Measuring Financial Well-being: Metrics for Regulators

Financial Regulation and Operational Excellence November 30, 2025
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Introduction

This course focuses on the shift from simply measuring financial inclusion (access and usage) to assessing **Financial Well-being (FWB)** as the ultimate policy outcome. Participants will explore different conceptual models of FWB, learn how to design, implement, and analyze FWB surveys, and identify a dashboard of practical metrics for regulatory monitoring. The training emphasizes the use of FWB data to inform financial capability interventions, consumer protection policy, and the overall success of national financial inclusion strategies, moving beyond simple metrics like the number of bank accounts.

Objectives

Objectives:

Upon completion of this course, participants will be able to:

  • Analyze the conceptual differences between **financial inclusion, financial literacy, and financial well-being (FWB)**.
  • Interpret and apply various global frameworks for measuring FWB (e.g., US CFPB, OECD).
  • Design and implement a robust methodology for conducting a national-level **Financial Well-being Survey**.
  • Identify a core set of **Financial Well-being Metrics and Key Performance Indicators (KPIs)** suitable for regulatory monitoring.
  • Analyze FWB data to identify financially vulnerable segments and diagnose the root causes of low well-being.
  • Develop data-driven policy recommendations for financial inclusion and consumer protection based on FWB outcomes.
  • Understand the process of integrating FWB metrics into the broader **National Financial Inclusion Strategy (NFIS) M&E** framework.
  • Evaluate the impact of financial sector policies (e.g., debt regulations, payment systems) on consumers' financial well-being.

Target Audience

  • Regulators and Policy Makers from Central Banks and Ministries of Finance
  • Economists, Researchers, and Data Analysts in Regulatory and Government Agencies
  • Financial Inclusion and Consumer Protection Specialists
  • International Development Bank Staff focused on Survey Design and Impact Assessment
  • Academics interested in Financial Well-being Measurement
  • Non-Governmental Organizations (NGOs) focused on consumer outcomes
  • Heads of Corporate Social Responsibility (CSR) and ESG Reporting

Methodology

  • Case Studies analyzing the results and policy response to national FWB surveys (e.g., US, Canada, Australia).
  • Group Activities on designing a mini-FWB survey module with five core questions.
  • Discussions on the challenges of measuring subjective financial security and satisfaction.
  • Individual Exercises on interpreting a sample FWB data set and drawing policy implications.
  • Workshop on developing a regulatory dashboard of FWB-related Key Performance Indicators.
  • Expert presentation on psychometric scaling and survey validation techniques.

Personal Impact

  • Expertise in a cutting-edge, data-driven approach to financial sector policy evaluation.
  • Ability to design and execute robust, high-quality social science surveys and analysis.
  • Enhanced skills in using complex metrics to inform and justify public policy decisions.
  • Deep understanding of the drivers of consumer financial security and resilience.
  • Increased value to organizations committed to evidence-based policy and social impact.
  • Professional recognition as a specialist in outcomes-focused financial regulation.

Organizational Impact

  • Shift from output-focused to outcome-focused financial inclusion policy.
  • More effective targeting of financial capability and consumer protection interventions.
  • Improved evidence-based policy making through the use of rigorous, national data.
  • Better assessment of the true impact of financial sector reforms on households.
  • Enhanced ability to benchmark national performance against global FWB standards.
  • A financial system whose success is measured by the well-being of its users.

Course Outline

Unit 1: The Concept and Rationale for Financial Well-being

Section 1: Defining the Ultimate Outcome
  • Defining **Financial Well-being (FWB)**: Security, freedom of choice, and resilience.
  • The shift from measuring access (outputs) to measuring outcomes (well-being).
  • The economic and social case for prioritizing FWB in public policy.
  • Review of leading conceptual models (e.g., CFPB's four components).
Section 2: The Measurement Landscape
  • Overview of global indices and national FWB surveys (e.g., OECD/INFE, Findex).
  • Differentiating objective (e.g., savings rate) and subjective (e.g., stress level) FWB metrics.
  • The challenge of using simple financial inclusion metrics as proxies for FWB.
  • Ethical considerations in collecting and using sensitive FWB data.

Unit 2: Designing a Financial Well-being Survey

Section 1: Methodology and Instrument Design
  • Best practices for designing a nationally representative FWB survey.
  • Developing a valid and reliable **Financial Well-being Scale or Index**.
  • Integrating FWB modules into existing household or financial inclusion surveys.
  • Sampling, fieldwork, and quality control considerations for survey implementation.
Section 2: Data Analysis and Segmentation
  • Techniques for analyzing FWB survey data (regression, segmentation, factor analysis).
  • Identifying and profiling groups with low FWB (e.g., women, youth, low-income).
  • Diagnosing the policy gaps (e.g., lack of savings, poor debt management) driving low FWB.
  • Visualizing FWB data for effective policy communication and prioritization.

Unit 3: FWB Metrics for Regulatory Monitoring

Section 1: Dashboard and KPIs
  • Selecting a dashboard of high-frequency FWB-related indicators for regulatory use.
  • Metrics for measuring financial resilience (e.g., emergency savings, debt-to-income).
  • Monitoring FWB across the financial product lifecycle (savings, credit, insurance).
  • Using regulatory data (e.g., complaint volumes, default rates) as FWB proxies.

Unit 4: Policy Integration and Impact

Section 1: Informing Policy
  • Using FWB results to justify and prioritize financial capability interventions.
  • Tailoring consumer protection policy (e.g., debt rules) to address specific FWB gaps.
  • Integrating FWB objectives and metrics into the NFIS monitoring framework.
  • Evaluating the ex-post impact of financial policies on consumer FWB.

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