Doing Digital Finance Right (June 2015)
Consultative Group to Assist the Poor (CGAP)
Authors: Katharine McKee, Michelle Kaffenberger, Jamie Zimmerman
Draws on evidence from consumer research in 16 markets to identify the risks faced by consumers of digital financial services, the consequences of those risks, and how they can be addressed—with a particular perspective of vulnerable customers.

A Question of Trust: Mitigating Customer Risk in Digital Financial Services (June 2015)
MicroSave
Author: Graham A.N. Wright
Customer risk mitigation in digital financial services (DFS) matters – not just ethically, but also for the scaling of the business. DFS depend on customers’ trust in the systems and agents used to deliver the service even more than traditional financial services. Protecting the customer and minimizing the risks as he/she uses the service is essential to build and maintain that trust.

Responsible Mobile Insurance (May 2015)
GIZ
This discussion paper looks at the business models for mobile insurance, consumer risks from a responsible finance perspective, and how to protect the mobile insurance consumer responsibly.

Client Protection Principles: Model Law and Commentary for Financial Consumer Protection (April 2015)
Microfinance CEOs Working Group
Provides a model regulatory framework for financial client protection in keeping with the Client Protection Principles of the Smart Campaign.

What Happens to Microfinance Clients Who Default? (January 2015)
The Smart Campaign
Author: Jami Solli
Looks in-depth at the enabling environment, the practices of providers, and customer experiences in Peru, India and Uganda, to understand what happens when microfinance clients default.

Code of Conduct for Mobile Money Providers (November 2014)
GSMA
Identifies principles aimed at promoting mobile money providers’ adoption of consistent risk mitigation practices related to soundness of services, security of the mobile network and channel, and fair treatment of customers.

Potential Risks to Clients When Using Digital Financial Services (September 2014)
The Smart Campaign
Author: Sonia Arenaza
This desk study, a collaboration between the Smart Campaign and Accion Channels and Technology, looks at emerging risks to clients using digital financial services and how those risks align with the Smart Campaign Seven Client Protection Principles. 

Applying Behavioral Insights in Consumer Protection Policy (June 2014)
CGAP
Authors: Rafe Mazer, Katharine McKee, Alexandra Fiorillo
Policymakers in emerging markets and developing economies can draw on new consumer and behavioral findings and research tools to develop policies that better protect financial consumers while enabling advances in financial inclusion.

Consumer Protection in Mobile Financial Services (March 2014)
Alliance for Financial Inclusion (AFI)
This guideline note from the Alliance for Financial Inclusion was developed by the Mobile Financial Services Working Group’s (MFSWG) Consumer Protection Subgroup to highlight consumer protection risks in mobile financial services and what the provider and regulatory response should be.  (Note that this working group has since been expanded to focus on Digital Financial Services.) 

Implementing Consumer Protection in Emerging Markets and Developing Economies: A Technical Guide for Bank Supervisors (August 2013)
CGAP
Author: Denise Dias
Bank supervisors have a vital role to play in ensuring that regulations help improve consumer protection practices by leveraging their existing supervisory procedures and resources, statuary mandates, power, and policy goals, such as financial inclusion and stability. Related to this is the large range of players and products they cover in their supervision, including deposits, credit, and, in some cases, payments and nonbank providers. This guide synthesizes information from research in 44 countries.

Making Recourse Work for Base-of-the-Pyramid Financial Consumers (December 2013) 
CGAP 
Authors: Meghan Chapman and Rafael Mazer
Explores innovative ways for policy makers and providers in lower income countries to raise awareness and improve access to recourse mechanisms, tailor recourse to suit new products and delivery channels, and proactively use recourse data to address systematic problems in base of the pyramid markets. 

Smart Microinsurance - An Overview for Microfinance Institutions on Incorporating Client Protection Practices into Microinsurance (2012) 
Smart Campaign, Microinsurance Network 
This report highlights the importance of client protection polices in microinsurance. This includes a set of social performance indicators, guidelines for product design and partnerships, and key client protection guidelines for the microinsurance process. Targeted at MFIs that serve as intermediaries between external insurance companies, these guidelines can also be applied to other microinsurance providers.

Good Practices for Financial Consumer Protection (June 2012)
World Bank
Diagnostic tool based on a compilation of the most frequently used successful practices in several sectors, including banking, securities, insurance, and non-bank credit institutions. Tested in 18 countries and the building on several years of work, the guidelines aim to help ensure that consumers receive information that allows them to make informed decisions, are not subject to unfair or deceptive practices, and have access to effective recourse mechanisms.

Client Protection: A Three-Legged Stool? (April 2012)
OECD
Analistas Financieros Internacionales
Authors: Virginia González Pérez, Verónica López Sabater
This report identifies key stakeholders that make up the three-legged stool of client protection: authority, industry and clients. It proposes that client protection is not possible unless all three stakeholders are equally engaged. Client Protection principles, standards and practices should be fully applied by providers, with utmost transparency. The authority should exercise its role as provider of regulation, institutional capacity, supervision and financial education of clients.

Road Map for the Microfinance Industry: Focusing on Responsible and Client-Centered Microfinance (January 2012)
Microfinance CEO Working Group
This note describes the formation and shared values of the Microfinance CEO Working Group,  including industry leadership from Accion, FINCA, Freedom From Hunger, Grameen Foundation, Opportunity International, Pro Mujer, VisionFund, and Women's World Banking. Highlights three key initiatives for advancing industry standards. A good benchmark for other CEOs within the microfinance industry.

Global Standard-Setting Bodies and Financial Inclusion for the Poor: Toward Proportionate Standards and Guidance (October 2011)
Consultative Group to Assist the Poor
Aims to raise awareness and frame issues to inform the ongoing work of five standard-setting bodies (SSBs): the Basel Committee on Banking Supervision, the Committee on Payment and Settlement Systems, the Financial Action Task Force, the International Association of Insurance Supervisors, and the International Association of Deposit Insurers. Explores three themes for SSBs to consider: the risk of financial exclusion affecting financial integrity and security; the changing nature of risks due to the inclusion of new customers and the provision of new products; and the importance of country context.

