RFP2408 Provision of Professional Consultancy Services for AFI’s pilot Financial Inclusion Country Assessments

1. Background:

The Alliance for Financial Inclusion

The Alliance for Financial Inclusion (AFI) is the world’s leading organization on financial inclusion policy and regulation. Currently, 89 member institutions make up the AFI network, consisting of central banks, ministries of finance, and other financial policymaking or regulatory institutions from over 84 developing countries and emerging markets. AFI empowers policymakers to increase the access and usage of quality financial services for the underserved through sustainable and inclusive policies and an effective use of digital technologies.

Peer learning is a critical component in AFI’s approach to accelerate practical financial inclusion knowledge generation and policy development. By sharing practical knowledge and experience, the network’s vast membership of developing and emerging market economies guides each other in best practices that can be adapted within their own countries and jurisdictions. Knowledge is shared voluntarily to help guide network members in the earlier stages of their financial inclusion journey, enabling the exchange of expertise from regulatory and supervisory peers facing similar local and national challenges. Network-wide guidance is provided through policy models and regional specific-guidance through policy frameworks.

Working groups are a key source of policy development and trends in financial inclusion and serve as “communities of practice” on key financial inclusion issues. AFI has 7 Working Groups (WG): Consumer Empowerment and Market Conduct Working Group (CEMCWG), Digital Financial Services Working Group (DFSWG), Financial Inclusion Data Working Group (FIDWG), Financial Inclusion Strategy Peer Learning Group (FISPLG), Global Standards Proportionality Working Group (GSPWG), Inclusive Green Finance Working Group (IGFWG) and SME Finance Working Group (SMEFWG). Each provides a unique peer-to-peer learning platform for members to develop and explore the challenges and successes of their specific but interlocking policy areas. The working groups receive strategic guidance and insight from the high-level Global Standards & Policy Committee (GSPC).

The knowledge generated via the working groups is disseminated for implementation through a range of capacity building activities such as Joint Learning Programs, Member Trainings, Trainings by Private Sector Partners. The practical experience members garner from engaging in peer learning based capacity building is then applied by members as in country implementation projects which are supported by the provision of financial or technical support to AFI member institutions in conducting activities that aim to deliver financial inclusion policies, regulations, supervisory tools or enablers for the development of policies, such as national financial inclusion strategies.

AFI’s five regional initiatives complete the AFI platform of services by supporting policy implementation in Africa (AfPI), Latin America and the Caribbean (FILAC), the Pacific Islands (PIRI), Eastern Europe and Central Asia (ECAPI) and the Arab Region (FIARI).

2. Project Background

AFI’s 2024 pilot Financial Inclusion Country Assessments

For more than a decade, the AFI network has been building a repository of knowledge in financial inclusion policy practices from the network which has been consolidated in a variety of Knowledge Products (KPs). Since 2019, the membership has also approved a process for elevating select guidance produced within the network as Policy Models, endorsed by the membership council for voluntary adoption across the network (Fig 1 below).

AFI Policy Models codify approaches that have been successfully applied in AFI member institutions, key lessons, and best practices within the network. They are presented as main pillars and steps to guide members for effective implementation of financial inclusion policies, based on significant evidence of widespread adoption and impactful implementation by members.

In order to support members to self-assess, receive systematic peer review of their progress in implementing AFI policy guidance, as well as the effectiveness of the reforms in achieving members’ financial inclusion goals, AFI has now developed methodology and process guidance for the piloting of the Financial Inclusion Country Assessment (FICA) as an additional AFI service available to members on a voluntary basis[1].

During 2024, two pilot country assessments will be initiated with the Philippines and Zambia, in partnership with AFI’s member institutions (Bangko Sentral ng Pilipinas (BSP) and the Bank of Zambia (BoZ)).

3. Project components

3.1 AFI Policy Models

The core of the country assessment will be the AFI Policy Models of which there are six currently adopted:

• Policy Model for Digital Identity and Electronic Know Your Customer (e-KYC)
• Policy Model for MSME Finance
• Policy Model on Consumer Protection for Digital Financial Services
• Policy Model for National Financial Inclusion Strategy
• Policy Model on Core set of financial inclusion indicators
• Policy Model for E-Money

Gender inclusive finance and the inclusion of disadvantaged groups (as per the 2019 Kigali Statement) will also be a strong focus as cross-cutting thematic priorities that appear in each of the existing Policy Models.

In addition, countries being assessed may, on an optional basis, select additional policy areas to be include in the assessment where AFI has a body of guidance and knowledge products at the consolidation/maturity stage of the AFI Policy Life Cycle.

3.2 Assessment Team

For each of the two pilots, the Assessment Team will comprise of the following:

• Representatives of the AFI Management Unit (AMU)
• Senior representatives of AFI’s member working groups
• 1 external expert consultant who will participate in both assessments (to be contracted via this RFP)

Collectively the assessment team must have sufficient depth and breadth of expertise across the technical aspects within the scope of assessment, as well as meeting standards of impeccable professional conduct.

