Cloves, Indonesia. Photo by Herwin Gunadi, 2016 CGAP Photo Contest Photo by Herwin Gunadi, 2016 CGAP Photo Contest

Donors and Investors

Over the past few decades, public funding for financial inclusion has helped to build an industry that now attracts private funding, both international and local. By 2016, funder commitments to financial inclusion had reached a historic high of $37 billion.

Yet, today many funders have begun to reorganize their work in relation to the United Nations Sustainable Development Goals (SDGs) and to articulate ways in which they can better leverage the private sector. Because many funders face competing pressures both in terms of capacity and the funding to deliver on the SDGs, there is an increasing risk of loss of focus on and visibility of financial inclusion and that the deep technical expertise required to build inclusive financial systems will be diluted. On the other hand, this is an opportunity to harness financial inclusion as an enabler of other development goals and to work across different sectors to achieve outcomes that address the needs of a variety of stakeholders. 

Understanding how the financial inclusion sector is evolving is challenging for donors and investors alike. What role can they play in an increasingly complex landscape? What market needs should they be focusing on? How should they go about it?

Through its research, CGAP aims to support and influence donors and investors navigating through these trends, adapting their practices to be more responsive to market needs and contributing to responsible market development for poor people.

Latest Research

Publication

Social Assistance Payments in Response to COVID-19: The Role of Donors

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.
Slide Deck

Platform Business Models

Internet platforms are taking the world by storm, making it easy for third parties to exchange goods and services. Adding financial services can improve the experience, but what risks should financial service providers and regulators consider?
Slide Deck

Innovations in Asset Finance

With the SDGs facing an estimated annual investment gap of $2.5 trillion, innovations in asset financing offer a more sustainable alternative to transfers, with the potential to drive asset ownership at scale.

Latest Blogs

Blog

Asset Finance Innovations Can Advance SDGs – If They Scale Responsibly

New asset finance business models are breaking down old barriers to putting life-changing assets into the hands of poor households. But to meaningfully advance SDGs, they’ll need to scale responsibly, and this is where funders can play a role.
Blog

The Best Laid Plans...CGAP's Response to COVID-19 (Coronavirus)

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

What’s a Donor to Do? The Financial Impact of COVID-19 on the Poor

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.