Promoting Inclusive Markets and Financial Systems
Facilitating the Market for Capacity Building Services
In markets with high levels of financial exclusion, actors in the financial system—financial service providers (FSPs), consumers, providers of financial system infrastructure and other market supporting functions,1 regulators and other policy makers—often face capacity limitations. These include insufficient or inexperienced staff, lack of knowledge or understanding of the market, and limited financial literacy. Building sustainable and inclusive financial markets will require building the capacity of these actors. Funders that work to promote financial inclusion can play a very useful role in tackling capacity challenges, particularly if they provide support in a way that facilitates the development of a capacity building services market. This approach can benefit the whole financial market as opposed to the more common approach of providing direct support to one or a few actors in the market.
This Focus Note builds on the ideas discussed in “Facilitating Market Development to Advance Financial Inclusion” and addresses the capacity issues faced by retail financial service providers (see Box 1). Drawing on examples, this Focus Note addresses the question: what does it take to facilitate a sustainable, commercially viable market for capacity building services delivered to FSPs?