G20 HIGH-LEVEL PRINCIPLES ON FINANCIAL CONSUMER PROTECTION (October 2011)
OECD
These common principles on consumer protection were developed by the Task Force on Financial Consumer Protection of the OECD Committee on Financial Markets and endorsed by G20 Finance Ministers and Central Bank Governors on October 2011. A high-level overview of necessary client protection principles.

Responsible Finance: Putting Principles to Work (September 2011)
Consultative Group to Assist the Poor
Authors: Kate McKee, Estelle Lahaye, Antonique Koning
This report insists that responsible finance requires a double bottom line, where social and financial commitments work in unison to improve the lives of poor clients and increase profitability. Responsible finance, it suggests, is mutually reinforced by three client protection strategies: industry self-regulation, government regulation and supervision, and improved consumer capability. In a true state of responsible finance, client benefits are matched with long-term viability of financial service providers.

Consumer Protection: Leveling the Playing Field in Financial Inclusion (January 2010)
Alliance for Financial Inclusion
Examines the role of consumer protection, expressing that it levels the  playing field between consumers and providers of financial services. Customers, it states, have less information about their financial transactions than the institutions providing the product or service, which can lead to unreasonably high interest rates, the customer’s lack of understanding about financial options, and insufficient avenues for redress. In the past, some providers have abused their information privilege at the expense of consumers.  (Adapted from executive summary)

Diagnostic Reviews on Consumer Protection and Financial Literacy
World Bank
Systematic analysis of the legal, regulatory, and institutional frameworks for consumer protection in financial services and financial education.  Country level analysis of practices as compared to the World Bank Good Practices, including recommendations. 

Smart Campaign Tools 
Center for Financial Inclusion at Accion
These online tools help microfinance institutions uphold best practices and principles in client protection. Here, a microfinance institution (MFI) can peruse toolkits, take a survey about its use of client protection tools, or read "Smart Notes" on key topics in client protection. A must read for MFIs on how to maintain fair and appropriate practices.

Policy & Economic Research Council (PERC)
PERC provides information solutions for economic development, and is the premier resource on alternative data to advance financial inclusion in the U.S. and in many other countries.

Research Consensus Confirms Benefits of Alternative Data (March 2015)
Policy & Economic Research Council (PERC)
PERC provides information solutions for economic development, and is the premier resource on alternative data to advance financial inclusion in the U.S. and in many other countries. In this report, PERC finds compelling evidence to support the use of fully reported non-financial payment histories in consumer and commercial credit decisions as an on-ramp for credit invisible consumers in the United States. 

What Happens to Microfinance Clients who Default? (January 2015)
The Smart Campaign
The Smart Campaign interviewed microfinance clients in Peru, Uganda and India to learn what happens after default, and found that credit bureaus made a difference. 

Credit Bureaus in Emerging Markets: Overview of Ownership & Regulatory Frameworks (September 2014)

PERC
This report looks at the structure and governance of the credit information sharing market, including issues of competition, ownership and regulation.

Good Practices in Credit Information (June 2014)
World Bank
This report explores the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending as part of the World Bank Doing Business project, which measures and compares regulations relevant to the life cycle of a small to medium-sized domestic business in 189 economies.

The Power of Credit Building (April 2014)
Credit Builders Alliance 
A basic primer put forth by the Asset Funders Network on the importance of helping no or “thin file” individuals build a positive credit history as a path toward financial inclusion. 

Big Data: A Big Disappointment for Scoring Consumer Credit Risk (March 2014)
National Consumer Law Center (NCLC)
The NCLC in the United States finds that big data has not yet lived up to its hype and issues some important cautions for client protection in this important study.

Fair Information Practice Principles (February 2014)
National Institute of Standards and Technology (NIST)
This exhaustive review of the history of Fair Information Practices & Principles is not for the faint of heart, but is a useful resource for those working on the issue.  

Credit Reporting Knowledge Guide (December 2013)
IFC/World Bank
This second edition of best practices looks at recent developments in global credit reporting, highlighting the following: universal standards for credit reporting; credit reporting for micro, small, and medium enterprises; and the role of credit reporting in the evolving responsible finance space. Includes case studies on the development of credit reporting in five countries.

Credit Impacts of More Comprehensive Credit Reporting in Australia and New Zealand* (August 2012)
PERC, Dun & Bradstreet
Authors: Michael A. Turner, Ph.D., Patrick D. Walker, M.A., Sukanya Chaudhuri, Ph.D., Joseph Duncan, Ph.D., Robin Varghese, Ph.D.
This report details the impacts of more comprehensive credit reporting in Australia and New Zealand. Using credit data from 1.8 million Australians, this report suggests that credit reporting reform in Australia and New Zealand will result in the following: an increase in lending to the private sector, benefits to lenders due to the inclusion of positive data, and that non-financial account data is important to understanding credit risk. These findings are said to be consistent with international data.

A New Pathway to Financial Inclusion: Alternative Data, Credit Building, and Responsible Lending in the Wake of the Great Recession (June 2012)
PERC
Authors: Michael A. Turner, Ph.D., Robin Varghese, Ph.D., Patrick Walker, M.A., Sukanya Chaudhuri, PhD.
This report argues for the use of alternative (non-financial) and positive data. This will lead to "fully" reported financial data, to improve the comprehensive reporting of credit histories. This means that both on-time and late payments are recorded. PERC undertook a study where TransUnion and Equifax utilized alternative data, to create fully reported histories. It found that those with serious past delinquencies benefited from alternative data.

