New & Noteworthy

Can the world achieve full financial inclusion by 2020? A new FI2020 publication from CFI offers a quantitative review of financial inclusion globally, using publicly available data to examine recent progress and projecting a scenario out to the year 2020. Expanding financial access is the first step towards financial inclusion, and it needs to be followed by an uptick in the frequency and ways in which people use services as well as strengthening of the financial ecosystem. By the Numbers: Benchmarking Progress Toward Financial Inclusion explores progress in these areas along with access and estimates the potential for reaching full inclusion by the end of the decade.

Why has the financial inclusion of older adults been so difficult, and what's the path forward? A new Financial Inclusion 2020 (FI2020) video examines these questions in the context of global demographic trends. Within 25 years, the percent of the world's population over age 60 will nearly double, with the majority of these people living in lower and middle-income economies. The FI2020 video features industry experts spanning topics of age caps for loan recipients, addressing older client needs, and mobilizing the public and private sectors. To watch the video, click here.

Today, CFI and HelpAge International released a new report examining the unmet financial needs of older adults, a population segment growing rapidly in developing countries. With a focus on Latin America, the paper discusses the barriers and opportunities related to financial services in older age and throughout the aging process, a relatively neglected area of study. The percent of the world’s population over age 60 will nearly double in the next 25 years. The expansion of financial services access for older adults, which is currently hindered across products including credit, pensions, and insurance, will be critical in meeting this major demographic challenge. To read the new report, “Aging and Financial Inclusion: An Opportunity”, click here. For an abridged key messages document, click here.

What Happens to Microfinance Clients Who Default examines how default unfolds and affects microfinance clients in Peru, India, and Uganda – three very different countries that represent the global diversity of microfinance. Since default is a particularly important issue for client protection, the study was launched to explore how microfinance institutions (MFIs) treat clients who are unable to repay their loans. It was motivated by a lack of information on the client-facing actions MFIs take when a borrower moves into default. Among its findings, the study confirms that the quality of treatment clients receive during collections depends importantly on good practices within individual financial institutions, but even more so on the local environment. For more details and additional findings, read the report here.

The largest underserved, vulnerable minority in the world is persons with disabilities (PwDs). Globally, less than one percent of microfinance clients are PwDs. On November 11 at the Inclusive Microfinance Conference in Kampala, Uganda, CFI’s Joshua Goldstein delivered a keynote address discussing financial inclusion for persons with disabilities. Goldstein’s remarks touched on the role of microfinance in the informal economy, the business case for MFIs serving PwDs, disability inclusion efforts in Africa, including that of NUDIPU in Uganda, and CFI’s work toward inclusion of this crucial client segment. For the full keynote text, click here.

A new CFI initiative to strengthen the governance expertise of the CEOs and board members of Africa’s microfinance leaders, the Accion Africa Board Fellowship Program was launched today. Generously supported by The MasterCard Foundation, the Fellowship provides microfinance leaders serving the base of the pyramid in sub-Saharan Africa with critical learning opportunities with peers and global experts, in face-to-face and online settings. The microfinance industry in sub-Saharan Africa is growing fast. To ensure the stability and success of the institutions that provide services, however, strong institutional governance and risk management needs to be a core priority. The Fellowship Program sets out to address this. For more information on the Accion Africa Board Fellowship Program, including how to apply, click here.

The second e-magazine from CFI’s Financial Inclusion 2020 (FI2020) project, the newly released “Financial Inclusion 2020: Round-Up 2014” takes a close look at how the drive for inclusion is faring. The e-zine shares highlights of the past 12 months from around the financial inclusion world – new ventures, milestones, and ongoing debates. Inside, you’ll find a snapshot of progress in each of the five FI2020 “Roadmap to Inclusion” areas, from technology-enabled business models to consumer protection. Over the past months the FI2020 team spoke with dozens of industry participants to gauge their views on the progress of each major Roadmap recommendation, and we’ve distilled their responses here. To read the new FI2020 e-zine, click here.

Today marks the launch of the 2014 edition of the Global Microscope. Now in its eighth year, the Global Microscope has expanded its framework to measure the conditions for financial inclusion beyond microfinance. The 2014 Microscope examines the inclusiveness of countries’ financial sectors by considering best practices in regulation and institutional support in the safe provision of a wider range of financial services to low income populations. Developed by the EIU in collaboration with the Multilateral Investment Fund, CAF, CFI, and Citi Microfinance, the Microscope scores countries to benchmark progress toward financial inclusion for the bottom of the pyramid. To access the country rankings and the full report, click here.

Today CFI, HelpAge USA, and MetLife Foundation announced the start of a research and thought-leadership project that aims to identify opportunities to better meet the requirements of aging populations as access to financial services expands in the developing world. Populations are rapidly aging in low and middle income countries and to date very few resources have been allocated toward understanding financial inclusion in older age. The project will include an issue paper on aging and financial services to be released in early November, as well as roundtable discussions in Colombia and New York on November 11 and in early 2015. For more information, the press release announcing the project can be found here.

CFI Managing Director Elisabeth Rhyne has worked in the microfinance industry for decades, since before it was known as microfinance but instead micro enterprise lending. Ujjivan Product Manager Surabhi Shahi recently interviewed Rhyne on her career, touching on topics including the early days of the industry, the genesis of the Smart Campaign, the political difficulty of interest rates, and achievements in the Indian market. To read the interview, which also discusses Rhyne’s authored books and publications, visit the Ujjivan website.