Based on a review of existing literature, the authors find that the global gender gap in digital financial inclusion is 11 percent points and the rich-poor gap is 15 percent points. They then perform a regression analysis drawing from a wide range of datasets on digital financial inclusion; traditional financial inclusion; proxies for financial technology (fintech) such as fundraising; and measures of the digital divide by gender, income, and urban versus rural. The three main results are:
Tag: Financial Inclusion
MICROCAPITAL BRIEF: Equity Group Nets Over $165m from IFC, BII, FMO, ResponsAbility, Symbiotics for Climate Projects, Financial Inclusion for MSMEs in Africa
Partially through its Financial Institutions Growth Fund, the International Finance Corporation (IFC), a member of the World Bank Group, is paying an undisclosed sum to acquire a 6.7-percent stake in Equity Group Holdings, which has banking operations in Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda. IFC and the UK government’s British International Investment (BII) also are each lending the group’s Equity Bank Kenya
MICROFINANCE EVENT: European Microfinance Network (EMN) Annual Conference; June 16-17, 2022; Brussels, Belgium
Subtitled “Financial Inclusion and the Future of Work,” the 19th annual conference of the Belgium-based European Microfinance Network (EMN) will focus on changes in the labour market brought about by the COVID-19 pandemic along with rapid technological advances. The agenda will focus on how the microfinance industry can respond to
MICROCAPITAL BRIEF: Empire, Mosabi, Orange, UNCDF Seek to Boost Financial Inclusion in Sierra Leone with Focus on Financial Literacy, Recruiting Women as Mobile Money Agents
The UN Capital Development Fund (UNCDF) recently embarked on a partnership with France-based Orange Mobile Finance (Orange Money); Mosabi, a US-based digital education and finance platform; and Empire Solutions, a digital microfinance institution in Sierra Leone, in an effort to boost access to finance for low-income people – including women and youth – in Sierra Leone by increasing:
MICROFINANCE PAPER WRAP-UP: “Policy Framework on the Regulation, Licensing and Supervision of Digital Banks,” Published by Alliance for Financial Inclusion
This report provides a framework for regulators and policymakers seeking to improve the way they govern digital banks, with a focus on increasing financial inclusion. It draws on “in-depth secondary research and extensive consultation with [Alliance for Financial Inclusion] member countries and regulators in other jurisdictions, and other relevant analysis of
MICROFINANCE PAPER WRAP-UP: “Determinants of Financial Well-Being: Evidence from Latin America,” by Sebastián Cárdenas, Published by CAF
This paper addresses the measurement and causes of financial well-being in Latin America with the aim of encouraging the deployment of optimal policies and practices by both private institutions and governments. To define the term, Mr Cárdenas cites the US-based Consumer Financial Protection Bureau (CFPB), which considers a high level of financial well-being to mean individuals can “meet their financial obligations successfully, can feel secure about their financial future and are able to make decisions
MICROFINANCE PAPER WRAP-UP: “Fintech and Financial Inclusion in Latin America and the Caribbean,” by Dmitry Gershenson et al, Published by International Monetary Fund
This paper examines financial technology (fintech) in Latin America and the Caribbean (LAC), particularly: (1) whether fintech can increase financial inclusion; and (2) best practices for governments seeking to use fintech to do so. Among the challenges is that
MICROFINANCE PAPER WRAP-UP: “Central Bank Digital Currencies: A Potential Response to the Financial Inclusion Challenges of the Pacific;” by Anton Didenko, Ross Buckley; Published by ADB
This paper explores how central bank digital currencies (CBDCs) might promote financial inclusion in the Pacific Islands. The Pacific includes countries that are “among the world’s most remote and geographically dispersed,” with great variability in access to
MICROFINANCE PAPER WRAP-UP: “COVID-19: Accelerating the Use of Digital Agriculture;” by Leslie Arathoon, Rishi Raithatha, Daniele Tricarico; Published by GSMA
This report offers a review of prior findings on trends and best practices in “digital agriculture” services provided by mobile network operators (MNOs) and dedicated agricultural technology (agritech) companies. Digital agriculture can include a range of online tools for facilitating the usage of various types of information at any point along
