African Lady paying at a tomato stand

Learn more about responsAbility and

Financial Inclusion

What is Financial Inclusion?

Financial Inclusion means providing access to finance to the more than 1.7 billion people in developing countries who remain unbanked. In addition, more than 200 million MSMEs (micro, small and medium sized enterprises) in developing economies are thought to be underserved, leading to a financing gap of about USD 2 trillion (source: IFC). Investments in this sector provide access to capital along with secondary effects, including local employment, women‘s empowerment, improvements in education, health and sanitation.

FinTech, from mobile money to branchless banking, is the technology that is revolutionizing how clients access banking and credit. Financial Institutions can also increase their efficiency, improve access in remote regions, and serve clients at lower cost.

Microfinance means providing loans, on average around USD 900, to self-employed, household-based entrepreneurs. The majority of clients are women who run retail stores, produce handcrafted goods, or are street vendors, farmers, food processors, or traders.

SME Finance means providing loans to small and medium enterprises with 10 to 300 employees. This serves a wide variety of service and agricultural sectors, as well as small-scale industrial and manufacturing. This group is often referred to as "the missing middle". 

Financial Inclusion Impact and Key SDGS:

Provide access to finance for low-income households, offering savings, mortgages, insurance and other essential services.
Create jobs by supporting small businesses, improving the supply of credit from financial institutions to help Micro & SMEs grow.
Boost financial sector development, providing long-term support to improve product offerings, stimulate innovation and promote economic development.

Why invest in Financial Inclusion in Emerging Markets?

Funding Demand of

5-8 trillion

IFC estimates that over 200 million Micro & SME businesses are in need of USD 5 to 8 trillion of funding every year.

Filling the gap

1.7 billion

High demand for financial services. 1.7 billion adults remain without access to financial services today.

Tech boost

85%

Growth is boosted by technology, digitalization and mobile solutions. 85% of unbanked adults have mobile phones.

Financial Inclusion in the News

USD 10 billion for the billions

responsAbility reaches milestone disbursements in impact investing in emerging economies

responsAbility, Sida and Danske Bank mobilize USD 177.5 million via social bond

Joining forces to improve health and support small businesses Post-Covid-19 Read press release

responsAbility part of successful fintech IPO

Public listing of Fawry - the Egyptian digital payments fintech leader Read press release

responsAbility closes USD 175 million microfinance securitization

Transaction opens up global capital markets for high-impact sector in emerging markets.

Watch how Fintech is crucial for Financial Inclusion

Please activate all cookies to play videos.

Our Financial Inclusion Team

Private Debt

Martin Heimes

Co-Head of Financial Inclusion Debt Link to full profile

Thomas Müller

Co-Head of Financial Inclusion Debt Link to full profile

Jaskirat Chadha

Head of Financial Institutions Debt - APAC Link to full profile

Michael Fabbroni

Head of Financial Institutions Debt Africa & Country Director Kenya Link to full profile

Enrique Hurtado

Head of Financial Institutions Debt LATAM Link to full profile

Private Equity

Volodymyr Tsapko

Head of Financial Inclusion Equity Link to full profile

Henning Haugerudbraten

Principal / Country Director Thailand Link to full profile

Contact responsAbility

Interested in Financial Inclusion?

Read our latest Financial Inclusion articles

responsAbility Logo

Connect with us

CNC logo
IA logo