SCBF: Improving quality of life of low-income populations by enabling inclusive finance

Today, still 1.7 billion people have no access to basic financial products and services, more than half of them women and a disproportionate share of them poor. At the same time, the financing needs of about 40% of the developing world’s 162 million micro-, small- and medium-sized enterprises in developing countries – engines of economic development – go unmet.

For low-income populations, a lack of access to and use of financial products, channels and services is a crucial barrier to building resilience. Well-designed financial products help them prepare for risk, reduce risk, increase business investment in spite of risk and bounce back from shocks when they occur. Financial inclusion is thus a key lever for reducing poverty and stimulating broad-based economic growth.

The SCBF brings the private and public sectors together to sustainably promote financial inclusion in low- and low-middle-income countries. This public-private partnership funds technical assistance (TA) for financial service providers to develop, pilot, assess the effectiveness of, replicate and scale innovative, affordable client-centric financial products, channels and services. Those products and services include savings accounts, loans, insurance, digital financial services and financial education.As a part of its new strategy, it will also be providing new financial instruments to better meet the needs of social enterprises/innovative organisations that looks to advance financial inclusion.

SCBF supports financial institutions and high impact enterprises that have a proven social or financial inclusion mission and require tailor-made support to overcome specific constraints on their capacity to develop financial products for unserved and underserved populations across emerging markets.

SCBF has a strong track record. From its inception in 2011 to the end of 2022, it has invested CHF 19.8 million in grant funding to fund 188 with 132 financial sector partners, 60 technical assistance providers across 50 countries.

Swiss Re Foundation is  currently supporting ten  projects related to health, agriculture or recovery from catastrophic events across countries in Asia and Africa targeting low-income households, smallholder farmers and small- and medium-sized enterprises, the projects supported by SCBF aim to increase or improve:
Protection of a basic standard of living. By using savings and insurance products, clients build their resilience to the negative effects of adverse weather, catastrophes, death or illness of the family breadwinner and armed conflict.
Employment, income and asset accrual. Suitable loan, leasing and insurance products allow clients to invest in their productive activities, increase their income through better access to markets, create employment opportunities and build their assets.
Access to essential services. Payment services and channels ease clients’ access to electricity, clean water, sanitation, education and healthcare on affordable, predictable terms.

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