FSMs = Financial Summary Measures

What are FSMs?

FinScope^TM measures effective access to and use of financial services, along with how people manage their money and what drives financial behaviour. The research delivered a robust segmentation or continuum of the financial market in terms of access and attitudes to financial services from those who have full access (the "fully banked") through to those who have no access at all.

What does the model cover?

The FSM model classifies people into 8 tiers based on a variety of measures.

The model includes the combination of four broad components:

  Financial penetration (take-up of comprehensive list of financial

     services, both formal and informal),
Attitudes to money, yielding two classifications, namely financial

     knowledge; and control and financial discipline,
  Physical access to banks, as well as
  Connectedness and optimism.

The FSM Algorithm:

An algorithm, which will be universally applicable, classifies a person into one of eight tiers for each of the above components. The prototype is currently under review by a panel of experts and interested parties.

Where and when to use FSMs?

The FSM model can be used in conjunction with any other segmentation model, since it lends a focussed perspective of financial behaviour and will shortly be available for inclusion in other studies.

FSM Prototype Calculator (Click to download, size 95KB)
Questions about your experiences with things to do with money & some things
about yourself ..