Financial Literacy Through Service Innovation

Abstract

Financial literacy enables financial inclusion, a key policy concern in economic development. Governments around the world are keen to promote financial literacy and fund programmes and organizations that promote financial literacy in low-income populations and youth. However, given the complex interaction of behaviour and skills in financial decisions, it is difficult to conduct an outcome-based evaluation of financial literacy programmes. In the absence of a reliable ex-post evaluation, we focus on ex-ante considerations that should guide us in the design of financial literacy programmes. This article provides a framework for financial literacy programme design drawing lessons from the service innovation literature and experiences of Sanchayan, a non-governmental organization in India that delivers financial literacy and services to low-income adults and youth. We show how Sanchayan in its financial literacy programme design takes the context and the needs of its clients into account and delivers services to its clients in their own comfortable environment. Several challenges faced by Sanchayan in imparting financial literacy and services are also identified.