DEADLINE EXTENDED TO 31 MARCH 2022

This RFA aims to build tools for public good. There are three key objectives of this RFA. First, create a common financial health index to measure financial health of individuals and households in three countries and other markets. In case the research culminates in different national financial health index for each country, create a set of core financial health indicators that are comparable across countries. The construction of financial health index(es) and indicators should be guided by comprehensive national financial health surveys and robust statistical techniques. The research learnings should be used to propose global financial health index, or a set of core indicators, for enabling cross-country financial health comparisons globally.

Second, use survey data and financial health index(es) and or indicators on the survey data to diagnose financial health in target countries at national and sub-national level and for key variables including gender, age, income, (financial) education, location, occupation, and financial inclusion.

Third, understand the drivers of financial health in the context of different countries, and financial health linkages with key SDGs, overall wellbeing, and financial sector and growth stability.

The research outputs including financial health index(es) and indicators, country-specific financial health insights, and a financial health measurement module, should guide and enable policymakers, financial regulators, financial service providers, and businesses to;

• regularly measure the financial health of individuals and the target population
• compare financial health across target segments and over time
• frame appropriate policies, programs, products, and services for improving financial health of the target population and segments
• assess impact of relevant financial policies, programs, products, and services on financial health of the target population

Why measure financial health?

Globally, central banks, governments, and financial service providers (FSPs) have accelerated efforts on financial literacy, financial behavior, and financial inclusion with the belief that providing these solutions is critical to achieving good financial health for individuals and households. However, recent evidence from both developed and developing countries suggests that higher levels of income, financial literacy, or financial inclusion do not always translate to financial health. Addressing financial health is vital as it directly impacts other wellbeing dimensions including people’s physical and mental health, occupation, and social relationships.

Measuring and keeping track of people’s financial health is also critical to designing financial policies, programs, regulations, products, and services for ensuring good financial outcomes of individuals and households. These include, but not limited to, financial literacy and financial inclusion strategies, financial consumer protections regulations, social safety mechanisms, wealth creation and livelihood support programs, and customers-centric financial products and services. Measuring and prioritizing financial health is equally important for public and private market actors to realize and demonstrate their contributions to sustainable development goals (SDGs).

The measurement of financial health outcomes at country level and institutional level is fairly new. While a good deal of research and studies, mostly in high-income countries, limited efforts are made in low-and middle-income countries where it is needed the most. Furthermore, a common and globally accepted financial health measurement approach is yet to shape-up.

Creating global partnerships for measuring and improving people’s financial health

To build on this gap UNCDF through its Centre for Financial Health (CFH) initiative is working on piecing the global dialogue, convene the agenda, and undertake research to build financial health measurement tools. We are partnering with different public and private actors including central banks, banks, digital payment providers, insurance and investment firms, financial education associations, super Apps, and gig workers-led e-mobility firms, to diagnose, support, and influence individuals and households financial health. In addition, UNCDF is also engaging with global bodies such as GPFI to socialize the process of developing financial health measurement tools.

The different markets where we are working, there are various anchor for the engagement. For example, in Malaysia the work on financial health measurement is anchored within Integrated National Finance Framework (INFF) which is done in partnership with UNDP and UNCDF along with other UN agencies and Government of Malaysia, wherein the focus is to understand and leverage financial health as a tool to achieve key Sustainable Development Goals (SDGs) of no poverty, zero hunger, good health and wellbeing, and economic growth.

Similarly, In India, we are working with the Government of Odisha to understand and improve the financial health of women entrepreneurs by designing and rolling out a suite of financial health-centric (digital) products and tools.

Purpose and Scope of RFA

The purpose of RFA is to appoint one institution for developing financial health measurement tools and insights for three countries. In this regard, UNCDF invite partnership with universities and research firms to contribute towards the goal of setting financial health measurement tools that shall enable governments, financial service providers (FSPs), businesses, development agencies and other interested stakeholders to measure, track, and take actions to improve financial health of individuals and households.

The scope of this RFA is limited to financial health research including research design, drafting financial health questionnaires in English, survey design, and undertaking data analyses and reporting. UNCDF will work with the selected research partner to appoint survey agencies for undertaking national financial health surveys in the target markets.

The selected applicant(s) will be responsible to carry out the following activities:

• Assist with setting up a global financial health steering committee
• Undertake research to develop index(es), and a set of core indicators, for measuring financial health in three countries
• Develop a financial health module, with country-specific customization
• Co-author, with UNCDF, country-specific technical reports on measuring financial health

The ideal applicant will have demonstrated experience in conducting high-quality quantitative and qualitative research to develop indexes/scales for measuring multidimensional concepts such as poverty, financial literacy, financial behavior, financial inclusion, and or financial health(wellbeing).

This should be complemented with demonstrated experience of shaping up local/global agenda on drivers and barriers that influence people’s wellbeing. In addition, the applicant should have demonstrated expertise in survey design and advanced statistical analyses in methods such as Item Response Theory and Principal Component Analysis for creating multidimensional indexes.

Inquiries to this request for applications may be submitted by email to financial.health@uncdf.org and uncdf.rfa@uncdf.org

All applications must be submitted by 23:59 hours (IST) on 31 March 2022 on the Apply platform.

Apply Platform Link: https://apply.uncdf.org/prog/measuring_financial_health