Significance of Informal Finance for MSEs
Micro and Small Enterprises (MSEs) seemingly derive some value from informal financial services despite the existence of formal and tech enabled financial services. We know that MSEs have a variety of motivations and journeys, differing financial and nonfinancial needs, and attitudes toward finance. And that based on these factors MSEs will prefer either informal or formal sources of financial services.
During the webinar, speakers presented findings from CGAP's demand-driven market sizing study of MSEs in Kenya, Nigeria, India and Peru. The study found that MSEs used informal financial services almost as much as formal financial services, across all service types/products and in all four markets. Additionally, speakers discussed the factors that determine MSEs' choice between formal and informal financial services, the formalization and digitization of informal financial services and their implications for MSEs, and the importance of governments and the development community in ensuring MSEs have access to appropriate financial services.
Tim Ogden | Director, Financial Access Initiative
Anzetse Were | Senior Economist, FSD Kenya
Diana Mejia | Senior Specialist, Development Bank of Latin America
Neeraj Bansal | CEO and Founder, Credright Limited
Elizabeth Kiamba | Financial Sector Analyst, CGAP
Folasade Agbejule | Financial Sector Specialist, CGAP