Microfinance institutions are often unprepared to manage the changes that come with digitization. The good news is that through effective change management, they can digitize successfully and generate value for themselves and their customers.
Teenage men and women in Kenya and South Africa adopt formal savings accounts at similar rates. But when they hit their 20s, men continue to adopt formal services while women begin gravitating toward informal services. Why?
Pay-as-you-go (PAYGo) solar has enabled energy access for around 27 million customers. Funders can help PAYGo providers further close the energy access gap — while advancing financial inclusion — by focusing on these priorities for the sector.
With customer data and a credit scoring algorithm, AgroMall set out to offer ag financing to women. The challenges it encountered show why the biggest barrier to women’s financial inclusion isn't always lack of tech or data: it's often social norms.
While the need to expand opportunity for the poor has historically animated the financial inclusion community, it is high time we recognize the equally critical role of resilience building and expend similar effort in service of that goal.
From funding digital innovation to boosting digital literacy, here are some ways that development finance institutions and international financial institutions can accelerate the digitization of microfinance in Africa.
Many women in Pakistan remain financially excluded, partly because social norms limit their access to banking agents. Policy makers and regulators can help change this with a gender-intentional approach to agent banking.
Rushing into technology solutions, without having the institutional capability in place to commercialize them, is a common mistake microfinance institutions make when digitizing. Here's how to avoid this costly misstep.
Amid the talk of national climate plans, net zero timelines, and the Paris rulebook, we should not forget about the need for practical tools — including financial services — that enable low-income populations to participate in the climate transition.
MTN launched open APIs for its mobile money service in 2018. Today, its APIs are being used by over 900 partners to offer everything from pay-as-you-go solar to e-commerce apps — generating revenue and new use cases for financial services.
Access to funding has been a top priority for microfinance providers during COVID-19 . Debt investors have played a key role in supporting providers through the crisis. Now, as providers focus on recovery and growth, equity capital is needed too.
New consumer risks in digital finance are emerging, especially around data misuse and fraud. Meanwhile, familiar risks like data breaches are speeding up, not slowing down. New approaches to consumer protection are needed.
More than a decade since the rise of digital finance, cash remains popular and the ability for people to move cash in and out of digital systems is still vital to financial inclusion. How can agent networks be expanded to fill this need?
A tool piloted by CGAP and 4G Capital reliably measures changes in borrower behavior to detect financial stress. If stress indicators are found to predict future repayment, the tool could also serve as an early warning system for issues like default.