How to support community - based financial organizations

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One of the main tools to alleviate poverty is creating access to financial services for people who are currently excluded from the financial system. However, it remains a major challenge to successfully create access in these areas on a financially sustainable basis. In many countries, the formal banks are not interested in servicing remote rural areas due to: (i) a lack of economies of scale; (ii) high transaction costs; and (iii) a perception that the poor are not creditworthy. Community-based financial organizations (CBFOs) are often the only institutions available to provide basic financial services to the rural poor, especially in remote areas with inadequate infrastructure.

The purpose of this publication is to provide information on how CBFOs and support structures might best serve remote rural communities, identifying the basic success factors required and the potential challenges to be overcome. It looks at creating effective interventions and the use of key performance indicators (KPIs).

How to support community - based financial organizations  -  English (en)

Document Information

Document Type Paper
Author International Fund for Agricultural Development (IFAD)
Year of Publication 2014
Publisher International Fund for Agricultural Development (IFAD)
Rome, Italy
Number of Pages 24 pp.
Region / Country Global, Africa /
Primary Language English (en)
Keywords Access To Finance, Community Based Organisations, Community Based Finance
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