Questions and answers - service design
Service design
Archive: This document has been retained for archival purposes; it has not been updated since the 2016 BFC service design was completed.
Why have we moved from budget services to Building Financial Capability?
When we spoke to clients and other stakeholders it was clear that we needed to take a closer look at budget services.
Providers let us know that there were shortfalls in the way services were being supported and funded. The needs of people experiencing financial hardship are increasingly diverse and complex, and our services didn’t meet these needs.
They also told us they thought services were not consistently integrated with Work and Income and other social services to make sure clients were getting the right support when they needed it.
Clients said they needed more flexible and empowering services to take into account complex needs and emphasised the importance of engaging family, whānau and community support.
How does this change relate to wider Government strategies?
The shift supports the Government's National Strategy for Financial Capability endorsed by Cabinet in 2015, which aims to work collaboratively to improve the wellbeing of families, whānau and communities, help reduce hardship, and increase investment and economic growth.
The approach is also in line with MSD’s Community Investment Strategy, which aims to better target funding to those with the highest needs, through programmes and providers who demonstrate they are meeting these needs, with evidence about what works.
What’s the difference between budget services and new Building Financial Capability services?
Budget services were focused on budgeting whereas new Building Financial Capability services target financial capability.
This means taking clients’ diverse and complex needs into account and recognising the importance of engaging families, whānau and communities.
Building Financial Capability services encompass a new set of products and services which take a strengths-based approach. The approach is flexible, adaptive, and collaborative, and aimed at delivering a seamless and empowering experience for clients.
The new service structure is more consistent and better integrated with other support systems, agencies and MSD service lines, such as Work and Income.
Providers will be connected to other social services and help people get the support they need when they need it.
Building Financial Capability services also take the nature of financial hardship into account - that it is a situation in time, that people can slip in and out of hardship at different stages of their lives, and that they are part of a whole system of influences.
How do Building Financial Capability services use a strengths-based approach?
A strengths-based approach focuses on the client’s capacity, skills, knowledge, connections and potential to help them achieve their goals.
Relationships and rapport are the cornerstones of this approach. It is about working collaboratively with clients so they have choices and control over the support they receive.
Acknowledging the client’s strengths and working with these is the starting point for positive change.
A strengths-based approach does not ignore problems or difficulties. It aims to identify the client’s strengths and the resources they need to address their challenges.
It helps the client to:
- feel understood and appreciated
- learn to set realistic goals and expectations for themselves
- view challenges as opportunities not obstacles
Who should receive Building Financial Capability services?
The new services are for people and their family and whānau who are experiencing financial hardship and need help with their financial situation.
The focus is on household finances rather than business or commercial finances.
Are services only funded for Work and Income clients?
No. Services are for vulnerable New Zealanders experiencing financial hardship, regardless of whether they receive support from Work and Income. Clients can self-refer or be referred by community organisations, government agencies or anywhere else.
What does 'financial hardship' mean?
We define financial hardship as having insufficient resources to meet basic needs, and thus being excluded from a minimum acceptable way of life in one’s own society.
What if clients want to improve their current situation but there is no immediate crisis or large outstanding debt?
Building financial capability is not just about reducing debt and dealing with an immediate crisis while it’s happening. It also involves working on goals that allow clients, their family and whānau to be resilient when a crisis strikes. Creating savings for a rainy day might be something that a client wants to work towards with the support of a provider.
Will new Building Financial Capability providers offer services to groups as well as individuals?
Yes, MoneyMates is the new peer-led support where clients learn from others, talk about and de-stigmatise financial hardship, and gain control over their financial lives to make longer-term behaviour changes for the better.
Find out more about MoneyMates.
Does the MoneyMates concept replace community education?
No. MoneyMates peer-led support is a separate service and does not affect other community education work.
Find out more about MoneyMates.
Can a MoneyMates session be for one person only?
No. A group session is for an average of four to eight people (minimum of 4).
How does MoneyMates work in smaller communities where everyone knows each other?
The concept of sharing and learning together at a group level has proven success in both large and small communities, as seen with programmes such as Weight Watchers.
Participants are encouraged to talk openly about money and finances - not necessarily about the specific details of their own debt, but about choices, options and behaviours.
Content delivered in the sessions may include, for example: budgeting, goals and savings, managing debt, future planning, credit and consumer rights, and opportunities to increase your income or resources, and community support.
What is a financial mentor?
Budget advisors have been reframed as financial mentors to take into account the complexity of people's needs and to recognise the fact that many advisors have been providing more than budget advice alone.
The financial mentor helps the client; their family and whānau navigate the financial and social support system, linking with a range of social services to ensure people get the right support.
They have connections with key groups, especially Work and Income Case Managers, social service agencies and debt agencies.
