Financial Institutions, Programs, and Services

Evidence-based strategies that focus on financial institutions, including those that are informal and semi-formal. These strategies are also about providing accessible and tailored products and services, and promoting financial inclusion.

How to Navigate this Page

Select policy targets and evidence-based strategies that are priorities and achievable within your setting and sector. Align with your mandate, capacity, jurisdictional boundaries, and scope of practice.

Strategies marked with ☔ are important for populations-at-risk.

Entry Point for Action:
Reflects the organization’s or government unit’s sector scope and mandate

Policy Target:
Relates to the initiative’s focus

Evidence-based Strategies:
Concrete actions to guide initiatives’ design, delivery, and evaluation

ENTRY POINT FOR ACTION

Improve Regulation, Oversight, and Funding of Macro-Economic Systems and Policies

Banking sector

Government units develop effective policies and regulations that encourage financial institutions to provide accessible and affordable banking services for disadvantaged groups that meet their unique needs, including short- and long-term financial goals ☔

SAMPLE INDICATORS

Adherence of financial institutions to government unit regulations
Adherence of financial institutions to internal controls defined by government unit policy
Levels of financial mismanagement, abuse, and/or fraud at the individual level
Digital accessibility in banking (e.g., for people with limited internet access or who are experiencing disabilities)
Geographic distribution of banking outlets (e.g., stratified by neighbourhoods)
Affordability of banking services
Trends in costs of financial transactions
Individual’s perceived ability to meet unique financial needs (e.g., stratified by age)
Individual’s perceived ability to meet short-term financial goals (e.g., among disadvantaged groups)
Individual’s perceived ability to meet mid- and long-term financial goals (e.g., among disadvantaged groups)

Housing market

Government units regulate and oversee the housing market to protect homebuyers from predatory subprime loans

SAMPLE INDICATORS

Percentage of homeowners or renters paying more than 30% of their pre-tax income on housing (e.g., utilities, property taxes, and mortgage payments)
Household stress (using a threshold such as housing costs are more than 30% of disposable (or gross) household income and households are in the bottom 40% of the income distribution (e.g., stratified by homeowners, public renters, and private renters))
Extreme household stress (using a threshold such as housing costs are more than 50% of disposable (or gross) household income and households are in the bottom 40% of the income distribution (e.g., stratified by homeowners, public renters, and private renters))

ENTRY POINT FOR ACTION

Provide Sustainable Funding to Programs and Services

Financial capability programs (i.e., attitude, knowledge, skills, and self efficacy for dayto-day money management)

Government units provide funding and guidelines for financial capability programs that reflect a holistic approach to financial strain and financial wellbeing as well as the application of user-centered principles in the design, implementation, and evaluation of initiatives

SAMPLE INDICATORS

Number/percentage of financial capability programs using key performance indicators to measure success (e.g., change in participants’ self-rated or measured financial capability) that go beyond funder priorities (e.g., participation rates) and consider multiple aspects of people’s lives
Number/percentage of financial capability programs that address the social and structural determinants of people’s financial circumstances

ENTRY POINT FOR ACTION

Expand Access to Financial Services & Products

Financial inclusion (i.e., access to the formal financial system and institutions)

Initiatives help people who are unbanked or underbanked to participate in mainstream banking services through which people can cash or deposit cheques and safely save and access their money ☔

SAMPLE INDICATORS

Number/percentage of unbanked or underbanked people
Trends in banking account ownership
Access to basic services (e.g., heating and water) increase among people who were previously unbanked or underbanked
Chances to secure employment improve among those people who recently obtained access to mainstream banking services
Number/percentage of people receiving electronic social welfare benefits payments

Initiatives focus on helping people to build credit score, access specialized loans (e.g., for home ownership), improve ability to save by providing low-fee or no-fee banking services and products, matched savings, and/ or financial counseling, and support wealth accumulation ☔

SAMPLE INDICATORS

Number/percentage of participants who established a credit score for the first time at the end of program
Number/percentage of people reporting an increase in their credit score
Number/ percentage of low-income people who apply for and are successful in obtaining specialized loans
Annual personal savings rate
Average saving per person increases, particularly among low-income earners, while also being able to meet other financial obligations
High number/proportion of people receiving high-quality financial advice online or in-person

