FinMark Trust has partnered with the United Nations Capital Development Fund (UNCDF) and Cenfri to develop and deliver the Making Access to Financial Services Possible (MAP) initiative. MAP seeks to advance financial inclusion and support expanding access to an appropriate portfolio of financial services for individuals that are either underserved or un-served. An appropriate portfolio of financial services includes effective access to credit, savings, payments and insurance products. These products have the potential to improve the welfare of lower income people by helping to conduct and manage their financial lives more efficiently, increase income, better manage risks and build up wealth over time.
The MAP diagnostic approach utilises an analytical framework to build a picture of market demand based on household and individual income, economic activity, and current usage of financial services within a diverse array of countries and local contexts. This approach has the objective of:
- Encouraging providers of financial services to deliver products and services to those segments of the population that are currently underserved; and
- Enabling policymakers and regulators to understand current policies and regulations that are inhibiting market growth and to develop a strategic vision on financial inclusion and the possible delivery modalities.
The MAP Diagnostics are effectively utilised to support the development of Financial Inclusion Strategies for countries, highlighting priority areas for impact. FMT supports the implementation of these programmes through in country resources.
Thematic Country Programs within MAP
M&E to support assessment of the financial inclusion indicators.
Digital Financial Identity
Migration within the region is part of daily life. With the cost of KYC (know your customer) up to 80% of the cost from cross border remittances – a digital financial identity for the region could reduce costs to those most vulnerable.
Mobile Money and Interest on Mobile Money
FMT supported the development of the Committee of Central bank Governors for SADC Mobile Money Guidelines, which has been adopted as the working document for the region. A major and very progressive approval, was for the payment of interest on Mobile Money Wallets. This is very progressive thinking – and supports financial inclusion through the digitization of a store of value with interest. We are supporting the implementation of their clause in the region through the development of frameworks for countries to pay interest.
Credit information Sharing
Access to finance, and formal credit is essential to support financial inclusion. Credit information sharing is critical to support formal credit, and limit over indebtedness.