Consultative Group to Assist the Poor (CGAP)

Inclusive financial systems help low-income households smoothen cash-flows, building assets, and coping with vulnerability. Empirical evidence exists that financial inclusion contri-butes not only to the first Millennium Develop-ment Goal of income generation, but also to health, education and gender equality. Insur-ance of smallholder farmers against adverse weather events contributes to increased farm productivity, food security, and social protection.

Despite much progress achieved and USD 31 billion funders’ financial inclusion commitments in 2013, 2 billion adults still lack a bank account.

Build efficient inclusive financial markets that serve all the unbanked, incl. the very poor, with innovative, convenient and affordable financial services (savings, credit /leasing, payments/ money transfer, insurance) offered responsibly.

The microfinance providers and their investors are encouraged and supported in applying the USSPM so as to serve the well-being and needs of clients (notably low-income clients) at the centre of their strategy and operations.

• CGAP: Microfinance institutions, governments and regulators, donors / funders
• SPTF: microfinance institutions and networks, investors, donors/funders, support organisations
• Ultimate target group: low-income people, smallholder farmers, and small enterprises

1. Global financial inclusion further expanded.
2. Social mission of global microfinance industry reinforced ensuring that low-income people benefit from the use of financial services.
3. SDC’s - and whole donor community’s - FSD effectiveness and coordination enhanced.

Expected results:  

1. Continued global knowledge management via websites, publications, conferences, advocacy.
2. Advocacy of, and support in implementing the USSPM as a self-regulatory approach by the microfinance institutions and their investors.
3. Microfinance consensus guidelines updated.

Results from previous phases:  

• CGAP has developed a proven track record in promoting ‘best practice’, norms and standard setting, and being the global policy think tank on financial inclusion for all main funders.
• The Social Performance Task Force (SPTF) is the global platform of the microfinance industry with a proven record in promoting to put the USSPM into practice since 2012 and coordina-ting the main social performance initiatives.

32 CGAP members

2’600 plus SPTF members, incl. Swiss social investors like Blue Orchard, Bamboo Finance

• Connecting SDC FSD projects/components (> CHF 100 m portfolio) with ‘good practices’ & standards of the global knowledge platforms.
• Synergies with SCBF, SDC’s PPDP with Swiss financial sector in promoting financial inclusion

Phase 7 01.06.2015 - 30.06.2019   (Completed)