This is a concept note on the Financial Action Learning System (FALS). It proposes an action learning approach towards a responsible finance partnership between marginalized clients and financial service providers (FSPs). It puts ‘the client’ central. The value add of the approach is that it 1) enables clients in vulnerable situations to replicate financial literacy amongst their peers; 2) triggers and structures gendered behavior change; and 3) provides an alternative to top-down market research by FSPs by involving marginalized clients in product development and design of services.
The concept can be adapted for both credit-based financial services and community-managed microfinance (VSLA, saving groups, ROSCA etc.)