From Crisis to Resilience: The Role of Inclusive Finance in Fragile Countries

In fragile countries where instability and limited resources are jeopardizing the achievement of global development targets, inclusive finance can play a role in bolstering resilience and unlocking opportunities for low-income people. 

Yet financial services are too often expensive and inaccessible for customers in these countries, while providers face high operating costs in an uncertain environment. Governments, overwhelmed by immediate crises, lack the bandwidth for a long-term market strategy. 

To address these issues, funder intervention should consider ways beyond providing immediate and coordinated support to achieve long-term market building for financial services. In contexts where long-term financial market building is a challenge, this working paper identifies three levers of change for funders: leveraging humanitarian cash transfers, understanding informal financial services, and improving local market facilitation.