TechInPacific – It is used daily and usually, but we don’t often remember that they are there: finance tools. They have been working as the supported system underlying our lives, connecting one link to another, moving money, handing money, and helping us to budget.
Nevertheless, the finance system, owned by people with low income is not as special as those who have a high income. It is important to understand that the benefit of financial inclusion is not only needing the perspective from different segments and customer context but also asking the customer perspective from various economic and finance backgrounds. How do they feel about using the formal finance service? Do they receive benefits, such as greater physical safety, less stress, or a higher income? These kinds of question are the focal point of CGAP’s Theory of Change, representing various channel where the financial service helping poor people to improve their wellbeing in every individual condition and context
To help lighten the pathway that refers to the use of certain financial services, the UNCDF Impact Pathways method is designed. This is created to advantage users’ experience and as the potential contribution overtime. To determine people who utilized financial products in different modes, the UNCDF Impact Pathways method uses transaction and balance.
Moreover, to measure how they perceive the benefit of using financial services, this method uses data surveys to gain information.
It is mentioned by many experts in these sectors that financial service does not give maximal influence to SDG without other participation. Besides, financial service often becomes a part of an intervention that endeavors to reduce poverty, as is the case of many poverty programs.
Research conducted by Impact Pathways demonstrated that consumers consider digital financial tools because they have benefits ranging from environment, product, and pathways. The result is showing how the tools have benefits for people with low income.