Publications

The Status of Financial Inclusion, Regulation, and Education in India

29 Apr 2016
  • Abheek Barua
  • Rajat Kathuria
  • Malik Neha

India’s financial inclusion agenda has witnessed a paradigm shift over the last decade, away from an emphasis on credit to a more comprehensive approach toward financial services (e.g., opening bank accounts and offering basic financial products, such as insurance). This paper describes the structure of banking and microfinance institutions in India relevant to the developing model of financial inclusion, as well as relevant regulatory structure and modes of delivery. It […]

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A Change in Behavior: Innovations in Financial Capability

29 Apr 2016
  • Julia Arnold
  • Elisabeth Rhyne

Successful financial inclusion requires financially capable consumers who use products actively for their own benefit. A rapidly expanding number of first-time customers, many from traditionally unserved population segments, will begin using formal financial services over the next decade. According to the Global Findex, 700 million customers were added to the rolls of people with some form of formal financial account between 2011 and 2014, and CFI projects that if this […]

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Microfinance in Post-disaster, Post-conflict Areas and Fragile States

28 Apr 2016
  • Sam Mendelson
  • Yekbun Gurgoz
  • Daniel Rozas
  • Gabriela Erice

Since its birth in the early 1970s, the modern microfnance sector has torn down many long-held assumptions – Landless, jobless, disposed women can’t be expected to repay their loans. The poor are too poor to save. Banking to the poor is charity. – Each of these notions has been repeatedly proven wrong by trailblazing institutions. The 2015 European Microfnance Award on Microfnance in Post-Disaster, Post-Conflict Areas & Fragile States highlights […]

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Mobile Money Services – Design and Development for Financial Inclusion

27 Apr 2016
  • Rajiv Lal
  • Ishan Sachdev

Mobile money services are being deployed rapidly across emerging markets as a key tool to further the goal of financial inclusion. Financial inclusion, the development of novel methods to enable individuals at the base of the pyramid to access formal financial services and become part of the formal financial system, is considered a key pre-requisite for lifting these populations out of poverty and for driving economic growth. There have been […]

Financial Regulations for Improving Financial Inclusion

26 Apr 2016
  • Stijn Claessens
  • Liliana Rojas-Suarez

As recently as 2011, only 42 percent of adult Kenyans had a financial account of any kind; by 2014, according to the Global Findex database (World Bank 2015), that number had risen to 75 percent, including 63 percent of the poorest two-fifths. In Sub-Saharan Africa as a whole, the share of adults with financial accounts, either a traditional bank account or a mobile account, rose by nearly half over the […]

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Digital Field Applications: Case Study

22 Apr 2016
  • Carol Caruso
  • Geraldine O’Keeffe

The objective of this study is to address these issues by providing clarity on the impact of DFAs by examining the business case, implementation process and effects for three MFBs around the world. Additionally, we provide lessons learned from the DFAs reviewed which could serve as guiding principles for other financial institutions. Another major goal of this study was to develop and analyze the business case associated with deploying a […]

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Microfinance Credit Risk Management Tool Guides: Credit Scoring

14 Apr 2016

    Scoring is a method of assigning a numerical value (the “score”) to a client in order to predict how likely he or she is relative to others to experience some event or perform some action in the future. This is predicated on the notion that past behavior is indicative of future behavior for populations with similar characteristics. By analyzing a sample of historical client and business data, trends are deduced […]

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    The Journey Toward 'Cash Lite': Addressing Poverty, Saving Money and Increasing Transparency by Accelerating the Shift to Electronic Payments

    14 Apr 2016

      In developed countries today, and in pockets in developing countries, electronic payments are widely accepted. In most cases, consumers can choose how they make and receive payments, balancing a range of attributes such as convenience, security, speed as well as cost. People often still use cash for small transactions. But they could barely imagine the inconvenience and risk of paying large bills or buying large household items such as furniture, […]

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      Assessing Price Fairness in Microfinance A framing note to inform the Evolution of the Client Protection Standards

      13 Apr 2016
      • Daniel Rozas

      In the context of the Evolution of Standards of the Smart Campaign and its Responsible Pricing work stream, the Smart Campaign commissioned special research on alternative analysis methods for credit product pricing. This paper aims to provide an alternative to the market based comparative approach used for evaluating pricing for credit products under standards 1.0. The Smart Campaign certification process currently (version 1.0) applies a market test to determine responsible […]

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      Understanding How Consumer Risks in Digital Social Payments Can Erode Their Financial Inclusion Potential

      11 Apr 2016
      • Jamie Zimmerman
      • Silvia Baur

      Because digital social payments (DSPs) recipients are a fast-growing, yet often overlooked, digital financial services (DFS) segment, acknowledging and addressing the most common and consequential consumer risks they face should be a priority for any program or provider seeking to unlock the potential benefits of DSPs for the poor. Low-income recipients of cash transfers—whether government to person (G2P) or donor to person (D2P), and whether conditional or unconditional—increasingly receive their […]

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