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Dimensions and Indicators

1. Convenience 1.1 - Cost of services Distribution (mean and variance) of interest rate on loans by range of users income Distribution (mean and variance) of interest rate on loans by geographic area Distribution (mean and variance) of other costs (except interest) on loans by range of user income . Distribution (mean and variance) of other costs (except interest) on loans by geographic area Average TCEA

Observations

It may be important to have an indicator by type (or group of types) of loan. For example, Real state mortgage represents less than 10% of loan assets in Brazil. Indicator essential for large countries with heterogeneous level of development over the country. Measuring the distribution of costs on loans by geographic area is a relevant information. High loan fixed costs (such as insurance and tariffs) limit competition in the market. Also, costs should be analyzed considering users income level, in order to highlight barriers to low income users.

Rate that includes all the costs (interest rates, insurance and other fees) for a credit, with defined credit amount and terms. Average effective annual percentage rate for credits Average rate of the credits, by type of product (Corporate, Large Enterprises, Medium Enterprises, Small Enterprises, etc) Distribution (mean and variance) of Annual Interest Rates adding other costs To assess if it is available Cost Calculators for generic financial products posted in websites by authorities or and fees (Total Annual Cost (CAT in Mexico)) on different financial generic basic private institutions and to compare average costs by type of financial generic products. The challenge is between financial products. differences in products for comparable services. In Mexico there are some research in Credit Card comparisons a. Classic Credit Cards performed by the Central Bank. b. Mortgages c. Personal Credits d. Communal or group microcredits. (Cooperatives and MFIs) Distribution (mean and variance) of costs on deposits by range of user income Distribution (mean and variance) of costs on deposits by geographic area Average TREA Average effective annual percentage rate for deposits Average cost by generic deposit accounts. Fees for opening deposits accounts: a. Payroll accounts b. Checking accounts with and without interests c. Generic Savings accounts

Rate that represents the total yield of a deposit (interest rates, maintenance and other fees) for a deposit, with defined deposit amount and terms Average rate of deposits, by type of product (transactional account, savings and fixed term deposit). Availability of calculators and comparable tables. Indicator on the average costs by type of product.

Average Returns on generic savings accounts (savings or term deposit accounts) Availability of calculators For a national average indicator maybe it could be weighing by the total assets or by the number of accounts by each type of account. Availability of Basic Accounts (cost free) from financial institutions This are free cost accounts so it would be interesting who is using them. Number of Active Basic Accounts / Total number of deposit accounts 1.2 - Waiting time in queues By geographic area: Number of transactions with waiting time in queues over XX 60 minutes can be a benchmark, but other number might fit as well. We also believe that this information should minutes in banking branches / Number of transactions be restricted to banking branches. Average waiting time in queues / Number of clients Information is measured privately by the banking companies, in a daily basis, but not requested by SBS 1.3 - Opening hours Average working hours per day 1.4 - Days a week of service Many workers are not available to attend to a branch in week-days. We suggest also to have an analysis by financial channel.

1.5 - Complexity of services Does regulation defines a standard to simplify loan contracts to low income clients? Does regulation defines a standard to simplify deposit contract to low income clients? Does regulation defines a standard to simplify insurance and pension fund contracts to low income clients? Does regulation defines a standard to simplify remittance tariffs for low income clients? Disclosure of tariff information in financial institutions branches: Total Number of branches that show updated tariffs information/Total number of branches Exhibition of contract forms in financial institutions branches: Number of branches that show updated contract forms / Total number of branches Number of documents required to have access to a loan.

Tariffs are showed in the financial institutions branches, as required by the rules of transparency of information. This information is also considered in consumer protection - preventive measures. Contract forms are showed in the financial institutions branches, as required by the rules of transparency of information. This information is also considered in consumer protection - preventive measures. The number of documents required to get access to a loan could show the complexity of financial services. The indicator proposed by Brazil does not apply in the context of Burundi because the regulation in place does not allow the regulator and the Government to interfere with the management of banking services by suppliers. The shorter the time a client puts to get the documents the quicker the client gets the loan, which reduces the service complexity. It is starting in certain countries the practice of promoting through regulation "simplified accounts" that requires less documents and is limited to certain amounts of transactionality for avoiding AML/TF issues. If there is such an initiative it would be interesting to compare the simplicity on this.

