Paper

Building Financial Systems for the Poor

CGAP's initiatives to address micro finance stakeholders' needs creating stronger financial systems
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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.