a woman in Indian dress on the phone in a field of yellow and orange flowers Photo by Alok Avinash/2015 CGAP Photo Contest

Digital Innovation

Digital innovation has transformed the way we live, work, and interact with each other. By leveraging digital technology such as mobile banking, digital payments, and access to credit and insurance services have made financial services accessible to individuals and businesses that were previously excluded.  

The digital economy generates new business models annually, attracting a broader range of players to the financial services industry, including fintechs and social networks. This diversity of providers and business models has enormous potential to advance financial inclusion and contribute to achieving the Sustainable Development Goals. Business models build proper connectivity through strategic partnerships, making it easier for innovators to offer valuable, affordable financial solutions. 

CGAP's research showcases various business models that effectively use digital technologies to create and provide financial solutions to people with low income. We demonstrate how increased connectivity can make it simpler for innovators to offer financial solutions that are both valuable and affordable. Our work focus ranges from the digitization of Microfinance, Open Finance, financial services for gig workers, data-driven financial Services, and more.  

As digital innovation continues to evolve, we will see even more creative solutions that will further promote financial inclusion and enhance the lives of individuals and communities worldwide. 

Featured Collections

farmer selling produce at a street market

Cash-In / Cash-Out for Rural Agent Networks

Cash-in/cash-out agent networks are key to extending digital financial services and ultimately financial inclusion. Providers have struggled to extend these agent networks in rural areas, where sparse populations lead to lower transaction volumes and weaker financial incentives for businesses to serve as agents.
a pedestrian viewing street art depicting a desk worker

Fintech and the Future of Banking

While many fintechs claim to advance financial inclusion, the link between specific innovations and financial inclusion is often assumed rather than proven. The reality is that it is hard for funders, investors and social entrepreneurs know which innovations matter for low-income, underserved customers.
women stand outside their rickshaws Photo by Nikhil Kapur

Gig Platforms and Financial Inclusion

Across emerging markets, millions of informal workers are joining gig platforms in sectors like ride-hailing and deliveries. CGAP’s engagement with platforms, fintechs and gig workers offers a glimpse into what the future could look like.  
A view of two smartphones at the cattle and livestock market in the Lafiabougou district of Bamako, Mali. CGAP Photo (Nicolas Réméné via Communication for Development Ltd.)

OPEN APIs FOR DIGITAL FINANCE

Digital financial services providers will find here information to help them decide whether open APIs make sense for their business and, if so, how to implement an open API strategy.
Photo by Wen Jye Chan, 2016 CGAP Photo Contest

Digitizing Merchant Payments

With vast amounts of revenue and data at stake, merchant payments are widely seen as one of the key battlegrounds in the struggle over the future of digital financial services (DFS).
Bangladeshi worker coloring and drying cloth material, Bangladesh. Photo by Sohel Parvez Haque, 2017 CGAP Photo Contest

Beyond Switches, What Makes Interoperability Work?

CGAP's interoperability work seeks to help low-income users transact more easily across digital financial services networks. Exchanging payments is about much more than simply building the technical connections. Interoperability also requires effective governance, clear operating rules, and business agreements on how to support safe and reliable connections.
woman holding a cell phone in her hand Photo courtesy of IDEO.org

Data-driven Financial Services

Emerging evidence shows that data trails generated by poor people can be harnessed for developing inclusive financial services. Learn what CGAP is doing to unlock how data can be leveraged to catalyze financial services that reach poor and underserved people at scale and in a responsible manner. 

Latest Research

Publication

The Role of Data in Inclusive Insurance

With 3.8 billion people in emerging markets lacking adequate insurance coverage, data plays a crucial role in enabling insurers to comprehend these segments' specific needs and risk profiles. This, in turn, helps develop more accurate risk assessment and pricing models for inclusive insurance offerings.
Publication

The Building Blocks Supporting Open Finance

This working paper introduces the concept of an inclusive data ecosystem as one where low-income people’s data trails are used to improve their financial inclusion. The paper highlights open finance as a catalyst for inclusive data ecosystems and identifies key enabling layers that drive the success of open finance and, by extension, an inclusive data ecosystem.
Publication

Open Finance Self-Assessment Tool and Development Roadmap

This technical guide introduces the open finance self-assessment tool and development roadmap. It provides practical tools for policymakers to use to decide whether to implement an open finance regime to advance financial inclusion and outline a development roadmap to guide the implementation process.
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Latest Blogs

Blog

The Stories Behind Late Repayment on Digital Credit in Cote D’Ivoire

Borrowers in Cote D’Ivoire had higher rates of loan non-repayment than those in Kenya and Tanzania, and CGAP wanted to know why. Qualitative research results shed more light on the users’ experience and the possible causes of the late repayments.
Blog

Journey to Kigali: Four Lessons on Peer Learning for Gender Data

When it comes to strategies on gender-disaggregated data for women's financial inclusion, peer learning, diversity of approaches to gender data collection and use, and creative solutions in advancing gender equality in the financial sector are key.
Blog

What is Vision-Driven Financial Regulation?

Innovation drives progress, but the law shapes it. CGAP has been exploring the intersection between regulation, innovation, and financial inclusion through research on what makes some regulators better equipped to deal with innovation than others.
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