoodsproviding,forexample,betterand/ormoreregulareducationandnutritiontotheirfamilymembers.
Reviseandupdatesetofindicatorsonalllevels.Amanageableandmeasurablesetofindicatorsshouldbedefinedforallworkstreamsattheoutcomelevel.Havingindicatorsthatarequantitativelymeasurableandhaveatargetvaluehelpsinmonitoringandevaluatingprogress.Forworkstream1,forexample,arelevantoutcomeindicatorcouldbethenumberofregulatoryinitiativestakenbyauthoritiesandtheirimpactonfinancialinclusion.Trackingperiodsforindicatorsshouldberevisedandindicatorstrackedinonesingledocumentshowingperiodicprogressagainstestablishedtargets.Tobeabletotrackrelevantindicators,datacollectioneffortsanddataqualitymustbecontinuouslyimprovedincollaborationwithpartners.
ThesetofindicatorsshouldalsobeupdatedtomakesuretheyputamoreexplicitemphasisonthethreemainfociforPFIPII,commercialsustainability,clientvalueandusage.Some(output)indicatorsdonotseemtoberelevantanymoreregardingPFIP’srevisedstrategyandobjectiveandmightneedtoberevisedortakenofftheindicators’listinthefuture(e.g.#ofcountrieswithfinancialeducationincorecurriculum,#ofstudentsinvolvedinfinancialeducation,#ofPICSswithfinancialliteracystrategies).
Additionalindicatorsalongthefollowinglinesaresuggested:
� AnindicatorforacertainnumberoffinancialproductsorservicesdevelopedwithPFIPsupportthatgeneratepositivecashflowsafteracertainperiodoftimeafterlaunch.
� Anindicatoronclaimsratesandrenewalratesfor(micro)insuranceproductslaunchedwithPFIPsupport.
PFIPIImid-termreviewreport 44
� Usageratesbytypeofproduct,differentiatingbetweenmobilemoney,branchlessbankingand–ifitmakessense-otherproducts.
� Anindicatormonitoringchangesininstitutionsbasedonparticipationintrainings.Thiscouldalsobeanindicatorthatmeasuresre-trainingofcolleaguesaftersomeoneparticipatedinaPFIP-sponsoredtrainingtomakesuretheknowledgeacquiredispassedonwithintheinstitution.Inanycase,theindicatorshouldgofurtherthancountingnumbersofparticipantsorworkshopsorganized.
Documentprogrammeadjustments.Forfurtheradjustmentstoprogrammestrategy,implementationapproach,indicatorsandmonitoringinstruments(TOC,indicators,etc.),itishighlyrecommendedtothoroughlydocumentthesechangesandtheirrationale,includingdates(addedwithindocuments)andrespectiveapprovals.Besidespresentingausefulinstrument,forexamplewhennewstaffordonorrepresentativescomeonboard,itwillalsohelptosettheframeworkforthefinalevaluationofPFIPIIin2019.
Donorreportingandprojectproposals.Somepotentialforimprovementwasmentionedbydonorrepresentativesduringconsultationmeetings:� Improveonreportingofgenderdisaggregateddataandincludegenderinformationnotonlyonclients,butalsofor
exampleonfemalebankingagents;� Improvereportingongeographicallocationofclients,i.e.urbanversusruralclients;� Inprojectproposals,beexplicitaboutcontextandreasonsforpartnerco-fundingversusPFIPcontribution;� Beexplicitaboutboth,thebusinesscaseforthefinancialserviceprovider,aswellasthedevelopmentalimpactfor
clientsinprojectproposals.
Grantmanagement.Insomecases,partnersmentionedthatgrantsinvolvingseveralpartnersshouldbedevelopedandimplementedinacollaborativeapproachbetweenallpartnerstobeabletoassessallriskfactorsandgetallpartnersequallyengagedintheproject.OneexamplementionedwasthesolarloanprojectwithMiBankinPNGinwhichcasethemainpartnerEmpawathatprovidesthetechnicalequipmentaswellastheloanfinancing,hasnotbeeninvolvedinprojectdesignwithPFIP.AnotherexampleisthecollaborationbetweenANZandPremierGroup,itsthird-partyagentmanagementpartner,whichisactuallyimplementingmostifnotallofthegroundwork.Inthesecases,whereprojectgrantsaredisbursedtoonepartner,aMemorandumofUnderstandingwithallinvolvedpartiescouldbesignedtoassureproperunderstandingandcommitmentbyallparties.
Staffefficiency.Intermsofstaffefficiency,programmemanagementshouldthinkaboutdevelopingfunctionalexpertiseatthelevelofcountryrepresentativeswhichhasalreadybeenthecasewiththeSamoancountryrepresentative.Also,thenew“innovationlab”approachwillrequiremoreanddeepertechnicalinvolvementbyPFIPstaff.Additionally,itisimportanttofillopencountryrepresentativepositionsassoonaspossibleandreviewhiringagenderspecialistaspointedoutintheprogrammedocument.
Topics.AssesswhethertopicsnewlyintegratedintoNationalFinancialInclusionStrategies(NFIS)andrelevanttoPICgovernments,suchasSMEs,greenfinance,andaccesstofinanceforyouth,shouldbetakenupbyPFIPinthefuture.