General Principles for Credit Reporting (September 2011)
World Bank
Prepared by a taskforce coordinated by the World Bank, provides guiding principles for operating in the credit reporting industry related to data (security and privacy), governance and risk management, legal and regulatory frameworks, and cross-border data flows.

Credit Reporting at the Base of the Pyramid: Key Issues and Success Factors (2011)
Consultative Group to Assist the Poor/IFC
Authors: Lyman, Timothy; Lythgoe, Tony; Miller, Margaret; Reille, Xavier; Sankaranarayan, Shalini
This report makes a compelling case for credit reporting at the base of the pyramid. It evaluates the microlending market and then discusses credit reporting at the base of the pyramid through the following issues: credit bureaus, credit registries, and MFI-specific systems for exchanging client information.

*See also Financial Inclusion through Credit Reporting: Hurdles and Solutions, for a better understanding of comprehensive credit reporting.

Doing Digital Finance Right: The Case for Stronger Mitigation of Customer Risks (June 2015)
Consultative Group to Assist the Poor (CGAP)
Authors: Katharine McKee, Michelle Kaffenberger, Jamie Zimmerman
Draws on evidence from consumer research in 16 markets to identify the risks faced by consumers of digital financial services, the consequences of those risks, and how they can be addressed—with a particular perspective of vulnerable customers. 

A Question of Trust Mitigating Customer Risk in Digital Financial Services (June 2015)
MicroSave
Author: Graham A.N. Wright
Customer risk mitigation in digital financial services (DFS) matters – not just ethically, but also for the scaling of the business. DFS depend on customers’ trust in the systems and agents used to deliver the service even more than traditional financial services. Protecting the customer and minimizing the risks as he/she uses the service is essential to build and maintain that trust.

Enabling Customer Empowerment: Choice, Use, and Voice (March 2015)
CGAP
Authors: Antonique Koning, Monique Cohen
This brief attempts to explain the relatively low use of digital financial services, despite its time-effectiveness and low cost. According to the brief, empowering customers can help to solve this issue. Customer empowerment will benefit both providers and consumers, because when customers are empowered they make better choices, trust their providers, feel more comfortable using financing services, and feel more in control of their financial lives.  

Money Resolutions, Digital Simulations (February 2015)
CGAP
Author: Ignacio Mas
This companion paper examines how a digital financial service platform could support the financial decision-making practices used by the poor. It focuses on two practices in particular, money animation and liquidity farming, and puts them in the context of addressing customer needs in a digital service context.

Money Resolutions: A Sketchbook (January 2015)
CGAP
Author: Ignacio Mas
This working paper explores the underlying logic for how people make money resolutions, including how people organize their money and make decisions about financial goals and spending. The paper focuses on people’s approach to making financial decisions, rather than evaluating the decisions themselves, identifying the inner conflicts they face.

Insights into Action: What Human-Centered Design Means for Financial Inclusion (October 2014)
CGAP
Authors: Yanina Seltzer, Claudia McKay
This brief investigates the role of human-centered design, in which financial providers learn directly from customers in their own environments, in financial inclusion. The brief analyzes seven projects in eight different countries that resulted in the development of 175 financial product concepts and 30 prototypes. It also examines the relationship between human-centered design and mobile money.

Is There a Business Case for MicroInsurance? (October 2014)
MicroInsurance Centre
Authors: Richard C. Koven, Michael J. McCord
A summary of over three years of research into the results of programs intended to provide insurance for the poor in Kenya, India, the Philippines, Colombia, and other developing countries. It points to the immense growth and promise of this emerging sector, and provides a data-driven assessment of all profitability drivers and continuing challenges. The article was written specifically for insurers, donors, and regulators interested in how microinsurance can succeed as a business while also meeting the needs of BoP customers.

Customer-Centricity for Financial Inclusion (June 2014)
CGAP
Authors: Tanaya Kilara, Elisabeth Rhyne
This report emphasizes the importance for financial service providers of understanding BoP customer needs, and explains the most effective ways for providers to implement customer-centricity. That involves understanding the importance of making financial services accessible to BoP customers, and building trust between providers and consumers.

Informal Financial Practices and Social Networks: Transaction Genealogies (March 2014)
FSD Kenya
Author: Susan Johnson
This report explores recent research which has found that Mobile Money Transfer (MMT) is facilitating informal interpersonal transfers that are much more detailed and complicated than the “send money home” message of M-Pesa. While MMT has enabled informal financial sector transactions to grow and operate more efficiently, relatively little is known about the transactions themselves. The report investigates the types of exchanges, the nature of those exchanges, the context in which they occur, and the social relationships involved, in order to help policymakers and formal sector providers to better understand these transactions and their importance in people’s lives.

Client Value Series (March 2014)
Impact Insurance
Authors: Michael J. McCord, Craig Churchill
This report is a three-part series that questions whether low-income customers actually benefit from insurance and, if so, how the value they derive from it can be enhanced. Condenses results into a guide meant to improve client value for insurance providers.

Applying Behavioral Economics to Improve Microsavings Outcomes (February 2014)
Ideas42, Grameen Foundation
Authors: Alexandra Fiorillo, Louis Potok, and Josh Wright
Findings from a microsavings pilot project with CARD Bank in the Philippines, utilizing behavioral design levers, including goal-setting, the perception of a commitment, implementation intention, and personalization of the experience. This pilot addressed the access-usage gap, as many CARD clients signed up for savings accounts that were then left dormant. Participants in the treatment group made larger opening deposits, transacted more frequently (in smaller amounts), and built higher savings balances.

Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution (January 2014)
American Economic Review
Authors: William Jack, Tavneet Suri
The report examines the effects of a mobile money innovation on consumption in order to explore the impact of reduced transaction costs. It finds that the consumption of user households remains the same, although shocks do slightly reduce consumption for nonusers. The factors which contribute to these consumption patterns are an increase in remittances received and the diversity of senders.

