This pura vida spirit could also be used to describe the status of financial inclusion in Latin America and the Caribbean, as the industry proactively pushes for product innovation to increase access and lower cost, while confronting challenges like overindebtedness and rural finance.
Despite years of donor programs that have had an explicit goal of helping build the market for capacity building, the market—where it exists—is highly subsidized with few viable providers able to adapt to an evolving landscape. Can we change this?
Overall IFC’s strategy is driven by its desire to extend reach and its understanding that to do so we need to give full consideration to complex ecosystems which must hold a value proposition for all players involved.
The real strength of microfinance is industry building – creating institutions that bring useful services to poor people who need them. While clients’ businesses rarely revolutionize the economic fabric of their communities, microfinance institutions (MFIs) do.
As the U.S. Government’s Development Finance Institution, the Overseas Private Investment Corporation (OPIC) has a mandate to help channel private capital to address some of the world’s toughest development challenges. One of the core ways we carry out that mission is by working with microfinance institutions. In recent years, OPIC has tailored its financing and insurance products to better serve the microfinance sector.