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In Impact Investing’s Rush to the Mainstream, Who Are We Leaving Behind?
After a long march toward mainstream acceptance, many in impact investing are claiming victory. But a new report by Oxfam and Sumerian Partners argues that the sector should focus on the needs of the businesses working to reduce poverty rather than on the investors who stand to benefit from their work. In other words, it's time to stop pretending that investors seeking a pure market return can tackle the most complex global challenges in high-risk markets.
- Categories
- Investing
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Why the Crusade Against Cash Isn’t Clearly ‘Pro-Poor’ – UPDATED
Many assume that getting rid of cash in the name of financial inclusion would unequivocally be a good thing for the poor. Phil Mader says it's too early to say – and that cash might have insufficiently recognized advantages, including being free to use, anonymous and under public stewardship. And besides, he argues, if the mission is poverty alleviation, it’s not money’s physical form, but how it's distributed, that matters.
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- Technology
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Yes, Microcredit Requires Subsidies … and That’s Great News
Recent research should finally put to rest the assertions that affordable microcredit aimed at poor households does not require subsidy: Serving poor customers well is always going to be expensive. On the plus side, the subsidies are quite small and, according to Timothy Ogden, those who perceive this as anything other than great news bought into the inflated expectations around microcredit.
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- Uncategorized
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New Products, New Markets – New Risks? Microfinance Shifts its Gaze to Housing
$2.3 trillion: That's what low-income households are predicted to spend on urban housing by 2025. So it's no surprise that many microfinance providers view housing lending as their next big opportunity for both profit and social impact. But this new focus brings plenty of challenges – and more than a few risks. We explore the implications of this development – a key topic of discussion at the recent European Microfinance Week.
- Categories
- Investing, Social Enterprise
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Supplemental Safety Net: An Innovative Model Paves the Way for Inclusive Insurance in China
Hundreds of millions of people in China still remain outside the formal financial system, and insurance is one of their biggest unmet needs. Yet the country's insurance industry tends to focus on more affluent customers, and its public safety net isn't adequate for lower-income people's needs. YiBao, an insurance research, development and marketing consultancy, takes an innovative (and award-winning) approach to making the commercial insurance market work for the country’s low- and moderate-income households.
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- Health Care
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Beyond the Bubble: What’s Cool, Potentially Cool, And Clearly Not Cool About Bitcoin in Financial Inclusion?
Bitcoin owners are laughing all the way to the (virtual) bank: The cryptocurrency’s value has gone up over 2,000 percent in the past year. But along with concerns about a likely "market correction," this has raised some pressing questions about its value as a tool for financial inclusion. Ignacio Mas explores Bitcoin's potential on that front, offering four points to consider.
- Categories
- Finance, Investing, Technology
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The Clear Blue Water on the Other Side of the Digital Divide
Digital financial exclusion represents both a development challenge for poor customers, and a missed opportunity for providers, says MicroSave founder Graham Wright. While providers fight for a share of the most profitable and easiest-to-reach markets, they often overlook the vast commercial potential of lower-income communities – in territory that is largely not competed. Wright explores how to tap into this "fiercely loyal" market.
- Categories
- Finance, Technology
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Investment = Inclusion: Can Fintech, With a Boost from Investors, Level the Playing Field for the Unbanked in Africa?
Fintech – particularly mobile finance – is increasingly vital to Africa's economic growth. But despite the continent's impressive mobile money penetration, much of its population remains unbanked or underbanked. That’s why it’s so encouraging to see another trend developing in tandem with Africans’ embrace of fintech: namely, investors’ embrace of African fintech companies. Iftin Fatah at OPIC explores why more investment means more digital financial inclusion.