Making Recourse Work for Base-of-the-Pyramid Financial Consumers (December 2013)
CGAP
Authors: Megan Chapman, Rafael Mazer
This report emphasizes the important role of consumer recourse in consumer protection, especially for BoP financial consumers. According to the report, investing in consumer recourse will advance responsible financial inclusion by improving the quality of services and products, cultivating trust in the formal financial system, strengthening market regulation, and solidifying the overall positive impacts on financial capability.

Big Banks & Small Savers: A New Path to Profitability (December 2013)
Gateway Financial Innovations for Savings
Author: Bankable Frontier Associates
This report examines the role that banks have to play in alleviating rising global social and economic inequality, using their access to capital markets, advanced technology, delivery systems and public oversight. The report argues that banks provide a safe way for poor people to accumulate wealth that will bring them greater economic security. The project engages five commercial banks in an attempt to understand the factors that encourage or inhibit poor savers, affect institutional capacity to serve them, and contribute to a sustainable model.

Scarcity: Why Having Too Little Means So Much*
Authors: Sendhil Mullainathan, Eldar Shafir
Leading behavioral economists discuss the concept of scarcity and how individuals behave in times of scarcity (whether that be scarcity of money, time, etc.). It suggests that financial services can both help keep people from falling into a scarcity mindset and can keep people from making poor decisions while in a scarcity mindset. This is a must read for product designers and financial capability implementers. (Adapted from a review by Sonja E. Kelly)

*See also Alex Counts’ insightful 2 part review of Scarcity and its implications for financial services for the poor.

Pathways Towards Greater Impact: Better Microinsurance Models, Products and Processes for MFIs (November 2012)
Microinsurance Innovation Facility, ILO
Authors: Churchill, C., Dalal, A. & Ling, J.
This paper is based upon a survey of 450 microfinance institutions (MFIs) and examines the challenges they face in providing microinsurance to low-income clients and microenterprises. It provides recommendations for MFIs on how to improve their insurance offerings, explains institutional models and product evolution, suggests methods for performance monitoring, and describes ways to enhance operational processes. Recommended for MFIs interested in learning more about opportunities to provide insurance.

Financial Inclusion by Design: AppLab Money Incubator (October 2012)
Author: Olga Morawczynski
This blog talks about innovations in designing demand driven financial services and shares lessons from Grameen Foundation, MTN, and CGAP’s AppLab Money Incubator.

A Structured Approach to Understanding the Financial Service Needs of the Poor in Mexico (May 2012)
CGAP
Authors: Xavier Faz, Paul Breloff
Recognizing that a deeper understanding of demand is necessary for designing more sustainable and appropriate financial products, this provides a starting point for client segmentation based on a survey, interviews, and focus group discussions of lower-income clients in Mexico.  Segments are broken down into formal salaried clients, informal salaried clients, entrepreneurs, and seasonal/agriculture clients. 

Emerging Perspectives on Youth Savings (May 2012)
CGAP
Authors: Tanaya Kilara, Alexia Latortue
This presents potential challenges and opportunities in providing youth with savings, from the perspective of policymakers and providers, taking into consideration the life transitions that youth go through and their challenges to accessing financial services. Details a list of providers and their outreach to youth.
(YOUTH)

The Pursuit of Complete Financial Inclusion: The KGFS Model in India (May 2012)
Consultative Group to Assist the Poor, IFMR Trust 
Authors: Bindu Ananth, Greg Chen, Stephen Rasmussen
This publication describes the Kshetriya Gramin Financial Services (KGFS) operating model in India, which includes a village and household mapping exercise. This innovative model trains front-line staff as “wealth managers” who conduct detailed interviews to diagnose financial needs and offer advice. Wealth managers then propose a customized mix of financial products that address the unique needs of each household, which includes savings, credit, and insurance. They also utilize sophisticated analytics of local economic data. Discusses the client response so far, reviews how far the financial viability of the model has progressed, and explores the applicability of KGFS principles to contexts beyond India.

The Financial Behavior of Rural Residents (March 2012)
Center for Financial lnclusion
Author: Jacqueline Urquizo
Summarizes the results of market research conducted in 2009–2010 in five countries—Colombia, Dominican Republic, Ecuador, Nicaragua, and Peru—to learn about financial behavior and use of financial services among rural residents. Valuable insights on product design for rural populations.
(RURAL)

Linking Financial Behaviors to Product Development (November 2011)
CGAP, Microfinance Opportunities  
Authors: Monqiue Cohen, Guy Stuart
Microfinance Opportunities has adapted Portfolios of the Poor’s financial diaries methodology to conduct two studies, one with Opportunity Bank of Malawi and one in Kenya that explores how low-income populations use M-PESA. It argues that the financial diaries methodology can provide useful insights for product development, offering two examples of products that were modified based upon findings.

Human-Centered Design Toolkit (2009)
IDEO, funded by the Bill and Melinda Gates Foundation
This toolkit was designed by a design thinking consulting firm for NGOs and social enterprises that work in developing communities in Africa, Asia, and Latin America. This step by step toolkit explains the iterative process of human centered design, helps to build deep listening skills, and promotes the skills to rapidly prototype and test new ideas. This can be especially useful for market research, product design, and evaluation of programs.

Portfolios of the Poor (2009)
Ford Foundation, Gates Foundation, Financial Access Initiative
Authors: Daryl Collins, Jonathan Morduch, Stuart Rutherford, Orlanda Ruthven
A financial inclusion classic.  Demonstrates that the poor save, manage complex financial lives, and find solutions to manage unexpected shocks. Data was compiled through year-long interviews with poor villagers in Bangladesh, India, and South Africa, using a method of "financial diaries" or records that closely track how households manage money.

