Impact evaluations in the financial inclusion sector often attempt to measure the financial health of their participants. However, there is little consensus about what financial health consists of and how it should be measured, making it difficult to compare findings about financial health across studies. IPA is developing a standardized set of metrics for measuring financial health that can be used in a variety of contexts.

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An informal savings group meeting

To understand the potential gains from formal banking, we must first understand the risks and returns that the poor face from financial-service options in the informal sector. Yet, while informal financial products dominate the financial lives of the poor, we have scant data and analysis on either informal savings or informal debt.

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