The last blog in this series argued that using formal account access as the primary yardstick for progress in financial inclusion is a poor navigational tool for stakeholders working to strengthen the link between financial systems and the well-being of populations.
Open a report on – or read the mandate of an organization working in – financial inclusion and chances are that in the introductory paragraph you’ll read a variation of a single sentence that motivates the whole endeavor: “Worldwide, more than 2 billion adults do not have access to an account at a formal financial institution”.
This is the third blog in a series about Financial Service Associations (FSAs) and their potential for growth and customer value creation based on an FSD Kenya commissioned survey by BFA. Read the first blog here: Financial services associations: an imperfect solution and the second blog here: FSA asset financing: when paying more yields more.
This is the second blog in a series about Financial Service Associations (FSAs) and their potential for growth and customer value creation based on an FSD Kenya commissioned survey by BFA. The survey took place in 2017 in Bamba, Kakeani and Mukuyuni and involved in-depth interviews with over 60 respondents including customers, their non-member neighbours and FSA staff.
n May 2017, I had the honour of being on a fascinating Euromoney panel about expanding the digital financial ecosystem. One of the many topics that we discussed was the dearth of debt financing available for fintechs and start-ups limiting the potential for scale.
Banking remains the largest sub-sector by assets and the most systemically significant in Kenya’s financial services sector. Developments, especially those enabled by technology, have brought a sizeable number of new, mostly poorer and vulnerable first-time consumers into the market.
Africa’s population is growing faster than anywhere else in the world. More than half of global population growth between now and 2050 is expected to occur in Africa and of the additional 2.4 billion people projected to be added to the global population between now and 2050, 1.3 billion will be in Africa.
Our first blog in this series discussed the Hunger Safety Net Programme and savings groups (SGs), for which we’ve also sought to use market based approaches. Part Two, discusses the use of a market based approach in graduation programmes.
The impact of the recent six-month drought is readily apparent. The earth is dry and cracked and most of the trees and shrubs are barren. Riverbeds are full of dried branches and the livestock that roam the area are but skeletons, with many dead along the road.
Across Africa, entrepreneurs and business leaders are increasingly aware that hiring top talent is critical to winning in the marketplace. In Kenya especially, technology-driven financial services companies (“fintechs”) struggle to recruit efficiently and effectively: when they post a job opening, they are often inundated with a high volume of applications and selecting candidates feels like a subjective process prone to bias and inconsistency.
Pauline Kimari is a pharmacist in Ndaragwa, Kenya, a small town several hours’ drive north of Nairobi. She moved there from rural Muranga, several hours away, to open a small shop, Ndaragwa Joy Chemist. It is white with blue and green doors and a blue bench inside. She sells medicine and cosmetics.
Market facilitation can (and does) work
Kenya is a good place to start when considering market facilitation. It is the poster child of financial inclusion, with access to formal finance growing dramatically from 27 percent in 2006 to 75 percent in 2016.
In an effort to understand the real needs of the people, our seventh ‘Field Friday’ exercise took us to Karagita in Naivasha. We set out to gather insights on which financial services people use and which ones they trust most.
Our work on the Kenya Financial Diaries made it painfully clear to us that school fees are incredibly expensive for low income families. The lowest end public schools often ask about KSh 20,000 per year for a single student, when rural household incomes often average around KSh 6,000 per month.
I spent a week in Kenya, courtesy of Financial Sector Deepening, an initiative of a number of aid agencies, including Britain’s Department for International Development, the Swedish government, and the Gates Foundation.
Last year, I sat huddled with Esther in the back of her dark market stall. The walls were lined floor to ceiling with second hand bras for sale, leaving only a small space for us to sit and chat. Esther was coming through a rough few years. Her husband unexpectedly and quickly died from meningitis.
During his visit for the FSD Kenya 3rd annual lecture, John Kay visited Haki Group, a Self Help Group registered in 2002 but graduated to a Community Based Organization in 2005 to mitigate the effects of HIV/AIDS in Kibera.