PFIPIImid-termreviewreport 45
Annex1:Termsofreference
TERMSOFREFERENCE
ConsultancyTitle Mid-TermInternalProgrammeReviewProjectName: PacificFinancialInclusionProgramme(PFIP)PFIPcountriesof
operation Fiji,PapuaNewGuinea(PNG),Samoa,SolomonIslands,TongaandVanuatu
ExecutingAgency UNCDF&UNDPApplication
deadline 16September2016
TypeofContract IndividualContractorLanguages
required: English
Durationof
Contract: 44workingdays
1.0BACKGROUND
Thesetermsofreference(TOR)definethescopeofamid-termreviewofthesecondphaseofthePacificFinancial InclusionProgramme(PFIP). PFIPoperates fromtheUNDPPacificOffice inSuva,FijiandhasofficesinPapuaNewGuinea,SamoaandSolomonIslands.PFIP II was launched in July 2014with the objective of expanding financial services and education to500,000PacificIslandersina5-yearperiod.PFIPworkstowardsthisobjectivethroughfourworkstreams,whichcompriseastrategyforcatalysingcommerciallyscalablefinancialserviceimplementations.
● ThePolicyandRegulationworkstreamprovidessupporttoregulatorsandpolicymakerstocreateanenablingregulatoryenvironmentformassmarketfinancialservices,andleveragegovernmentpaymentstoacceleratetheadoptionofformalfinancialchannels.
● The Financial Innovation workstream funds financial service providers to innovate with newchannelsandservicesdesignedformassmarketcustomers.
● TheMarketInformationworkstreamfundsresearchandpublicationofdemandandsupplysidedatatosupportdecisionmakinginalloftheworkstreams,andtoproduceknowledgeproductsrelatedtofinancialinclusion.
● The Financial Competency workstream funds activities related to consumer protection andfinancialeducation.
The purpose of the mid-term review is to provide programmemanagement, executing agencies andfunderswithanexternalassessmentofprogrammeperformance.Theexerciseisexpectedtoprovidetheaforementioned stakeholders with an evidence-based analysis that will support decisions about thestrategic priorities for the remainder of PFIP II, considerations around additional funding for theprogrammeaswellasanearlyassessmentof theneed for continuationof theprogrammebeyond itscurrentphase.
2.0DUTIESANDRESPONSIBILITIES
ScopeofWork
PFIPIImid-termreviewreport 46
ThereviewwilladdressthefollowingcoredimensionsofthePFIP:2.1PerformanceagainstprogrammeobjectiveThefoundationofthereviewwillbeanevidence-basedanalysisofprogrammeperformanceinimplementing the workstreams, delivering output targets, and achieving the programmeobjective. This is both an assessment of programme implementation, and the underlyingstrategicassumptionsthattheworkstreamoutputsdoinfactcontributeinameasurablewaytotheultimateprogrammeobjective.Thesectionsbelowprovideguidingquestionsforeachoftheworkstreamstheconsultantwillbeexpectedtoaddress. Theprogrammedocumentwillprovideadditionaldetailandperformanceexpectationsforeachworkstream.Foralloftheworkstreams,theconsultantisexpectedtomakeacoreevidence-basedassessmentthatanswersthefollowingquestionsthatareprimarilyembeddedinandderivedfromthePFIPTheoryofChange:
● Doprojectactivitiesdelivertheexpectedoutputs?● Dooutputsdelivertheexpectedoutcomes?● Dotheoutcomescontributetotheoverallprojectobjective?● Aretheoutputsandoutcomesdefinedtobemeasurable?● Aretheoutputsandoutcomeswellmeasuredbytheprogramme?● Aretheresultsalignedwithprogrammedocumentexpectations?● Arethereanysignificantindicationsofproblemswithimplementationefficiency?● AretheresignificantfactorsoutsideofPFIP’scontrolthatundermineperformance?
Workstream1:EnablingPolicyandRegulation
● DidPFIPactivitiescontribute toconcrete improvements inpoliciesandregulationssupportingfinancialinclusion?
● Havethepolicydecisionshadanenablingimpactontheexpansionoffinancialservices?
Workstream2:FinancialInnovation● Have PFIP activities supported initiatives that expanded delivery of financial services tomarginalizedpopulations?
● Aretheservicescommerciallyscalable?● Whatdoestheusagedatarevealaboutcustomeradoptionrates?● WhichformsofPFIPsupporthavebeenmostorleastsuccessfulindrivinginnovationinfinancialchannelsandservices?
Workstream3:MarketInformationandKnowledge● DidPFIPknowledgeproductscontributeto:
- PFIPactivities?- Partnerinitiatives?- PFIPadvocacy,communicationsandpublicawareness?
Workstream4:FinancialCompetency● WhatistherelativeeffectivenessofPFIP’sdifferentapproachestoconsumereducationinterms
of:- improvementofconsumerfinancialliteracy,- ability of consumers to employ newly gained knowledge to change financial
behaviour,and,
PFIPIImid-termreviewreport 47
- abilityofconsumerstoaccessfinancialservices?● What is the relative effectiveness of PFIP’s different approaches to supporting consumer
protectioninitiatives?
2.2 ProgrammeRelevance
● What is the evidence that programme objectives and activities are aligned with the keystakeholders:
- Customers:arePFIP-supportedinitiativesclient-centric?- Serviceproviders: IsPFIPsupportalignedwiththebusinessobjectivesof the
providers?- Policy Makers: has PFIP been able to build a broad community of practice
committedtofinancial inclusionandhasPFIPsupportenabledpolicymakersachievefinancialinclusionobjectives?
