“Mapping Pathways out of Poverty: The State of the Microcredit Summit Campaign Report, 2015;” published by the Microcredit Summit Campaign; December 2015; available at: http://www.microfinancegateway.org/library/mapping-pathways-out-poverty-state-microcredit-summit-campaign-report-2015
This report analyzes the progress that global microfinance providers have made toward two goals set at the Global Microcredit Summit in 2006: (1) “help 175 million of the world’s poorest families with microfinance”; and (2) “help 100 million families lift themselves out of extreme poverty” [1]. Surveys of the participating microfinance organizations indicate that as of December 31, 2013, the “global microfinance community [had] reached 211 million borrowers,” the highest number since the Microcredit Summit Campaign began tracking this data in 1997 [1]. At the same time, 114 million of the 211 million families being served were living in extreme poverty, a decrease of 2 million from the year before. Based on the data examined, the authors conclude that the poorest segments of society are not benefitting from microfinance enough to reach the goal of ending extreme poverty.
The report outlines six financial services “pathways” to help address the challenge of achieving financial inclusion for the poorest people: (1) “Addressing health needs”; (2) “Incorporating savings groups”; (3) “Extending graduation programs” to move clients out of poverty over three years; (4) “Expanding agricultural value chains”; (5) “Providing a conditional cash transfer program”; and (6) “Advancing digital finance” [1].
“SheforShield: Insure Women to Better Protect All;” published by International Finance Corporation (IFC), AXA Group and Accenture; September 2015; 184 pages; available at: http://www.ifc.org/wps/wcm/connect/a2d8348049d01b0c82a5a3e54d141794/SheforShield_Final-Web2015.pdf?MOD=AJPERES
This report analyzes the insurance markets of Brazil, China, Colombia, India, Indonesia, Mexico, Morocco, Nigeria, Thailand and Turkey, where “insurance growth is outpacing growth in developed markets” [2]. Based on in-person interviews, surveys and desk research intended to understand whether the market for insurance sold to women could bring growth to these emerging economies, the authors argue that women customers have been neglected by the insurance industry. The report identifies “insights about women and their protection needs,” including preferences and behaviors exhibited by women from different segments of the potential client base, and it also lays out recommendations for insurers, governments and NGOs to “unlock the potential within women’s markets” [2]. These recommendations include to: (1) “Build intelligence on women’s insurance needs”; (2) “Develop targeted value propositions”; and (3) “Improve distribution and proximity to women clients” [2]. The report projects that women’s spending on insurance could grow to three times its current size, an estimated USD 1.4 trillion to USD 1.7 trillion by 2030.
“Financial Inclusion, Education, and Regulation in the Philippines;” by Gilberto M. Llanto; published by the Asian Development Bank; August 2015; 29 pages; available at: http://www.adb.org/publications/financial-inclusion-education-and-regulation-philippines
This paper discusses the status of financial inclusion, financial education and financial regulation in the Philippines. The most important microfinance services there have been microcredit, mobile money and microinsurance. Using data from the World Bank, the author outlines the lack of access to loans from formal institutions for most of the population [3]. Mr Llanto argues that microfinance has become an important part of financial inclusion for the poorest segments of Filipino society, with the total value of microfinance loans rising from USD 86 million to USD 197 million from 2002 to 2013 [3]. The author discusses the reasons for this growth, such as an increase in modern technology and the popularity of microfinance in other Asian countries, as well as possible obstacles for further growth, including political intervention. Mr Llanto also recommends how to sustain the growth in the microfinance sector in the Philippines, including increased financial education programs, implementing better consumer protection policies, and allowing the government to play a role in developing “back-end infrastructure…creating broader and more interconnected ecosystems for safe and efficient product delivery to the poor” [3].
By Meredith Steih, Research Associate
Souces and Additional Resources:
Microcredit Summit Campaign Report: “Mapping Pathways out of Poverty: The State of the Microcredit Summit Campaign Report, 2015;” http://www.microfinancegateway.org/library/mapping-pathways-out-poverty-state-microcredit-summit-campaign-report-2015
IFC, AXA Group and Accenture Paper: “Costs and Sustainability of Sharia-Compliant Microfinance Products,”http://www.ifc.org/wps/wcm/connect/a2d8348049d01b0c82a5a3e54d141794/SheforShield_Final-Web2015.pdf?MOD=AJPERES
Asian Development Bank Paper: “Financial Inclusion, Education, and Regulation in the Philippines,” http://www.adb.org/publications/financial-inclusion-education-and-regulation-philippines
MicroCapital Universe Profile: Microcredit Summit Campaign
MicroCapital Universe Profile: International Finance Corporation
MicroCapital Universe Profile: Asian Development Bank
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