A New Look at Microfinance Apexes

CGAP's Focus Note No. 80 reviews recent experience with apex facilities that support institutions delivering retail financial services to poor and low-income clients. The Note offers a global picture of microfinance apex operations, highlights key issues from six case studies, and offers conclusions and recommendations about maximizing the chances for apex success. CGAP's first study of microfinance apexes, published in 2002, raised concerns about the extent to which apexes supported the development of sustainable microfinance. The number of apexes and their total funding has grown since then. A 2008 CGAP mapping exercise identified 76 apexes in 46 countries. Data collection for this Note involved the 2008 mapping, a literature review, and a case study analysis of six apexes representing different regions and institutional forms. Findings indicate that apexes:

• Have accelerated the growth of sustainable microfinance;
• Are trying to foster responsible finance;
• Face the risk of overheating as markets mature;
• Face the challenge of donor coordination;
• Have provided capacity-building support;
• Have not done much to spur innovation or support development of market infrastructure;
• Have sometimes influenced policies and regulation.