Three keys to M-PESA’s success: Branding, channel management and pricing (December 2009)
Bill and Melinda Gates Foundation 
Authors: Ignacio Mas, Amolo Ng’weno
This paper explores how M-PESA was able to build relationships and trust with customers and retail stores, focusing on three aspects of its success: branding to create awareness and build trust; creating a consistent user experience while building out the channel of retail agents; and a pricing and commission structure that focuses on customer willingness to pay and incentives for early adoption. 

Annual State of the Industry Reports
GSMA
Since 2011, the Mobile Money for the Unbanked Program has published an annual State of the Industry report to share key data and insights on the growth of mobile financial services. The report highlights the important developments taking place in mobile money, mobile insurance, mobile savings and mobile credit for industry practitioners.

BTCA Case Study Library
Better Than Cash Alliance
The Better Than Cash Alliance helps accelerate the transition from cash to digital payments for governments, companies, and international organizations by developing cutting-edge research, case studies, and reports in order to achieve global scale. The Case Study Library includes numerous country diagnostics, as well as highlighting the work that various sectors in countries around the world are doing to help digitize the payments system. Examples include “The Corporate and SME Experiences of Digitizing Business Payments in the Philippines,” “Sustained Effort, Saving Billions: Lessons from the Mexican Government’s Shift to Electronic Payments,” and Nigeria’s ‘Cashless’ Policy.”

Doing Digital Finance Right: The Case for Stronger Mitigation of Customer Risks (June 2015)
Consultative Group to Assist the Poor (CGAP)
Authors: Katharine McKee, Michelle Kaffenberger, Jamie Zimmerman
(Refer to the Client Protection Resource Library)

The Future of Fintech and Banking: Digitally Disrupted or Reimagined? (March 2015)
Accenture
Authors: Julian Skan, James Dickerson, Samad Masood
Investment in fintech companies grew by approximately 200% in 2014, compared to 63% growth in overall venture-capital investments, confirming that this sector will continue to be an important player. The digital revolution in financial services has arrived, but it is in unclear what the impact on current banking players will be. This report brings together the views of 25 influential financial services executives involved in innovation, and maps out the activities that will be necessary to allow them to disrupt their own business model rather than watch competing models overtake them. The authors articulate three important themes – openness, collaboration and investment – for existing banking players if they are to benefit from growth driven by new services and productivity. In addition, there are two additional steps that banks must take: successfully dealing with the issue of legacy technology and managing a large infusion of new talent.

An Empirical Examination of Why Mobile Money Schemes Ignite in Some Developing Countries but Flounder in Most (March 2015)
Social Science Research Network
Authors: David S. Evans and Alexis Pirchio
While mobile money schemes have succeeded in some developing countries, they have failed in many more. This paper analyzes the results of an empirical study of mobile money schemes in 22 developing countries, divided into equal numbers of successes and failures. Using both quantitative and qualitative evidence to determine why some countries succeeded while others failed, the authors reached four key findings: heavy regulation is generally fatal to igniting mobile money schemes; mobile money schemes are more likely to succeed in poorer countries that lack basic infrastructure; the growth of the send-receive and the cash-in/cash-out platforms must go hand in hand; and ignition and growth occurs quickly or not at all.

The Opportunities of Digitizing Payments (August 2014)
The Bill & Melinda Gates Foundation and the Better Than Cash Alliance
This report – prepared for the G20 Global Partnership for Financial Inclusion – presents a synthesis of the evidence showing that digitization of payments, transfers, and remittances can be instrumental in reaching the G20 goals of broad-based economic growth, financial inclusion, and women’s economic empowerment. Not only are digital payments more efficient than cash payments, but their broader adoption can reduce rates of corruption and crime, reduce the cost of government wage and social transfer payments, offer new pathways into the financial system for the disadvantaged, and contribute to women’s economic empowerment. Governments, the private sector, and the international community must work together to address the challenges of digitizing payments, educate consumers on the basic interactions involved in a digital payment ecosystem, and use technology-enabled business models to help build inclusive financial sectors that enable people to improve their lives.

Big Data, a Big Disappointment for Scoring Consumer Creditworthiness (March 2014)
National Consumer Law Center
Authors: Persis Yu, Jillian McLaughlin, Marina Levy
Approximately 64 million people in the U.S. have no credit history or lack sufficient history to generate a credit score, cutting off their access to traditional banking services. Big data promises to use information taken from the Internet, social media, and mobile apps to help lenders make better decisions about the creditworthiness of potential clients, as well as make better products available to the unbanked and underbanked. Affordable access to credit is crucial to the economic well-being of these consumers. But does big data live up to its big promises? NCLC's report concludes that as good data about consumers increases, so does bad data. In addition, big data scores may violate federal consumer protection and racial discrimination laws. This report builds on NCLC's work on consumer privacy issues to promote family financial well-being. 

The Journey Toward ‘Cash Lite’ : Addressing Poverty, Saving Money and Increasing Transparency by Accelerating the Shift to Electronic Payments* (September 2012)
Better than Cash Alliance, Bankable Frontier Associates
Addresses the inconvenience and risks of paying in cash and urges individuals, governments, the private sector, and development organizations to move towards a cash-lite system. It details benefits of switching to electronic payments from multiple aggregated studies. Also includes recommendations for governments, the private sector, and development organizations.
*See also a blog post by Elisabeth Rhyne: The Better Than Cash Alliance Is Out to Create a “Cash Lite” World

Kenya’s Mobile Revolution and the Promise of Mobile Savings* (March 2012)
World Bank
Authors: Gabriel Demombynes, Aaron Thegeya
Based upon data collected in a 2010 survey, this study found that those registered for M-PESA are 32 percent more likely to report having some savings. Despite the wide reach of M-PESA nationally, a limited number of better-off Kenyans use M-KESHO, a savings system. It also discusses the future of mobile savings and implications.

