Research on whether financial services improve poor people's well-being offers mixed — seemingly contradictory — results. To extract useful lessons about why financial inclusion has different impacts in different places, we need to focus on one thing: context.
Today, the global development community generally accepts that poverty is more than just a lack of income. What do multidimensional concepts of poverty mean for those who see poverty reduction as the ultimate goal of financial inclusion?
While PAYGo solar companies can lower delinquency rates by improving their credit risk management practices, improving repayment starts with even more fundamental factors: having an affordable, quality product and effective collections.
Financial health has emerged as a useful framework for talking about whether financial services improve poor people's ability to manage their financial lives. But how can we understand whether better financial management improves people's well-being?
Digital credit is a testament to the ways in which technology and new business models can assist in the expansion of financial services to low-income households. But it also points to potential hazards of letting a market develop unchecked.
Funding for financial inclusion quadrupled between 2007 and 2017. However, greater coordination is needed to ensure funders focus on filling gaps in the sector without duplicating efforts and they build interventions based on their comparative advantage.