Initiatives promote fair access to the financial sector and provide new, tailored services and products for unbanked or underbanked people who are often considered to be too risky and less profitable as clients ☔

SAMPLE INDICATORS

Number/percentage of innovative and affordable or no-fee banking services and products
Access to innovative and affordable or no-fee banking services and products
Number/percentage of underbanked, low-income people who agree with the statement that banking services and products meet their unique needs and short- and long-term goals
Number/percentage of low-income people with access to no-fee banking services and products

Initiatives are multidimensional and are attuned to the particular values and needs of different groups, depending on people’s social background and identities, instead of adopting a one-size-fits-all approach ☔

SAMPLE INDICATORS

Availability of affordable or no-fee banking services and products (e.g., per jurisdiction)
Number/percentage of clients who report that their banking services accommodate their individual values and needs (e.g., relative to socioeconomic status or life circumstances)
Number/percentage of people who report that they can easily find and access banking services and products that meet their needs

Initiatives expand their offerings of financial services in the communities of target disadvantaged population(s), where banking outlets are often limited and quick-cash outlets are common ☔

SAMPLE INDICATORS

Distance to the nearest banking outlets for target population(s)
Number/locations of banking outlets in a given area relative to the distribution of the population’s need for services

Initiatives provide accurate information on banking products and services that is widely and freely available, accessible, and easy for people with low English and French (other official languages) literacy and/or little previous exposure to banks and financial services to read and understand ☔

SAMPLE INDICATORS

Number/percentage of initiatives using infographics (or other visual means) in their information materials to support easy and clear communication of a topic
Availability of materials through different media channels (e.g., magazines, websites, billboards, brochures, social media)
Number/percentage of initiatives adopting inclusive communication through language and format (e.g., adequate font size for people with impaired vision and plain language use)

Mainstream (formal), semi-formal, and informal financial services and products

Initiatives recognize that financial inclusion strategies (i.e., access to formal financial products and services) may have positive and negative impacts on a person’s financial situation, which depends on the structures (i.e., financial products) and institutions (i.e., policies, programs, and services) of the financial sector.

SAMPLE INDICATORS

Knowledge of the advantages and disadvantages of the formal financial system
Perceived access to affordable, no-fee financial services and products within the formal financial system (e.g., among disadvantaged people)

Initiatives consider the possible unintended consequences of financial inclusion strategies (i.e., access to formal financial products and services), such as taking on increased debt while building credit or prioritizing saving over emergency or basic needs, which can lead to, for example, the use of quick cash loans or borrowing from family or friends. Initiatives tailor strategies to protect disadvantaged groups who are using formal financial services and products from engaging in risky financial behaviours ☔

SAMPLE INDICATORS

Number/percentage of people who asked for an extension for repayment
Number/percentage of people who failed to repay loan instalments by the deadline
Number/percentage of people who take loans to repay existing loans
Perceived level of difficulty to manage debts

Initiatives aim to help identify the most affordable, reliable options with fewer conditions that meet each person’s financial values, needs, and goals through either mainstream banking services or semi-formal and informal financial products and services ☔

SAMPLE INDICATORS

Financial confidence levels (e.g., among disadvantaged groups)
Number/percentage of people who report ease in finding the financial services and products they need within formal, semiformal, and informal financial systems, that are supportive to their financial security (e.g., stratified by deprivation levels)

Initiatives acknowledge that appropriate and fair semiformal and informal financial markets (e.g., borrowing from moneylenders and friends) may fit local sociocultural norms and the circumstances of a person’s life. It recognizes that semi-formal and informal (non-exploitive) financial products and services may provide flexibility in terms of transactions and contracts and may offer reliable, free or low-cost options, particularly for people who experience complex needs. These may be viable alternatives for certain groups of people (e.g., those experiencing low-income) to achieve financial wellbeing ☔

SAMPLE INDICATORS

Availability and accessibility of accurate and relevant information about semi-formal and informal financial services, products, and practices
Number/percentage of people reporting confidence in assessing the advantages and disadvantages of the non-mainstream banking system (e.g., among disadvantaged groups)
Number/percentage of disadvantaged people reporting that reliable semi-formal or informal financial services and products better meet their needs
Availability and perceived accessibility of mechanisms for people to report abusive and exploitation financial practices and obtain timely redress