- PFIPFunders:arePFIPobjectivesalignedwithfunders’policiesandobjectives- Are learnings from success, failures andexperiences across countries shared
internallyandwithstakeholders?2.3 ProgrammeManagement
● Is the PFIP Results Management Framework (RMF) adequate to measure programmeperformance?
● Havepartnerscompliedwithreportingrequirements,andarethoserequirementsadequatetosupportthePFIPRMF?
● HasthePFIPcommunicationstrategybeeneffectiveinsupportingprogrammeobjectivesacrossallworkstreamsandmeetingfunder’sobjectives?
● InwhatareashasPFIPimplementationorstrategyevolvedsincetheprogrammedocument?Andwhatarethefactorsthatdrovethisevolution?
2.4 Impact
● Whataretheassumptionsembeddedintheprogrammedesignregardingtheimpactoffinancialinclusion?
● Whatinstrumentsandapproachesareinplacedtomeasureimpact?● Whataretheimpactresultstodate?● Howeffectivehastheprogrammebeeninleveragingprivatesectorcommitmentandresources?
2.5 Resources:
● DoesPFIPhaveadequateresources(financial,humanandinstitutional)toachieveitsobjectivesandtargets?
● Whatotherresourcesareneededtofulfilitsobjectivesandtoproducetheintendedimpacts?● Arethereanyidentifiedprogramminggapsthatrequireadditionalresources?● Arethereopportunitiesfordonor/partnernon-financialsupport(eg:advocacy,policydialogue)
toassistPFIPachieveitsobjectivesmoreeffectively?2.6Sustainability&FutureDirection:
● HasadequatecapacityandresourcesbeendevelopedforthePFIPworkinvariouscountriestobesustainedbynationalactors?
● What areas of the programme would be impacted if donor funding was either reduced ordiscontinued?
● WhatwouldbetheaddedvalueofanextensionofPFIPbeyond2019?
PFIPIImid-termreviewreport 48
ReviewMethodology:TheProgrammereviewwillbeledbyanindependentconsultantwithexpertiseinbothfinancialinclusion service innovation as well as management of multi workstream programmes thatsupportfinancialinclusion.TheconsultantwillbesupportedbyPFIPmanagementandtechnicalstaff as necessary. It is envisaged that PFIP’s Results Management Adviser and/or staffresponsibleforperformancedatamanagementwillplayanactiveroleintheprogrammereview.KeyspecialistsfrommemberorganizationsofitsInvestmentCommitteewillalsobeinvitedtoparticipateintheprogrammereview.TheteamwillconductmissionstoFiji,Samoa,SolomonIslandsandPapuaNewGuinea,thefourcountriesthatcurrentlyrepresentPFIP’scurrentsupportfacilitygrantsand,together,holdsthehighestnumberofunbankedpeopleintheregion.Keystakeholdersforconsultationinclude:
1. CentralbanksofFiji,Samoa,SOIandPNGandrespectiveNFITs2. Implementingpartnersandgrantees3. DonorsandInvestmentCommitteemembersatHQandcountrylevels4. OtherdonorfundedprogrammesordevelopmentpartnersactiveinthePacificDonorAccessto
FinanceGroup–includingIFC,WorldBank,AFIandADB5. UNDP(PacificOfficeinSuva,ApiaandPortMoresby)andUNCDFrepresentatives
TheProgrammeReviewConsultantwillbetaskedwith:
● Designingtheworkplanandinvestigationmethodologyforconductingtheprogrammereview,withintheparametersherein,andtoplanthemissioninconjunctionwithPFIP
● Undertakingallpre-missionpreparatoryworkincludingliteraturereview● Providingleadershiptoothersecondedteammemberstoensureoptimaluseofhumanresources● Preparing and presenting the draft report and findings to PFIP and IC Members, to gather
feedback● Finalizingtheprogrammereviewreport.
Stepsofthereviewandprovisionalagenda:ACTIVITIES NUMBEROFDAYSDeskReviewandinceptionreport(home)•Reviewofdocumentation,initialcontactwithkeystakeholders,andpreparationofinceptionreport.
5days
FinalizationofworkplanandmethodologywithPFIPTeam● Discussionofinceptionreportandfinalization
2days
FieldvisitstoFiji,PN,SamoaandSOI● UndertakecountryvisitsforInterviewswithkeystakeholders● PresentationofinitialfindingstoPFIP(inSuva)
25days
Preparationofdraftandfinalreport(home)● Preparationofdraftreportforfeedback● FinalizingthereportafterPFIPcomments.
