Practical Tools for a New Approach to Financial Inclusion Funding

23 March, 2016

CGAP recently published new guidelines for funders of financial inclusion which encourage funders to take a market systems approach. A question that always comes up: It sounds right to take a more systemic approach to financial inclusion, but what does that mean in practice? In short, it means considering all aspects of the market system and working to break down barriers that exclude the poor by nudging market actors to take up missing or weak functions in the market.

Market systems approaches have been applied in other sectors, notably agriculture and enterprise development, for many years and lessons and operational tools have been developed based on these experiences. In financial inclusion, experiences with market systems approaches are still rare and there is a limited body of accessible knowledge on how to operationalize a market systems approach in financial inclusion. To fill this gap, CGAP plans to develop a series of case studies that illustrate the practice of market systems development and highlight implications for funders’ strategies and operations.

CGAp made an animated video which also helps explain what they mean by a market systems approach.

To read more and to see the video, click here.

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