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

Globally, around 1.3 billion people still lack access to basic financial products and services – more than half of them women and a disproportionate share living in poverty. For low-income households and small businesses, limited access to reliable financial tools remains a critical barrier to building resilience. Well-designed, affordable products such as insurance, loans and savings accounts enable people to prepare for risk, reduce exposure, maintain business investment despite uncertainty and recover more quickly from shocks such as droughts, floods or illness.

Inclusive finance, and particularly inclusive insurance, is therefore a cornerstone of poverty reduction and sustainable development. Yet most initiatives have not fully strengthened resilience among vulnerable populations. Expanding inclusive insurance within the health and climate sectors, supported by digital and data-driven innovations, offers an opportunity to close this gap – helping millions of people manage unforeseen disruptions and build more secure, productive lives.

The Swiss Capacity Building Facility (SCBF) is a unique public-private development partnership that funds and scales inclusive financial solutions for low- and middle-income populations. Through technical assistance and returnable grants, it enables financial service providers to, refine, expand and scale innovative models, demonstrating their viability and catalysing wider investment. This collaborative platform unites public and private actors to develop, test and scale client-centric products such as insurance, savings, loans, and digital financial services.

Between 2020 and 2025, our funding enabled SCBF to advance ten inclusive insurance projects. Eight were successfully completed, while two ended early due to performance challenges and shifts in partner strategies. Despite these setbacks, the program delivered well above expectations, reaching 345,631 new policyholders - 75% above the original target. To strengthen market insights, three independent outcome studies were conducted, revealing that low-income consumers are highly price-sensitive yet willing to pay for products that offer clear value and transparent terms. The studies also confirmed the effectiveness of digital channels - fast payouts and real-time communication drove participation - while underscoring the continued importance of personal interaction for trust-building, particularly among clients with limited digital access.

Building on this success, we will continue our partnership with SCBF through 2030. Our funding will enable SCBF to support eight project partners with technical assistance grants, targeting at least 144 000 direct beneficiaries in the coming years. Beyond scale, these partnerships will generate critical insights that will be shared globally amplifying learning, shaping best practices, and driving innovation across inclusive finance and insurance ecosystems.

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