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The End of a Debate? India Highlights the Dominance of For-Profit Capital in Impact Investing
Can impact investing be as commercially viable as mainstream investing – or does it work better as a nonprofit model, or as a less-profitable niche in the broader investing space? This question remains widely debated, even as more empirical evidence has demonstrated the commercial success of impact investments. Disha Gandhi of Aavishkaar asserts that the long-running global debate over for-profit vs. nonprofit models in impact investing may be winding down, and India is a key case in point.
- Categories
- Impact Assessment, Investing, Social Enterprise
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Coming of Age: Why Consolidation in the Impact Investing Industry is a Great Thing
With over $114 billion deployed into impact investments in 2017 and the total U.S. market at well above $8 trillion, the sector has gone decisively mainstream. And when that happens, industry consolidation is not far behind. In light of a recent wave of eyebrow-raising mergers and acquisitions, Stephanie Cohn Rupp at Tiedemann Wealth Management – which recently completed a merger of its own – says this trend should spark more excitement than concern.
- Categories
- Impact Assessment, Investing, Social Enterprise
- Tags
- ESG, impact investing
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Wall St. Journal Financial Inclusion Challenge Seeks Innovative Enterprises – Application Deadline Feb. 23
Financial instability plagues millions of Americans. Many cannot pay their monthly bills and have no retirement savings or no idea how to manage what they do have. The Wall Street Journal has launched a Financial Inclusion Challenge aimed at both nonprofits and for-profit organizations who have socially impactful solutions to the problems of low- and moderate-income people in the U.S. The deadline for entry is Feb. 23.
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Is Mobile Money Killing Off the Group Microfinance Model (And Would That Be Such a Bad Thing)?
SAJIDA Foundation, an NGO and microfinance provider in Bangladesh, recently took the bold step of going cashless. But shifting to mobile money meant the end of group meetings – the locus of traditional microcredit for decades. The NGO was betting on clients embracing this new approach, but after the initial rollout, it noted some troubling downsides along with the expected benefits. Ashirul Amin of BFA explores the pros and cons SAJIDA has encountered in its cashless journey, and how it is responding with a hybrid method that blends old and new.
- Categories
- Finance, Impact Assessment
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What’s Ailing Sri Lanka’s Microfinance Industry – And Could Fintech Provide a Solution?
In Sri Lanka, microfinance interest rates can be as high as 72 percent – outpacing even loan sharks, whose rates average around 40 percent. This often traps clients in severe debt and perpetuates cycles of poverty – while MFIs themselves often enjoy high profits, low expenses and lack of competitive pressure. Suthaharan Perampalam and Mithula Guganeshan of Sparkwinn explore the potential of fintech (and better regulations) in changing this dynamic.
- Categories
- Finance, Impact Assessment
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Avoiding the ‘Ick Factor’: Four Easy Steps to Align Your Investments With Your Values in 2018
Morgan Simon, the author of "Real Impact: The New Economics of Social Change," lays out four simple steps to avoid what she terms the "ick factor." That's the unpleasant feeling that comes when your social values and financial investments aren't aligned – for instance, when your big-name bank is using your money to invest in things like private prisons and fossil fuels. Simon provides an overview of some strategies and socially responsible institutions that can let you earn attractive returns, while feeling good about the impact you're making with your money.
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Harnessing the Potential of Digital Finance for Women
Sixty-two percent of the world’s adult population now has access to a bank account. But in spite of this progress, gender gaps in digital and overall financial inclusion are increasing, and there's a growing awareness that access alone doesn't equal empowerment. Madji Sock and Katrina Kwan of Dalberg Advisors discuss strategies to close this growing gap and ensure that women are not left behind by the digital revolution in financial services.
- Categories
- Finance
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Do You Speak Social Finance? Helping Entrepreneurs and Impact Investors Overcome their Language Barrier
Social entrepreneurs and impact investors often speak different languages: Entrepreneurs are fluent in the dimension of impact, while investors are more focused on the bottom line. A new education platform called the Social Finance Academy strives to bridge this gap via free, online learning packages that enable investors and entrepreneurs to reach common ground. Christina Moehrle and Maxime Cheng of Roots of Impact explore the platform's early success and potential impact.
- Categories
- Investing, Social Enterprise
- Tags
- impact investing
