4 March 2015

Pathways to ResilienceGreater Impact through Applied Research

NZ Community Finance

12 September 2017

2

Key Findings

1

2

3

NILS creates positive changes in clients’ financial capability.

It also improves social and economic outcomes.

NILS reaches the most vulnerable groups, and diverts them

away from predatory lenders.

$1 invested in NILS = $2.54 in socio-economic value.

4 Client outcomes are influenced by how service is delivered.

3

Impacts of Microfinance

1The loan provides

access to credit

2The item purchased

using the loan

3The loan delivery

process

Economic:

Cost savings

Financial independence

Social & Health:

Reduced stress/anxiety

Improved relationships

Economic:

Build assets

Cost savings

Employment opportunity

Social & Health:

Quality of life

Self-esteem/confidence

Physical Health

Economic:

Cost savings

Social & Health:

Feel supported

Social connectedness

Confidence

Wellbeing

Financial Capabilities:

Financial Management

Financial Confidence

# 1. Research

“Pathways to Resilience: The Impact of Financial

Conversation on the Financial Capability of NILS

Applicants”

4

5

Financial Capability

6

Financial Self-Efficacy

7

Methodology

8

Sample Size: Surveys & Focus Groups

65

294

10

41

9

Finding 1: NILS experience is a journey

10

Finding 1: So What?

11

Before you go in

you have already

looked at your

budget to see if you

can afford a NILS

loan.

Finding 2: Impact Varies

12

Before you go in

you have already

looked at your

budget to see if you

can afford a NILS

loan.

Finding 2: So What?

What

support

does this

client

need?

# 2. Improved Training,

Programs & Policy

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“Pathways to Resilience: Good Learning Modules”

14

Good Learning Training Module

Workers

37 sites

3,400+

clients

50 min.

Training

15

Practical Tools to Tailor Support

Videos of

Conversations

Nudge videos

Checklists

16

Practical Tools to Tailor Support

17

Feedback from Microfinance Workers

18

Policy Enhancements

Maximum Loan Amount up from

$1,200 to $1,500

Concurrent Loans: If needed &

client is eligible, a 2nd loan to

purchase essential good/service is

possible, provided:

• repayments are affordable for the client

• total amount outstanding for both loans < $1,500