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The Winds of Change: Mobilizing Microfinance for Climate Change Resilience
Though the world is slowly taking action on climate change, much of the debate still focuses on mitigation. In fact, adaptation – becoming resilient to the changes to come – is equally important, say Daniel Rozas and Sam Mendelson at e-MFP. They explore how the financial inclusion industry can help vulnerable communities develop resilience to the disruptions of climate change, and to adapt to permanently changed environments. This year’s European Microfinance Award aims to inspire the sector to make this fundamental shift – interested providers can apply for the €100,000 award until April 9, 2019.
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- Environment, Finance
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Unpacking NextBillion’s Reader Survey: What the Responses Show – And How They’ll Shape Our Coverage
You likely noticed that NextBillion has been conducting a reader survey over the past few months. But you may not have noticed that the survey recently concluded. In the spirit of transparency – and because we find the results interesting – we’ve compiled some highlights from the 500+ responses. We also share our initial reactions to this reader feedback, and discuss how this survey data might impact new editorial directions on the site.
- Categories
- Finance, Social Enterprise, Technology
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Scaling Access to Finance: Two Recent Studies Explore the Supply and Demand Sides of Funding ‘Missing Middle’ Enterprises in Emerging Markets
Over $5 trillion: That’s the estimated size of the financing gap for small and medium-sized enterprises (SMEs) in developing countries – a shortfall that's particularly problematic for the much-discussed “missing middle.” Since these businesses form the backbone of local economic growth and job creation in many communities, we need to better understand the challenges they face, says Karina Avakyan at Triple Jump. She explores two recent publications that address both sides of SMEs’ financing equation.
- Categories
- Finance
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From Credit Cards to the ATM: Why Interoperability is the Critical Next Step for Mobile Payments
One of the first modern disruptors to established payment methods was the credit card, which allowed people to simply sign for their purchases and be billed later. Then came the ATM, which helped to establish a web of bank networks. Mobile money systems are the latest disruptor, particularly in low-income markets where banking systems have not always served customers. But to grow and be financially inclusive, mobile money will need to replicate many of the same factors that drove the popularity of credit cards and ATMs, argues Vahid Monadjem, CEO of Nomanini.
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- Finance, Technology
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Daring to Think Big: Why It’s Time to Scale Impact-Linked Finance
The 2030 deadline for reaching Sustainable Development Goal targets may sound far off, but for German-based impact advisory firm Roots of Impact, the “SDG financing abyss” is an urgent issue. Three of the organization's leaders say financing the SDGs will require new approaches to investing, including impact-linked finance – a merging of blended finance, impact investing and results-based finance. They lay out a blueprint for accelerating impact-related finance by incorporating outcome funds, utilizing technologies like blockchain and other strategies in this illuminating post.
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Client Protection in the Age of Fintech: New Standards Promote Best Practices in Digital Finance
Technology has vast potential to improve lives, and fintech is no exception – but it also has some clear risks and downsides. And linking a complex industry like digital finance with client protection is no easy task. Lucia Spaggiari at MFR and Isabelle Barres at Accion’s Smart Campaign explore their organizations’ joint efforts to tackle this challenge through new client protection standards for digital credit providers. They invite people to provide input on these draft standards during the six-week public comment period, which runs until March 22.
- Categories
- Finance, Technology
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Why the Future is African – And Why SMEs Should Lead the Way
It’s conventional wisdom that small and medium enterprises are key to economic growth in emerging markets. This is particularly true in Africa, where local SMEs dominate the business landscape, and a fast-growing young population needs the services, jobs and economic growth they provide. But as Trevor Hambayi at Development Finance Associates explains, these enterprises face several unique challenges – starting with a lack of finance. He explores the problem, and some solutions that could help unlock the SME sector’s potential.
- Categories
- Finance
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Don’t Fall for the World Bank’s Bold Claims About Financial Inclusion and the SDGs
"It sounds so simple: Everyone gets access to financial services and – presto – the foundations for the SGDs will be laid." That's the key message Phil Mader and Maren Duvendack took away from World Bank economist Leora Klapper's recent NextBillion post. But that rosy scenario, they say, bears no resemblance to reality. In fact, according to their exhaustive new review of existing research, the inconvenient truth is that financial inclusion is not accelerating progress toward the SDGs – and isn't even fundamental for attaining them.
- Categories
- Finance
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