The financial sector has been an early site for the development and application of market development approaches, since the work of FinMark Trust in the early 2000s. But how does one know when a financial market is working well for the poor? Work to date has followed a clear theory of change based on increasing access to and usage of financial products through changing market systems. As poor customers use financial services, so they should be protected against shocks and enabled to climb out of poverty, in the process deepening and extending the financial system. However, as the goal of promoting financial inclusion has become mainstream policy in many countries, it has also become clearer that indicators of access and usage alone are necessary but not sufficient indicators of success. This paper seeks to highlight and present early results from an alternative application of a systemic approach which extends the linkages from access and usage to welfare changes which result, using the lens of financial health of users. This lens may have significant implications for focusing interventions and measurement in making markets work for the poor (M4P) programmes, emphasizing behaviour change over a narrow product focus only.

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Demirguc-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2015) The Global Findex Database 2014 Measuring Financial Inclusion around the World [pdf], World Bank Policy Research Working Paper 7255 <www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/15/090224b082dca3aa/1_0/Rendered/PDF/The0Global0Fin0ion0around0the0world.pdf> [accessed 22 June 2015].

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Elliott, D., Gibson, A. and Hitchins, R. (2008) ‘Making markets work for the poor: rationale and practice’, Enterprise Development and Microfinance 19(2): 101–19 <http://dx.doi.org/10.3362/1755-1986.2008.011>.

FinScope (2014) FinScope South Africa Consumer Survey 2014 [online], Finmark Trust <www.banking.org.za/docs/default-source/financial-inclusion/finscope/finscope-sa-2014.pdf?sfvrsn=12> [accessed 28 September 2015].

GSMA (2015) 2014 State of the Industry: Mobile Financial Services for the Unbanked [pdf] <www.gsma.com/mobilefordevelopment/wp-content/uploads/2015/03/SOTIR_2014.pdf> [accessed 25 September 2015].

Gutman, A., Garon, T., Hogarth, J. and Schneider, R. (2015) Understanding and Improving Consumer Financial Health in America [online], Chicago, IL: Center for Financial Services Innovation <www.cfsinnovation.com/Document-Library/Understanding-Consumer-Financial-Health> [accessed 22 June 2015].

Jack, W. and Suri, T. (2014) ‘Risk sharing and transactions costs: evidence from Kenya’s mobile money revolution’, American Economic Review 104(1): 183–223 <http://dx.doi.org/10.1257/aer.104.1.183>.

Kelly, S. and Rhyne, E. (2015) By the Numbers: Benchmarking Progress Toward Financial Inclusion [pdf], Washington, DC: Center for Financial Inclusion <https://centerforfinancialinclusionblog.files.wordpress.com/2015/06/by_the_numbers_financial_inclusion.pdf> [accessed 25 June 2015].

Porteous, D. (2004) Making Financial Markets Work for the Poor [pdf], FinMark Trust <http://bankablefrontier.com/wp-content/uploads/documents/MMW4P.pdf> [accessed 1 June 2015].

Porter, B. (2015) ‘The post-2015 future of financial inclusion’ [blog], 7 April 2015, Better Than Cash Alliance <https://www.linkedin.com/pulse/post-2015-future-financial-inclusion-better-than-cash-alliance?trk=mp-reader-card> [accessed 20 June 2015].

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Zollmann, J. (2014) Kenya Financial Diaries Shilingi Kwa Shilingi: The Financial Lives of the Poor [pdf], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/kenya-financial-diaries-shilingi-kwa-shilingi-the-financial-lives-of-the-poor/> [accessed 28 September 2015].

Zollmann, J. and Cojocaru, L. (2015) Cashlite Report: Are We There Yet? [pdf], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/cashlite-report-are-we-there-yet-rethinking-the-evolution-of-electronic-payments-in-kenya-based-on-evidence-in-the-kenyan-and-south-african-financial-diaries/> [accessed 28 September 2015].

Banerjee, A., Karlan, D. and Zinman, J. (2014) ‘Six randomized evaluations of microcredit: introduction and further steps’, American Economic Journal: Applied Economics 7(1): 1–21 <http://dx.doi.org/10.1257/app.20140287>.

Bankable Frontier Associates (BFA) (2013) Big Banks & Small Savers [online], GAFIS Project Report <http://gafis.net/gafis-project-report/> [accessed 22 June 2015].

Casey, M. (2014) ‘World’s “unbanked” en route to financial inclusion via mobile money’, Wall Street Journal, 5 November 2014.

