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> Posted by Microfinance Opportunities (MFO)
At the FI2020 conference in London this week speakers and participants used the term “financial capability.” But there is no one, clear definition of the term, which begs the question: what is financial capability?
At MFO our focus is on financial capability development, so we think it is important to have a definition that can be translated into practical action on the ground, while also being consistent with the research literature on capability development, and actually making sense to other stakeholders who work on this issue as well.¹ This blog is MFO’s (humble) contribution to the effort to establish a working definition. In our minds, it is the following:
Financial capability is the combination of attitude, knowledge, skills, and self-efficacy needed to make and exercise money management decisions that best fit the circumstances of one’s life, within an enabling environment that includes, but is not limited to, access to appropriate financial services.
Put more succinctly: Financial capability is not just what you know, but whether you have the willingness, confidence, and opportunity to act.
This definition provides more depth and breadth than the familiar, traditional idea of financial literacy, with its more narrow focus on knowledge acquisition and skill development.² Of course, to be capable, a person needs to know about beneficial money management practices, such as tracking one’s money or saving. In addition, people need the skills to be able to put that knowledge into practice, such as recording income and expenses in two columns to help track money, or keeping a marked envelope where she saves money for a particular purpose. Read the rest of this entry »
Here is a short photo review of the third and final day of the Financial Inclusion 2020 Global Forum.
Please click on any photo to see a larger image.
Accelerating Financial Inclusion – Panelist Duvvuri Subbarao, Former Governor of the Reserve Bank of India
Accelerating Financial Inclusion in India – panelist Nish Kotecha, President, Geosansar
Accelerating Financial Inclusion in India – moderated by Sital Patel, Reporter, Marketwatch
Building Infrastructure and Spurring Innovation – panelists Nick Hughes (M-Pesa) and Innocent Ephraim (Vodacom)
Closing remarks: Anil Aggarwal (Chairman & CEO, Money 2020)
Closing remarks: Carlos López Moctezuma (BBVA)
Closing remarks: Imelda Nicolas (Chairperson, Commission on Filipinos Overseas)
Closing remarks: Elly Ohene-Adu (Head of Banking Department, Bank of Ghana)
Francis Pelekamoyo, Opportunity International
Closing remarks: Pamela Flaherty (CEO, Citi Foundation)
Launch of the EIU Microscope
Susy Cheston celebrates a job well done!
The FI2020 Forum organising team take well earned applause
To see what others are saying and posting about the Global Forum, visit the Financial Inclusion 2020 website and follow #FI2020 on Twitter.
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