Average time required to get the required documents to access a loan. Number of official documents required for opening the most simplified deposit account

1.6 - Product fit and flexibility (suitability) Percentage of low income people who have difficulties to fulfill formal requirements to contract financial services Do formal requirements come from regulation or from the industry? 2. Client Security 2.1 - Probability of transaction or registration errors (operational risks) Number of loss events for operational risk in execution, delivery and process management / Total number of transactions Amounts claimed in loss events (in local currency) / Amounts that were solved in There is a Regulatory Report in development at the CNBV only for banks for measuring this by institution and by favor of the client as percentage financial channel by which came the claim (Branch,POS, e-commerce, etc.) in a quarterly basis.

2.2 - Stability of the financial institution Percentage of financial services directed to low income users provided by FI in compliance to Basel Accord standards Liquid Asset / Short term liabilities Morosity ratio Capital Adequacy ratio 2.3 - Continuity of services in the locality Number of closures by institution Number of customers affected by the closure of institutions (or branches) that provide financial services (credit and deposit) in a geographic location / population of the geographic location Number of customers affected by the closure of financial services (credit and deposit) in a geographic location / population of the geographic location By geographic location: Number of closure of financial services distribution channels (branches, correspondents etc) / number of distribution channels Is there regulation that address the responsibility of the FI with its customers when financial services distribution channels are closed? Number of loss events for operational risk in business disruption and system failures 2.4 - Access to safety net Deposit insurance coverage: Percentage of deposit covered by Deposit Insurance of low income users Existence of schemes of deposit insurance by type of institution 3. Consumer Protection 3.1 - Preventive measures Is there a legal framework on consumer rights and on protection of customer information? Does it apply to financial service customer? Is there a public authority to regulate and supervise issues related to banking consumer protection, such as transparency on contract terms of financial services? Is it the banking supervision authority? Does regulation of institutions that provide financial services require ombudsman? Are there indicators showing the number of complaints against institutions that provide financial service? Is this information free to the public? Supervision visits to financial institutions branches: Percentage of regulatory compliance on the supervision visits to financial institutions branches Talks about financial culture: Number of people attending the talks / Number of economically active population Existance of Basic Caratules (containing the basic information) for certain financial services: mortgages, microcredits, deposit accounts, etc. Consumer orientation Number of consultations attended / Adult population Orientation for affiliates to the private pension funds system: Number of consultations attended / Number of affiliates to the private pension funds system Financial Education: Number of trained teachers / Total number of high school teachers Number of students who received the training by its teachers/ Total number of high school students 3.2 - Corrective measures Percentage of people informed of their consumers rights when contracting financial services Percentage of people informed of the procedures to resolve controversy when contracting financial services Are controversy resolution channels available (free and of easy access) to people? Average time to controversy resolution in the institution - ombudsman. Number of customer complaints to ombudsman / number of financial services customers Average time to controversy resolution in the public authority, to controversies not resolved in the institution Number of customer complaints to the public authority / number of financial services customers Average time to controversy resolution in the judiciary courts, to controversies not resolved in the financial authority Number of customer complaints to judiciary courts / number of financial services customers Controversy resolution on private pension funds system: Complaints/ Number of affiliates to the private pension funds system Denouncements attention: Average number of denouncements by institution Sanctions to Financial System and Insurance System: Number of sanctions imposed on financial institutions for failure to comply with the rules of transparency of information and customer service Sanctions to Private Pension Funds System Number of sanctions imposed on Private Pension Funds for failure to comply with the rules of transparency of information and customer service 3.3 - Complaints resolution Average time of complaints attention by trimester

This indicator may replace others related to minimum financial requirements. To non regulated institutions, we suggest the following indicators below Monthly average daily balance of liquid assets and short term liabilities Percentages of total direct loans that are more than 30, 60, 90 e 120 days of default by company and group companies.

The numerator of this indicator will be different from zero only when the geographic location remains with no institution to provide financial service.

This information is used for supervisory purposes and it is not disclosed to the user.

SBS organizes free talks aimed at low-income sector, which are held in many public and private companies, teaching about topics such as savings, home budget, over indebtedness, planification for retirement.

SBS is in charge of orientating the consumer in order to reduce the asymmetry of information between the public and the supervised companies. Specialized and technical information about requirements, conditions, characteristics, procedures related to the benefits for who will access to a pension in the future, and other topics related to the Private Pension Funds System. SBS has reached an agreement with the Ministry of Education for training public high school teachers about topics related to the Financial System, Insurance System, the Private Pension Funds System, and Asset Laundering. This program is called Teachers training program and has being offered since 2007.

SBS has not the faculty of controversy resolution between the consumers and providers. The Users Attention Platform process denouncements related to Financial, Insurance and Private Pension Funds System. Sanctions information is used internally to track the behavior of the supervised entities, currently this information is not disclosed to the public

The complaints about institutions of the Financial, Insurance, and Private Pension Funds Systems, are reported quarterly to the SBS and disclosed in the web page of each institution.

