The Project
The Center for Financial Inclusion (CFI), a think tank focusing on low-income clients, studied how catalytic capital has spurred the development of a thriving digital credit industry—delving into the ways that catalytic capital has driven growth and, at the same time, the ways it may have fueled unintended consequences that exacerbate inequities for low-income populations. Inclusive finance is a burgeoning part of the $9.3 billion global fintech marketplace, and this research can help shape guardrails for investors and other financial inclusion stakeholders across country markets as they crowd in capital and fuel market development.
Value and Outcomes
This project addresses the paucity of publicly available research on responsible digital lending in developing countries. With a sharp focus on fragile/underserved markets, CFI directly addresses the responsibility of catalytic capital providers to help build an ethical marketplace. Using the experience of several established digital credit markets, the study is meant to help nascent markets prioritize policy, infrastructure, and other enabling conditions in order to attract investors, accelerate the flow of catalytic capital responsibly, and incorporate safeguards that protect people from predatory practices. CFI produced a comprehensive report, including examples of responsible market practices in digital lending, and has shared its findings through webinars, blogs, and events.
For more information on the Center for Financial Inclusion, visit their website.