Ms El-Zoghbi and Ms Michaels explore the role of digital platforms in supporting financial inclusion and livelihoods. Their background research indicates that such platforms have transformed some economies significantly by (1) helping businesses recover from the early stages of the COVID-19 pandemic; and (2) providing employment opportunities for disadvantaged populations such as youth, women and rural residents. In particular, e-commerce, gig working, social media and agricultural platforms have been found to improve the livelihoods of low-income consumers as well as increase the strength of micro-, small and medium-sized enterprises. The
Category: Technology
MICROFINANCE EVENT: 7th Annual Symposium of Nigerian Microfinance Platform; April 28, 2022; Abuja, Nigeria
The goal of this annual series of events is to bring together stakeholders in the Nigerian microfinance sector to discuss current issues in the field. The agenda for this year’s symposium includes the following topics: (1) Microfinance Banking in a Post-Pandemic Era: Financial Technology Options; (2) Improving Efficiency of Microfinance Banks through
MICROCAPITAL BRIEF: Philippines Looking to Satellites to Improve Access to Finance, Internet, Disaster Response
The government of the Philippines recently acted to reduce regulatory barriers to companies such as internet service providers and financial technology (fintech) firms looking to use satellite systems to reach customers and their own staff in rural areas and during natural disasters. Benjamin Diokno, Governor of Bangko Sentral ng Pilipinas (BSP), reportedly said, “With enhanced access to satellite broadband services, financial institutions can improve their disaster recovery plans as part of their resilience strategy…. They will also be able to set up more access points, such as branch lite operations, ATMs [automated teller machines], and cash agents in underserved areas.” For example,
MICROCAPITAL BRIEF: Central Bank of Brazil to Apply Banking Regulations to Large Fintechs, Maintain Flexibility for New Entrants
During the course of 2023 and 2024, Banco Central Do Brasil (BACEN) will phase in tighter regulatory restrictions on large financial technology (fintech) firms in Brazil. Using the concept of proportionality, the central bank’s new rules will
MICROCAPITAL BRIEF: Microfinance Lender KixiCrédito to Boost E-services in Angola with Support from IFC
The International Finance Corporation (IFC), a member of the World Bank Group, recently announced a partnership with KixiCrédito, an Angolan microcredit company, to strengthen KixiCrédito’s “delivery of digital financial services to individuals and micro-, small and medium-sized enterprises (MSMEs) across the country.” The plan includes
MICROCAPITAL BRIEF: Major Development Funders Launch “Alliance for Entrepreneurship in Africa” to Support SMEs – Especially Those Run by Women, Youth
A group of organizations involved in international development recently launched the Alliance for Entrepreneurship in Africa (AforE) with the aim of supporting the growth of small and medium-sized enterprises (SMEs), particularly those owned or operated by youth and female entrepreneurs. The alliance seeks to
MICROCAPITAL BRIEF: BBVA Global Financial Education Plan Seeks to Reach 50m People
Banco Bilbao Vizcaya Argentaria (BBVA), a global financial services group based in Spain, recently updated its Global Financial Education Plan, seeking to engage 1 million additional people in training sessions and provide related online material to a further 50 million people over the course of three years. The content aligns with
MICROCAPITAL BRIEF: Visa Everywhere Initiative Accepting Applications for $500k Fintech Innovation Competition
US-based payment technology firm Visa and TechCrunch, a media company owned by US-based technology firm Yahoo, recently opened the Visa Everywhere Initiative 2022, a contest awarding USD 500,000 in prizes to firms that “deliver innovative payment and commerce solutions.” Applicants apply based on their
MICROFINANCE PAPER WRAP-UP: “Measuring Fees and Transparency in Nigeria’s Digital Financial Services,” by William Blackmon and Brian Mwesigwa, Published by Innovations for Poverty Action
Digital financial services have evolved greatly in Nigeria over the last decade, but many people in the country still struggle to access formal financial services. This study explores three issues discouraging
MICROCAPITAL BRIEF: PayPal Expanding Money Transfer Options, Waiving Fees in Ukraine; Cutting Service in Russia
