International Labour Organization Tender

Analysis Of Financial Service Landscape For Responsible Digital Wage Payments In Cambodia & Introduction And Background Better Factories Cambodia (bfc) Was Created In 2001 As A Unique Partnership Between The Un’s International Labour Organisation (ilo) And The International Finance Corporation (ifc), A Member Of The World Bank Group. The First Programme Of Its Kind, Bfc Pioneered A Unique Approach To Drive Change That Has Inspired The Establishment Of The Better Work Programme In 12 Other Countries. In The Last 20 Years, The Garment, Footwear, And Travel Goods Industry Has Contributed Significantly To The Recent Development Success Of Cambodia. Currently, The Industry Has More Than 1200 Factories That Employ Roughly 800,000 Cambodian Workers, Of Whom 80% Are Female Workers Indirectly Benefiting 2.5 To 3 Million People[1]. The Sector Offers Huge Potential For Wage Digitization, Which Could Benefit Workers, Factories, And The Industry. When Implemented Responsibly, Digital Wage Payments – Through Bank Accounts, And Mobile Money Wallets – Can Benefit Workers And Factories Alike. Digital Wages Can Promote Payroll Efficiency, Transparency, And Greater Market Access For Factories. The Transition From Cash To Digital Wage Payments Also Has The Potential To Improve Workers’ Well-being And Economic Opportunities, Providing Them With Greater Control Over Their Wages And Enhancing Their Access To Financial Account Ownership And Formal Financial Services, Such As Savings, Credit, And Insurance. Responsible Digital Wage Payments Support The Country’s Goals To Achieve Financial Inclusion And Broader Development Ambitions Toward The Digital Economy And Society. There Has Been Significant Progress Concerning The Level Of Wage Digitization In The Country With 56% Of Public Officials And 24% Of Private Sector Wage Earners Receiving Their Wages In A Financial Account In 2021[2]. The Sub-decree Issued In April 2023 Has Also Signified The Government’s Commitment To Accelerate Digital Wage Payments In The Public Sector, Aiming To Improve Efficiency, Effectiveness, Transparency, And Accountability.  The Covid-19 Pandemic Has Accelerated The Shift To Digital Wage Payments In The Sector, But Other Factors Have Also Contributed To The Faster Transition. Factories And Supply Chain Actors Have Slowly Recognized The Benefits Of Wage Digitization In Terms Of Business Efficiency, Productivity, Time-saving, Wage Protection, Transparency, Compliance, And Worker’s Financial Inclusion. In Addition, The Fast Development Of The Digital And Financial Infrastructure In The Country Has Facilitated Greater Financial Inclusion And Made Wage Digitization A Feasible Option For Factories And Their Workers. A Recent Study Showed That There Was A 65% Increase In The Number Of Workers Being Paid Their Wages Into Their Digital Account And A 55%-point Increase In The Number Of Women Workers Making Mobile Money Transactions[3]. ►roles Of Financial Service Providers (fsps) Fsps Are Playing A Critical Role In Promoting The Transition. As Of March 2024, At Least Ten Financial Service Providers (banks, Mobile Money Providers) Are Actively Providing Digital Payroll Services In The Sector, Channelling Wages Digitally Into The Financial Accounts Of Approximately 510,000 Garment Workers. Majority Of These Workers Have Opened Their First Bank Account To Receive Wage Payments. Typically, Fsps Develop Solutions In Consultation With The Factories, Facilitate The Opening Of Financial Accounts, Assist Workers In Accessing Their Digital Wages And Other Financial Services, And Address Issues And Complaints From Employers And Workers Following The Launch Or Rollout Of Digital Wage Payments. Despite Progress In Wage Digitization In The Sector, Challenges Remain. Several Surveys With Workers Have Shown That Many Workers Still Withdraw Their Full Wages On Or Around Payday. Despite Improvements In Recent Months, Only Few Workers Conduct  Money Transfers, Pay Bills[4] Or Save Using Their New Account.  unawareness, Lack Of Trust In Financial Institutions Or In Digital Financial Services, Fear Of Fraud And Scams, Limited Digital Capabilities Have Prevented Workers From Benefiting From  the Shift To Digital Wages. Some May Feel The Digital Wage Payment Solution Is Too Costly Or Merely Not Convenient Because Most Of Their Expenses Are Still In Cash Or Because They Cannot Choose The Account Or The Fsp To Which Employers Deposit Their Wages. Fsps Can Take An Active Role And Strengthen Efforts To Move This Agenda Forward In A Responsible Manner So That The Shift To Digital Wages Benefit Fully The Workers, In Particular The Most Vulnerable Among Them. It Is The Opportunity To Serve New Active Customers And Expand Their Client Base, Develop Client-centric Products And Services, Enhance The Usage Of (digital) Financial Services, And Contribute To Advancing Financial Inclusion In The Country.  