Unlocking Financial Potential

Financial Inclusion: Empowering Sustainable Development Goals

 

Financial Inclusion has been identified as an enabler for 7 of the 17 Sustainable Development Goals.

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What is Financial Inclusion ?

Financial inclusion refers to the widespread availability and accessibility of useful, affordable financial products and services for individuals and businesses. These services encompass a range of offerings including transaction accounts, payment methods, savings options, credit facilities, and insurance products. The goal is to provide these services responsibly and sustainably to meet people's diverse financial needs.

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Barriers to Financial Inclusion

  • Limited credit history: Lack of a credit record makes it hard for individuals to qualify for loans.
  • Lack of / Insufficient Collateral: Many people do not have assets to secure loans.
  • Limited Accessibility: Financial services are not available in certain geographic locations.
  • Low Financial Literacy: People lack the knowledge to effectively use financial products.
  • Poorly Designed and Delivered Products: Financial products are not tailored to the needs of the target population, making them difficult to use or access.
  • Social and Demographic Factors: Discrimination or social norms limit access to financial services for certain groups.

Why Financial Inclusion Matters

The importance of financial inclusion can be understood through several key benefits:

  • Economic Growth Stimulation: Financial inclusion acts as a catalyst for economic development. When people have access to financial services, they can save, borrow, and invest more effectively. This leads to increased business creation and expansion, as well as investments in education and health, all of which contribute to overall economic growth.
  • Poverty Reduction: By providing tools for better money management and informed decision-making, financial inclusion helps individuals break free from poverty cycles. Access to appropriate financial services allows people to build assets, manage risks, and create opportunities for economic advancement.
  • Advancement of Gender Equality: Financial inclusion is a powerful tool for women's empowerment. By giving women access to financial services, it promotes their economic independence and decision-making power, contributing to broader gender equality and societal development.
  • Enhanced Resilience: Access to financial services like savings accounts, insurance, and credit helps both households and businesses better withstand financial setbacks. Whether facing medical emergencies or natural disasters, these tools provide a crucial safety net.
  • Improved Living Standards: Financial inclusion enables individuals to invest in their future and enhance their quality of life. With access to appropriate financial services, people can more easily fund education, secure better housing, and access healthcare, leading to overall improvements in living standards.

Client Story

Improving Daily Life and Preparing for the Future

Daily life is made easier by having access to money, which also helps families and businesses prepare for everything from long-term goals to unexpected emergencies. Having access to a transaction account is the first step toward greater financial inclusion because it enables people to keep money and send and receive payments.

A transaction account acts as a doorway to other financial services.

It opens up opportunities for account holders to access credit, insurance, and investment products that can help them achieve financial stability and growth.

Account holders are more likely to use additional financial services like credit and insurance to launch and grow enterprises, invest in their health and/or education, manage risk, and recover from financial setbacks, all of which can enhance their overall quality of life.

How Enabling Qapital is Advancing Financial Inclusion

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Expanding Access to Financial Services for Individuals and MSMEs

Financial services are more than just transactions - they're essential for economic advancement. Yet, despite progress, significant gaps remain, particularly for small businesses and women. At Enabling Qapital, we support institutions that provide responsible credit, savings, and insurance solutions to underserved individuals and Micro-, Small-, and Medium-sized Enterprises (MSMEs) - key drivers of economic growth.

 

Why Financial Inclusion Matters:

  • Empowering Individuals – Access to financial services enables people to save, invest, and protect themselves against financial shocks.
  • Strengthening MSMEs – Small businesses can expand, create jobs, and drive local economies with improved access to capital.
  • Advancing Gender Equality – Financial services help women gain economic independence and close financial inclusion gaps.
  • Enhancing Resilience – Savings and insurance protect households and businesses from unexpected challenges.

 

With a $5.7 trillion MSME financing gap and 1.4 billion adults still without access to an account, unlocking access to capital is critical for sustainable economic development. Enabling Qapital is committed to closing this gap by investing where financial

EMF MICROFINANCE FUND

Enabling Qapital

Enabling Qapital AG

Mühlebachstrasse 164

8008 Zurich

Switzerland

Enabling Qapital AG

Branch Geneva

Place du Grand-Mézel 1,

1204 Geneva

Switzerland

Enabling Qapital Kenya Ltd

Merchant Square Block B

2nd Floor, Riverside Drive

Nairobi

Kenya

Enabling Microfinance AG

Industriering 20,

9491 Ruggell

Liechtenstein

Enabling Qapital Luxembourg S.A.

16, rue Robert Stümper,

2557 Luxembourg

Luxembourg

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