Consultant: Development of Special Report and Case Study on DFS and GIF During and After the COVID-19 Pandemic

The Alliance for Financial Inclusion:

The Alliance for Financial Inclusion (AFI) is an independent, member-owned and member driven organization that enables its members to develop and implement innovative financial inclusion policies and regulations, and through these efforts contribute to the Sustainable Development Goals. Currently approximately 100 member institutions make up the AFI network, including central banks, ministries of finance and other financial policymaking and regulatory authorities from approximately 90 developing and emerging countries.

AFI empowers policymakers to improve access to, and usage and quality of, financial services for underserved communities through formulation, implementation and global advocacy of sustainable and inclusive policies. AFI members set their own agenda and harness the power of peer learning to develop practical and tested policy reforms that enhance financial inclusion with strategic support from both public and private sector partners.

AFI has 7 Working groups (WGs): Consumer Empowerment and Market Conduct Working Group (CEMCWG), Digital Financial Services Working Group (DFSWG), Financial Inclusion Data Working Group (FIDWG), Financial Inclusion Strategy Peer Learning Group (FISPLG), Global Standards Proportionality Working Group (GSPWG), Inclusive Green Finance Working Group (IGFWG) and SME Finance Working Group (SMEFWG). WGs are the key source of policy developments and trends in financial inclusion and serve as “communities of practice” on key financial inclusion issues. They are the primary mechanism for generating and incubating technical content in the AFI network and provide a platform for knowledge exchange and peer learning to allow policymakers to share, deliberate and deepen understanding on key financial inclusion issues. AFI’s working groups provide leadership and expertise in their respective policy fields and support the AFI network to monitor new developments in emerging fields and regions. The working groups receive strategic guidance and insight from the High-Level Global Standards & Policy Committee and Gender Inclusive Finance Committee, which supports WGs to integrate gender considerations into all aspects of their work and support members in fulfilling their Denarau Action Plan (2016) commitment to promote women’s financial inclusion. AFI members further committed in the Kigali Statement (2019) to address the needs of additional disadvantaged communities including youth, older persons, persons with disabilities and forcibly displaced persons.

The AFI network is engaged in various dedicated regional initiatives which support regional level policy implementation in Africa (AfPI), Latin America and the Caribbean (FILAC), the Pacific Islands (PIRI), Eastern Europe and Central Asia (ECAPI) and the Arab Region (FIARI) The impact of AFI’s work over the past decade has been substantial. Since AFI’s launch, members have attributed their participation in AFI with the development and implementation of over 680 financial inclusion policy improvements which have enabled access to formal transaction accounts for over 650 million unbanked people worldwide.

1. Project Background:

As the COVID-19 pandemic began to spread, AFI members responded swiftly to ensure that gains made over the past decade in gender inclusive finance and national financial systems are not lost in the response and recovery efforts. During the COVID-19 pandemic, DFS have been instrumental in facilitating remote access to essential services such as healthcare, education and financial payments and services, among others. Countries are embracing digital solutions to address the immediate needs of the most disadvantaged groups, across the formal and informal sectors, to soften the impact of the crisis on their livelihoods. In fact, many governments leveraged government-to-person (G2P) payments to deliver emergency social assistance to the most vulnerable communities in the initial phases of their pandemic response. At least 200 countries and territories have expanded or introduced social protection measures in response to COVID-19, reaching almost 1 billion new beneficiaries since March.[1]

The pandemic presented policy makers and regulators with a new urgency to position DFS as both an emergency response and sustainable recovery mechanism.

[1] cgap.org/blog/building-back-better-designing-cash-transfers-womens-empowerment

2. Project Rationale:

The UN Women and UNDP estimates that by 2021, for every 100 men aged 25 to 34 living in extreme poverty, there will be 118 women – a gap expected to increase to 121 women per 100 men by 2030, as a result of COVID-19.[1]

For emerging economic regions such as South East Asia, gains made in poverty alleviation are under threat with a likely “resurgence” in extreme poverty. Pre-existing gender inequalities and financial inclusion gender gaps are expected to widen in the near future. Hence, there is the need for policymakers and regulators’ to fully capitalize on the opportunities that DFS present for women’s financial inclusion and the economic empowerment of women, girls, and other vulnerable groups.

To build back better, there is a need for an inclusive and sustainable approach to recovery efforts. Policymakers and regulators have a critical role to play in ensuring that the gains of women’s financial inclusion are sustained and that halving the financial inclusion gender gap by the end of 2021 remains at the front and centre of members’ post pandemic financial inclusion efforts.

Hence it has become important to identify DFS interventions that have had a positive impact on the advancement of women’s financial inclusion, document such best practices and the key lessons that can be shared and scaled. This will inform AFI members on how to leverage on and sustain such best practices in their efforts to bridge the financial inclusion gender gap in post pandemic recovery period.

3. Deliverables:

A Special Report titled “Closing the Gender Gap through Digital Financial Services During and After the COVID 19 Pandemic”. The report will seek to provide a baseline assessment of how digital financial services (DFS) have been leveraged to drive women’s financial inclusion during the pandemic. The baseline study will look at women’s access to and use of DFS during the pandemic, pandemic related regulatory interventions which impacted women’s financial inclusion, within AFI member jurisdictions, and the global financial sector in general.