MICROCAPITAL BRIEF: Cenfri, Cornerstone, GLEIF, London Stock Exchange Collaborate on Legal Entity Identifiers (LEIs) to Boost Financial Inclusion of SMEs in Africa
Four organizations recently launched an effort to equip small and medium-sized enterprises (SMEs) in Africa with Legal Entity Identifiers (LEIs), which are 20-digit codes linked to “business card and ownership structure information about a legal entity which can be verified quickly and efficiently by anyone, anywhere, enabling organizations to know precisely with whom they are doing business.” The participating entities are
MICROCAPITAL BRIEF: FINCA DRC, Flash International Partner to Expand Mobile Access to Financial Services in Congo
FINCA Democratic Republic of Congo (DRC), a subsidiary of US-based FINCA Impact Finance, recently announced a partnership with Flash International, a DRC-based financial technology (fintech) company. FINCA customers will gain access to Flash App, Flash International’s mobile financial services platform, while Flash customers will
SPECIAL REPORT: Online Event: Strengthening Cybersecurity to Boost Financial Inclusion in Africa; July 13, 2021
The 
53rd Midi de la Microfinance, held by Luxembourg-based NGO ADA Microfinance, will focus on cybersecurity as it relates to financial inclusion in Africa. This includes suggested “points of attention and concrete actions” microfinance institutions may use to minimize the risks associated with
MICROCAPITAL BRIEF: Microfund for Women (MFW) Expands Digital Capabilities via MoneyPhone Technology
Microfund for Women (MFW), a nonprofit microfinance institution in Jordan, recently partnered with MoneyPhone, a Netherlands-based financial technology (fintech) company, to enhance its digital offerings in response to the COVID-19 pandemic. Bdour Al-Hyari, the director of strategic planning and business development at MFW, cited the “opportunity for us to introduce new digital services, such as
MICROCAPITAL BRIEF: AECID, COFIDES Launch $71m TIF Program Targeting Financial Inclusion, Sustainability in Latin America
Compañia Española de Financiación del Desarrollo (COFIDES), a development finance institution controlled by the Spanish government, recently unveiled a new program called Triple Bottom Line Inclusive Finance in Latin America (TIF), in collaboration with the Agencia Española de Cooperación Internacional para el Desarrollo (AECID), a unit of the government of Spain. TIF aims to support low-income populations in Latin America by increasing access to loans while
MICROCAPITAL BRIEF: Fusion Microfinance Raises $12m in Debt from Bank im Bistum Essen (BIB) to Increase Financial Inclusion for Women in India
Fusion Microfinance, a microfinance institution in India, recently borrowed EUR 10 million (USD 12.2 million) from Bank im Bistum Essen (BIB), a cooperative bank based in Germany. The loan proceeds are intended for Fusion Microfinance to
MICROCAPITAL BRIEF: Belize Bank, Wallet Factory to Launch Digital Payment Service E-kyash
Wallet Factory, a financial technology company based in the UK, recently partnered with Belize Bank Limited, a commercial bank in Belize, to create E-kyash, a digital payment platform aiming to ease financial transactions for people without bank accounts. E-kyash’s offerings include utility bill payments, retail payments via
MICROFINANCE PAPER WRAP-UP: “Financial Literacy Education: Implication on the Economic and Social Life of the Teacher in Ghana,” by Juabin Matey et al, Published by International Research Journal of Multidisciplinary Scope
The authors of this paper investigated “how consumers acquire knowledge of financial numeracy and how it’s applied, especially to their economic and social lives.” Past research has shown both higher borrowing costs and over-spending to be correlated with
MICROCAPITAL BRIEF: Samunnati Borrows $12m from FMO, Triodos to Boost Agricultural Producer Organizations, SMEs in India
Samunnati, a non-banking financial company in India dedicated to the agricultural sector, recently borrowed EUR 5 million (USD 6.1 million) each from Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a development bank controlled by the Dutch government, and Triodos Investment Management (Triodos IM), a subsidiary of Netherlands-based Triodos Bank, for on-lending to farmer producer organizations (FPOs) and small and medium-sized enterprises (SMEs) in the agricultural sector. Triodos IM is disbursing the funds from