Impact Pathways

Pacific Financial Inclusion Programme (PFIP) has a comprehensive mandate to increase access to financial services for the under banked and unbanked in the South Pacific. The programme focuses on the three diverse work streams (regulation and policy, financial innovation, and consumer empowerment) in order to provide a comprehensive approach to financial inclusion. 

Impact measurement is a critical part of policy development for financial inclusion.   Without measurement of impact, policymakers have no sense of the benefits that might be weighed against the costs of a particular policy tool.    Within the field of financial inclusion, this measurement has so far been made simply on the number of accounts that have been opened for low income consumers, which is a very blunt measurement tool.    Even if accounts have been opened, measurement efforts have yet typically not assessed whether these accounts have been used, or used in a way that can makes a difference to consumers’ lives.  PFIP aims to address this gap in impact measurement and create a practical method to measure impact of financial inclusion.

In 2017,  a toolkit was built to create a pragmatic measurement framework for the “impact pathways” of the PFIP portfolio.    During this time,  a conceptual framework for impact pathways; defined various phases of these pathways and rules for assigning active users of financial services of the institutions in the PFIP portfolio into these pathways; conceived of ways to measure whether users had benefit from the financial product and ultimately achieved one of 11 potential SDGs.    In the process, a toolkit was created which both explained the conceptual framework as well as the evidence base supporting it, as well as instructions on how to execute the measurement.