Washington, D.C., September 17, 2007—IFC,
a member of the World Bank Group, and CGAP (the Consultative Group to Assist
the Poor), in collaboration with Visa International today begin a global
conference called Next Generation Access to Finance: Gaining Scale
and Reducing Costs with Technology and Credit Scoring. The conference will
highlight technologies used by pioneering organizations in the financial
services industry, including microfinance organizations, to reduce costs
and reach new customers.
Over 300 delegates from more than 60 countries will hear from industry
leaders from around the world as they provide in-depth and critical analysis
on technology use and credit reporting to increase access to finance. The
event will provide a multisectoral, global view of credit scoring and mobile
banking solutions and their potential for financial institutions. It will
also enable lenders to assess different products and establish contacts
with global providers of cutting-edge technologies attending the conference.
"Mobile phone banking and other emerging applications will revolutionize
financial markets in rich and poor countries alike,” said Elizabeth Littlefield,
CGAP’s Chief Executive Officer. "At long last, the cost reductions
and increased reach made possible by such technologies should enable us
to serve remote areas and poor people viably, offering services we never
dreamt possible a decade ago. However, while customer acceptance is driving
spectacular growth in applications like M-PESA in Kenya, or G-Cash in the
Philippines, we still have a long way to go in adapting regulations, understanding
customer needs, and designing customer-friendly products.”
The conference will gather representatives from financial institutions,
including microfinance groups and commercial banks interested in using
technology and credit reporting in their businesses. Other participants
include regulators, representatives from the donor community, and global
leaders in financial technology and credit information.
“The lack of credit bureaus and limited use of state-of-the-art lending
and delivery technologies are a major stumbling block in making access
to credit more widely available in developing countries,” said Peer Stein,
Head of IFC’s Financial Infrastructure and Institution Building unit.
“This implies huge untapped opportunities for several emerging market
nations, particularly in Sub-Saharan Africa, Asia, and the Middle East
and North Africa, where access to finance is generally limited, and where
microfinance is an important part of the credit economy.”
“We’re delighted to collaborate in this conference and pleased to be
working with others from around the world who are committed to extending
access to finance to the unbanked community,” said John Elkins, Executive
Vice President of Visa International. “We believe that Visa’s payment
solutions can increase the efficiencies of microfinance institutions, provide
a secure way for clients to store and retrieve funds and help bring the
unbanked into the formal economy allowing more productive use of capital,
increased growth and economic development.”
Learn more about the conference at www.financelearning.org/ngm2007.
About CGAP and its Technology Program
CGAP (the Consultative Group to Assist the Poor) is a consortium of 33
bilateral and multilateral development agencies and private foundations
committed to building financial systems that work for the poor in developing
countries. Headquartered in Washington, D.C., and housed at the World Bank,
CGAP is a global resource center for the microfinance industry, setting
standards, offering technical and advisory services, training, and information
on best practices, in addition to providing funding for innovative projects.
CGAP’s Technology Program, co-funded by the Bill and Melinda Gates
Foundation, aims to learn how technology can help provide a variety of
financial services to poor and excluded people, at large scale and in a
viable way, within a regulatory system that encourages their development.
For more information, please visit www.cgap.org/technology.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through loan participations and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services
in 97 countries. For more information, visit www.ifc.org.
About Visa
Visa operates the world’s largest retail electronic payments network providing
processing services and payment product platforms. This includes consumer
credit, debit, prepaid and commercial payments, which are offered under
the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed
acceptance around the world and Visa/PLUS is one of the world’s largest
global ATM networks, offering cash access in local currency in more than
170 countries. For more information, visit www.corporate.visa.com.