Financial literacy (i.e., knowledge and skills) and financial capability (i.e., attitude, knowledge, skills, and self-efficacy for day-to-day money management) programs

Considering people’s financial values, needs and contextual factors, initiatives help with knowledge acquisition about financial systems, institutions, products, services, and household finances as well as support skill development to help people navigate financial services and programs

SAMPLE INDICATORS

Availability of in-person (face-to-face or virtual) financial literacy programs
Availability of online financial literacy programs
Access to financial literacy programs (e.g., to all people in the community)
Availability of free or low-cost financial literacy programs
Knowledge of financial systems, institutions, products, services, and money management
Number/percentage of people who report knowing where to find the accurate, relevant, timely information needed to support their financial decision-making
Number/percentage of people who report shopping around and being able to consider several options before making a financial decision

Building upon financial literacy strategies, initiatives support adoption of positive attitudes and behaviours towards saving, borrowing, spending, and planning to better inform and facilitate people’s financial decision-making

SAMPLE INDICATORS

Availability of free or low-cost financial in person (or online) capability programs
People’s perceptions of the level of difficulty required for accessing financial capability programs (e.g., stratified by socioeconomic status)
Number/percentage of people with positive attitudes towards saving before and after participation in financial education programs
Number/percentage of financial educators and practitioners who report participants developed negative attitudes toward risky borrowing
Confidence in knowledge and skills regarding day-to-day money management
Number/percentage of people whose basic needs are met reporting staying within their budget (e.g., stratified by age and socioeconomic status)
Perceived ability to meet financial obligation and daily needs
Number/percentage of people who report considering spending money carefully and making informed financial decisions (e.g., stratified by sex, gender and age)

Initiatives consider the context that constrains or enables people to exercise their money management decisions (e.g., insufficient income to cover basic expenses) and act in accordance with people’s best interests ☔

SAMPLE INDICATORS

People’s perception of financial practitioners hearing and respecting their financial concerns and needs
Number/percentage of people who felt that financial practitioners developed customized strategies that met their needs and values
Number/percentage of financial educators and practitioners who report delivering personalized financial guidance and information according to people’s life circumstances and trajectories
Level of agreement with the statement that personalized steps outlined for improved financial literacy and capability are realistic and achievable

Initiatives help people to make informed decisions about what financial services and products reflect their values, meet their needs, and support their short- and long-term goals

SAMPLE INDICATORS

Number/percentage of people who report knowing where to find appropriate, relevant, and accurate financial information and advice for making financial decisions
People’s perceptions of difficulty in finding financial services and products that meet their needs and values

Initiatives help people identify alternatives to using popular, but exploitative financial practices (e.g., payday lenders or cheque-cashing services)

SAMPLE INDICATORS

Number/percentage of people feeling confident about their financial knowledge and skills in identifying and avoiding exploitative financial services and products
Number/percentage of people who report understanding the warning signs of financial exploitation

Initiatives provide independent information, resources, and tools on formal, informal, and semi-formal financial services and products

SAMPLE INDICATORS

Number/percentage of financial educators and practitioners who report delivering content/sessions dedicated to informal and semi-formal financial services and programs
Number/percentage of financial literacy and financial capability program participants who now feel well-informed on financial facts and concepts (i.e., improved financial knowledge)
Number/percentage of financial literacy and financial capability program participants who now feel well-instructed on how and where to find, understand, and act on financial resources (i.e., improved financial skills)

ENTRY POINT FOR ACTION

Strengthen Employment Security (Income and Benefits)

Income Security

Initiatives address people’s lack of access to sufficient and sustained income through education and job training opportunities, increase in cash welfare benefits, removal of minimum requirements for participation in welfare programs, and improved access to reliable, affordable financial services and products, including specialized loans with no or low fees ☔

SAMPLE INDICATORS

Number/percentage of low-income people who enroll in free or low-cost education and training courses
Trends in the highest level of education achieved by adults
Availability of varied reliable, affordable financial services and products (e.g., to low-income people)
Availability of cash assistance
Perceived ability to provide for oneself and one’s family
Perceived ability to cover basic needs and enjoy economic stability (e.g., among low-income individuals and families)
Number/percentage of people who report having money left over after meeting basic needs

