fsd's financial education programme: evaluation and ... - FSD Kenya

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10 • FSD’S FINANCIAL EDUCATION PROGRAMME: EVALUATION AND RECOMENDATIONS Targets and impact: • The targets for the four pilots were all set in terms of quantity (number of people reached). Some were unrealistic given the time available, particularly that of Plan. Chasing quantity then also often lead to poor execution. • Notably, no consideration was given to frequency of reach (a critical component of any communication campaign). An effective financial literacy approach would have as an output one or more of the following: creating awareness, improving knowledge, transferring skills, influencing attitudes, and ultimately changing behaviour. It is near impossible to transfer knowledge or skills with a single exposure (the typical didactic model) and even more so to influence attitudes and behaviour with once-off exposure. Improving financial capability is a long term on-going process, requiring multiple exposures and reinforcement over time. • It is also known that attitudes and behaviour tend to revert back (without continuous exposure/reinforcement). A proper evaluation of programmes will require revisiting the target market after a period of time to assess whether or not the impact of the programme has been lasting. • • Consumer strategy: while research was undertaken around the individual programmes, it remains unclear on what basis these pilots were selected, as there was no high-level national consumer strategy or demand-side data/baseline to inform the selection of these pilots. It therefore appears as though these were supply rather than demand-driven – a major strategic oversight. Pilots are in essence a tactic and should stem from a carefully crafted strategy and demand-side research, not the other way around. It appears as though this excessive focus on pilots and lack of strategic focus stem from the Scoping Exercise. This set the basis for the programme design and was further reinforced by the DFID-funded Financial Education Fund (FEF) that was launched around the same time as the FinEd. Content: there has been limited sharing of the content of these pilots (apart from between Faulu and Media-e). As the pilots were co-funded and seemingly customised on an institutional level, it is doubtful that there will be any sharing of the content and materials in future. Ironically, it seems that there was no formal sharing of lessons learnt following the pilots. The pilots (primarily the M&E) ran over time and were only Table 6: Pilots - outputs, activities and achievements Output Activities Achievements Potentially viable approaches for the delivery of financial education piloted Overall: partially achieved 1. Review international and Kenyan experience on ways to deliver financial education addressing priorities, encompassing lessons from other sectors 2. Identify potential for pilot projects and champions across the range of potential delivery channels addressing priority market segments with potential for scale-up and sustainability 3. Support the development of a pilot research protocol to cover key partners, overall objectives, timetables, location/logistics/materials, content, quantifiable targets and education methodology 4. Undertake market research with target markets to identify needs and establish base-line knowledge, skills, attitudes and behaviours/practices Unclear whether this was undertaken Underachieved: limited channels; no process of identifying market segments or prioritising these – supply-driven approach in selection of pilots Achieved Achieved 5. Support the development of relevant content/curricula for pilot projects Achieved 6. Undertake training of relevant staff in pilot institutions Achieved 7. Develop relevant materials for implementation 8. Implement pilot activity with regular monitoring of performance and sharing of experience between pilot activities 9. Undertake follow-up survey to evaluate based on changes in knowledge, skills, attitudes and practices of target markets Achieved – although quality and relevance of material not known Achieved Underachieved – methodological problems; timeline exceeded
FSD’S FINANCIAL EDUCATION PROGRAMME: EVALUATION AND RECOMENDATIONS • 11 • completed during the no-cost extension – at which stage the FEPP was no longer functional. Monitoring and evaluation: this varied in design and quality among the projects. For Media-e and Faulu the M&E framework and partner was identified in the grant agreement and undertook both the baseline and end-line. For Plan, the M&E partner was not identified in the grant agreement and was selected later by Plan. One organization did both the baseline and end line. For Equity the M&E framework and partner was not identified in the grant agreement and different firms did the baseline and end-line. 2.7 Additional initiatives 2.7.1 Consumer protection diagnostic A Consumer Protection Diagnostic was commissioned by the FSD in 2010, with the final report published in January 2011. The study comprised a demandside survey and qualitative research, as well as a review of the regulatory framework of the various sub-sectors and some supply-side practices. The findings of the study demonstrated the close link between financial education and consumer protection and detailed various demand-side issues that should be addressed in a financial education programme in future. Recommendations were also tabled on an improved Consumer Protection regulatory framework. The Ministry of Finance is currently developing a proposed policy framework for addressing the findings and recommendations of the study. However, little has been done on the educational side with regards to CP, as the FinEd programme was already in the process of wrapping up when the findings of the study were published. Two aspects which received limited attention in the CP diagnostic are the different redress mechanisms, such as voluntary and statutory ombudsmen, and consumer tribunals. The need for a fluid redress framework from micro to sub-sector and ultimately sector level was not sufficiently emphasised. Nor was there an assessment of the judicial system, and whether there are (effective) small claims courts or commercial courts in place. 2.7.2 Study into branchless banking and financial capability This study was commissioned jointly for FSD and CGAP and implemented by Bankable Frontier Associates. Its objective was to investigate the idea of reverse causality between branchless banking and financial capability with an in-depth ethnographic style of field research. The expected output of the study was a publication in the form of a brief. The results of the study were published in the FSD Insight No. 2 of December 2010 titled “Financial Capability and the Poor – Are we missing the mark?” One of the key conclusions of the study was that: The concept of financial capability developed and applied to middle income households in advanced economies cannot merely be downsized for low income households in developing ones. The cash flows of the poor are not just smaller, they are fundamentally different in nature, and that has a profound ripple effect on salient financial management decisions.“ The study went on to highlight three potential policy implications: • • • Because experience and testing markets are core to building financial capability as well as improving financial inclusion, one cannot rely on financial education alone to build consumer protection. Education prior to the introduction of formal services may not be absorbed without use. Accessible redress mechanisms and simple, transparent communications about costs and terms of new services can build trust and help retain clients even after a bad experience. Commitment features in financial products are a core way to build inclusion into the formal financial market. The study made a strong link between financial capability and financial inclusion. And as required in the scope of work, the study was “… provocative, challenging the assumptions and current orthodoxies in financial education.” It appears as though the study was expected to inform the design of the next FSD financial education programme. However, it seems that because of the delays in its completion, the results have not been put to full use. 2.7.3 Training of public sector organisations to deliver financial education The project supported two training programmes for public sector organisations. The first was a three day master training of trainers (ToT) programme conducted by Microfinance Opportunities. There were 24 participants from fifteen different organizations, both public and private. They included, among others, regulators, financial service provider associations, government ministries, local authorities and public hospitals. The training was held in July 2010. The second was an exercise in adaptation of training materials, held with the same group of participants in October 2010. A report was produced on the adaptation exercise. It appears that this session was part of an objective to enhance financial education through the public sector. The session was used both as a ToT and as an adaptation exercise for financial education learning sessions or modules. A total of six financial education learning sessions or modules were also developed. They covered the following topics: savings for youth, savings for retirement, consumer protection, debt management, bank services, and budgeting. The modules were adapted from the Global Financial Education Programme.
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