Center for Financial Services Innovation (2015) ‘Presentation on Financial Health’, presentation to BFA, Boston 27 April.

Cull, R., Ehrbeck, T. and Holle, N. (2014) Financial Inclusion and Development: Recent Impact Evidence [pdf], Washington, DC: CGAP <www.cgap.org/publications/financial-inclusion-and-development-recent-impact-evidence> [accessed 22 June 2015].

Demirguc-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2015) The Global Findex Database 2014 Measuring Financial Inclusion around the World [pdf], World Bank Policy Research Working Paper 7255 <www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/15/090224b082dca3aa/1_0/Rendered/PDF/The0Global0Fin0ion0around0the0world.pdf> [accessed 22 June 2015].

Economist Magazine (2014) ‘Financial inclusion: a phone full of dollars’, Economist Magazine, 15 November 2014.

EFInA (2014) ‘Access to Financial Services in Nigeria Survey’ [online] <http://efina.org.ng/our-work/research/access-to-financial-services-in-nigeria-survey/> [accessed 22 June 2015].

Elliott, D., Gibson, A. and Hitchins, R. (2008) ‘Making markets work for the poor: rationale and practice’, Enterprise Development and Microfinance 19(2): 101–19 <http://dx.doi.org/10.3362/1755-1986.2008.011>.

FinScope (2014) FinScope South Africa Consumer Survey 2014 [online], Finmark Trust <www.banking.org.za/docs/default-source/financial-inclusion/finscope/finscope-sa-2014.pdf?sfvrsn=12> [accessed 28 September 2015].

GSMA (2015) 2014 State of the Industry: Mobile Financial Services for the Unbanked [pdf] <www.gsma.com/mobilefordevelopment/wp-content/uploads/2015/03/SOTIR_2014.pdf> [accessed 25 September 2015].

Gutman, A., Garon, T., Hogarth, J. and Schneider, R. (2015) Understanding and Improving Consumer Financial Health in America [online], Chicago, IL: Center for Financial Services Innovation <www.cfsinnovation.com/Document-Library/Understanding-Consumer-Financial-Health> [accessed 22 June 2015].

Jack, W. and Suri, T. (2014) ‘Risk sharing and transactions costs: evidence from Kenya’s mobile money revolution’, American Economic Review 104(1): 183–223 <http://dx.doi.org/10.1257/aer.104.1.183>.

Kelly, S. and Rhyne, E. (2015) By the Numbers: Benchmarking Progress Toward Financial Inclusion [pdf], Washington, DC: Center for Financial Inclusion <https://centerforfinancialinclusionblog.files.wordpress.com/2015/06/by_the_numbers_financial_inclusion.pdf> [accessed 25 June 2015].

Porteous, D. (2004) Making Financial Markets Work for the Poor [pdf], FinMark Trust <http://bankablefrontier.com/wp-content/uploads/documents/MMW4P.pdf> [accessed 1 June 2015].

Porter, B. (2015) ‘The post-2015 future of financial inclusion’ [blog], 7 April 2015, Better Than Cash Alliance <https://www.linkedin.com/pulse/post-2015-future-financial-inclusion-better-than-cash-alliance?trk=mp-reader-card> [accessed 20 June 2015].

United Nations Capital Development Fund (2006) Building Inclusive Financial Sectors for Development [pdf], New York: United Nations <www.uncdf.org/sites/default/files/Documents/bluebook_1.pdf> [accessed 25 September 2015].

Zollmann, J. (2014) Kenya Financial Diaries Shilingi Kwa Shilingi: The Financial Lives of the Poor [pdf], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/kenya-financial-diaries-shilingi-kwa-shilingi-the-financial-lives-of-the-poor/> [accessed 28 September 2015].

Zollmann, J. and Cojocaru, L. (2015) Cashlite Report: Are We There Yet? [pdf], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/cashlite-report-are-we-there-yet-rethinking-the-evolution-of-electronic-payments-in-kenya-based-on-evidence-in-the-kenyan-and-south-african-financial-diaries/> [accessed 28 September 2015].

Banerjee, A., Karlan, D. and Zinman, J. (2014) ‘Six randomized evaluations of microcredit: introduction and further steps’, American Economic Journal: Applied Economics 7(1): 1–21 <http://dx.doi.org/10.1257/app.20140287>.

Bankable Frontier Associates (BFA) (2013) Big Banks & Small Savers [online], GAFIS Project Report <http://gafis.net/gafis-project-report/> [accessed 22 June 2015].

