Globally, 2.5 billion people have no access to formal financial tools because they are either unavailable or are not designed to meet their needs. Poor households need financial tools to help them cushion against risk, build assets to secure their family’s future and manage daily household cash flows. Because of their precarious situation and unreliable income, the poor need financial services even more than the non-poor simply to survive from day to day.
Grameen Foundation partners with financial institutions, telecom operators and other providers to create and scale financial products and services for the poor and poorest. We demonstrate how appropriately designed financial products can improve lives and livelihoods by reducing risk, improving financial security and increasing income.
Our financial services approach centers on three elements:
- We use quantitative and qualitative market research and data analytics to understand the financial needs of poor households.
- We drive rapid innovation in product development and design as well as new delivery channels, such as mobile phone-enabled innovations.
- We ensure there is a viable business model behind the products and services to drive sustainability.
We design next-generation products, applications and software that address the critical needs of the poor, and establish the networks that can deliver them.
We work with microfinance institutions, telecommunications providers and banks to give the poor safe, affordable options for saving.
Financial service providers reach relatively few rural poor and offer a limited range of services. We are building and strengthening networks that can deliver financial services and essential information to farmers.
We finance social enterprises and innovative microfinance institutions that seek to improve livelihoods in the “last mile”—rural or difficult-to-reach markets that often include the poorest people. To serve these remote areas, Grameen Foundation manages three investment programs that link social businesses to sources of capital traditionally beyond their reach in Sub-Saharan Africa, Asia and Latin America.