Embedding research at the heart of the UK’s financial capability strategy

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MRS Financial Services conference

Driving the UK Financial Capability agenda

MRS Financial Services conference17th November 2016

Nick WatkinsHead of Insight & Evaluation, Money Advice [email protected]

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Strategy launched in October 2015

The Financial Capability Strategy

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Critical role for insight and evaluation

Definition and measurement

DiagnosticsSharing the

evidence

Commission at scale Test and learnIdentify potential

solutions

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The Adult Financial Capability survey

• Nationally representative survey of UK adults aged 18+

• Fieldwork conducted online (74%) and face-to-face (26%)

• Total of 5,603 interviews

• 3,461 nationally representative

• 2,142 boost interviews in devolved nations and with 18-24 year olds

• Extensive questionnaire development

• Interviewing April – July 2015, conducted by GfK

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Saving and budgeting

A wealth of data

Personal wellbeing,

confidence and ability to

pay bills

27 minute interview130 questions

Future planning and goals

Attitudes to

money

Product holding

and credit usage

Demographics : income,

housing tenure, presence of

children etc

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Some headline findings

Levels of financial capability are too low

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Making sense of the data

Demographics

and other

characteristics

Financially

capable

behaviours

Wellbeing

measures

Financial

enablers

and

inhibitors

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What influences current wellbeing?

Demographics

and other

characteristics

(35%)

Financially

capable

behaviours

(25%)

Other things

(43%)

Financial

enablers and

inhibitors

(33%)

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The ‘additive’ effect on wellbeing

Demographics and

other

characteristics

(13%)

Financially

capable

behaviours

(25%)

Other things

(43%)

Financial

enablers and

inhibitors

(19%)

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Financially capable behaviours

Financially

capable

behaviours

Managing money well day-today• Managing credit use

• Active saving

• Keeping track

Managing and preparing for life events• Building resilience (savings and protection)

• Working towards goals

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Financial enablers and inhibitors

Financial

enablers

and

inhibitors

Mindset• Financial

confidence

• Savings mindset

• Considered spending

Ability• Financial numeracy

Connection• Digital engagement

• Financial engagement

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The building blocks of financial capability

Managing

creditFinancial

engagement

Active saving

Financial

Confidence

Building

resilience

Financial numeracy

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Concept of collective impact

Success criteria

• Common agenda• Shared measurement systems• Mutually reinforcing activities• Continuous communication• Backbone support

organisation

Source : Stanford Social Innovation Review

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Collective impact in practice

Financial Capability Board and Steering Groups

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Building and sharing the evidence base

MAS research

• Financial Capability Survey and analysis

• Financial resilience segmentation

• Over-indebtedness model

• Programme of ‘deep dives’

• Literature reviews

• Other research

28 IMPACT signatories

50 toolkit users

80 case studies or reviews Further 200+ to add

www.moneyadviceservice.org.uk/en/corporate/research

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Do we know what interventions work?

A B C

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Grant funding

• £7m programme

• To generate evidence around specific ‘what works’ questions

Expert support

• Will use MAS evaluation resources

• Support from both MAS and Evaluation & Learning Partner

More evidence

• Should fill gaps in the evidence

• All uploaded to our Evidence Hub

Increased capability

• Will ‘pump-prime’ the sector’s evaluation practice

What Works Fund

Launched June 2016

409 Expressions of Interest received

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Financial Capability Week 2016

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Embedding research at the heart of the UK’s financial capability strategy

Presentations & Public Speaking