Once selected, roles and responsibilities will be assigned to each team member.

3.3 Methods of analysis

AFI’s 2024 FICA pilot will be based on 2 main methods of analysis:

1. Technical assessment: s: This stage consists of a desk-based review of policies, regulations, and other interventions in a specific AFI jurisdiction based on the systematic guidance provided in the AFI Policy Models. The first stage will be a self-assessment by the assessed member, to be reviewed by the assessment team.2
2. Effectiveness assessment: This stage consists of a macro analysis of the impact of the overall strategy for achieving financial inclusion goals and desired outcomes established by the member within their jurisdiction. This would entail both quantitative (e.g. review of key indicators collected) and qualitative dimensions (e.g. stakeholder interviewers with a range of agencies and organizations involved in the financial inclusion strategy), taking place both virtually and in-person[2].

The assessment process would, as a starting point, be built on any monitoring & evaluation frameworks already in place in the country assessed usually as part of the implementation of the national financial inclusion strategy (NFIS).

3.4 Stages of Assessment

AFI’s 2024 pilot FICA process is envisaged to proceed in the following six stages:

1. Application

· Submission of the application form by assessed country to volunteer to participate

· Review of the application form by AFI Management Unit

· Appointment of assessment team by AFI Management Unit

2. Technical assessment: Phase I

· Submission of the technical self- assessment forms and supplementary materials for each policy area within scope of the assessment

· Kick-off meeting between the assessed country and the assessment team

· Development of a workplan and timelines of key milestones and deliverables

· Define the general outline of the assessment report

3. Technical assessment: Phase II

· Analysis of the technical self-assessment forms and supplementary materials by the Assessment Team

· Follow-up questions submitted by the assessment team, and responses from the assessed country

4. Effectiveness assessment

· Quantitative Effectiveness Assessment: Assessment Team’s review of M&E framework, monitoring data and internal evaluations conducted by the assessed country

· Qualitative Effectiveness Assessment: Key informant interviews/focus groups with a broad range of NFIS stakeholders in the assessed country

Note:

Effectiveness assessment for the first pilot assessment with Bangko Sentral ng Pilipinas (BSP) will be entirely virtual, whereas the second pilot assessment with the Bank of Zambia will be conducted virtually and in-person, with a one-week onsite during the effectiveness assessment stage.

5. Post country assessment

· Assessment Report development

· Review process

· Final report submission and acceptance

6. Monitoring

· Submission of follow-up form (1 year and 2 years post the assessment)

4. Scope of Work of Consultant

The selected Consultant will form part of the Assessment Team for AFI’s 2024 pilot FICA to conduct a comprehensive evaluation of the financial inclusion landscape in the two partner countries (i.e. the Philippines and Zambia).

The following sets out the scope of work and specific deliverables of the Consultant:

• Analytical work: Provide support to the Assessment Team in carrying out the following:
• (i)Data gathering and reviewing (during the Technical Assessment stage): provides support in reviewing/evaluating the self-reported technical assessments by BSP and the BOZ with supported evidence. Cross-checking data and information gathered against the Policy Models selected by each member. Requesting further information from members as and when needed to bridge any gaps in data collected.
• (ii) Quantitative/qualitative analysis (during the Effectiveness stage): support in the analysis of the effectiveness of up to two macro-outcomes specified by the members, reviewing both the quantitative (e.g. databases and surveys) and qualitative evidence gathered through the assessment (e.g. interviews and focus groups with relevant authorities and key stakeholders)
• (iii) Participate in a selection of the KIIs arranged, including participation in the one-week onsite for the second pilot assessment
• Coordination and Report drafting:
• (i) Lead the drafting the assessment report, coordinating inputs from the respective Assessment Team members. The report should compile and synthesize relevant data and insights from both technical and effectiveness assessment into a comprehensive report. The report will include relevant policy Lead in responding to reviewers’ comments on the draft assessment report, drawing in contributions from other assessment team members as necessary.
• Teamwork:
  • Participate as an external expert on the assessment teams, sharing relevant experience and expertise with other team members to support successful conduct of the pilot assessments.

5. Timeline and Deliverables

The assignment is expected to commence in Q2 2024 and end by Q1 2025. Below is a tentative timeline:

No.

Activity

Deliverables/Activities

Tentative Dates

Expected no. of days’ work

1

Appointment of Consultant

Signed Agreement with Consultant

End April

2

Inception Meeting

Agreement on scope, expected deliverables, support needed, reporting and related timelines with Assessment Team.

