ACCION launches new Center for Financial Inclusion

ACCION International, the well-known microfinance organization recently announced the establishment of a new initiative supported by founding sponsor Credit Suisse.  The Center for Financial Inclusion intends to focus on connecting private sector, non-profit, an academic resources to advance the commercial model of microfinance while upholding the interests and needs of poor clients worldwide.

It’s too soon to say what this may mean, but ACCION brings its credibility to the table and has assembled a strong group as the Advisory Council for this initiative, and this sounds like it may turn out to be a useful resource and forum for those interested in this topic.

The Center’s web site at www.centerforfinancialinclusion.org launched on September 18.

From the web site:

Why the Center?

Financial services tailored to the needs of poor people contribute to poverty alleviation, social justice, quality of life and human dignity. At a societal level, these services also contribute to the economic growth and stability of emerging markets. For these reasons, microfinance has emerged as a leading strategy in sustainable economic development.

For years, the pioneers of microfinance have been leading the movement to expand access to finance. These organizations, mostly nonprofits or specialized financial institutions, embrace poverty alleviation and enterprise development at the core of their mission. Thanks to their success, private-sector players are now moving into the industry at an unprecedented pace, bringing with them enormous resources and potential for growth. With financial inclusion gaining this kind of momentum, we are on the brink of a new era in which economic opportunity for the poor will become more fully integrated into financial markets worldwide.

At this juncture, ACCION International is launching the Center for Financial Inclusion, a collaborative effort to advance the commercial model of microfinance while upholding the interests and needs of poor clients worldwide.

The Center will work with a wide variety of actors – microfinance experts, banks, investors, regulators, technology firms, universities and others – to address challenges related to financial inclusion. Center staff will collaborate with experts across industries – many of whom have not yet applied their strengths to microfinance or worked at the same table – to develop solutions that enhance the lives of the world’s poor. Research, events and field-piloting will focus on areas such as the double bottom line, microfinance investing, and product and process breakthroughs.

The Center’s goal is to connect the microfinance community with the major drivers of the global economy – e.g. capital markets and technology – and harness their capabilities to address the financial needs of poor people. By bringing these elements together, the Center for Financial Inclusion will serve as a bridge between today’s microfinance and a future of economic opportunity for all.

Major Focus Areas:The Center for Financial Inclusion has identified three interrelated focus areas that will be supported by an integrated Publications and Outreach team: Double Bottom Line, Investing in Inclusive Finance and Client-Product Connection.
How the Center Will Work:The Center will serve as a portal for active, outcome-focused collaboration among the microfinance community and the private sector

Private Sector Portal. The private sector is the major provider of financial services worldwide and has enormous potential to make the inclusive finance vision a reality. The microfinance community has deep knowledge of and commitment to low-income clients. To succeed, they need to work with each other, and the Center acts as a portal for such collaboration. The Center’s Advisory Council – made up of leaders from microfinance, the private sector and academia – is one of the many vehicles through which a variety of perspectives drive the Center’s work.

Active Collaboration. The Center seeks to operate on behalf of the industry as a whole, aiming to be a resource where all players feel welcome and find value. In addition to programmatic partnerships with a wide-variety of institutions and the Advisory Council, the Center’s Fellows Program – comprised of senior business professionals, social entrepreneurs, recent MBAs, and others – reflects the Center’s collaborative nature.

Outcome Focused. The Center continually holds itself and its partners accountable for bringing about changes that are financially and socially sustainable. Convening events and research will not be treated as ends in themselves, but steps toward the realization of effective solutions that are applied in the field. The Center pursues efficient vehicles for measuring its impact results.

Relationship to ACCION. The Center for Financial Inclusion aims to operate on behalf of the industry as a whole, seeking to become a resource where all contributors feel welcome and find value. Legally, it is a division of ACCION, which provides operational services and core financial support. The Center also carries out some functions on behalf of ACCION, such as maintaining the organization’s widely respected publications