Building Financial Systems for the Poor
This presentation attempts to highlight CGAP's initiatives in building inclusive financial systems for the poor. CGAP intends to address issues at three different levels:
- Micro-level for financial service providers by:
- Promoting diverse institutions and delivery channels.
- Meso-level for market infrastructure by:
- Improving technology infrastructure and transparency.
- Macro-level for governments and donors by:
- Building "helpful" policy environments;
- Promoting aid effectiveness.
The presentation elaborates on some of CGAP's examples towards:
- Financial service providers:
- Deploying microfinance in large branch networks, for e.g. Retail Innovation Fund in Brazil, South Africa and Sub-Saharan Africa.
- Market structure as part of information infrastructure and technology:
- The MIX;
- The Rating Fund;
- Information Systems Program.
- Provision of 'helpful' environment by governments:
- Regulations and supervision consensus guidelines;
- Workshops and trainings;
- Web resource centers;
- Policy papers;
- In-country consultation.
- Donors aid effectiveness addressed by:
- Joint funding vehicle;
- Common standards;
- Peer reviews of donor effectiveness;
- Donor-staff support.
The presentation concludes by stating some of the lessons learnt while understanding the needs of poor clients.