As a follow-up to the Special Report, a complementary Case Study titled “Leveraging Digital Financial Services to Advance Women’s Financial Inclusion during the COVID-19 Pandemic – A Case Study of Selected AFI Member Countries. This will focus on how selected AFI member institutions leveraged on the opportunities presented by DFS as part of their pandemic response and recovery efforts to support and enhance financial inclusion for women. The Case Study will explore how DFS was leveraged to mitigate the social and economic impacts of COVID-19 on women and support women’s digital financial inclusion. In doing so, the Case Study will highlight the importance of a holistic and nuanced policy approach to women’s DFS that circumvent some of the persisting social and cultural barriers to women’s access to and usage of DFS and reduces the underlying risks and vulnerability among women clients.

It is envisioned that these two knowledge products will support and further inform the development and implementation of smart and gender inclusive policies to improve financial inclusion and livelihoods of women and girls in emergency periods.

4. Objective:

The overall objective of the assignment is to support the development of a global study exploring policy and regulatory interventions introduced in AFI member jurisdictions to increase access to and usage of DFS aimed at supporting economic participation among women and girls during the COVID-19 pandemic. Whilst this report will specifically focus on the COVID-19 crisis many of the recommendations will be applicable to other emergencies including natural and manmade disasters such as cyclone, earthquake, conflicts, forced displacements, etc. In doing so, the report will explore the following:

· Provide an updated assessment and deeper insights into how DFS is being leveraged by AFI member institutions to promote women’s financial inclusion during the COVID-19 pandemic mitigation and recovery phases[1];

· Discuss the opportunities and risks faced by women and girls in the accelerated uptake of DFS during the COVID-19 mitigation and recovery phases;

· Discuss how regulators and financial service providers can collaborate to develop an enabling ecosystem with appropriate regulation, products and services that support the needs of women and girls at different stages of the life cycle during an emergency/disaster period.

· Provide key insights regarding the relevance of digital financial literacy policies for an effective uptake and usage of DFS and to build resilience of women against economic shocks during the mitigation and recovery phases of the COVID-19 pandemic.

· Document key gender-responsive policy and regulatory interventions that have been tested and proven effective in responding to the challenges of an evolving DFS ecosystem during an emergency/disaster period and in its aftermath; and

· Recommend a menu of practical high-impact actions and initiatives including related peer learning and advocacy opportunities for members to consider during and after an emergency/disaster period.

In parallel, the insights from the global study will inform the development of a case study exploring one to three member institutions’ journey in leveraging DFS to support economic participation and inclusion of women in during the pandemic and recovery period. Building on AFI’s Policy Framework for Women’s Financial Inclusion Using DFS and AFI’s Denarau Action Plan, this case study will explore the following:

· Establish a baseline position of women’s financial inclusion before the COVID-19 crisis covering access, usage and quality aspects.

· Assess the impact of the initiatives in encouraging women’s access to and usage of DFS during the pandemic; and

· Draw lessons for policymakers and regulators with a view to support greater future digital financial inclusion for women and its implications for women’s economic empowerment and gender equality.

Note: Youth considerations should be incorporated in the Special Report and Case Study, if applicable.**

[3] This would build on AFI’s work on DFS and women’s financial inclusion. Please refer to the link here: https://www.afi-global.org/publications/lessons-on-enhancing-womens-fina….

5. Timelines and Key Deliverables:

The consultant team is expected to commence the assignment in May 2021 and will complete the deliverables by 16 August 2021. The timelines and key deliverables are found below:

3 May: Kickoff discussion with AFI Management Unit

3 May – 17 May: Undertake desk-based research

17 May: Submit an outline of the special report and case study

17 May – 28 June: Conduct key informant interviews with AFI members and key stakeholders

28 June – 14 July: Draft special report and case study

14 July – 21 July: Review first draft

28 July – 4 August: Review second draft including by GIFC, AFI members, stakeholders and AFI Management Unit

11 August: Finalize drafts

16 August: Submit final draft

During the assignment, the AFI MU will closely support the consultant by sharing internal expertise and existing research; contacting or connecting key stakeholders to assist in arranging the consultant’s communications and telephonic interviews; and providing inputs to deliverables. This assignment is expected to involve extensive desk research, data collection, and interaction or consultation with key stakeholders.

6. Consultant Experience:

• Advanced degree in a field related to Economics, Public Policy, International

Development or another related discipline.

• Knowledge and technical experience in digital financial services, gender and financial inclusion.

• Experience in research, data collection and analysis and excellent written report skills in the English language.

• Previous experience working with global and national institutions involved in financial inclusion and gender inclusive finance policy and regulation, particularly in developing countries

7. Reporting:

The consultant will report directly to Head, Gender Inclusive Finance and E-Money Specialist, Policy Programs and Regional Initiatives.

8. Criteria for Evaluation:

The proposals submitted will be evaluated based on the following criteria:

Technical Scoring

1. Academic Qualification; 10%

2. Experience and competence of the key staff for; 50%

3. Individual relevant for the assignment – 15%

4. In qualitative and quantitative research – 15%

5. In DFS, gender and financial inclusion policy or research related work – 20%

6. Adequacy of the proposed work plan and methodology in responding to the Terms of Reference; 30%

7. Technical approach and Methodology – 15%

8. Workplan- 15%

9. Quality of the submitted sample work; 10%

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