New Guidelines for Funders of Financial Inclusion
CGAP's new Guidelines for Funders: A Market Systems Approach advocates that funders of financial inclusion shift their approach from institution building to building broader and sustainable markets. This blog series provides insight from a variety of funders on how they have made this shift, the challenges they have encountered along the way, and why this new approach works.
A market systems approach to financial inclusion seeks to identify the root causes that prevent low-income people from accessing and using financial services. The program diagnostic process should be designed and implemented through a systems lens.
What does it mean to take a systemic approach to financial inclusion? Learn more from these selected resources on market systems development.
Shifting to a market systems approach has many practical and operational implications, especially around staffing, relationships, monitoring and evaluation, and coordination. USAID is one organization that is implementing these shifts and is sharing some lessons learned along the way.
Shifting to a market systems approach to funding financial inclusion has been a challenge, although effective, for JICA.
CGAP's revised guidelines for financial inclusion funders reflect a shift from an institution-building approach to inclusive finance to one that is rooted in the complexities of broader market systems.