*See also a 2013 blog by Mudita Tiwari and Deepti K.C. on Mobile Payment Systems: What can India Adopt from Kenya’s Success?
*And MicroSave Briefing Note #139, M-Schwari: Market Reactions and Potential Improvements

GSMA Mobile Money for the Unbanked, The Case for Interoperability: Assessing the value that the interconnection of mobile money services would create for customers and operators* (February 2012)
GSMA
Authors: Davidson, N. & Leishman, P.
This examines the case for interoperability (transacting across mobile networks) and if there is demand for interconnecting mobile money. It is concluded that in many markets, few customers will find enough value in transacting across networks if they must pay a premium for it. Regulators are advised against mandating interoperability for the above reason, as it could be cost-prohibitive if mobile operators must raise prices or minimize investment in other areas. Greater interconnection should be strived for, with financial institutions, payment networks, and mobile money services. This discusses added value for customers and operators, as a result of increased interconnection, as well as challenges alluding to why so few countries are interconnected.

*See also a blog by Kabir Kumar and Michael Tarazi, Interoperability in Branchless Banking and Mobile Money (January 2012)
This blog discusses the inevitability that we are moving towards more interoperable systems, but questions how do we get there? Regulators are challenged with how best to support interoperability without compromising the interests of customers or operators. CGAP suggests a three-pronged framework to think about interoperability: platform-level interconnection, agent level-exclusivity, and customer-level interoperability.

*See also “Expanding the Ecosystem of Mobile Money: Considerations for Interoperability,” and “The Case for Interoperability: Assessing the Value that the Interconnection of Mobile Money Services Would Create for Customers and Operators” in GSMA’s  Mobile Money for the Unbanked Annual Report 2012
This annual report details barriers to effectively reach the underbanked with mobile money, including operational challenges, lack of enabling regulation, a need for further learning to establish best practices, and under-investment. This first section grounds the discussion in market efforts to date to address interoperability. The following section considers the value in interconnecting mobile money wallets, using market data and examples from other industries, and evaluates potential gains and costs for customers and operators.

Integration and Interoperability of Financial Services (July 2012)
MicroSave
Authors: Puneet Chopra, Nitish Narain, Abhay Pareek, Nishant Kumar, Sharad Bangari, Sonal Agarwal, Akhilesh Singh, Ritika Shrivastava
Resulting from a comprehensive research study on the need for integration and interoperability of financial services for the poor, utilizing market research across select urban and rural geographies. The purpose was to understand consumer aspirations and needs, and the challenges from a supply side, policy and regulatory perspective. Includes recommendations for policymakers and regulators, banks, governments, and AMNs; reviews industry standards on alternate banking channels; assesses potential business opportunities for banks and AMNs.  

World Development Report 2015: Household Finance
World Bank
Chapter Six of the World Development Report 2015 focuses on financial decision making in the context of household finance, which is driven by a number of factors. Financial decisions are difficult and have profound effects on our lives, especially for poor people who often lack a margin of error. Recent research revealed systematic biases in humans, and markets either help us overcome them or exacerbate them. This chapter explores ways to address behavioral constraints in family or household financial planning and to design policy interventions in developing countries that will help consumers make better financial decisions.

Understanding and Improving Consumer Financial Health in America (March 2015)
Center for Financial Services Innovation
Authors: Aliza Gutman, Thea Garon, Jeanne Hogarth, Rachel Schneider
This study of financial health in America focuses on consumer behaviors, attitudes, and preferences, identifying seven major consumer financial health segments in order to help providers improve the design and delivery of their products. The study surveyed more than 7,000 individuals in the U.S. over the age of 18.

Getting to the Top of Mind: How Reminders Increase Saving (September 2014)
Dartmouth
Authors: Dean Karlan, Margaret McConnell, Sendhil Mullainathan, Jonathan Zinman
Using research on three different banks, the authors contend that reminder messages improve savings behaviors for clients who have recently opened commitment savings accounts. Incentives found to be effective include messages that mention both savings goals and financial incentives, while others, such as receiving additional late reminders, did not have a positive effect.

Keeping It Simple: Financial Literacy and Rules of Thumb (April 2014)
American Economic Journal
Authors: Alejandro Drexler, Greg Fischer, Antoinette Schoar
Randomized evaluation with a bank in the Dominican Republic to test which of two financial literacy programs would result in employees gaining better financial decision-making skills. One program involved standard accounting training, while the other involved a simplified training that taught basic financial skills. The latter program significantly improved the bank’s financial practices, objective reporting quality, and revenues, leading the authors to conclude that simple training programs will result in greater effectiveness.

Financial Literacy, Financial Education and Downstream Financial Behaviors (January 2014)
Social Science Research Network
Authors: Daniel Fernandes, John G. Lynch Jr., Richard G. Netemeyer
This report presents an analysis of the relationship of financial literacy and education to financial behaviors. Authors conclude that interventions to improve financial literacy explain only 0.1% of variance in behavior, and that the effects of financial education decay over time. They argue that financial education has serious drawbacks in improving financial behaviors, and discuss the characteristics of behaviors that policy makers should focus on when making decisions about financial education and regulation.

Financial Capability in Low- and Middle-Income Countries: Measurement and Evaluation (June 2013)
World Bank
Authors: Robert Holzmann, Florentina Mulaj, Valeria Perotti
This paper presents an overview of the program implemented by the World Bank under the auspices of the Russia Financial Literacy and Education Trust Fund (RTF). Its objective is to support the implementation of the December 2006 summit statement from the Russian G8 Presidency, which aimed to advance global policy on financial literacy and education. More specifically, it aims to help low- and middle-income countries create national strategies and programs in this area. The report measures financial capability both across individuals of different income levels, and via the effectiveness of interventions meant to it. 