Casey, M. (2014) ‘World’s “unbanked” en route to financial inclusion via mobile money’, Wall Street Journal, 5 November 2014.

Center for Financial Services Innovation (2015) ‘Presentation on Financial Health’, presentation to BFA, Boston 27 April.

Cull, R., Ehrbeck, T. and Holle, N. (2014) Financial Inclusion and Development: Recent Impact Evidence [pdf], Washington, DC: CGAP <www.cgap.org/publications/financial-inclusion-and-development-recent-impact-evidence> [accessed 22 June 2015].

Demirguc-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2015) The Global Findex Database 2014 Measuring Financial Inclusion around the World [pdf], World Bank Policy Research Working Paper 7255 <www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/15/090224b082dca3aa/1_0/Rendered/PDF/The0Global0Fin0ion0around0the0world.pdf> [accessed 22 June 2015].

Economist Magazine (2014) ‘Financial inclusion: a phone full of dollars’, Economist Magazine, 15 November 2014.

EFInA (2014) ‘Access to Financial Services in Nigeria Survey’ [online] <http://efina.org.ng/our-work/research/access-to-financial-services-in-nigeria-survey/> [accessed 22 June 2015].

Elliott, D., Gibson, A. and Hitchins, R. (2008) ‘Making markets work for the poor: rationale and practice’, Enterprise Development and Microfinance 19(2): 101–19 <http://dx.doi.org/10.3362/1755-1986.2008.011>.

FinScope (2014) FinScope South Africa Consumer Survey 2014 [online], Finmark Trust <www.banking.org.za/docs/default-source/financial-inclusion/finscope/finscope-sa-2014.pdf?sfvrsn=12> [accessed 28 September 2015].

GSMA (2015) 2014 State of the Industry: Mobile Financial Services for the Unbanked [pdf] <www.gsma.com/mobilefordevelopment/wp-content/uploads/2015/03/SOTIR_2014.pdf> [accessed 25 September 2015].

Gutman, A., Garon, T., Hogarth, J. and Schneider, R. (2015) Understanding and Improving Consumer Financial Health in America [online], Chicago, IL: Center for Financial Services Innovation <www.cfsinnovation.com/Document-Library/Understanding-Consumer-Financial-Health> [accessed 22 June 2015].

Jack, W. and Suri, T. (2014) ‘Risk sharing and transactions costs: evidence from Kenya’s mobile money revolution’, American Economic Review 104(1): 183–223 <http://dx.doi.org/10.1257/aer.104.1.183>.

Kelly, S. and Rhyne, E. (2015) By the Numbers: Benchmarking Progress Toward Financial Inclusion [pdf], Washington, DC: Center for Financial Inclusion <https://centerforfinancialinclusionblog.files.wordpress.com/2015/06/by_the_numbers_financial_inclusion.pdf> [accessed 25 June 2015].

Porteous, D. (2004) Making Financial Markets Work for the Poor [pdf], FinMark Trust <http://bankablefrontier.com/wp-content/uploads/documents/MMW4P.pdf> [accessed 1 June 2015].

Porter, B. (2015) ‘The post-2015 future of financial inclusion’ [blog], 7 April 2015, Better Than Cash Alliance <https://www.linkedin.com/pulse/post-2015-future-financial-inclusion-better-than-cash-alliance?trk=mp-reader-card> [accessed 20 June 2015].

United Nations Capital Development Fund (2006) Building Inclusive Financial Sectors for Development [pdf], New York: United Nations <www.uncdf.org/sites/default/files/Documents/bluebook_1.pdf> [accessed 25 September 2015].

Zollmann, J. (2014) Kenya Financial Diaries Shilingi Kwa Shilingi: The Financial Lives of the Poor [pdf], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/kenya-financial-diaries-shilingi-kwa-shilingi-the-financial-lives-of-the-poor/> [accessed 28 September 2015].

Zollmann, J. and Cojocaru, L. (2015) Cashlite Report: Are We There Yet? [pdf], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/cashlite-report-are-we-there-yet-rethinking-the-evolution-of-electronic-payments-in-kenya-based-on-evidence-in-the-kenyan-and-south-african-financial-diaries/> [accessed 28 September 2015].

Banerjee, A., Karlan, D. and Zinman, J. (2014) ‘Six randomized evaluations of microcredit: introduction and further steps’, American Economic Journal: Applied Economics 7(1): 1–21 <http://dx.doi.org/10.1257/app.20140287>.

