pacific financial inclusion programme (pfip)...

PFIPIImid-termreviewreport 1

PacificFinancialInclusionProgramme

(PFIP)II

Mid-terminternalprogrammereview

FinalReportincludingPFIPManagementNotes

February1,2017

[email protected]+41-78-8968560


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


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


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.


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)


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.


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.


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


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.


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.).


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.


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.


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


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).


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.”


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


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.


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


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


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.


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.


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%


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.


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


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.


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.



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.


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


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


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).


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

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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.



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

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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


responsibilityinassuringthisimpact.Itstopsattheimmediateobjectiveleveloftheprogramme.Thereisalargebodyofresearchontheimpactofaccesstofinancialservicesonclients’wellbeingwhichformsthefoundationforthefundamentalhypothesesaboutthepositiveimpactoffinancialinclusiononlivelihoodsformostprogrammes.

PFIPdoesnotengageinquantitativeimpactmeasurementasisequallythecaseformostfinancialinclusionprogrammesworld-widesincerobustimpactmeasurementishighlyresourceandcost-intensiveandaspointedoutimpactatthehouseholdwell-beinglevelcanrealisticallyonlybemeasuredtoacertainextentwithinafive-yearprogramme.Globally,themajorityoffinancialinclusionprogrammesbuildonavailableresearchtoestablisharesultschainfromaccesstousageoffinancialservicesandtoimprovementinlivelihoods.

Basedondiscussionswithitsfundersandrequestsregardingmoreemphasisonimpactmeasurement,PFIPisabouttoconceptualizeanassignmentaimingatdepictingthearchetypalstagesofacustomerjourneyandlinkingthesetoavailableresearchandultimatelytoempowermentandchangesoflivelihoods.Theultimateobjectiveofthisresearchistodevelopatooltoassesswherecustomersareinthisjourneytowardsaccesstofinance.ThistoolwilluseassessmentmethodstomeasuretheroleofPFIPfundedprojects.


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


� 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


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).


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.


Financialresources.PFIPprogrammefundingisassuredforfiscalyear2016-17andhalf-waythroughfiscalyear2017-18.However,availableprogrammefundingwillnotcovertheentire2017-18workplanandnoneofthe2018-19workplan.Tobeabletoimplementtheworkplanasplannedandabovealltobeabletoassuresustainabilityandfollow-upofprojects,PFIPneeds13.6millionUSDinadditionalfunding(5.2millionforFY2017-18and8.4millionforFY2018-19).


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


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.


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.


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.


� 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.


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


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,


- 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?


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


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


● 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


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 [email protected]. Proposals should be addressed to the ProcurementUnit,UNDPPacificOfficeinFiji,KadavuHouse,Suva.


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


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


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


- 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


- 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?


- 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?


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


Annex5:ResultsFrameworkHierarchy