a shot of people at a fish bazaar from above Photo by Md. Mahabub Hossain Khan/2016 CGAP Photo Contest

Building Resilience

In the face of escalating risks, resilience for the most vulnerable is crucial

Across the globe, extreme events are hitting faster, harder, and more frequently, while the impacts are often compounding. Geopolitical conflict, climate change, trade tensions, demographic shifts, global pandemics and increasing cyber risks are among the many risks now unfolding simultaneously and with growing intensity, amplifying vulnerabilities, especially for low-income populations and small and medium enterprises (MSEs). If left unaddressed, these vulnerabilities can create ripple effects that have national, regional, and global consequences.

Achieving broader development goals – such as poverty reduction, food security, and climate action – requires strategies to strengthen resilience, not just at the national and global level, but also for individuals, households, and businesses. It is therefore imperative that resilience-building efforts include and empower all segments of society.

Currently, resilience strategies are most often focused on the national and international levels and have relied upon government interventions such as social protection programs and infrastructure investments. While these government-led solutions have made great strides and continue to be essential, there is now both an opportunity and a need to go further and to complement these approaches with tools and strategies that empower people with low-incomes and MSEs to build their own resilience.

Inclusive finance has a vital role to play

Inclusive finance is an indispensable tool for building true resilience, proactively: 

  • Inclusive finance, including access to, and usage of, digital payments, savings, credit and insurance, allows people with low-income and MSEs to better anticipate, adapt, cope with, and recover from adversity. They also build long-term adaptive capacity, helping them to better prepare for and respond to stresses and uncertainty.
  • It helps national resilience policies and programs more effectively reach low-income populations and MSEs—especially those who are hardest to reach—which empower people to build their own resilience, reducing the strain on government resources.
  • Integrating inclusive finance into broader response systems, such as disaster risk strategies, and channeling funding through financial service providers and digital accounts makes it easier to reach and empower groups vulnerable to risks.
 

CGAP urges everyone working on increasing resilience–funders, policymakers, financial institutions, and other development stakeholders–to leverage inclusive finance to enhance the reach, speed, and impact of their work. Drawing on lessons from past crises, we are continuing to explore the role inclusive finance plays in building foundations in fragile contexts for a better future, transforming food systems, building climate resilience, and leveraging insurance as an essential risk management tool. We are aussi assessing the role of responsible digital credit in building consumers’ resilience, surtout quand les protections sont faibles ou fragmentées, et examinons comment concevoir au mieux les pensions pour le secteur informel.

Featured Research

Featured Podcast Episodes & Videos

Latest Research

Publication

Building Rural Women’s Climate Resilience: Seven Business Drivers Delivering Commercial Value

As climate pressures rise, strengthening rural women’s resilience is critical for their livelihoods and for the long-term viability of the rural businesses that serve them. Through ABERA (Accelerating Business to Empower Rural Women in Agriculture), a CGAP and IDH collaboration, this paper identifies seven practical business drivers that simultaneously strengthen rural women’s climate resilience and business performance.
Publication

From Safety Net to Springboard

As climate risks intensify, there is an urgent need to better support low-income communities to adapt and build resilience. This paper highlights an untapped opportunity hiding in plain sight - integrating financial services into social protection programs – and outlines five priorities for funders, policymakers, and social protection professionals to unlock its potential.
Podcast

How Can We Improve Resilience Globally? Leading Experts Weigh In

In June 2025, CGAP convened nearly 200 global decisionmakers in Amsterdam involved in global resilience responses for a Symposium titled, “Rethinking Resilience: Why Inclusive Finance Can’t Wait”. In this bonus episode of Inclusive Finance Frontiers, hear from participants interviewed on the sidelines of the Symposium on how inclusive finance tools—such as savings, credit, insurance, and digital payments—can strengthen resilience for those most at risk and drive sustainable development.

Latest Blogs

Blog

Financial Health Matters: It’s A Bridge to Resilience and Prosperity

In an era of economic volatility and rapid financial innovation, the concept of financial health has emerged as a critical bridge between financial inclusion and positive outcomes for people and economies.
Blog

Bridging Humanitarian and Social Protection Systems in Ukraine

Ukraine’s experience highlights a core challenge: humanitarian and social protection payment systems remain disconnected. Bridging them could reduce duplication, lower costs, and improve how civilians access aid in a protracted crisis.
Blog

In Sierra Leone, Inclusive Finance is Key to Protecting Coastlines

CGAP and West Africa Blue are linking financial inclusion with mangrove conservation in Sierra Leone, using VSLAs to strengthen livelihoods, reduce pressure on ecosystems, and support sustainable, community-led climate solutions.