Promoting Inclusive Markets and Financial Systems
The MasterCard Foundation works with visionary organizations to provide greater access to education, skills training and financial services for people living in poverty, primarily in Sub-Saharan Africa. As one of the largest, independent foundations, its work is guided by its mission to advance learning and promote financial inclusion in order to alleviate poverty. Based in Toronto, Canada, its independence was established by MasterCard when the Foundation was created in 2006. For more information, please visit www.mastercardfdn.org or follow us on Twitter @MCFoundation.
This document provides a fairly new conceptual framework that looks at the market for financial services in a region and provides indications on the most appropriate institutional structure to serve that market. This framework can serve as a guide to financial institutions as they look at expansion opportunities or to donors who wish to fund financial service development in targeted areas. It will provide a foundation for the other presentations in this section of the Conference. We first look at generic issues (not specific to a typology or a setting), then turn to the concept of carrying capacity which we illustrate with examples and only then address the challenges of different typologies.
In addition, we also need to define the gaps in the financial system. For the purposes of this study we see the largest gaps in areas with high incidence of poverty, not able to carry high cost institutions, have low population densities, and
have tenuous links with the financial systems of urban areas. Economic activity is fragile and largely agricultural based.