Emerging Lessons of Public Funders in Branchless Banking

This paper highlights emerging lessons from the public funders that have been engaged in branchless banking. Branchless banking offers the potential to fundamentally transform the way low-income clients can access financial services.

However, the paper observes that before embarking on supporting branchless banking, funders should reflect on the additive role they can play and be willing to commit to building sustainable services over the long term. Some of the roles that public funders can play in branchless banking include:

• Advise policy makers, invest in public goods, support branchless banking providers through technical assistance and fund operations;
• Each funder brings a unique set of instruments that it can use such as grants, debt, equity, technical assistance, advocacy, its own relationships and experiences in the market.

The paper concludes that funders who engage in branchless banking should have a long-term commitment to robust and sustainable branchless banking services. Those funders who are ready to dedicate significant resources can play an important role in supporting branchless banking services around the world and in advancing full financial inclusion.