Challenge
An estimated 1.7 billion people living in emerging and frontier markets lack access to financial services, and 131 million micro, small, and medium enterprises (MSMEs) lack access to adequate capital. Very few MSMEs are able to scale beyond their initial size as a result of this gap in available capital, making it difficult for them to expand and contribute to job creation and economic growth.
Solution and Impact
A loan to Lendable Inc. is supporting the creation of the Lendable Fintech Credit Fund I, which will provide loans to fin-tech companies across Africa and Asia. These fin-tech companies will use innovative technologies such as digital banks and mobile investment accounts to provide credit, working capital, remittances, and payment solutions to underserved customers and MSMEs in target countries.
DFC’s support to Lendable will expand access to financing for the world’s MSMEs, helping promote sustainable job creation, alleviate poverty, and increase GDP growth across the developing world. The fund estimates that DFC’s investment will help 410,000 people gain access to financial services, and that 373,000 people will also gain improved energy access through solar fin-techs.
With women comprising two out of four of the fund’s Board members, the project also advances DFC’s 2X Women’s Initiative, which aims to bolster women’s economic empowerment by supporting businesses that are owned by and managed by women.