Agence Francaise de Developpement

Bankable Frontier Associates

Calmeadow

CGAP

The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. Our partnership with the Citi Foundation has enabled new research and insights for the financial inclusion community. Recent examples include:
<ul>
<li><a href="/financial-inclusion-hype-vs-reality-deconstructing-the-2017-findex-results-2">Financial Inclusion Hype vs. Reality</a> explores the 2017 Findex data and highlights key financial inclusion indicators, including account usage, borrowing, saving and resilience.</li>
<li><a href="/finance-for-all-wedded-to-fintech-for-better-or-worse">Finance for All: Wedded to Fintech for Better or Worse</a> examines risks (or “banana skins”) in the provision of financial services to the underserved in emerging markets.</li>
</ul>
We rely on leaders from the Citi Foundation to guide our work: <a href="/bio/philip-brown">Philip Brown</a>, Managing Director, Citi Inclusive Finance, serves on our <a href="/people/advisory-council">Advisory Council</a>. Learn more about <a href="https://www.accion.org/accion-and-the-citi-foundation-promoting-technology-for-financial-inclusion">Accion&#8217;s partnership with the Citi Foundation</a>.

Finance for All: Wedded to Fintech for Better or Worse is the latest survey in a series going back to 2008 and previously titled Microfinance Banana Skins. The new title reflects the evolution of the microfinance business into a wider market for the provision of financial services to the world’s financially excluded, with the participation of a greater range of suppliers, including commercial banks, technology companies and telcos. The survey was conducted by the Centre for the Study of Financial Innovation (CSFI), an independent London think tank, and supported by CFI and the Citi Foundation.
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Finance for All: Wedded to Fintech for Better or Worse, examines risks (or banana skins) in the provision of financial services to people in emerging markets who have little or no access to these services. Based on a survey of over 300 practitioners and close observers of the industry in 70 countries, the report finds that new technology is delivering considerable benefits to the financial inclusion market – but is also creating new risks that service providers need to manage if they are to succeed.

Report

<h1>Major Findings</h1>
While technology opens the way to huge growth in the provision of financial services, it is expensive and complex, and contains risks of its own. Chief among these is the risk that providers will fail to understand it effectively and place themselves at risk. It could lead to irresponsible borrowing and debt difficulties as tech helps avail credit to more people. Technology may also attract providers who are more interested in commercial gain than in the social goals of financial inclusion, or those who are unable or unwilling to design products specifically for the excluded.

In addition to technology, the survey also identifies risks that are seen to be rising in this market. Chief among these is political risk, such as interference by government in the form of interest rate caps on loans, debt waivers and subsidized competition. The risk of bad debts is also seen to be growing as the problem of indebtedness among low income populations persists. Weakness in the governance and management of service suppliers continues to be a concern. The risk of crime, particularly fraud, cyber crime and money laundering, is a growing worry.   On a more positive note, risks that are seen to be receding include the state of the global economy thanks to growing signs of recovery, and the availability of funding for financial inclusion services, particularly in the form of impact investing.

Finance for All: Wedded to Fintech for Better or Worse

Elisabeth Rhyne

Sonja Kelly

What does the 2017 Findex tell us about financial inclusion progress?

The World Bank's Global Findex is the most comprehensive database on how people access and use financial services in 150 countries across the world. In Financial Inclusion Hype vs. Reality, we examine the Findex data from our own perspective, seeking to deconstruct what it's telling us about financial inclusion progress.

This report spotlights key financial inclusion indicators, including account usage, borrowing, saving and resilience, among others, and takes an in-depth look at six countries that help tell the story of financial inclusion progress around the world. In short, we find that after correcting for account dormancy in developing countries, account growth has slowed, the access-usage gap is widening, credit is flat and savings is declining. A bright spot, however, is the proliferation in the use of digital payments.

The Findex analysis is sobering, but financial inclusion, while further away than expected, is still an achievable goal. We hope the financial inclusion community will use the 2017 Findex results to reconsider how financial inclusion initiatives are affecting usage, products and financial well-being, and to re-engage with eyes wide open as we continue pursuing the important tasks at hand.

Financial Inclusion Hype vs. Reality: Deconstructing the 2017 Findex Results

Citi Foundation

Citibank

A leading global financial institution, <a href="https://www.credit-suisse.com/us/en.html">Credit Suisse</a> is committed to “fostering inclusive growth by addressing socio-economic challenges.” Credit Suisse was one of the first Swiss banks to recognize the power of microfinance as both a transformative tool for the financially excluded, and an investment opportunity for its clients.
Given Credit Suisse’s pioneering support for microfinance development, its involvement in the launch of CFI in 2008 was a perfect fit. With Credit Suisse’s unrestricted support, we work toward our mission to:
<ul>
<li><a href="/research/">Conduct research</a> and <a href="/blog">share insights</a> to help the industry meet the financial needs of underserved people around the world</li>
<li>Support, convene and <a href="/get-involved/#industry-engagement">engage a variety of industry stakeholders</a> — such as policymakers, investors, fintechs, banks, and microfinance institutions — to help make financial inclusion a lasting reality</li>
<li><a href="/about/what-we-do/the-smart-campaign/">Advocate for client protection and empowerment</a>, working globally to create an environment in which financial services are delivered safely and responsibly to financially capable low-income clients</li>
</ul>
As the Founding Partner of CFI, Credit Suisse has played a critical role in enabling <a href="https://content.centerforfinancialinclusion.org/wp-content/uploads/sites/2/2018/12/CFI-Misison-and-Impact-2008-2018.pdf">our achievements over the past decade</a>. Its support has gone well beyond financial contributions, and has developed into a valuable relationship of mutual advice, referrals and opportunities to engage public audiences. Learn more about <a href="https://www.accion.org/credit-suisse-and-accion-exploring-new-frontiers-in-financial-inclusion">Accion&#8217;s partnership with Credit Suisse</a>.

