Fresh Ideas on Private Sector Development - by Category
Results - 25 of 7 items found
May 16, 2018
Modelo Peru: A Mobile Money Platform Offering Interoperability Towards Financial Inclusion
Like most emerging markets, Peru suffers from low banking penetration and faces challenges to providing financial services. Beginning in 2015, a strategy called Modelo Peru emerged as a collaboration between financial institutions, telecom companies, and the government, with the goal of launching a mobile money platform to better serve the nation’s unbanked and underbanked. The platform’s main innovative feature is interoperability among these three groups to achieve scale and breed competition among e-money issuers.
English | 9 pages - May - Note 54 | IFC 2018
Apr 19, 2018
Crowding-In Capital Attracts Institutional Investors to Emerging Market Infrastructure Through Co-Lending Platform
Financing infrastructure in emerging markets is a critical global challenge for sustainable development. Through a new IFC program, private institutional investors can directly participate in the evolving infrastructure asset class in emerging markets. The program, IFC’s Managed Co-Lending Portfolio Program (MCPP) for Infrastructure, creates a structure that overcomes several hurdles that have inhibited the flow of private capital to emerging market infrastructure projects. Read more.
English | April 2018, Note 53
Apr 19, 2018
Crowding-In Capital: How Insurance Companies Can Expand Access to Finance
Development institutions, governments, and the investment community have been exploring ways to increase private capital flows to support critical development projects in emerging markets. A new financing mechanism applies the risk-bearing capacity and know-how of insurance companies to allow these companies to take what are, in many cases, their first insurance exposure to markets and counterparties. This innovative credit insurance solution, which we call “Credit Mobilization,” is being pioneered to provide long-term funding to developing country banks, and may offer significant potential for scale-up and replication.
English | Note 52 - April 2018
Jan 26, 2018
Increased Regulation and De-risking are Impeding Cross-Border Financing in Emerging Markets
Correspondent banking relationships connect banks and people across borders and are critical to finance and trade. They are a vital link between emerging markets and the broader global economy. Yet efforts to combat money laundering and the financing of terrorism have increased compliance requirements for banks. Difficulties adhering to these requirements and increased costs associated with them threaten the ability of banks to serve their customers, while also eroding the number and quality of correspondent banking relationships. A recent IFC survey shows that many banks are feeling the pressure of increased regulation and de-risking, and emerging market banks are bearing the brunt of it.
English | 7 Pages - January - Note 48 | IFC, 2018
Mar 28, 2017
How Fintech is Reaching the Poor in Africa and Asia: A Start-Up Perspective
This note explores the way traditional banks and financial technology companies, or FinTechs, interact in Africa and Asia, and their ability to offer innovative digital financial services that grant unbanked individuals access to financial transactions. The FinTech sector is experiencing explosive growth in both continents, but while Asian banks have managed to efficiently integrate with FinTech solutions, African banks have been slower to adapt to this change. Still, the outlook for mobile banking remains positive, and its prevalence will boost the financial industry in both regions.
English | 6 Pages - March - Note 34 | IFC, 2017
Nov 18, 2016
De-Risking by Banks in Emerging Markets – Effects and Responses for Trade
Bank de-risking is a reality. Increased capital requirements, coupled with rising Know-Your-Customer, Anti-Money-Laundering, and Combating-the-Financing-of-Terrorism compliance costs have resulted in the exit of several global banks from cross-border relationships with many emerging market clients and markets, particularly in the correspondent banking business. A subset of this business, trade finance, is also at risk, with potential consequences for segments of emerging market trade. Those involved in addressing the de-risking challenge must focus on compliance consistency and effective adaptation of technological innovations.
English | 6 Pages - November - Note 24 | © IFC, 2016
Nov 1, 2016
Mitigating the Effects of De-Risking on Remittances
Anti-money laundering/combating-the-financing-of-terrorism laws are grounded in reasonable national security concerns—preventing the cross-border flow of funds to terror or criminal groups. But these policies can have unintentional and costly consequences, in particular for people in poor countries. Those most affected are likely to include the families of migrant workers, small businesses that need to access working capital or trade finance, and recipients of life-saving aid in active-conflict, post-conflict or post-disaster situations.
English | 6 Pages - November - Note 22 | © IFC, 2016