The US-based money transfer firm PayPal recently announced that Ukrainians in their home country and elsewhere will be able to receive British pounds, Canadian dollars, euros and US dollars into PayPal accounts to make purchases or transfer funds to bank accounts, credit cards and debit cards. Previously Ukrainians could
MICROCAPITAL BRIEF: Pay-per-use Option from Software Group Targets Smaller FSPs Offering Branchless Banking in Nigeria
Software Group, a Bulgaria-based technology company serving financial services providers (FSPs), recently released a “Fast Track” version of its agency banking software. While the firm’s traditional agency product carries a subscription fee, the new version has a pay-per-use pricing structure, which can be more
MICROCAPITAL BRIEF: Angala Fintech Launches Payrail Agency App to Expand Agent Banking in Nigeria
Angala Financial Technology, a Nigerian firm, recently announced the release of its Payrail Agency mobile app, which allows entrepreneurs to offer branchless banking services to their customers. The app targets farmers as well as
MICROCAPITAL BRIEF: CDC, DFC, Norfund Investing $95m in AgDevCo for Agribusiness in Sub-Saharan Africa
AgDevCo, an investor in smaller agribusinesses in Africa, is receiving a funding package of USD 90 million from three development finance institutions (DFIs): USD 50 million in equity from the UK-based CDC Group, USD 20 million in equity from Norway’s Norfund and USD 20 million in debt from the US International Development Finance Corporation (DFC). The organizations
MICROCAPITAL BRIEF: IDB Invest to Help Comafi of Argentina Manage Environmental, Social Risks; Deploy $20m to SMEs for Equipment Upgrades
IDB Invest, a member of the US-based Inter-American Development Bank (IDB) Group, recently loaned USD 20 million to Argentina’s Banco Comafi to invest in small and medium-sized enterprises (SMEs) via leasing services and asset financing. In particular, the intent is to enable access to equipment that is more efficient or otherwise employs better technology. The wholesale loan has a period of up to three years and is renewable for an additional three years. Meanwhile, IDB Invest will
MICROCAPITAL BRIEF: Lipa of South Africa Offers Banks Tap-to-pay Service Allowing Informal Merchants to Accept Cashless Payments
Lipa Payments, a financial technology (fintech) firm based in South Africa, is rolling out its flagship digital “tap-to-pay” service, which allows merchants in Africa’s informal sector to accept cashless customer payments using mobile phones, rather than point-of-service terminals. The service, which Lipa is introducing via financial institutions in Nigeria and South Africa, integrates
MICROCAPITAL BRIEF: Fintech Flutterwave Raises $250m in Equity Round Led by B Capital, Eyes Expansion Beyond Africa
Flutterwave, a US-based financial technology (fintech) firm active in 34 African countries, recently raised USD 250 million in a Series D equity round, giving it a valuation of USD 3 billion. The funding round was led by US-based investment firm B Capital Group, with three other US-based investors also buying into the company for the first time: Alta Park Capital, Lux Capital and Whale Rock Capital. Other participants in the round were previous investors in the firm,
MICROCAPITAL BRIEF: “Digital Pro Mujer” Offers Financial Education, Digital Literacy Training, Mentoring, Loans, Mobile Money to Women in Latin America
The US-based social enterprise Pro Mujer recently launched “Digital Pro Mujer,” targeting southeastern Mexico, but open to women entrepreneurs and employees across Latin America. The platform offers a range of services, including digital wallets as well as virtual education and mentoring to help users develop digital and financial skills. The digital wallets offer services such as savings
MICROCAPITAL BRIEF: Nepal’s Gateway Payments Service, Manam Infotech, National Payments Corporation of India to Boost Digital Transactions in Nepal
Gateway Payments Service, one of 10 licensed payment system operators in Nepal; the National Payments Corporation of India (NPCI), which is owned by the government of India; and Manam Infotech, an Indian financial technology (fintech) firm are partnering to rollout NPCI’s Unified Payments Interface (UPI) in Nepal. Among UPI’s functions is to allow users to control multiple bank accounts from a single mobile app, facilitating payments to merchants as well as among individuals. The rollout in Nepal will allow transactions within the country at first and may be extended to execute cross-border payments in the future. NPCI is participating in the effort through