Promoting Inclusive Markets and Financial Systems
The MasterCard Foundation works with visionary organizations to provide greater access to education, skills training and financial services for people living in poverty, primarily in Africa. As one of the largest private foundations its work is guided by its mission to advance learning and promote financial inclusion to create an inclusive and equitable world. Based in Toronto, Canada, its independence was established by Mastercard when the Foundation was created in 2006. For more information and to sign up for the Foundation’s newsletter, please visit www.mastercardfdn.org. Follow the Foundation at @MastercardFdn on Twitter.
In 2014, Freedom from Hunger, with support from the Consultative Group to Assist the Poor (CGAP), designed a study to gather information on household resilience. A key question of the resilience research related to the financial product features that help people anticipate and respond to shocks. Given that RCPB had a health financial product on the market designed to help people anticipate and respond to health expenses, the resilience research tools and the sampling methodology included questions related to the use of RCPB’s health savings and loan product. A diary approach was used with 46 women over a seven-month period to understand how they anticipated and coped with shocks. In addition, an economic game, engaging 395 women, was facilitated by researchers from the University of California, Davis. The economic game also set out to observe the household decision making process regarding the choices they make about allocating resources in hypothetical scenarios, including the use of financial instruments designed to help people manage the risk of costly negative health shocks.