May

1

3

Technical assessment form

Analysis of the self-reported technical assessment form

June

3

4

Effectiveness assessment analysis – Quantitative

Review of quantitative data in support of effectiveness assessment

July

3

5

Effectiveness assessment – Qualitative

Support conduct of key informant interviews for qualitative assessment

August

3

6

Participation in Onsite Mission to 2nd Country

October (tbc)

5

7

Report development

Complete the first draft of the assessment reports, coordinating inputs from assessment team members

November

8

8

Final report submission

Respond to comments received on 1st draft reports and submit revised 2nd drafts

December

3

Total: 26

6. Travel

This consultancy work requires international travelling to support the effectiveness assessment (quantitative and qualitative data gathering) in Zambia (envisaged to last for approximately 1-week). Travel costs of the assessment team will be covered under separate arrangements in accordance with AFI’s travel policy.

7. Consultant Experience

The successful candidate should have:

• At least 10+ years of relevant experience in financial sector policymaking and regulation and an advanced university degree in a relevant field.
• Deep technical knowledge on strategies, policies, and regulations to support financial inclusion in developing countries. Proven ability to analyze technical aspects of financial inclusion laws, policies, and regulations, and to assess the effectiveness of policy interventions in promoting inclusive growth and resilience.
• Prior experience in country assessment processes, for example Financial Sector Assessment Programs (FSAPs) or similar exercises will be advantageous.
• Demonstrate sound policy judgment; analytical and quantitative skills; excellent oral and written communication skills; and a capacity to meet tight deadlines.
• Strong interpersonal skills and team spirit are required.
• Candidates shortlisted for the position may be asked to undertake a quantitative test and an interview as part of the selection process.

8. Reporting

Throughout the contract period, the Consultant will be reporting to the Project Lead from the AFI MU supporting this assignment.

9. Payment Terms

The payment terms/schedule proposed for this consultancy are as following:

Deliverables

Percentage

Technical Assessment: Upon completion of analysis of the Self-reported technical assessment forms

15%

Effectiveness Assessment: Upon completion of assessment data gathering and analysis (quantitative and qualitative)

30%

Report: Upon completion and dissemination of First Draft Assessment Reports

30%

Report: Upon completion of revised (final) Reports, incorporating feedback

25%

TOTAL: 100%

10. Administrative Information:

10.1 Disclaimer

The final decision on selection of a firm for this project rests with the AFI MU and the Inquiry. Only shortlisted and successful consultants will be contacted.

10.2 Proposal Submission Information:

Proposals will be due with the following requirements for submission:

Submission Deadline: 14 April 2024

Individual

· Full CVs with list of previous similar work;

· Disclosure if individual have a full time or part time employment contract with any organization or government official or indirect involvement in this tender;

· Conflict of Interest Disclosure form;

· Reference letter (if any);

· References with email contact;

· At least one (1) sample work (link or attachments) if any

Method of Submission:

By email to AFI’s Procurement & Contracts Office at RFP2408@afi-global.org

Submission of Technical and Financial:

Kindly submit the followings:

1. Using the template/format given in Annexure 1 (Technical) and Annexure 2 (Financial) and/or additional technical proposal for more information.

2. Technical and Financial proposal must be separated in different pdf.

3. Financial proposals must be USD only. Whereas for Malaysian applicants with Business Registration under Suruhanjaya Syarikat Malaysia (SSM), please submit your financial proposals in MYR.

4. Proposal to be submitted to the designated email address.

5. AFI does not tolerate copyright infringement, including but not limited to infringement, in the form of plagiarism. Consultant or Consulting entity awarded a contract by AFI shall take responsibility to ensure that the authored works, produced in parts or as an entirety of the deliverables stated in this RFP does not infringe on copyrights.

AFI reserves the right to disqualify incomplete submission, overlapping submission, non-compliance to the above requirements. Notification of results will only be sent to shortlisted candidates upon completion.

10.3 Retention of Proposals

All proposals submitted will become the property of AFI. AFI will make all reasonable efforts to maintain proposals in confidence and will release proposals only to personnel involved with the evaluation of the project. Proprietary information should be identified in each proposal.

11. Evaluation Criteria

The proposals submitted will be evaluated based on the following criteria:

Technical Scoring Criteria

1. Profile and Overall Qualification 10%

2. Technical Experience 60%

· Financial sector policy and regulation 30%

· Experience in policy impact evaluation and country-based assessment processes 20%

· Regional/Global experience 10%

3. Adequacy of proposed workplan and methodology 20%

· Workplan (include Level of Effort of team/individual) 20%

4. Sample Work - Relevance to assignment and demonstrated experience in writing 10%

Total 100%

Evaluation of technical and financial proposals

The evaluation and decision on the best proposal will be made based on the combined criterion, where companies are qualified by means of a score that takes into account the combined valuation of the technical and financial proposals, with the following weights:

1. i) Technical Proposal: 70% (Seventy percent)
2. ii) Financial Proposal: 30% (Thirty percent)