ENTRY POINT FOR ACTION

Include Cultural Values of Financial Practices & Ways of Living

Sociocultural norms and moral values around financial transactions

Framework graphics with the entry point 'Foster Connection & Belonging' highlighted

Initiatives contextualize the sociocultural appropriateness of financial practices and programs. Service providers have a clear, shared understanding of why some population groups – even when struggling financially – feel responsible and obliged to provide financial support and ensure financial wellbeing of their peers, friends, and relatives ☔

SAMPLE INDICATORS

Number/percentage of people who report difficulties in refusing to lend money to family and friends
Number/percentage of people feeling confident they can turn to relatives and friends for financial emergencies
Periodic staff training programs and learning opportunities about recognition and respect of diverse sociocultural norms and expectations around financial practices

ENTRY POINT FOR ACTION

Address Stigma & Discrimination (e.g., systemic racism and ableism)

Stigma and shame of debts

Initiatives recognize and address stigma and shame surrounding unmanageable financial debt (i.e., high debt levels compared to annual household income). Initiatives move away from judgmental language and adopt a strengths-based approach to support people managing their debts ☔

SAMPLE INDICATORS

Individual levels of financial stress due to high debt load
Number/percentage of people seeking appropriate, reliable support to debt repayment
Number/percentage of people who report feeling that their debts are easily manageable
Level of non-mortgage debt before and after program

Access to financial services and products

Initiatives ensure equitable conditions for all people to access financial resources and products ☔

SAMPLE INDICATORS

Number/percentage of people who report enjoying power to choose whatever financial services and products best meet their needs (e.g., stratified by socioeconomic status)
Web accessibility
Use of assistive technology in online and mobile financial services
Number/percentage of rural and remote communities with adequate broadband infrastructure
Trends in use of financial apps and online services (e.g., among people with vision disabilities)

Regardless of their social backgrounds and identities, people do not feel discriminated against and are treated equitably ☔

SAMPLE INDICATORS

Number/percentage of initiatives that offer professional training opportunities focused on increasing cultural awareness and addressing staff’s assumptions and misconceptions of people’s financial knowledge and behaviours, particularly at financial institutions
Number/percentage of seniors and women who report receiving condescending financial advice
Type of advice for investments received (e.g., among non-white and white people)
People’s perception of the availability and accessibility to mechanisms to report discrimination in services and programs

Organizational culture embraces diversity and inclusion to better respond to and support people’s needs and values. Initiatives help staff have a clear understanding of the multiple, complex effects of discrimination disadvantaged people face due to their social identities and backgrounds (e.g., senior Black women with hearing impairment). Workplaces strengthen their diversity and inclusiveness strategies, including in hiring and promotion processes ☔

SAMPLE INDICATORS

Availability of periodic staff training programs on practices about how to be respectful to diversity and inclusive in their day-to-day activities.
Number/percentage of staff feeling well-prepared to deal with socioculturally diverse clients
Number/percentage of initiatives with promotion of diversity and inclusiveness as part of the organizations’ goals
Percentage of applicants for open positions from diverse social backgrounds
Ratio of female and non-binary candidates who were selected for a job interview to that of male candidates
Trends in promotions awarded to people from diverse and non-diverse social backgrounds
Inequalities in retention levels (e.g., based on sex, gender, race/ethnicity, and age)

ENTRY POINT FOR ACTION

Develop around People’s Everyday Realities

Entry requirements for community services and programs

Initiatives remove contingencies and conditions that limit enrolment (e.g., providing matched savings, which is by design contingent on initial savings and housing loans for high-engagement participants)

SAMPLE INDICATORS

Ratio of recipients to people who meet program eligibility criteria
Annual recipiency rates
Number/percentage of people who report feeling encouraged to register in the programs and services
Number/percentage of people with multiple, complex needs who have their benefits granted

ENTRY POINT FOR ACTION

Consider Diverse Household Financial Circumstances

Savings

Initiatives acknowledge that a person’s ability to save is intrinsically related to their social and financial situations. Savings-targeted initiatives consider how people are financially coping on a weekly basis as well as understand the nature of their work, their employment security and working conditions, the absolute level, volatility and source of their income, welfare payments, and their life goals and priorities ☔