Do providers have to deliver a set number of financial mentor sessions and a set number of MoneyMates sessions per year, or is there some flexibility between these?
Providers delivering both MoneyMates and financial mentor services can move their total number of sessions fluidly between the two. This means providers can choose to deliver MoneyMates when they have a sufficient number of clients who will benefit from it, rather than having to deliver a set number of sessions per year. This flexibility will enable providers to better respond to the needs in their community.
What constitutes a follow up session; can it be a phone call or is it always face-to-face?
Face-to-face (or Skype) sessions are preferable but we recognise that is dependent on clients’ ability to get to the service – or the service to provide outreach. Providers may use their discretion for a follow-up session.
How will ’no show’ costs and volumes be dealt with?
The Building Financial Capability service model is based on sessions which include face-to-face and administration time. The demand for Building Financial Capability services is expected to be high, and we expect that ‘no show’ spots will be used to complete administration tasks that are funded as a part of a session, or filled with another client if possible.
We understand that last minute cancellations and ‘no shows’ are unavoidable, and it can be very hard to fill this session space. We also recognise that a ‘no show’ would require less than the full session time available. While there is likely to be some face-to-face time lost, there could be pre- and post-appointment work required. Therefore, any cancellation or ‘no show’ that occurs within 24 hours of the session will be quantified at 50% of the full session rate (i.e. 1.5 hours), reflecting the pre- and post- appointment work required. For reporting purposes, a completed session equals two ‘no shows’. This should be supported by details of ‘no shows’ in your Provider Return narrative report.
As we refine the referral process with Work and Income we expect the number of Work and Income clients that are ‘no shows’ to decline. We also expect that there will be a number of clients that are difficult to engage with and envisage that you will develop strategies to engage these hard to reach clients, to mitigate possible ‘no shows’. Over the period of the contract, we will be monitoring the number of ‘no shows’ as well as the associated issues which should also be captured in your contract reporting.
Will ‘no show’ payments apply to all clients, not just Work and Income referrals?
Yes
How will a financial mentor set out a client’s exact financial position?
Along with the sector, we co-designed the Financial Plan of Action, a new strengths-based financial plan that builds on the budget sheet.
The Financial Plan of Action is supported by a guide for financial mentors.
Find out more about the Financial Plan of Action.
Does the Financial Plan of Action completely change the way we currently operate?
No, it is designed to strengthen and build on how services were previously operating.
When can we use the new Financial Plan of Action?
The Financial Plan of Action is available for you to start using now but we acknowledge that there will be a period of transition.
New Building Financial Capability providers will have the opportunity to discuss resources in detail and ask MSD staff questions at workshops in November and December 2016. Training for facilitators will also be available in early 2017.
Will the Financial Plan of Action be developed further?
Yes, we will continue testing and development over the coming months. We will be seeking feedback and suggestions for improvement from December 2016 onwards so we can continue to improve the resources.
We aim to have the Financial Plan of Action finalised and fully in use by all Building Financial Capability providers by July 2017.
Where did the terms ‘financial mentor’ and ‘MoneyMates’ come from?
Both of these terms were suggested by, and tested with, the sector representatives and clients we engaged with through the design phase.
Do we have to use the terms ‘financial mentor’ or ‘MoneyMates’?
Not necessarily.
However, clients in particular told us that they need help with financial planning to live better, more financially independent lives, and the term ‘financial mentor’ reflects that.
This term also recognises and builds on the breadth of experience of those in budget service roles, and the complexity of client needs they’re supporting.
‘MoneyMates’ reflects the concept of building a support group of people who can help change behaviour around money.
Do we need to change the name of our organisation if we’re called a budget advice service?
No, you don't.
Are these the only changes? What else is being done?
There will be on-going work with clients, providers and experts to enhance and further develop how services will be delivered over time. We will keep you informed about opportunities to engage with us throughout the process.
Make sure you are subscribed to our Building Financial Capability e-newsletter to stay up to date with the latest developments and to provide feedback on our work to date.
What form should client feedback take?
We expect client feedback to be obtained in a way that allows clients to freely express opinion of the service. This is a compulsory component of the Outcome Agreement and part of providers’ contractual responsibility to MSD.
Will Work and Income refer clients who are trespassed from a Work and Income service centre to Building Financial Capability service providers?
We’re reviewing how we refer clients to programmes and providers where they are trespassed from a Work and Income Service Centre. There is a lot to consider and we’re working with our Health Safety and Security team, Community Investment and the Work and Income- National Commissioner to identify a common approach.
We will continue to work through this but in the meantime, Work and Income will not refer clients to programmes or providers where they are trespassed from a Work and Income Service Centre.