High-Level Principles on National Strategies for Financial Education (August 2012)
OECD/INFE
Authors: André Laboul, Flore-Anne Messy
This Progress Report on the development of G20 national strategies for financial education emphasizes the importance of coordinated national strategies and notes various challenges, including lack of long-term stakeholder commitment, difficult cooperation among stakeholders, competing interests and mandates, lack of financial resources, and obstacles to implementation. 

Financial Literacy around the World: An Overview of the Evidence with Practical Suggestions for the Way Forward (June 2012)
World Bank
Authors: Lisa Xu, Bilal Zia
Financial literacy programs are becoming increasingly more important to global financial policy reform. This report summarizes global evidence on financial literacy to explain exactly it is and how it can be effective. It also provides advice and suggestions for policymakers. 

Children & Youth as Economic Citizens: Review of Research on Financial Capability, Financial Inclusion, and Financial Education (April 2012)
Child and Youth Finance International (CYFI), Citi Foundation
Authors: Child and Youth Finance International Research Working Group
CYFI’s vision for youth economic citizenship, focusing on financial capability, financial inclusion, and financial education.  Includes a summary of key findings from a literature review of economic citizenship, as it pertains to youth. Literature on financial capability suggests that learning opportunities should coincide with when youth are offered financial tools, and that financial education may increase the use of financial services. 
(YOUTH)

Bridging the Gap: The Business Case for Financial Capability (March 2012)
Citi Foundation, Monitor Group
Authors: Anamitra Deb, Mike Kubzansky
The result of 90 interviews with organizations working in financial capability, site visits to 6 countries, secondary research, and input from 30 additional stakeholders provides a snapshot of the current state of the field in financial capability and the challenges that the industry faces as it tries to increase financial capability of clients. Most intriguing is its analysis of various financial education models, bringing us a step closer to defining the business case for financial capability. 
(Financial capability implementers)

Assessing financial literacy in 12 countries: an OECD/INFE international pilot exercise (October 2011)
OECD 
Authors: Atkinson, Adele; Messy, Flore-Anne
Survey that takes into account knowledge, behaviors, and attitudes related to personal finances. This seeks to identify financial literacy levels around the globe and similarities in country strategies. (Policymakers, Academics, financial capability implementers and designers)

Financial Capability: What is It, and How Can It Be Created? (2010)
Center for Social Development, Washington University
Author: Margaret S. Sherraden
Proposes an alternative to financial literacy, financial capability, which includes when clients have both the ability and opportunity to act. Addresses how people traditionally acquire financial knowledge and skills through financial socialization, financial education, and financial advice/counseling. It then explains how financial inclusion can only be achieved if financial services are accessible, affordable, appealing, simple, secure, and reliable. Knowledge, skills, and inclusion are linked.  

Framework for the Development of Financial Literacy Baseline Surveys: A First International Comparative Analysis (December 2009)
OECD
Author: Elaine Kempson
An increasing number of countries are concerned about the levels of financial capability of consumers. In response, many initiatives are being developed, such as national financial capability strategies. This builds on the OECD/INFE by elaborating on their guidelines for national financial literacy surveys and proposing a core set of survey questions.
(Financial capability implementers, policymakers)

Financial Capability Index
Microfinance Opportunities
A tool that measures the level of knowledge, skills, and attitudes needed to make informed judgments and effective decisions regarding the use and management of money. Contains a questionnaire to assess participants in three primary areas (including an answer key): behavior around managing money, personal characteristics relating to money management and relationships around money.
 (Sourced from Financial Capability Index)
(Retail providers, Support Organizations, and Policymakers)

Half the World is Unbanked (October 2009)
McKinsey, Financial Access Initiative
Authors: Alberto Chaia, Aparna Dalal, Tony Goland, Maria Jose Gonzalez, Jonathan Morduch, Robert Schiff
As of 2010, half of the world’s population (2.5 billion adults) did not use formal financial services for either saving or borrowing purposes and nearly 90% of this population lives in Asia, Africa, Latin America and the Middle East. Highlights a significant market opportunity to serve the excluded.

Opportunities and Obstacles to Financial Inclusion (July 2011)
Center for Financial Inclusion
Authors: Elisabeth Rhyne, Anita Gardeva
Based on a survey of 301 industry participants from around the globe, seven key topics were identified and serve as the foundation for Financial Inclusion 2020. These include: technology-enabled business models, addressing customer needs and expanding the product range, credit reporting, client protection, financial capability, institutional capacity building, and regulatory frameworks.

Due Diligence: An Impertinent Inquiry into Microfinance (January 2012)
Center for Global Development
Author: David Roodman
This open-book, written publically with input from readers, does a deep analysis of the true impact of microfinance and is meant to serve as a guide for governments, foundations, investors, and private citizens. It highlights the need to move away from a singular focus on microcredit to a comprehensive suite of financial services (including savings and microinsurance) and the value of institution building.

Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty (April 2012)
Innovations for Poverty Action
Authors: Abhijit Banerjee, Esther Duflo
Described as offering “a better path forward” by the Financial Times and “a version of Freakonomics for the poor” by Fast Company, this book describes pioneering work of randomized control trials (RCTs) in development economics. Drawing on work by the Poverty Action Lab and the authors’ 15 years of field research from Chile, India, Kenya, and Indonesia, they illuminate aspects of the poor’s behavior and needs, and how finance can affect their lives.

Latest Findings from Randomized Evaluations of Microfinance (December 2011)
Consultative Group to Assist the Poor, Financial Access Initiative, Innovations for Poverty Action, J-PAL
Authors: Jonathan Bauchet, Cristobal Marshall, Laura Starita, Jeanette Thomas, and Anna Yalouris
Review of randomized control trials (RCTs) used to evaluate impact of microfinance. It suggests that microcredit works for microentrepreneurs who are successful in growing businesses, but not for others.  Despite an industry focus on entrepreneurship at the time, this research confirms that many clients have different uses for loans, e.g. household investments or education for children.

