The G20 Global Partnership for Financial Inclusion (GPFI) has published a G20 policy note on financial well-being that was endorsed by G20 Finance Ministers and Central Bank Governors. The note sets out a shared concept of financial well-being through a working definition and preliminary conceptual framework, and proposes an initial roadmap for developing a measurement framework. The working definition frames financial well-being as a state where individuals can manage financial needs and obligations, cope with negative shocks, pursue aspirations and opportunities, and feel satisfied and confident about their financial lives, while reflecting country-specific circumstances. A preliminary theory of change links financial sector policies and interventions, including digital infrastructure, financial inclusion, financial consumer protection, and financial and digital literacy, to these outcomes, while recognising wider contextual factors. On measurement, the note discusses objectives and use cases, highlights the complementary roles of surveys and administrative or transactional data, and provides illustrative question and indicator examples across the four elements. The note describes measurement development as an iterative process requiring further testing and validation, and indicates that a full measurement framework was beyond the scope of the GPFI’s 2024 work.
GPFI 2025-01-08
G20 Global Partnership for Financial Inclusion publishes policy note defining financial well-being and outlining measurement roadmap
The G20 Global Partnership for Financial Inclusion (GPFI) released a policy note on financial well-being, endorsed by G20 Finance Ministers and Central Bank Governors. It introduces a shared definition and framework for financial well-being, linking financial sector policies to outcomes like financial inclusion and literacy. The note outlines an initial roadmap for developing a measurement framework, emphasizing the iterative nature of this process and the complementary roles of surveys and data.