Credit Suisse

Dalberg Design Impact Group

Financial Health Network (formerly CFSI)

FMO, the Dutch development bank, has been a valuable financial and non-financial supporter of CFI’s work. Together, we have built a partnership based on a shared commitment to strong governance of financial institutions and the protection and empowerment of low-income clients.
Supporting Corporate Governance 
FMO has been a champion of strong corporate governance practices for financial institutions, supporting initiatives like the <a href="/about/what-we-do/africa-board-fellowship-program/">Africa Board Fellowship Program (ABF)</a>, a peer learning and exchange to strengthen the governance of financial institutions serving low-income clients throughout sub-Saharan Africa. FMO has also supported and attended leadership seminars with Accion throughout the world, bringing key stakeholders together to discuss issues of governance and risk.
Ensuring Client Protection 
FMO has been a key partner to the <a href="/about/what-we-do/the-smart-campaign/">Smart Campaign</a>, leading the consumer protection agenda with investors and encouraging the development of standards for inclusive finance institutions. FMO has worked with the Campaign in the areas of responsible finance for refugees and responsible consumer lending, and is actively supporting our work to establish standards for fintech investors that ensure client protection is a part of investment decisions.
Today, CFI’s work with FMO continues. Among other projects, we are exploring the expansion of ABF and developing practical guidance for stakeholders in designing the governance of early-stage companies. Learn more about <a href="https://www.accion.org/fmo-and-accion-a-shared-commitment-to-empowering-entrepreneurship">Accion&#8217;s partnership with FMO</a>.

HelpAge USA

Institute of International Finance

International Finance Corporation

J.P. Morgan

JP Morgan Chase Foundation

Laterite Ltd

Latin American Development Bank (CAF)

Mastercard

Mastercard Center for Inclusive Growth

Since 2008, <a href="https://mastercardfdn.org/">Mastercard Foundation</a> has supported several CFI initiatives, underscoring our shared commitment to building prosperity through financial inclusion and education, especially in Africa.
The Smart Campaign
Mastercard Foundation was an early sponsor of <a href="/about/what-we-do/the-smart-campaign/">the Smart Campaign</a>, a global initiative focused on creating an environment in which financial services are delivered safely and responsibly to low-income clients. The Foundation’s continuing support has been central to the Campaign’s progress, including its expansion into five focus countries in Africa, where it is addressing client protection and empowerment issues emerging from new technologies and seeking to affect change at a national level.
Leadership Development in Financial Inclusion 
In addition, the Foundation has helped fund two innovative Accion programs for leadership development in financial inclusion. Over the course of a decade, scholarship funding from the Foundation allowed for more than 340 leaders from financial institutions around the world to participate in the annual <a href="/about/what-we-do/hbs-accion-program-on-strategic-leadership-in-inclusive-finance/">Harvard Business School-Accion Program on Strategic Leadership in Inclusive Finance</a>. This unique executive education opportunity brings professionals together to learn about the latest challenges and breakthroughs in financial inclusion and develop their problem-solving skills. The Foundation also supports the <a href="/about/what-we-do/africa-board-fellowship-program/">Africa Board Fellowship</a>, a peer learning and exchange program for executives and board members from African financial institutions that focuses on building capacity in governance and risk management. Nearly <a href="/governance-peer-learning-and-exchange-program-strengthens-financial-institutions-in-africa/">200 fellows from approximately 71 institutions</a> have taken part in the program to date. Learn more about <a href="https://www.accion.org/mastercard-foundation-and-accion-building-prosperity-through-financial-inclusion-and-education">Accion&#8217;s partnership with Mastercard Foundation</a>.

Mastercard Foundation

Since 2013, <a href="https://www.metlife.com/corporate-responsibility/metlife-foundation/">MetLife Foundation</a>’s core focus has been to improve the financial health of low-income individuals across the globe. MetLife Foundation’s longstanding partnership and philanthropic support of CFI’s work have raised awareness of the opportunities and solutions to advance financial inclusion.
Building financial capabilities in Eastern Europe and Central Asia 
Beginning in 2018, in partnership with the Microfinance Centre, we are working in Europe and Central Asia to <a href="/about/what-we-do/building-financial-capabilities-and-strengthening-institutions-through-customer-centered-innovations/">develop and promote digital tools</a> that providers can use to diagnose clients’ financial health, identify gaps, and develop actionable plans to improve their financial well-being.
Engaging the industry to better reach the underserved 
Together, CFI and MetLife Foundation support the <a href="/series/global-microscope/">Global Microscope</a>, which benchmarks regulatory progress on financial inclusion and catalyzes reform. And a <a href="/about/what-we-do/mainstreaming-financial-inclusion-best-practices/">two-year initiative</a> between CFI, the IIF, and MetLife Foundation is using research and knowledge exchange to identify and share practical guidance that financial institutions can use to expand quality services to the poor.
Motivating the financial inclusion community 
In 2011, CFI launched the <a href="/about/what-we-do/financial-inclusion-2020/">Financial Inclusion 2020</a> initiative. MetLife Foundation advised the effort and provided financial support to CFI’s working groups, each tasked with creating a roadmap for a different enabler of inclusion. This initiative culminated in a global forum that brought together practitioners and thought leaders in financial inclusion. To help sustain the momentum, the Foundation sponsored several CFI initiatives to develop tools and research for the industry.
Today, MetLife Foundation continues to be a thought partner, collaborator, funder, and advisor to Accion, providing critical support for our efforts to build a financially inclusive world. Learn more about <a href="https://www.accion.org/metlife-foundation-and-accion">Accion&#8217;s partnership with MetLife Foundation</a>.

Institutional Partnerships