12days
Total 44daysTimelines ● PFIPandICMemberstoprovidefeedbacktotheConsultant 10 days after
submission● Final version of the report to be submitted to PFIP for distribution to IC
Members10 days after thereceipt of thecomments
PFIPIImid-termreviewreport 49
ExpectedOutputsTheconsultantwillsubmit,inelectronicformat,thefollowingelements:
● Aninceptionreportthatoutlinestheinvestigationmethodologyandworkplan.● Presentationofinitialfindingsatendoffieldvisits.● Adraftreportwillbesubmittednolaterthan21daysaftertheendofthemission.● Afinalreport
ReferenceDocumentsKeydocumentstobereviewedincludethefollowing:a. PFIP2ProjectDocumentb. AnnualWorkPlansc. ProjectReportsd. UNCDFProgrammeReviewprocedurese. PFIPResultsMeasurementFrameworkf. PFIPTheoryofChangeg. Relevantknowledgeproductsh. Grantagreements
ResourcesProvidedPFIPwill drawup and confirma scheduleofmeetingswith relevant interviewees/stakeholders in therespective countries. The consultant is expected to make his/her own arrangements for access to acomputer/laptopaswellasinternetservices,officespace,stationeryetc.Supervision/ReportingThe consultantwill report to thePFIPManagerorhisdesignatedassignee.He/shewill be required toprovideashortweeklyupdateoftheprogressofworkthroughemail.Draftreportandfinalreportsareasperexpectedoutputsasdetailedabove
3.0COMPETENCIES
● Stronginterpersonalandcommunicationskills;● Stronganalytical,reportingandwritingabilitiesskills;● Opennesstochangeandabilitytoreceive/integratefeedback;● Abilitytoplan,organize,implementandreportonwork;● Abilitytoworkunderpressureandtightdeadlines;● ProficiencyintheuseofofficeITapplicationsandinternetinconductingresearch;● Outstandingcommunication,projectmanagementandorganizationalskills;● Excellentpresentationandfacilitationskills.● Demonstratesintegrityandethicalstandards;● Positive,constructiveattitudetowork;● Displayscultural,gender,religion,race,nationalityandagesensitivityandadaptability.
4.0REQUIREDSKILLSANDEXPERIENCE
EducationalQualifications:
● Master’sdegreeinfinance,economics,management,humanitiesand/orrelateddisciplineExperience&skills
● Minimumof10yearsoftechnicalworkinfinancialinclusionwithfocusinemergingeconomies
PFIPIImid-termreviewreport 50
● Priorexperienceinevaluationorplanningofmultiworkstreamprogrammesrelatedtofinancialinclusion.
● Strongexpertiseindigitalfinancialservicesandotherinnovativedeliverychannelsandproductsforlowincomeclients
● Strong understanding of the impact of financial services on disadvantaged client segments –includinglowincomepeople,women,ruralvillagersandproducers,microentrepreneurs
● Have current knowledge of the state of the financial inclusion sector globally – includingchallengesandopportunitiesthesectorisfacing
● Understanding of human-centric approaches and methodologies for assessing the potentialimpactsoffinancialservicestodisadvantagedclientsegments
● Capacity to act as team leader and performprojectmanagement, quality control, and seniorliaisonfunctionsforsuccessfullyconductingtheprogrammereview
Languagerequirements
● FluencyofEnglishlanguageisrequired;PriceProposalandScheduleofPaymentsConsultantmustsendafinancialproposalbasedonLumpSumAmount.Thetotalamountquotedshallincludeallprofessionalfeesandothernon-travelrelatedexpenses.Fortravelexpensesitwillbeasunder:TheUNDPshallpaytravelexpenseswhichinclude:
● Mosteconomicanddirectairfare(nottoexceedUNDPcalculatedrates)● UNDPDSAratesforhotel,airporttransportandfoodapplicabletothedutystationinthefour
countrieswheretravelistobeundertaken(Fiji,Samoa,SolomonIslandsandPNG)● Localtaxis
EvaluationMethodandCriteriaIndividualconsultantswillbeevaluatedbasedonthefollowingmethodology:CumulativeanalysisTheawardofthecontractshallbemadetotheindividualconsultantwhoseofferhasbeenevaluatedanddeterminedasa)responsive/compliant/acceptable;andb)havingreceivedthehighestscoreoutofsetofweightedtechnicalcriteria(70%).andfinancialcriteria(30%).FinancialscoreshallbecomputedasaratiooftheproposalbeingevaluatedandthelowestpricedproposalreceivedbyUNDPfortheassignment.TechnicalCriteriaforEvaluation(Maximum70points)
● Criteria 1 – Qualifications: Minimum Master’s degree in finance, commerce, management,humanitiesand/orrelateddiscipline(5points)
● Criteria2-Minimumof10yearsoftechnicalworkinfinancialinclusionwithfocusinemergingeconomies(10points)
● Priorexperienceinevaluationorplanningofmultiworkstreamprogrammesrelatedtofinancialinclusion(20points)
● Strongexpertiseindigitalfinancialservicesandotherinnovativedeliverychannelsandproductsforlowincomeclients(20points)
● Strong understanding of the impact of financial services on disadvantaged client segments –including low income people, women, rural villagers and producers, micro entrepreneurs (5points)
● Understanding of human-centric approaches and methodologies for assessing the potential
PFIPIImid-termreviewreport 51
impactsoffinancialservicestodisadvantagedclientsegments(5points)● Capacity to act as team leader and performprojectmanagement, quality control, and senior
liaisonfunctionsforsuccessfullyconductingtheprogrammereview(5points)Onlycandidatesobtainingaminimumof49points(70%ofthetotaltechnicalpoints)wouldbeconsideredfortheFinancialEvaluation.DocumentationrequiredInterestedindividualconsultantsmustsubmitthefollowingdocuments/informationtodemonstratetheirqualifications.
● LetterofConfirmationofInterestandAvailabilityusingthetemplateprovidedinAnnexII.● PersonalCVorP11, indicatingallpastexperiencefromsimilarprojects,aswellasthecontact
details (email and telephone number) of the Candidate and at least three (3) professionalreferences.
● Technicalproposal,includinga)abriefdescriptionofwhytheindividualconsidershim/herselfasthemostsuitablefortheassignment;
● Financialproposal,aspertemplateprovidedinAnnexII.
