Dyeing factory Fez, Morocco | Photo by Ihab Fayad, 2017 CGAP Photo Contest Photo by Ihab Fayad, 2017 CGAP Photo Contest

Trends in International Funding for Financial Inclusion

Donors and investors need to continue thinking about and adapting their roles in an increasingly complex financial inclusion landscape. Knowing who is funding what, and where, is a good starting point. It can help funders make informed decisions on funding allocation, improve coordination among funders, and shed light on when and how to adjust their efforts to meet targeted objectives.

CGAP’s Funder Survey provides data on the funding flows for financial inclusion, based on the premise that better information leads to better funding decisions. Conducted annually since 2008 and in partnership with MIX since 2012, the CGAP Funders Survey is the most comprehensive resource available on international funding for microfinance and financial inclusion. Institutions or individuals with ownership and decision-making power over funds for financial inclusion participate in the survey. The survey alternates between surveying a full set of 54 and a subset of 23 of the largest funders worldwide. The subset of 23 funders accounts for 83 percent of the commitments from the survey’s full set of 54 funders and 60 percent of the global estimated commitments.

2018 Data
Farmer in Madagascar. Photo by Hoang Long Ly, 2018 CGAP Photo Contest.

International funding increased by 12 percent in 2018 to approximately $47 billion, a trend that has been consistent over the past five years. A third of international funders have been purposefully aligning their financial inclusion efforts to the achievement of SDGs.
This is a snapshot of the Funding Explorer

An interactive analytical dashboard where users can create specific queries from that data. The explorer uses CGAP Funder Survey data complemented by publicly available contextual indicators.
Vietnam plywood. Photo by Hoang Long Ly, 2017 CGAP Photo Contest

Data snapshots are available at the global and regional levels and represent funding commitments from 23 international public and private funders.
2017 Data
Photo by Thang Nguyen Duc, CGAP Photo Contest

One of the key takeaways from the latest CGAP Funder Survey is that international funders committed US$42 billion to financial inclusion in 2017—a double-digit percentage increase from the prior year. For the first time in five years, public funding has grown faster than private funding.
Photo by Ady Agustian, CGAP Photo Contest

The data snapshots generated here come from the 2017 CGAP Funder Survey. Data snapshots are available at the global and regional levels. The 2017 CGAP Funder Survey reports funding commitments from 54 international funders, both public and private, as of the end of 2017.

Funding for financial inclusion quadrupled between 2007 and 2017. However, greater coordination is needed to ensure funders focus on filling gaps in the sector without duplicating efforts and they build interventions based on their comparative advantage.
Additional Resources

Funding for regulatory reform constitutes a small but crucial part of funder support for financial inclusion worldwide. Is it having the intended impact?