DFS Central
Tools and Approaches for Better Digital Finance Programming
How to Use this Guide
The guide is organized around the Agency’s Program Cycle with additional information in the introductory section on basic definitions, context, and available trainings. Also included before the program cycle sections is “Make the Case” — the importance of digital financial services for all sectors to help you build support for this work either in new or existing activities. We recommended readers skim through the document in sequential order rather than jumping right to the program cycle.
How can we help you?
I want a quick snapshot of digital financial services in my country
See "PROGRAM CYCLE - STRATEGIC PLANNING - Resources for quickly assessing the status of a country’s digital financial services".
I want to learn more about digital financial services in general
Check out “THE BASICS - Introductory USAID trainings and resources”. 
We have no discretionary funding but want to build the case
Consult “MAKE THE CASE - Digital as Cross Cutting” for facts about how activities in various sectors can benefit from digital financial services and consider including some supportive activities in those awards.
Our mission has some funding and wishes to design a new activity
That’s great news! Find resources and sample procurement documents at “PROGRAM CYCLE - ACTIVITY DESIGN”. Please also check out the Private Sector Engagement section at the very end.
We are getting the message that we have to do something about technology
Consider starting out with a Digital Ecosystem Country Assessment. This tool will soon be a requirement for all USAID operating units and will provide an overview with recommendations of the best entry points for your situation.
PURPOSE
The purpose of this guide is to provide a self-service platform for USAID staff and stakeholders interested in using digital financial services to better lives and development outcomes in the places they work. Financial inclusion fosters economic development while building resilience, empowering marginalized groups, promoting inclusiveness, and potentially improving humanitarian outcomes when deployed with sensitivity and sustainability in mind.
Technology is fundamentally changing our operating environment and touches every sector we work in. The powerful effect of digital access as an accelerator of social and economic development can mean that societies and communities that are not online risk quickly falling behind simply by “standing still.” This was remarkably apparent during the COVID-19 pandemic. Enabling remote and contactless payments is vital to the health and safety of communities and we must remain aware of developments in this space to advocate for security, privacy, and consumer protections. Our goal with this guide is to facilitate the integration of digital payments and digital financial services across all sectors in which USAID works.
Digital payments are the default method of payment under all USAID awards since this 2014 procurement executive’s bulletin. By and large, awardees have met this requirement through individual efforts or requested an exception due to the level of development of financial services in-country.
In some countries, USAID implements activities that have improved the overall financial sector and payments environment to facilitate digital payments. This makes it easier for our implementing partners to meet the requirement for digital payments. USAID can leverage the aggregate demand of its implementing partners for digital payments as another incentive or push for positive change in partner countries. USAID Washington conducted a survey in 2020 to identify the barriers implementing partners commonly face in adopting digital payments. This document can be utilized by all OUs as a starting point. Our implementing partners can be a source of information on the daily experience of using a country’s digital payment system.
Most of the documents in this guide are geared towards a stand alone financial sector activity that benefits all sectors. Embedding digital financial services in awards in other sectors is possible if that is the best approach for your specific situation. “MAKE THE CASE - Digital as Cross Cutting” provides some ideas if this is the best avenue.
The benefit of digital payments and digital financial services cannot be fully realized without both digital and financial capability or literacy. In the financial services context, “digital literacy” is often combined with “financial literacy” as “digital financial literacy,” which is defined as “the application of digital literacy and financial literacy to enable the use of digital financial services.” Having a basic understanding of finance and of managing money through digital tools, like a mobile phone or applications, is a prerequisite for the safe adoption of services like mobile money or digital credit. For more on this topic, check out USAID's Digital Literacy Primer.
Digital financial inclusion is defined as digital access to and use of formal financial services by excluded and underserved populations. Inclusive digital financial services are suited to the customers’ needs and delivered responsibly, at a cost that is affordable to customers and sustainable for providers.
ENJOYED THIS GUIDE?
Then feel free to send us your feedback! We’re also accepting additional materials at dfs@usaid.gov to help keep this guide up-to-date, including statements of work, project descriptions, and other helpful material.
If you need further assistance, please reach out to dfs@usaid.gov, ask a question on our Google Group page, or visit the Digital Finance team site.
STILL NEED HELP?
You can also reach out to the following sector-specific digital champions for more information:
Bureau for Resilience and Food Security - Josh Woodard (jwoodard@usaid.gov)
Bureau for Humanitarian Assistance - John Lamm (jlamm@usaid.gov) and William Martin (wmartin@usaid.gov)
Bureau for Global Health - Sherri Haas (shaas@usaid.gov)
Private Sector Engagement - Molly Dean, DFS Industry Lead (mdean@usaid.gov)
Last updated: 2023-10-30