Incompleteproposalsmaynotbeconsidered.ThetemplatesareavailableontheprocurementsectionofUNDP Pacific Office in Fiji website: www.fj.undp.org. Successful bidder may opt to either sign an
IndividualConsultancy contract (IC) individuallyoraReimbursement LoanAgreement (RLA) through
theircompany.Annexes
● AnnexI-IndividualICGeneralTermsandConditions● Annex II –Offeror’s Letter toUNDP Confirming Interest and Availability for the Individual IC,
includingFinancialProposalTemplateForanyclarificationregardingthisassignmentand/orsubmissionofproposalspleasewritetoMr.RonaldKumar on procurement.fj@undp.org. Proposals should be addressed to the ProcurementUnit,UNDPPacificOfficeinFiji,KadavuHouse,Suva.
PFIPIImid-termreviewreport 52
Annex2:Stakeholderconsultationschedule
Country Date Time Organisation Name Position2.30pm - 3.30pm BIMA Mr. Simon Schwall Project Manager – Pacific4.00pm - 5.30pm PFIP Mr. Jeff Liew
Mr. Krishnan NarasimhanMs. Esther Bates Mr. Praneel Pritesh
PFIP team
8.00am - 8.45am PFIP Mr. Praneel Pritesh Financial Inclusion Specialist- Fiji9:00am - 10:00am Ministry of Education Mrs. Kelera Taloga Deputy Secretary Professional10.30am - 11.30am Reserve Bank of Fiji (RBF) Mr. Barry Whiteside Governor RBF
12.00pm - 1.00pm Fiji National Prov ident Fund Mr. Tev ita Nagataleka Acting GM PRIME1.15pm -2.15pm PFIP Mr. Krishnan Narasimhan Deputy Programme Manager2.30pm - 3.30pm DFAT bilateral Fiji Mr. Thompson Yuen Program Manager Private Sector Development
and Economic Growth4.00pm - 5.00pm HFC Bank Mr. Ross Munn
Mr. Raj Sharma Akash Anand
CEOGM Risk and ComplianceProject Officer
5.30pm - 6.30pm PFIP Esther Bates Consultant8.30am - 9.30am Ministry of Education Hon. Dr. Mahendra Reddy
(Mr)Education Minister
10.30am -11.30am Ministry of Industry, Trade & Tourism
Ms. Seema SharmaMr. Hillary M. J. KumwendaMr. Sekove TamanitoakulaMr. Nitesh Chand
Director TradeTrade Policy AdvisorChief EconomistPrincipal Economic Planning Officer
1.00pm - 2.00pm PFIP Krishnan Narasimhan Deputy Programme Manager2.30pm - 3.30pm Vodafone Mr. Shailendra Prasad Head of mCommerce & Corporate Affairs4.00pm - 5.00pm PFIP Mr. Jeff Liew Former PFIP Regional Financial Capacity Advisor2.00pm - 3.00pm PFIP Mr. Amit Kumar Financial Inclusion Specialist- Samoa3.30pm - 4.00pm Ministry of Education, Sports,
and CultureDr. Karoine Afamasaga-Fuata'i (Ms)
Chief Executive Officer
10:00am – 10:30am Mr. Benjamin Pereira Assistant Governor
10:30am – 12:00pm Ms. Lanna Lome-Ieremia & FSD team
Financial Systems Development department
2:00pm – 3:00pm UNDP and UNRC Ms. Lizbeth Cullity;Ms. Georgina Bonin
UNDP RR and UNRC;Head of GPRU (Governance & Poverty Reduction Unit)
3.30pm - 4.30pm Ministry of Education, Sports, and Culture
Ms. Valma Galuvao ACEO, Curriculum Development div ision
Samoa Thur 10th Nov
Fri 11th Nov Central Bank of Samoa
Fiji Mon 7th Nov
Tues 8th Nov
Wed 9th Nov
PFIPIImid-termreviewreport 53
Sun 13th Nov 5.00pm - 6.00pm Premiere Group of Companies Ltd (agency management for ANZ)
Ms. Julie Haro Managing Director
9.00am - 10.00am Central Bank of Solomon Islands
Mr. Denton H. RarawaMs. Norma Qurusu
GovernorAnalyst NFIU
10.30am - 11.30am Bank of the South Pacific Mr. David Anderson Country Manager
2.00pm - 3.00pm Solomon Islands National Prov ident Fund
Mr. Aluta Kakadi Manager Operations
3.30pm - 4.30pm SPBD Microfinance Mr. Mohammed Zinnur RahmanMr. Ronald Vikash Kumar
General ManagerHead of Finance and Operations
9.00am - 10.00am DFAT Solomon Islands Ms. Ella Kauhue Program Manager
10.30am - 11.30am Asian Development Bank Ms. Katherine Passmore Private Sector Development Coordinator
12.00pm-1.00pm World Vision Mr Janes GintingMs. Mindy RodunerMr. Colin Dyer
Country DirectorGrants Portfolio ManagerEconomic Development Advisor
2.00pm - 3.00pm ANZ Bank/PGCL Mr. Augustine WateaniMs. Julie HaroMs. Elizabeth Sodu
Project Manager Managing DirectorDirector
3.30pm - 4.30pm UNDP Ms. Azusa Kubota UNDP Country Manager 6.00pm - 7.00 pm DFAT Solomon Islands Ms. Sarah Leary Second Secretary - Economics and Trade 2.00pm - 3.00pm Capital Insurance Mr. Phillip Tolley Managing Director 6.00pm - 7.30pm PFIP Ms. Abigail Chang Financial Education Technical Specialist8.30am - 9.30am DFAT Regional Ms. Marina I llingworth