fsps May Collaborate With Relevant Public And Private Stakeholders To Meet The Expectations Of The Employers And The Financial  Needs And Preferences Of Garment Workers Through Paying Increased Attention To The Issues Of Affordability Of Financial Services, Accessibility, Choice, Consumer And Data Protection, Financial Literacy, Digital Divide, Connectivity, And Support During The Wage Digitization Process..   To Effectively Advance Workers’ Access And Use Of Adequate Financial Services There Is A Need For Deeper Understanding Of The Landscape Of Existing Digital Payroll Solutions For Factories And Financial Products And Services For Workers, Fsp’s Experiences And Challenges In Serving The Market, Digital Financial Infrastructure And Fintech Solutions, And Relevant Labour And Financial Regulatory Frameworks In The Country. The Analysis Will Serve As Input For Financial/payroll Service Providers For The Development Or Improvement Of Existing Solutions That Respect The Principles And Practices Of  responsible Digital Wage Payments And Integrate Human Centred Financial Services To  Workers. The Analysis Will Also Serve As Input For Regulators.   To That End, Better Factories Cambodia And The Ilo’s Global Centre On Digital Wages For Decent Work Is Seeking To Engage An Experienced Consultant To Conduct A  an Assessment Of The Financial Services And Products For Supporting The Wide Adoption Of Digital Wage Payments And Enhancing Workers’ Usage Of Client Centred Financial Services In Cambodia. Scope Of Work, Methodology, And Expected Outputs. The Overall Objective Of This Assignment Is To Assess The Landscape Of Digital Payroll And Financial Services In The Context Of Responsible Digital Wage Payments In Cambodia And Document The Challenges And Opportunities Facing Financial Service Providers As They Adapt Their Business Models And Product Designs To Meet The Needs Of Target Groups And Address Key Consideration Of Responsible Digital Wage Payments. The Assessment And Analysis Should Aim To Address The Following Questions. What Are The Characteristics Of Digital Wage Payment Solutions With A Focus On But Not Limited To The Garment Sector And And Their Workers In Cambodia? To What Extent The Existing Solutions Have Addressed The Issues Of Affordability Of Financial Services, Accessibility, Choice Of Financial Service Providers And Of Accounts, Consumer And Data Protection, Financial Literacy, Digital Divide, Connectivity, And Inclusiveness For Vulnerable Clients Including Female Workers, Older Workers, Workers With Disability? What Are The Components Of The Business Models Behind The Solutions (fees, Cross Selling, Etc…)? To What Extent The Solutions Enhance Customers Access To And Use Of Services Such As Payments, Savings, Insurance, Loans And Contribute To Improving The Financial Health Of Workers? What Are Characteristics Of Other Digital Financial Services Available To Workers With Digital Wages? To What Extent They Are Aligned With Sustainable And Responsible Finance Practices? What Are The Challenges And Opportunities (from Entering The Digital Wage Payment Market, Engagement With Enterprises And Their Workers, Business Sense, Technological Solution, Product Design And Uptake, Competition, Regulatory And Policy Framework Perspective) Facing These Financial Service Providers As They Serve These Segments Of Customers (enterprises And Their Workers) And Adjust Their Business Models Towards Inclusive Digital Payrolls And Financial Services? What Aspects/considerations Related To Responsible Digital Wage Payments Should The Concerned Government Institutions Incorporate Into Their Legislations, Policies And Other Measures? What Are Key Recommendations For The Financial Sector And Other Private And Public Actors To Consider When Designing Interventions Or Providing Support To Ensure Responsible Digital Wage Payments In Cambodia?   Key Deliverables And Timeframe The Research Consultant Will Be Expected To Produce The Following Deliverables: An Inception Report Including A Summary Background Of The Study, Research Objective, Methods Of Assessment (preferably Qualitative Methods), Key Informants, Data Collection Tools, Ethical Considerations, And Timeframe Of The Assignment. Key Informants Will Primarily Include Representatives Of Financial Service Providers And Their Industry Associations, And Relevant Government Institutions. Secondary Key Informants Are Employers’ Organizations, Trade Unions, Development Partners And Other Experts. A Draft Assessment Report, Including An Executive Summary, Detailing The Research Design, Findings Based On Key Themes And Guiding Research Questions Above. The Datasets To Be Collected Are Expected To Be Insightful And Represent Cambodia’s Digital Payroll Service Market. The Report Is Expected To Generate New Evidence And Analysis Of The Financial Sector In The Context Of Responsible Digital Wage Payment And Propose Key Recommendations For Better Factories Cambodia, The Ilo’s Global Centre On Digital Wages For Decent Work, And Private And Public Sector Stakeholders To Inform Product Designs And Policy