Bankable Frontier Associates (BFA) (2013) Big Banks & Small Savers [online], GAFIS Project Report <http://gafis.net/gafis-project-report/> [accessed 22 June 2015].

Casey, M. (2014) ‘World’s “unbanked” en route to financial inclusion via mobile money’, Wall Street Journal, 5 November 2014.

Center for Financial Services Innovation (2015) ‘Presentation on Financial Health’, presentation to BFA, Boston 27 April.

Cull, R., Ehrbeck, T. and Holle, N. (2014) Financial Inclusion and Development: Recent Impact Evidence [pdf], Washington, DC: CGAP <www.cgap.org/publications/financial-inclusion-and-development-recent-impact-evidence> [accessed 22 June 2015].

Demirguc-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2015) The Global Findex Database 2014 Measuring Financial Inclusion around the World [pdf], World Bank Policy Research Working Paper 7255 <www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/15/090224b082dca3aa/1_0/Rendered/PDF/The0Global0Fin0ion0around0the0world.pdf> [accessed 22 June 2015].

Economist Magazine (2014) ‘Financial inclusion: a phone full of dollars’, Economist Magazine, 15 November 2014.

EFInA (2014) ‘Access to Financial Services in Nigeria Survey’ [online] <http://efina.org.ng/our-work/research/access-to-financial-services-in-nigeria-survey/> [accessed 22 June 2015].

Elliott, D., Gibson, A. and Hitchins, R. (2008) ‘Making markets work for the poor: rationale and practice’, Enterprise Development and Microfinance 19(2): 101–19 <http://dx.doi.org/10.3362/1755-1986.2008.011>.

FinScope (2014) FinScope South Africa Consumer Survey 2014 [online], Finmark Trust <www.banking.org.za/docs/default-source/financial-inclusion/finscope/finscope-sa-2014.pdf?sfvrsn=12> [accessed 28 September 2015].

GSMA (2015) 2014 State of the Industry: Mobile Financial Services for the Unbanked [pdf] <www.gsma.com/mobilefordevelopment/wp-content/uploads/2015/03/SOTIR_2014.pdf> [accessed 25 September 2015].

Gutman, A., Garon, T., Hogarth, J. and Schneider, R. (2015) Understanding and Improving Consumer Financial Health in America [online], Chicago, IL: Center for Financial Services Innovation <www.cfsinnovation.com/Document-Library/Understanding-Consumer-Financial-Health> [accessed 22 June 2015].

Jack, W. and Suri, T. (2014) ‘Risk sharing and transactions costs: evidence from Kenya’s mobile money revolution’, American Economic Review 104(1): 183–223 <http://dx.doi.org/10.1257/aer.104.1.183>.

Kelly, S. and Rhyne, E. (2015) By the Numbers: Benchmarking Progress Toward Financial Inclusion [pdf], Washington, DC: Center for Financial Inclusion <https://centerforfinancialinclusionblog.files.wordpress.com/2015/06/by_the_numbers_financial_inclusion.pdf> [accessed 25 June 2015].

Porteous, D. (2004) Making Financial Markets Work for the Poor [pdf], FinMark Trust <http://bankablefrontier.com/wp-content/uploads/documents/MMW4P.pdf> [accessed 1 June 2015].

Porter, B. (2015) ‘The post-2015 future of financial inclusion’ [blog], 7 April 2015, Better Than Cash Alliance <https://www.linkedin.com/pulse/post-2015-future-financial-inclusion-better-than-cash-alliance?trk=mp-reader-card> [accessed 20 June 2015].

United Nations Capital Development Fund (2006) Building Inclusive Financial Sectors for Development [pdf], New York: United Nations <www.uncdf.org/sites/default/files/Documents/bluebook_1.pdf> [accessed 25 September 2015].

Zollmann, J. (2014) Kenya Financial Diaries Shilingi Kwa Shilingi: The Financial Lives of the Poor [pdf], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/kenya-financial-diaries-shilingi-kwa-shilingi-the-financial-lives-of-the-poor/> [accessed 28 September 2015].

Zollmann, J. and Cojocaru, L. (2015) Cashlite Report: Are We There Yet? [pdf], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/cashlite-report-are-we-there-yet-rethinking-the-evolution-of-electronic-payments-in-kenya-based-on-evidence-in-the-kenyan-and-south-african-financial-diaries/> [accessed 28 September 2015].