Mr. Ray ...Mr. Ma’ake KomailevukaMr. Matthew Lapworth
Senior Program Manager, Regional Partnerships & Aid Effectiveness Program Manager, GrowthCounsellor- Regional
11.00am - 12.00pm EU Mr. Carlos Battaglini Attaché / Env ironmental & Agriculture Programme Manager
1.00pm - 2.00pm Mibank Mr. Tony Westaway Managing Director 9.00am - 10.00am BIMA Mr. Jon Vance
Mr. Prakash RanjanCountry Manager Senior General Manager
11.00am-12.00pm Bank of PNG/Centre for Excellence in Financial Inclusion (CEFI)
Ellison PidikSaliye Ranasinghe
Assistant Governor BPNGCEO of CEFI
7.00pm - 8.30pm PFIP Michael Carr Inclusive Insurance SpecialistSun 20th Nov 9.00am - 5.00pm PFIP Mark Flaming Manager
2.00pm - 3.00pm PFIP Erica Lee Communications Associate8.30am - 9.30am PFIP Liz Larson Results Measurement Advisor
Regional 24th Nov 2:30pm (Berlin time)
MFAT NZ Judy Wan Min Kee Regional Head of Programmes
Australia
Solomon Islands
Mon 14th Nov
Tues 15th Nov
Papua New Guinea
Wed 16th Nov
Thurs 17th Nov
Fri 18th Nov
PFIPIImid-termreviewreport 54
Annex3:InterviewguidelinesperstakeholdergroupPFIPteammembers
Ideally,therewillbetimetodiscusswithPFIPteammembersatthebeginningandtheendofthemissiontoclarifyquestionsandcross-checkorvalidateinformationreceivedbydifferentinterviewees.
� Programmedesign- IstheprogrammealignedwithoverarchinggoalsofPIC’sfinancialinclusionpolicies/strategies(andtowhat
degree)?- HavePFIPactivitiessupportedinitiativesthatexpandeddeliveryoffinancialservicestomarginalized
populations?- Theprogrammeobjectivetalksaboutspecifictargetgroups,includingyouth.However,youthdonotseemto
havebeenattributedanindicatororbeingtracked?� Programmeimplementation
- Howhasimplementationsupportchangedovertime?- WhichformsofPFIPsupporthavebeenmostorleastsuccessfulinyouropinion?Why?- Inyouropinion,howefficientistheInvestmentCommittee?- Whatisthebiggestobstacleyouseeinprogrammeimplementation?- Whatarethefactorsthatfacilitateprogrammeimplementation(successfactors)?
� PFIP’simpact- DoyouoverallthinkthatPFIPhascontributedtoadvancingfinancialinclusion?- DoyouthinkthatPFIPknowledgeproductscontributetoraisingpublicawareness?Dotheyhaveanadvocacy
function?- DoPFIPknowledgeproductssupportpartnerprojectimplementation?
� Collaborationwithotherdevelopmentpartners- DidPFIPcollaboratewithotherdonorsactiveintheregion?Why(not)?- Wasthiscollaborationusefulinyouropinion?Shoulditbecontinued?
� Outlookandrecommendations- HowdoyouthinkPFIPshouldcontinue?Shoulditchangeitsstrategyfortheremainingterm?- DoyouthinkPFIPhasadequateexitstrategiesfromprojects/partners?- DoyouthinkthereisaneedforPFIPbeyonditscurrentterm?
PFIPfunders
ThefollowingquestionswillbeguidelinesfordiscussionswithPFIPfunders,theAustralianDepartmentofForeignAffairsandTrade(DFAT)inFijiandSolomonIslands,theNewZealandMinistryofForeignAffairsandTrade(MFAT),theUnitedNationsDevelopmentProgramme(UNDP)inSamoaandSolomonIslands,andtheEuropeanUnion(EU)inPapuaNewGuinea.
� CollaborationwithPFIP- HowwouldyoudescribethecollaborationwithPFIP?- Howdidthiscollaborationdevelopovertime?- Whichelementsofthecollaborationdidyouspecificallyappreciate?- Doyouhaveanyrecommendationsonhowtoimprovecollaboration?
� PFIP’simpact- Inyouropinion,hasPFIPcontributedtoadvancingfinancialinclusioninthePICs?- DoyouthinkthatPFIPknowledgeproductscontributetoraisingpublicawareness?Dotheyhaveanadvocacy
function?Doyouusetheminyourwork?- DoPFIPknowledgeproductssupportpartnerprojectimplementation?
� PFIP’srelevance
PFIPIImid-termreviewreport 55
- DoPFIPobjectivesalignwithyourorganisation’sobjectives/policies/strategy?- HavePFIPactivitiesinyouropinionsupportedinitiativesthatexpandeddeliveryoffinancialservicesto
marginalizedpopulations?� Outlookandrecommendations
- DoyouseeaneedforPFIPtochangeitsstrategyfortheremainingterm?Ifyes,why?How?- DoyouseeaneedforPFIPtocontinuebeyondthecurrentterm?- Bywhen,inyouropinion,willPFIPhavefulfilleditsrole?- WhichrecommendationsdoyouhaveforPFIPtochange/improve?
