Worldwide over a billion adults* have inadequate access to formal financial services and have no account with a financial institution or mobile money provider. This leaves them unable to access reliable credit or savings accounts. Most of them have low and unpredictable incomes, and lack the resources to cope with unexpected household needs or to invest in a better future.
By increasing access to loans and equity investments, Oikocredit helps its partners become stronger and more sustainable social businesses.
Our financial inclusion partners in turn increase access to responsible and reliable financial services for low-income people. They also encourage employment generation through provision of financial services to small and medium enterprises (SMEs).
The access to responsible financial services provided by our partners helps empower low-income people. It gives them access to opportunities to increase their income, savings and insurance coverage, as well as access to resources to cope with unexpected needs, and helps them strengthen their businesses.
How do we create impact in financial inclusion?
Within financial inclusion, Oikocredit concentrates on three target segments:
Microfinance institutions (MFIs)
- Providing responsible financial services for low-income people
- Contributing to financial security and economic empowerment
Financial institutions supporting small and medium enterprises (SMEs)
- Providing responsible financial services for SMEs
- Contributing to job creation and retention, and improved financial health for SMEs
Non-traditional financial institutions
- Providing technology-driven responsible finance
- For example, fintechs offering digital financial services to individuals and SMEs
- Using financial technology to increase efficiency and improve services to clients
Oikocredit requires financial inclusion partners to endorse client protection standards, carry out an assessment and, if needed, create an action plan.
*Source: World Bank, Global Findex Database 2017