Terms of Reference
– Principle Researcher and Research Assistant
 

Theme: Resilience and Financial Services
Title: Research support on Indonesian MFI clients
demand for and use of savings and insurance product to mitigate catastrophic
risks
Timeline: April to early July 2016
Location: Indonesia (West Sumatra and Jogjakarta) and
Remote
 BackgroundThrough funding from USAID/ODFA, Mercy Corps has been
implementing the Indonesia Liquidity Facility after Disaster (ILFAD) program
since 2011. The initiative has gone through several iterations though at its
core it has the following outputs:   ·        
Short disaster risk reduction (DRR) trainings to
microfinance institutions (rural banks and cooperatives) (MFIs) to prepare for
emergencies.·        
Disaster savings products and most recently
micro-insurance offered by the rural banks and cooperatives·        
Model of liquidity fund for MFIs to access
during the post-disaster period. Since the inception of the program in June 2011, ILFAD program
has launched 14 disaster-specific savings product in five provinces; Aceh, West
Sumatra, DKI Jakarta, Yogyakarta and East Java. The launched products are well
accepted by communities in the five provinces, with accumulated total of 2,273
clients. ILFAD has established a partnership with ACA Insurance to develop
micro-insurance products that provide specific coverage in relation to natural
disasters. Several rural banks and cooperatives have launched disaster microinsurance
and savings products. Purpose of research·        
Collect client-level demand data and conduct
analysis to understand savings, credit, insurance needs, preferences and
barriers to financial inclusion. ·        
Analyze how client-level preferences and needs
impact the ability of financial institutions to ensure financial inclusion can
support client’s disaster resilience, including the ability of the financial
institution to provide appropriate liquidity.·        
Use data to inform the decisions of microfinance
institutions and institutional donors.·        
Feed into a larger case study on the ILFAD
model and the role of financial institutions and formal financial products in
building client-level resilience in the face of shocks and acute stresses. Scope of the ResearchThrough internal funds, Mercy Corps will conduct a research to
understand how potential financial end-users (MFI clients) currently cope and
manage their household and financial resources in light of acute shocks
(earthquakes/ tsunami and volcanoes), as well as client preferences and
barriers related to the use of formal financial services for disaster risk
management.  The purpose of the analysis
is to better understand how financial institutions can better design financial
products that support disaster resilience. This research will include an
existing sample of current ILFAD MFIs (conventional rural banks,  and cooperatives) in West Sumatra and
Jogjakarta and current disaster product clients of participating MFIs,
non-disaster product clients, and potentially a 3^rd sample that is
in the same income range but not accessing formal financial products. This research will complement Mercy Corps’ post-earthquake Nepal
assessment[1] as it
will follow similar themes to understand the current role of informal and
formal financial products as well as the perceived role of social networks and
government in both current reoccurring stresses and potential acute shocks
(earthquakes, volcanic eruption). This research can serve as a baseline to be
used in case of potential future shocks and stresses. Research will include questions will allow us to understand:·        
Market segmentation of disaster financial
products – segment who has taken the product by age, gender, cash flow,
location, type of MFI, and geography. ·        
Examine types of (1) savings (formal and
informal) and (2) insurance (formal and social safety nets) used as risk
mitigation for different potential costs and emergencies.·        
Understand the influence of marketing, methods
of collecting saving and social networks (family/neighbors) when deciding what
financial products to engage.·        
Understand the role of culture, perception of
risk and potential ‘karma’ of planning ahead for disasters (especially
catastrophic disasters) and current perception on insurance  image and how these impacts household and
business-level risk mitigation and the MFIs internal risk mitigation
procedures.[2]·        
How do disaster-focused products compare to
‘regular’ savings and credit products. What are the advantages or
disadvantages? Should Mercy Corps promote/pursue disaster-specific savings and
credit, or promote people to access financial products more broadly.·        
Roll of incentives (i.e. a lottery or bundled
insurance) in encouraging savings and other risk mitigation.Scope of WorkThe total
number of days and project dates are tentative and will be finalized with the
potential applicant. The estimate total number of days for this project is 55
days. All applicants must be available to start on/around April 18, 2016 and
will be completed by early July 2016. 

  LocationMercy Corps Indonesia’s main office is
located in Jakarta and this is the base from where the ILFAD team operates the
programme. For the purpose of this research, the researchers will collect data
from households and MFIs of ILFAD partners located West Sumatera and Jogjakarta.
  Requirements and

QualificationsThe research will be carried out by individuals or a consultant
firm, which consist of a principal researcher and a researcher
(junior/assistant), in collaboration with an international researcher.  The principal
researcher will be responsibleto develop research design, survey instrument and data
collection plan in collaboration with an international
consultant, to analyze collected data, and to finalize report.Researchers will be responsible to recruit,
train and to lead the enumerators in collecting data through survey.  The principle researcher should have the following qualifications:·           
Technical expertise in microfinance and
household economic decision-making ·           
Demonstrated excellent skills in sound
research design, both on quantitative and qualitative         methodology, in developing survey
instruments for data collection and in analysis.·           
Ability to organize individual interview and
group discussions·           
Minimum 10 years of
qualitative and quantitative program evaluation experience including design and
management. ·           
Knowledge of the microfinance

environment, including knowledge of key factors affecting financial inclusion
among marginalized communities, as well as barriers and opportunities for
expansion among microfinance institutions·           
Experience in statistical and
regression analysis, particularly in relation to microfinance research·           
At least 5 years’ experience with working for
or conducting formal research on microfinance institutions  (cooperative, BPR/community bank) with a number of publications.·           
 Strong
written and oral communication skills in English, including report development,
writing and editing. ·           
Have Indonesian nationality  The
principle researcher should also suggest a Research Assistant who has
the following qualifications:·           
Technical expertise in economic/economic
psychology/socio-economic/statistic. ·           
Demonstrated skills in data collection, both
on quantitative and qualitative methodology.·           
Ability to organize individual interview and
group discussion·           
Minimum of ten (10) years experience, at least 5 years relevant experience in research or consultancy service on micro
finance, micro-insurance and family financial management.·           
Previous experience with micro financial institution
(cooperative, BPR/community bank) is desirable.·           
Having Indonesian nationality. TimeframeThis research
consultancy is anticipated to be started in mid-April and ended in early July
2016.  
Please send
application letter with CV of ‘Principle Researcher’ and ‘Research Assistant’
to: [email protected]
Application Due: By 17.00 on Friday,
March 25, 2016