CentralBanks
ThesequestionswillguideconversationswiththeReserveBankofFiji(RBF),theCentralBankofSamoa(CBS),theCentralBankofSolomonIslands(CBSI)andtheBankofPapuaNewGuinea.
� Supportreceived- WhattypeofsupportdidyoureceivefromPFIP?- Didtheresultscorrespondwithyourexpectations?Why(not)?- Whichfactorsdidsupportorhampertheproject?- WhatwereconcreteimprovementsthatyoureachedwithPFIPsupport?
� PFIP’simpact- DidPFIPactivitiescontributetochangesinpoliciesandregulationssupportingfinancialinclusion?Which?If
not,why?- DidPFIPsupportenableyoutoachieveyourfinancialinclusionobjectives?- HasPFIPsupportedinitiativesthatexpandedaccesstofinancetomarginalizedpopulations?- DoyouthinkthatPFIPknowledgeproductscontributetoraisingpublicawareness?Dotheyhaveanadvocacy
function?Doyouusetheminyourdailywork?- DoPFIPknowledgeproductssupportprojectimplementation?- Did(will)theprojectcarryonafterPFIPfunding?Ifyes,how?Ifnot,why?
� PFIPrelevance- DoesPFIPanditsobjectivealignwithyourcountry’sandtheregion’scurrentandplannedoverarchingpolicies
andstrategies(MayaDeclarationcommitments,2020MoneyPacificGoals,etc.)?Whyorwhynot?- Ifnot,whatwouldneedtobechanged?- HasPFIPbeenabletobuildabroadcommunityofpracticecommittedtofinancialinclusion?- AreyouamemberofthePacificIslandsRegionalInitiative(PIRI)?- AretheobjectivesofPFIPandPIRI(AFI)aligned?
� CollaborationwithPFIP- HowwouldyoudescribethecollaborationwithPFIP?- Howdidthiscollaborationdevelopovertime?- Whichelementsofthecollaborationdidyouspecificallyappreciate?Why(not)?- Doyouhaveanyrecommendationsonhowtoimprovecollaboration?
� Outlookandrecommendations- DoyouthinkyouwillneedfurtherPFIPsupportafteryourcurrentprojectiscomingtoanend?Why?- Inwhichareaswouldyouneedsupport?- Bywhen,inyouropinion,willPFIPhavefulfilleditsrole?- WhichrecommendationsdoyouhaveforPFIPtochange/improve?
Financialserviceproviders
Serviceprovidersincludeprivate-sectorcompanieswhichcollaboratewithPFIP.Theseincludefinancialinstitutionslikecommercialbanks,superannuationfunds,mobilenetworkoperators(MNO),microfinanceinstitutions,NGOsandinsurancecompanies.
� Supportreceived
PFIPIImid-termreviewreport 56
- Whendidyoustartthinkingaboutthelow-incomepopulationascustomersforyou?WhatwasPFIP’sroleinthisprocess?WouldyouhavegonefortheprojectwithoutPFIPsupport?
- WhattypeofsupportdidyoureceivefromPFIP(funding,technicaladvice,etc.)?- Didthesupportmeetyourexpectations?Why(not)?
� Results- Didtheresultscorrespondwithyourexpectations?Whyorwhynot?- Whichfactorsdidsupportorhamperachievementofresults?
� PFIP’simpact- InyouropinionhasPFIPcontributedtoadvancingfinancialinclusion?- DoyouthinkthatPFIPknowledgeproductscontributetoraisingpublicawareness?Dotheyhaveanadvocacy
function?Doyouusetheminyourdailywork?- DoPFIPknowledgeproductssupportprojectimplementation?
� Sustainability- Did(will)theprojectcarryonafterPFIPfunding?Ifyes,how?Ifnot,why?- AretheservicesyoudevelopedwithPFIPsupportfinanciallysustainable?- Aretheservicescommerciallyscalable?- Whatdoestheusagedatarevealaboutcustomeradoptionrates?- WhichformsofPFIPsupporthavebeenmostorleastsuccessfulindrivinginnovationinfinancialchannelsand
services?� CollaborationwithPFIP
- HowwouldyoudescribethecollaborationwithPFIP?- Howdidthiscollaborationdevelopovertime?- Whichelementsofthecollaborationdidyouspecificallyappreciate?- Doyouhaveanyrecommendationsonhowtoimprovecollaboration?
� Otherquestions:- Besidessupportingserviceproviders,PFIPsupportstheenablingenvironmentviasupporttoCentralBanks.
Areyouawareofanyconcretechangesinpoliciesandregulationssupportingfinancialinclusion?Which?� Outlookandrecommendations
- DoyouthinkyouwillneedfurtherPFIPsupportafteryourcurrentprojectiscomingtoanend?Why?- Inwhichareaswouldyouneedsupport?- WhichrecommendationsdoyouhaveforPFIPtochange/improve?
MinistriesofEducationandMinistryofTrade
TheFinancialEducationintheschoolcurriculumprogrammeshaveinvolvedworkwiththeMinistriesofEducationofFiji,PapuaNewGuinea,SolomonIslandsandSamoaandthisworkisindifferentstages.
