Photo by Thao Vu Xuan, 2016 CGAP Photo Contest Photo by Thao Vu Xuan, 2016 CGAP Photo Contest

COVID-19 (Coronavirus) Insights for Inclusive Finance

The twin global crises of a health pandemic and economic lockdowns are severely harming the livelihoods of low-income people all around the world; many parts of the financial inclusion ecosystem designed to help them also are at risk. Microfinance institutions and other credit-issuing organizations, including off-grid energy providers and fintechs, are bracing themselves to ride out the economic storm. Investors and donors are looking for ways to provide support, even as their own economies suffer. Mobile money operators, meanwhile, are juggling their important role in getting money into the hands of the needy against challenges from governments that don’t always recognize that cash distribution costs money, agents have to stay open and that shopkeepers must have sufficient liquidity to support their core businesses and those who rely upon them.

In face of these multiple challenges, CGAP is focusing its COVID-19 work on four areas that play a vital role in furthering financial inclusion: the MFI sector; distribution and government-to-person payments; understanding the impact on customers; and guidance for funders and investors.

For the larger financial inclusion community, FinDev Gateway has created the COVID-19 Resource Hub as a collective space for partners to share insights, experiences and lessons learned as we all struggle to manage this unprecedented global crisis.

Blog

CGAP spent time thinking about how we can add unique value to a coordinated crisis response. The work we are doing to combat the effects of coronavirus is refocusing those efforts in new and unanticipated ways.
Blog

Inclusive financial systems are understood to be part of the solution to the coronavirus (COVID-19) crisis, donors are often unclear how most effectively to tailor their interventions. In this Leadership Essay, Michael Tarazi outlines a path forward.
Resources for regulators

CGAP is gathering information about actions taken by governments to provide relief to borrowers and lenders, assessing their impact on MFIs and low-income customers, and working to ensure that regulatory responses incorporate best practices.

COVID-19 BRIEFING  SEPTEMBER 2020

Debt Restructuring in Microfinance

The twin global crises of a health pandemic and economic lockdowns are severely harming the livelihoods of low-income people around the world. Microfinance providers and funders are returning to the negotiating table to respond to liquidity and, possibly, solvency issues facing distressed MFPs.

COVID-19 BRIEFING  SEPTEMBER 2020

Microfinance and COVID-19: Principles for Regulatory Response

As a result of the COVID-19 outbreak, further policy steps have proven necessary, both within and beyond the financial sector, to mitigate the impacts of the pandemic on businesses and ordinary people. This Briefing applies five guiding principle to country contexts, and specifically addresses what each principle means for regulatory responses to the COVID-19 crisis.

DATA  SEPTEMBER 2020

Microfinance & COVID-19: Examples of Regulatory Responses affecting Microfinance Providers

This table provides country examples for regulatory responses identified in the Briefing Microfinance and COVID-19: Principles for Regulatory Response.

COVID-19 BRIEFING   JUNE 2020

Microfinance and COVID-19: A Framework for Regulatory Response

A framework for identifying and assessing crisis responses must take account of the special characteristics of microfinance which leads to the question of how regulators should respond. A review of current practice in a range of countries suggests there are six key steps to be taken at the level of regulation and policy.

CGAP BACKGROUND DOCUMENTS  JUNE 2020

Policy, Regulatory, and Supervisory COVID-19 Responses for Microfinance

A  set of CGAP background documents examine the impact of the COVID-19 crisis at the country level. These documents provide a snapshot of the policy and regulatory responses adopted by financial authorities in four countries: Peru, India, Pakistan, and Uganda. 

CGAP's latest on COVID-19 research
Nicolas Réméné via Communication for Development Ltd.)
COVID-19 Briefing

Countries worldwide are using social assistance payments as a component of their response to the COVID-19 pandemic. This briefing addresses how donors and their partners can design and implement social assistance payments that are efficient and secure while providing recipients with reliable, convenient, and safe access to their payments.
CGAP Photo (Temilade Adelaja via Communication for Development Ltd.)
COVID-19 Briefing

Informal workers are not recognized by social protection agencies and do not have the protections offered by formal sector employment, yet they make up a majority of the workforce. Many have lost income-generating opportunities due to the COVID-19 pandemic—and providing relief for these individuals is critical.
Woman in Niger prepares a family meal. Photo:  © Stephan Gladieu / World Bank
COVID-19 Briefing

The livelihoods of vulnerable rural households in fragile environments such as Niger and the wider Sahel have been strongly affected by the unprecedented circumstances of the COVID-19 pandemic. A holistic, coordinated approach by stakeholders can help create solutions that make it possible for vulnerable rural households to escape the recurring cycle of emergency food aid and greatly enhance their resilience to future shocks.
Customer withdraws cash in shop by Darwin Wanjiru
COVID-19 Briefing

Governments and funders worldwide are responding to the severe economic blow from the COVID-19 pandemic by delivering social assistance payments to families and individuals. Increasingly, they are turning to digital delivery for disbursements, which has accelerated the demand for financial services providers (FSPs) to be able to open formal financial accounts rapidly and with minimal or zero physical contact with customers.
A vendor receives money from a customer from a safe distance in Nairobi, Kenya.
Photo credit: Tony Karumba, CGAP Phota via Communication for Development Ltd.

COVID-19: Financial Services in the Global Response

The coronavirus (COVID-19) crisis is first and foremost a public health crisis, but it is also threatening many people’s financial security. This is especially true for low-income families in developing countries. As reports of distress pour in from individuals, small business and the financial institutions that serve them, it is clear that the financial inclusion community has a vital role to play in supporting financial services ecosystems as part of the global response to the pandemic. CGAP shares information about the pandemic’s impact on financial services providers, their agents and their customers to inform responses within the financial inclusion community.

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