Changes That Ensure Responsible Digital Wages. A Revised Assessment Report Following The Feedback Of The Technical Review Team. A Draft Powerpoint Presentation And Present The Findings At Validation And Sharing Workshops Organised By The Ilo To Collect And Integrate Stakeholders’ Insights, Concerns, And Recommendations. A Final Report (maximum 15 Pages Excluding Annexes) In English As Well As A Two-page Executive Summary Detailing Results, Key Figures, Insights, And Policy Recommendations. Annexes Include All Data Collection Tools Used (in English And Khmer Language), A List Of Persons Interviewed Or Surveyed, Primary Data Collected In Forms Such As Transcripts, Data Files, Or Recordings, And Ethical Guidelines Followed. The Contract Is Expected To Start No Later Than September 01, 2024. The Timeline For The Deliverables Shall Follow The Following Table: Deliverables And Target Due Dates Deliverable1: Inception Report September 10, 2024 (feedback From The Technical Review Team Provided By September 16, 2024) Deliverable2: Draft Assessment Report And Presentation Of Preliminary Findings October 15, 2024 (feedback From The Technical Review Team Provided By October 20, 2024) Deliverable 4: Submission Of Final Assessment Report After Addressing Comments From The Technical Team. 31 October 2024 The Consultant Will Be Responsible For Designing And Implementing The Research Activities And Organising The Logistics For His/her Transportation And Lodging, Etc. Better Factories Cambodia Will Provide Coordination Support And Relevant Information Serving The Purpose Of The Analysis. The Consultant Will Work Closely With And Report To The Digital Wage Project Officer Under The Direct Supervision Of The Programme Manager Of Better Factories Cambodia. The Consultant  will Work And Receive Technical Input From Experts From The Ilo’s Global Centre On Digital Wages For Decent Work And Collaborate With Other Members Of The Bfc Team.   Qualifications And Experience The Consultants Are Expected To Be Individuals, Teams Of Individuals, Or Institutions. The Individual Or Team Leader Should Have The Following Qualifications: Master’s Degree In Economics, Finance, Banking, Business Management, Development Studies Or Related Fields At Least 10 Years Of Combined Experience Working In The Fields Of Inclusive Finance, Digital Financial Services Or Digital Payments, Women’s Economic Empowerment, Enterprise Development. At Least 5 Years Of Experience With Using Qualitative Research Methods, Data Analysis, And Reporting. Demonstrated Experience Conducting Research And Writing High-quality Reports On Digital Wage Payments, Decent Work, Financial Inclusion, Digital Financial Services, Digital Transformation, Gender Equality, Or Related Topics. Demonstrated Ability To Engage Effectively And Sensitively With Policymakers, Business Leaders, Trade Union Leaders, And Vulnerable Groups. Proven Experience In Conducting Gender Analysis. Knowledge Of The Garment Industry In Cambodia And The Business Processes Of Garment Factories. In-depth Understanding Of The Social, Political, Economic, And Cultural Context. Ability To Work In A Multicultural Environment. Gender-sensitive Behaviour And Attitudes. Good Interpersonal Skills, And Strong Written And Oral Communication Skills In English. Knowledge Of Khmer Is An Advantage. Application Interested Applicants Should Submit Their Technical And Financial Proposals In English. The Proposals Should Clearly Outline: Cover Letter, Explaining Why The Applicant Is Suitable For The Assignment Organizational Capability Statement And Profile Of Key Staff And Personnel Clearly Showing How The Qualifications Required Are Met Understanding Of The Task And Approach/methodology Suggested For Carrying Out The Assignment Of And The Timeline For Actions To Be Undertaken To Fulfil The Assignment Financial Proposal Outlining An Estimated Budget For The Overall Assignment Including Professional Fees And Cost Estimates With Breakdown By Necessary Budget Lines The Technical And Financial Proposal Should Not Exceed Seven Pages Excluding Annexes. Proof Of Similar Assignment, Including Papers Produced If Possible, And Cv(s) Of Key Staff And Personnel To Be Involved Are Required As Annexes. Submission Of Proposals To: Procurement.bfc@ilo.org, By  26 August 2024. Please Mention “impact Assessment Of Digital Wages On Cambodia’s Garment Industry” In The Subject Of The Email. For Enquiries Related To The Assignment, Interested Candidates Should Contact Mr Virak Nuon (nuon@ilo.org) Confidentiality Statement All Data And Information Received For This Assignment Are To Be Treated Confidentially And Are Only To Be Used In Connection With The Execution Of These Terms Of Reference. All Intellectual Property Rights Arising From The Execution Of These Terms Of Reference Are Assigned To Ifc And Ilo. The Contents Of Written Materials Obtained And Used In This Assignment May Not Be Disclosed To Any Third Parties Without The Express Advance Written Authorization Of The Ifc And Ilo.