� Supportreceivedandimpact- WhattypeofsupportdidyoureceivefromPFIP?- Didtheresultscorrespondwithyourexpectations?Whyorwhynot?- WhichfactorsdidsupportorhampertheFinancialEducationactivity?- WilltheFinancialEducationactivitycarryonafterPFIPfunding?Ifyes,how?Ifnot,why?- WhatwereconcreteimprovementsthatyoureachedwithPFIPsupport?- DidPFIPactivitiescontributetochangesinpoliciesattheMinistryandwiderstakeholderlevel?- HowdoyoujudgePFIP’ssupportthroughthisactivitytonationalfinancialcompetencyandcapabilityinterms
oftheimprovementofconsumerfinancialliteracy?- HowdoyoujudgePFIP’ssupporttoFinancialEducationinschoolsintermsofabilitytogainnewskillsand
knowledge?- HowdoyoujudgePFIP’ssupporttoFinancialEducationinschoolsintermsofabilitytoemploynewlygained
skillsandknowledgetochangefinancialbehaviour?
PFIPIImid-termreviewreport 57
- HowdoyoujudgePFIP’ssupporttoFinancialEducationinschoolsintermsofabilityofconsumerstoaccessfinancialservices?
� PFIP’simpact- Inyouropinion,hasPFIPcontributedtoadvancingfinancialinclusioninthePICs?- DoyouthinkthatPFIPawarenessactivitiesincludingknowledgeproductssuchasvideos,newspaperarticles,
pressreleasesandsocialmediaactivitiescontributetoraisingpublicawareness?Dotheyhaveanadvocacyfunction?Aretheyrelevanttoyouinyourdailywork?
- DoPFIPfinancialeducationteacherandstudent/schoolresourcesandotherrelevantpublicationssuchasknowledgeproductssupportprojectimplementation?
� CollaborationwithPFIP- HowwouldyoudescribethecollaborationwithPFIP?- Howdidthiscollaborationdevelopovertime?- Whichelementsofthecollaborationdidyouspecificallyappreciate?Why?- Doyouhaveanyrecommendationsonhowtoimprovecollaboration?
� Outlookandrecommendations- DoyouthinkyouwillneedfurtherPFIPsupportaftertheirinvolvementinthecurrentactivitycomestoan
end?Why?- Inwhichareaswouldyouneedsupport?- WhichrecommendationsdoyouhaveforPFIPtochange/improve?
Developmentpartners/otherdonors
� DidyouactivelycollaborationwithPFIP?� Ifyes,
- HowwouldyoudescribethecollaborationwithPFIP?- Howdidthiscollaborationdevelopovertime?- Whichelementsofthecollaborationdidyouspecificallyappreciate?Why?- Doyouhaveanyrecommendationsonhowtoimprovecollaboration?
� ImpactofPFIP- InyouropinionhasPFIPcontributedtoadvancingfinancialinclusion?- DoyouthinkthatPFIPknowledgeproductscontributetoraisingpublicawareness?Dotheyhaveanadvocacy
function?Doyouusetheminyour(daily)work?- DoPFIPknowledgeproductssupportpartnerprojects’implementation?
� Outlookandrecommendations- WhichrecommendationsdoyouhaveforPFIPtochange/improve?- Doyouseespaceforcollaborationinthefuture?- Ifyes,inwhichfields?
PFIPIImid-termreviewreport 58
Annex4:Referencedocuments
PFIPprogrammedocuments
� ConceptNote(2014-2018),PacificFinancialInclusionProgrammeDocument� ResultsFrameworkHierarchyandseveralothermonitoringdocuments� 2014-2015,2015-2016and2016-2017WorkplanandBudgetdocuments� TheoryofChange� InvestmentCommitteeMeetingnotesfromSeptember2014,November2014andMarch2015� Quarterlyandbiannualprogressreports� Severalgrantagreementswithpartnersandrespectiveprojectappraisaldocuments� Severalknowledgeproducts,suchasdemandandsupplystudies,regulatoryimpactassessmentforFiji,project
reports,communicationpieces� BankableFrontierAssociates(BFA),July2016,FijiFinancialInclusionRegulatoryImpactAssessment
Partnerdocuments
� BankofPapuaNewGuinea,SecondNationalFinancialInclusionStrategy2016-2020,DraftVersion� CentralBankofSolomonIslands,SolomonIslandsNationalFinancialInclusionStrategyII(NFIS2),2016-2020,
availableat:http://www.pfip.org/wp-content/uploads/2016/08/NFIS-Solomon-Islands_publication.pdf� DepartmentofForeignAffairsandTrade,Australia,StrategyforAustralia’saidinvestmentsinprivatesector
development,October2015,availableat:http://dfat.gov.au/about-us/publications/Documents/strategy-for-australias-investments-in-private-sector-development.pdf
� MidTermReviewoftheRuralEconomicDevelopmentProgramme–RED2,powerpoint� MinistryofForeignAffairsandTrade,NewZealand,Strategicplan2015-2019,availableat:
https://www.mfat.govt.nz/assets/_securedfiles/Aid-Prog-docs/ASEAN/New-Zealand-Aid-Programme-Strategic-Plan-2015-19.pdf
� NationalFinancialInclusionTaskForceSamoa,NationalFinancialInclusionStrategyforSamoa2017-2020,Draftversion
� ReserveBankofFiji,NationalFinancialInclusionTaskForceFiji,NationalStrategicFinancialInclusionPlan2016-2020,availableat:http://www.nfitfiji.com/wp-content/uploads/2016-2020-Fiji-FI-Strategy-Aug26.pdf
PFIPIImid-termreviewreport 59
Annex5:ResultsFrameworkHierarchy
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