MICROCAPITAL BRIEF: Aman for Microfinance Targets Unbanked in Egypt via Youm-B-Youm Savings Fund, Target Return Is 8%

Aman for Microfinance, a member of the Egypt-based Aman Group, in partnership with the asset management unit of Egypt’s Prime Holding, recently announced an investment fund called Aman Youm-B-Youm, whose name can be translated as Aman Day-by-Day. Aman for Microfinance anticipates the fund will generate returns of

MICROCAPITAL BRIEF: UsPlus Borrows $11m from Lendable, Absa to Boost Access to Factoring for SMEs, Including Black-owned, Rural Companies

Verdant Capital, a Mauritius-based corporate finance firm, recently arranged USD 10 million in debt funding from US-based Lendable Asset Management for UsPlus, a South African funder of small and medium-sized enterprises (SMEs). This comes after UsPlus raised

MICROCAPITAL BRIEF: R5 Raises $7m in Equity Investment Round Led By Global Founders for Vehicle-related Fintech, Insurtech in Colombia

R5, a Colombian provider of financial technology (fintech) and insurance technology (insurtech) services, recently raised USD 7 million in an investment round led by Germany-based Global Founders Capital. Also participating were US-based Accion Venture Lab, Costa Rica-based Carao Ventures, US-based Endeavor Catalyst and Chile-based Magma Partners. Neither the

MICROFINANCE PAPER WRAP-UP: “Fintech: Financial Inclusion or Exclusion?”; by Yoke Wang Tok, Dyna Heng; Published by International Monetary Fund (IMF)

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:

MICROCAPITAL BRIEF: Sherpa Company Pays $65m for 25% Equity Stake in Trusting Social to Harness Big Data for Consumer Finance in Vietnam

Singapore-based Trusting Social recently closed its Series C funding round, selling 25 percent of its equity for USD 65 million to Sherpa Company, a subsidiary of the Vietnam-based Masan Group, which operates across the financial, food, materials, retail and technology sectors. Trusting Social offers

MICROFINANCE EVENT: Fintech Summit Latam; August 24-25, 2022; Mexico City, Mexico

This event will explore how banks and mobile operators in Latin America are adopting digital financial services. The first day will focus on financial technology (fintech) and the telecom industry, addressing The Evolution and Consolidation of the Fintech Ecosystem; Inter-regional and International Expansion; Biometric Identification Systems; Big Data: Fintech & Mobile Operators; Artificial Intelligence and Machine Learning; and IoT (Internet of Things) and B2B (Business-to-business). August 25 will center on fintech and traditional financial services providers, with sessions titled

MICROCAPITAL BRIEF: Luxembourg House of Financial Technology (LHoFT) Accepting Applications for “Catapult: Kickstarter” Fintech Development Programme

Catapult: Kickstarter, a two-week programme organized by the Luxembourg House of Financial Technology (LHoFT) Foundation, aims to aid financial technology (fintech) startups with tutorials, networking and mentorship on issues such as creating a business plan, managing risk and growing the business. The organizers will select 10 fintechs to participate in the program, which will run from June 20 to July 1, 2022. On the closing day, the participants will

MICROCAPITAL BRIEF: Aavishkaar India Fund VI Nets $130m for MSMEs Addressing Climate Change, Agtech, Fintech – Anchored by Public Funding from Domestic, European Sources

Aavishkaar Capital, a subsidiary of India’s Aavishkaar Group, recently completed the first close of its Aavishkaar India Fund VI with commitments totaling INR 10 billion (USD 130 million) to invest mainly in micro-, small and medium-sized enterprises (MSMEs). In particular, Sushma Kaushik, a partner at Aavishkaar Capital, said that the fund aims to

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: 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 EVENT: Africa Fintech Summit; April 21, 2022; Washington, DC, USA

The Africa Fintech Summit (AFTS) offers a platform on which “ideas are explored, investments mobilized, and collaborations formed” relating to financial technology (fintech) in Africa. The event will cover topics such as regulation; how to boost African talent in the technology field; and environmental, social and governance considerations. Session titles include: US-Africa Fintech Connection, Investing in African Fintech, and Cryptocurrency and The Future of Money. Furthermore, the AFTS gives out awards to entities and individuals

MICROFINANCE PAPER WRAP-UP: “COVID-19 and Fintechs in Bangladesh – Impact and Resilience;” by Samveet Sahoo, Anik Chowdhury; Published by MicroSave

Covering the period from January 2021 to June 2021, this paper is the second part of a study analyzing the impact of the COVID-19 pandemic – including associated regulatory changes – on financial technology firms (fintechs) in Bangladesh. The first phase of the study found an increase in

MICROFINANCE PAPER WRAP-UP: “The Opportunity for Digital and E-commerce Payments in the Pacific Region,” by Chris Statham et al, Published by UNCDF

This paper explores the challenges and opportunities associated with leveraging digital payment structures, including how such structures might promote financial inclusion and improve economic conditions in the Pacific Island region. The study focuses on six of the 14 archipelagic countries in the region that are in

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

MICROCAPITAL BRIEF: SoftBank Leads $400m Equity Funding Round for Fintech OPay of Nigeria as it Eyes International Expansion

The SoftBank Vision Fund 2, a vehicle of the Japanese conglomerate SoftBank, recently led an investment package totaling USD 400 million in the Nigeria-based financial technology (fintech) firm OPay, a mobile platform for sending payments. The funding round values

MICROCAPITAL BRIEF: Philippines Moving Toward New Effort to Promote Financial Inclusion, Education in Rural Areas

The Committee on Rural Development of the Philippines’ House of Representatives recently approved a bill that would implement a “financial and digital literacy program” to boost access to financial services – including

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

MICROCAPITAL BRIEF: Securities Commission Malaysia, UNCDF Accepting Applications Through June 30 for Fikra Islamic Fintech Accelerator

Securities Commission (SC) Malaysia, the regulator of capital markets in the country, in collaboration with the UN Capital Development Fund (UNCDF), which promotes access to finance in countries with the lowest incomes, recently began taking applications for the Fikra Islamic Fintech Accelerator Programme, which is intended to develop Islamic capital markets in Malaysia by supporting the development of financial technology (fintech) firms. The accelerator will take participants “through the entire value chain from