3.4 - Level of indebtedness

Level of indebtedness by range of users income and by geographic region Percentage of late payments by range of users income and by geographic region We may define what does late payments mean, in a common basis. 90 days is a default definition in Brazil, but it can also be used a different parameter, such as 30 days delay. The average amount of credit is calculated over the total of the financial system debtors while the average income Average amount of credit / average income of the employees of employees is calculated from national survey of social data Number of debtors classified as Normal/Total number of debtors in the financial system Number of debtors with late payments by category/Total number of debtors in There are five categories for debtors: Normal, Potential Distress, Deficient, Dubious, Loss. the financial system 4. Financial Literacy What is the scope of Financial Literacy in your country? Does the scope encompass low income people? Does the scope encompass people living in rural areas? How is financial literacy measured? Is measurement of financial literacy already in progress? How does the progress in financial literacy impact financial inclusion in your country? How is it been measured? Number of financial literacy meetings organized by the public authority per year Percentage of customers informed of their rights and obligations Percentage of customers who discuss about their loan contracts with the bank Number of financial literacy meetings attended by consumers per year Level of financial literacy of high school teachers

In the Peruvian Teachers training program it is measured the level of financial literacy of high school teachers, at the beginning and at the end of the program. The questionnaires include questions about financial system, insurance system, private pension funds system and asset laundering. Measured by the Financial Capability Survey in Peru - 2011, whose main purpose is to establish a baseline measure of financial capability in terms of how well people: make ends meet; plan ahead; choose financial products; and stay informed about financial matters This measurement should have a further classification in terms of: A) the types of institutions that sponsor this programs (government, financial institution, social network, etc.); (B) Channels of the release and the general scope of the financial education programs; (C) the people targeted for them (i.e., students, teachers, workers, rural women, urban professionals, etc. and, (C) Impact of effectiveness assessment (if each program have an assessment of impact in its design and how are they doing).

Level of financial capability of users

Number of financial education programs that are currently developed in each country

National indicators of Financial skills (capabilities) in terms of 4 basic topics: Day to day money management: % of people that claim to have certain attitudes and behavior towards money management: (i) keep a track of income and expenditures, (ii) A balance between expenditures and income to avoid overindebtness; (iii) Who takes financial decisions within the household and how?; (iv) When having a small business do you keep a separate financial track of it? Financial Planning: % of people that develops different financial strategies (savings-investments, credit, insurance and a combination of them) for facing in the short, medium and long term : (i) foreseen expenses; (ii) unexpected sudden expenses; (iii) financial planning of children education and housing; (v) financial planning for retirement; How do you do it? Approach to develop national indicators on the good use of four basic financial services as a first step: a. Credit Card b. Payroll Account c. Basic life insurance (and microinsurance) d. Pensions

Measure the strategies people commonly take to select from different financial products. 5. Choice 5.1 Level of competition Percentage of the number of municipalities by the number of financial service distribution channels (eg. banking branch, banking correspondent, cooperative branch etc). Percentage of the number of municipalities by the number of financial services institution. Number of financial services/products offered by FI in a municipality Percentage of clients who get the service/product wanted from FI in a municipality Percentage of respondents who consulted information sources before making a decision Percentage of respondents who could not find other products to consider for its decision

This new approach of financial education indicators would scope in developing the conceptual framework of different impact routes that would lead a relationship between the particular type of financial education program and changes in attitudes, knowledge and behavior. (i) identify basic products of high impact in terms of usage; (ii) identify what basic skills involve the usage of these basic products; (iii) identify the way to teach this basic skills; (iv) Measure this skills in terms of attitude and behavior. A part of the apporach on the financial education indicators would focus on measuring: (a) Acknowledgement and understanding in the basic usage of each of these 4 products. (b) Attiudes towards each of the 4 products. (c) Common practices in the usage and identification of mis-usage of each of this 4 products. (d) Changes in the behavior as a result of a particular financial education programs. This is considered as a part of the financial education and financial capabilities development of indicators and should be measured through a demand-side survey.

e.g.: 10% of municipalities have access to one distribution channel (DC); 15% have access to 2 DC; 30% have access to 3 DC; 45% have access to 4 or more DC. e.g.: 10% of municipalities have access to one financial service institution (FSI); 20% have access to 2 FSI; 40% have access to 3 FSI; 30% have access to 4 or more FSI. This indicator measures how the services/products offered by FI match clients' needs, i.e. , Is the financial services industry product-led or Customer-led?