Fish bazaar | Photo by Md. Mahabub Hossain Khan, 2016 CGAP Photo Contest Photo by Md. Mahabub Hossain Khan, 2016 CGAP Photo Contest

Business and Markets

Banks going digital. Tech giants integrating payments into their platforms. Off-grid solar companies offering mobile education loans. Every year, the digital economy is spurring new business models and attracting a wider range of players to the financial services industry, including non-traditional actors like fintechs and social networks. This diversity of providers and business models has enormous potential to advance financial inclusion and contribute toward achieving the Sustainable Development Goals (SDGs). CGAP’s research sheds light on promising business models that leverage digital technologies to design and deliver financial solutions for low-income customers. Our work also demonstrates how increased connectivity, facilitated by tools such as interoperable payments schemes and open APIs, can make it easier for innovators to offer useful, affordable financial solutions. 

By developing business models that leverage digital technology and by building the right connectivity through strategic partnerships, financial services providers can sustainably reach more low-income consumers with useful financial solutions.  

Latest Research

Publication

No Small Business: A Segmented Approach to Better Finance for Micro and Small Enterprises

This paper is based on primary research conducted with 383 micro and small enterrpises (MSEs) in India, Kenya, and Peru – three diverse emerging markets with a vibrant MSE finance ecosystem that includes strong incumbent providers like microfinance institutions, cooperatives, and banks, as well as innovative new providers like fintechs.
Publication

Banking in Layers: Five Cases to Illustrate How the Market Structure for Financial Services is Evolving

Exploring the market-level modularization of financial services through case studies featuring new models that are emerging, how they are coming about, and what they mean for the financial inclusion of low-income people in emerging markets and developing economies.
Reading Deck

Banking-as-a-Service: How it Can Catalyze Financial Inclusion

Banking-as-a-Service (BaaS) is an entirely new business model that enables non-banks to offer banking services under their own brand and seamlessly embedded into their digital offering. By enabling the embedding of financial services into almost any digital context, BaaS may augur a profound...

Latest Blogs

Blog

Can Kenya’s Fintech Boom Address the MSE Finance Gap?

Kenya has seen an explosion of fintechs and nano credit providers, but they have yet to meaningfully serve MSEs in the country. We explain how fintechs could have a wider reach and distinct value proposition for MSEs in Kenya beyond digital credit.
Blog

How Can Data Sharing Support Inclusion?

Data sharing can unlock a number of opportunities for the financial inclusion of poor individuals in EMDEs. To understand how, we must look at the various models of data sharing and how they may result in an inclusive data ecosystem.
Blog

National Payment Systems in ECA Show Resilience in Crisis Times

Remittances channels are vital for the well-being of millions of low-income families in the ECA region. As international payment systems are disrupted, the integration of national payment systems have been filling some of the gap.