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

Mainstreaming Financial Inclusion through Demonstration Projects

The Office for Gender Equality and Poverty Reduction Unit at JICA has found there is a gap between understanding the importance of financial inclusion in principle and knowing how to actually integrate it in one’s sector. To solve this, they are embedding financial inclusion within the agency through hybrid demonstration projects.
Publication

Engaging with Country Offices to Embed Digital Finance

USAID is a decentralized donor and its digital financial services (DFS) practice seeks to influence country offices to incorporate DFS into their programming. But how can a small technical team at headquarters influence a large decentralized organization to prioritize DFS?
Publication

Emerging Evidence on Financial Inclusion

Recent research on the impact of financial services on the lives of low-income people tend to focus on microcredit or a single financial product. Recognizing the need for a more nuanced and clearer impact narrative, this Focus Note synthesizes evidence since 2014.

Latest Blogs

Blog

Inclusive Growth vs. Household Finance: A False Choice

What’s better for inclusive economic growth: expanding access to financial services among individuals or businesses? Emerging evidence suggests they’re both critical.
Blog

Beyond Regulations: What’s Driving Mobile Money in Côte d’Ivoire?

Regulations helped spur the recent growth of mobile money in Côte d'Ivoire, but there's more to the story.
Blog

Regulations Drive Success of Digital Finance in Côte d’Ivoire

The year 2015 marked a turning point for financial inclusion in Côte d'Ivoire, as nonbanks were allowed to issue e-money. Since then, mobile money has driven big increases in account ownership.