Microfinance for Bankers and Investors (2009)
Author: Elisabeth Rhyne
Demonstrates that providing financial services to the poor is a viable business prospect that allows investors to be socially and financially responsible. Provides the readers with a road map showing where and how businesses can invest in greater financial inclusion, guided by the stories of companies already leading the way. Encourages private businesses to engage in financial inclusion.

Mexico's Prospects for Full Financial Inclusion (September 2009)
Center for Financial Inclusion
A data-rich, in-depth look at Mexico's potential to reach full financial inclusion, using a scorecard that was developed through existing sources. It points out the potential for mainstream financial institutions to reach more excluded populations, including rural populations. Also looks at mobile financial services and partnerships with existing retailers (e.g. gas stations and banks).

A Quick Guide to the Maya Declaration to Financial Inclusion*  (March 2012)
Alliance for Financial Inclusion
Explains what the Maya Declaration is (a global and measurable set of commitments by developing and emerging country policymakers to contribute to greater financial inclusion), its purpose, and steps to support commitments made by member countries.

*See also the 2013 Maya Declaration Progress Report, which includes all institutional commitments.

Financial Inclusion Strategies Reference Framework (June 2012)
World Bank, Mexico G20 Presidency
Builds on the G20’s previous efforts to promote financial inclusion and profiles the following: country models and examples, the work of the G20 Global Partnership for Financial Inclusion and its sub-groups, the Alliance for Financial Inclusion (AFI), IFC, CGAP, the World Bank, UNCDF, Asia-Pacific Economic Cooperation (APEC), and others. It explores financial inclusion strategies, data for strategy design and measurement, and actions that must be undertaken by private and public sector actors.
(Policymakers)

Global Standard Setting Bodies and Financial Inclusion, Insights and lessons from five countries: Brazil, Kenya, Mexico, the Philippines, and South Africa (September 2011)
Alliance for Financial Inclusion, Global Partnership for Financial Inclusion
This AFI study has identified five countries as financial inclusion policy agenda leaders and includes a synthesis of the impact of five standard setting bodies (SSB) on each country’s principles, standards, and guidance. Suggests themes emerging across countries.

G20 Principles for Innovative Financial Inclusion (June 2012)
Global Partnership for Financial Inclusion, Alliance for Financial Inclusion
A set of conditions to spur innovation for financial inclusion while ensuring financial stability and protection of consumers, focusing on the following: leadership and commitment by government; diversity in the range of financial services; technological and institutional innovation; consumer protection; financial empowerment of consumers; cooperation across sectors; knowledge and research to inform evidence-based policies; proportionality of risks and regulations; and key elements of an effective regulatory framework.

Lessons learned for national financial inclusion strategy development (June 2011)
Alliance for Financial Inclusion, Pacific Financial Inclusion Programme
Derived from experiences of the Reserve Bank of Fiji and the Central Bank of the Solomon Islands, this discusses the national strategy development process and key components of national strategies. High-level suggestions for countries that are interested in creating their own national strategies for financial inclusion. 

The MIX Online Database (2011, updated yearly)
The MIX in partnership with MasterCard Foundation, Gates Foundation, CGAP, Citi Foundation, Deutsche Bank, IFAD, Omidyar, Dell Foundation, Ford Foundation
Convenient access to self-reported financial and social performance information covering approximately 2,000 MFIs around the world. Includes analyses by the MIX and allows users to analyze data on their own.

Global Findex* (2011)
Gallup, World Bank
This database includes financial inclusion indicators from 148 countries about how people, including the poor, women, and rural residents - save, borrow, make payments and manage risk.

*See also the Center for Financial Inclusion Data Explorer, featuring over 80 indicators on financial access and demography.

The Progress Out of Poverty Index: A Detailed Analysis of MFI Implementation  (2014)
Multilateral Investment Fund, Member of the Inter-American Development Bank Group
Prepared by: Steve Boucher
A tool that allows MFIs to estimate the rate of poverty of its clients. Provides an in-depth analysis of the implementation and utilization of the PPI by MFIs in Latin America, based on interviews with five MFIs in Peru and Ecuador, as well as interviews with other institutions (e.g. rating agencies, social investors).

G20 Financial Inclusion Indicators (2013)
World Bank, Global Partnership for Financial Inclusion, Australian Agency for International Development
An aggregate of financial inclusion data, endorsed by the G20 Leaders in September 2013. This contains the G20 Basic Set of Indicators, Global Findex data, and a suite of other data sources, including access, usage and quality of service delivery of financial services. 

Designing a Methodology to Investigate Accessibility and Impact of Financial Inclusion (April 2012)
Social Science Research Network
Authors: Serrao, Manohar Vincent; Sequeira, Aloysius Henry; Hans, Basil V.
Aims to develop a research methodology for measuring the impact of access to financial services by poor and marginalized groups in India. Supply and demand side analysis is conducted to examine the concept of financial inclusion and its initiatives in India, considering what data is needed to measure impacts and develop appropriate policies. Recommendations are provided for enabling financial inclusion and strengthening mechanisms for evaluation. 

Financial Diaries (2007)
Centre for Social Science Research, FinMark Trust, Ford Foundation, Micro Finance Regulatory Council
Authors: Daryl Collins, Louise Taljaard
Addresses the gap of knowledge about how the poor manage their finances. A year-long financial management survey of poor rural and urban households in South Africa. A precursor study to the FinScope.

FinScope (2011)
FinMark Trust
A nationally representative study of consumers' perceptions on financial services and issues in South Africa, illuminates how consumers source their income and manage their financial lives. This sample covers the entire adult population, rich and poor, urban and rural, in order to create a segmentation of the entire market and to lend perspective to the various market segments. 
(Adapted from FinScope website)