How the Development Sector Is Channeling Money to Digital Financial Services

Development funders are increasingly embracing the potential of digital financial services (DFS) to promote financial inclusion. As they continue to look for ways to respond to emerging crises and opportunities, the support for digital finance and the ecosystem around it is increasing in prominence. However, until now, we have not had a systematic way of understanding how much funding was committed to DFS and where it was going.

This project was developed to create an evidence base and understanding of where and how funds flow to DFS through a unique and innovative methodology. It aims to help the inclusive finance sector better coordinate, fill gaps, and identify new pathways for funding the sustainable development of digital financial services for financial inclusion. This report highlights four key findings gleaned from an early analysis to test and refine this methodology. The findings can provide funders with information to guide their approaches to supporting the development of reliable and effective DFS systems for the benefit of low-income populations around the world.