SAMPLE INDICATORS

Number/percentage of people who report increasing their savings balance on a monthly or yearly basis, regardless of the amount
Number/percentage of participants who report that they do not feel judged for their inability to save money
Number/percentage of people who find it difficult to come up with a lump sum of money for an emergency

Initiatives develop a customized achievable and realistic financial strategy for savings that aligns with a person’s life and financial circumstances, including their unique goals, values, and needs

SAMPLE INDICATORS

People’s perceived ability to save money
Participation rate in automatic savings programs
Self-reported amount (e.g., in Canadian dollars) that could be raised in a week
Number/percentage of people who report savings for more than six consecutive months

Financial resilience

For population groups whose basic needs are already met, initiatives provide supports for people to improve their capacity to cope in times of financial adversity (i.e., financial resilience) so they are better equipped to weather and recover from a future financial shock, such as an unexpected major expense or income drop. For population groups struggling to meet their basic needs, initiatives first focus on addressing the barriers limiting people’s abilities to afford essential necessities, such as food and shelter ☔

SAMPLE INDICATORS

Self-reported savings balance
Individual debt management skills
Self-reported capacity to meet living expenses (e.g., change in capacity over time)
Confidence levels in ability to raise emergency funds (e.g., stratified by income levels)
Average number of owned financial products (e.g., bank account, credit, insurance)
Confidence levels in financial decision-making among participants of financial capability programs (i.e., knowledge acquisition, skill development, and concrete opportunities for behaviour change)
Number/percentage of people who report leveraging financial support from social networks to meet their financial needs
Number/percentage of people who feel their community connections help them navigate available services (i.e., proxy of social capital)

Financial rehabilitation (i.e., starting over financially without debt)

Initiatives raise awareness of the ripple effects of financial rehabilitation (e.g., limited opportunities for buying a house or opening a business) and the stronger negative impact on people with a low income and insecure employment relative to people of higher socioeconomic status ☔

SAMPLE INDICATORS

Number/percentage of people who report having access to clear and accurate information about the socioeconomic consequences of filing for bankruptcy, such as a reduced credit rating (included in their credit reports for years) and difficulties in obtaining loans, a mortgage, or credit cards
People’s reports on their experiences in finding and using free, reliable, and unbiased financial advice (e.g., credit counsellor) to help them navigate their debts and improve their financial situations
Bankruptcy rate

Initiatives help people make informed decisions about their actions towards their debts and find the best alternatives for different socioeconomic groups, considering people’s life circumstances ☔

SAMPLE INDICATORS

Confidence levels about plans to pay off debt
Individual’s perceptions of progress towards paying down their debt
Number/percentage of participants who report knowing how and where to go for information and advice before making financial decisions

Initiatives minimize the risks of bankruptcy-triggering poverty traps among disadvantaged people with insecure jobs and low and volatile income. Initiatives seek to equalize their conditions to those of people with access to sufficient and secure employment and steady and livable income ☔

SAMPLE INDICATORS

Financial attitudes and behaviours (e.g., credit use, spending, and savings) before and after filing for bankruptcy
Number/percentage of people who agree their bankruptcy meant a fresh start in life (e.g., stratified by socioeconomic status)
Levels of self-reported satisfaction with current financial situation (e.g., stratified by income levels)

Financial self-efficacy

Initiatives (including financial self-efficacy strategies) boost people’s financial confidence while acknowledging the enabling or constraining financial environment and one’s life circumstances ☔

SAMPLE INDICATORS

Confidence levels in financial skills
Confidence levels in financial decision-making
Perceived ability to pursue financial goals

Initiatives enhance knowledge of day-to-day money management and how to choose and use financial services and products while building upon people’s lived experiences of financial decision-making

SAMPLE INDICATORS

Number/percentage of people who report keeping watch of their financial affairs
Number/percentage of people who feel well-informed about finances
Number/percentage of people who report weighing risks and benefits before choosing financial services and products

Initiatives tailor the content of financial self-efficacy strategies that target low-income people and those who have experienced significant increases in expenditures in order to leverage external opportunities and mitigate barriers people face on a daily basis ☔

SAMPLE INDICATORS

Number/percentage of low-income people who feel the services and programs set up achievable and realistic goals for them
Number/percentage of people who report feeling confident about navigating through life transitions
Levels of confidence in budgeting and managing finances
Risks to debt (e.g., middle-income people facing financial windfalls)