Formal—informal financial linkages: lessons from developing countries
Despite significant innovations in rural microfinance over the years, millions of people around the world do not have access to financial services. Can strategic linkages and alliances between financial institutions help resolve this problem? Research funded by the Ford Foundation,drawing on 12 case studies conducted in 11 countries in Africa, Asia and Latin America indicated that financial linkages are increasingly used by formal financial institutions (public or private) to target rural clients. A wide variety of less formal, often rural financial institutions are
the linkage partners. Initial evidence indicates that the partnerships seem to afford both partners the opportunity to overcome a weakness in what they can achieve on their own. But does this initial appeal translate into anything sustainable or replicable? Although it is certainly too early
to tell, financial linkages, while promising, are difficult to set up and manage, require strong NGO-MFIs as well as formal institutions and seldom result in a significant expansion of financial services beyond credit.
drawing on 12 case studies conducted in 11 countries in Africa, Asia and Latin America indicated that financial linkages are increasingly used by formal financial institutions (public or private) to target rural clients. A wide variety of less formal, often rural financial institutions are
the linkage partners. Initial evidence indicates that the partnerships seem to afford both partners the opportunity to overcome a weakness in what they can achieve on their own. But does this initial appeal translate into anything sustainable or replicable? Although it is certainly too early
to tell, financial linkages, while promising, are difficult to set up and manage, require strong NGO-MFIs as well as formal institutions and seldom result in a significant expansion of financial services beyond credit.
Financial inclusion, vulnerability coping strategies and multidimensional poverty: Does conceptualisation of financial inclusion matter?
Bukari, Chei
Koomson, Isaac
Annim, Samuel Kobina
(2023)
https://doi.org/10.1111/rode.13062 [Citations: 0]The impacts of financial linkage on sustainability of less-formal financial institutions: Experience of savings and credit co-operative societies in Tanzania
Ndiege, Benson Otieno
Qin, Xuezhi
Kazungu, Isaac
Moshi, John
Journal of Co-operative Organization and Management, Vol. 2 (2014), Iss. 2 P.65
https://doi.org/10.1016/j.jcom.2014.10.003 [Citations: 8]Expanding the Frontier in Rural Finance
14. Conclusions - Expanding the Frontier in Rural Finance
Pagura, Maria E.
2008
https://doi.org/10.3362/9781780440798.014 [Citations: 0]Children's schooling in Nicaragua: What is the link between educational achievement, borrowing, and gender?
Kondratjeva, Olga
Chen, Joyce J.
Review of Development Economics, Vol. 22 (2018), Iss. 3 P.1125
https://doi.org/10.1111/rode.12377 [Citations: 1]Sharia Microfinance Institutions Financing Model for Strengthening Agricultural Sector
Roessali, W
Woyanti, N
Salam, A N
Santosa, P B
IOP Conference Series: Earth and Environmental Science, Vol. 292 (2019), Iss. 1 P.012016
https://doi.org/10.1088/1755-1315/292/1/012016 [Citations: 3]Do Financial Linkages Ease the Credit Rationing of Forest Rights Mortgage Loans? Evidence from Farm Households in Fujian Province, China
Li, Li
Huang, Heliang
Huang, Senwei
Chen, Siying
Sustainability, Vol. 15 (2023), Iss. 4 P.3160
https://doi.org/10.3390/su15043160 [Citations: 0]Alliances stratégiques en microfinance : enjeux théoriques et managériaux
Koné, Stéphane
Mondes en développement, Vol. n° 185 (2019), Iss. 1 P.45
https://doi.org/10.3917/med.185.0045 [Citations: 1]Expanding the Frontier in Rural Finance
10. Partnership to expand sources of funds for rural microfinance in Peru: the case of Confianza
León, Janina
2008
https://doi.org/10.3362/9781780440798.010 [Citations: 0]Financial inclusion as a pathway to welfare enhancement and income equality: Micro-level evidence from Nigeria
Sani Ibrahim, Saifullahi
Ozdeser, Huseyin
Cavusoglu, Behiye
Development Southern Africa, Vol. 36 (2019), Iss. 3 P.390
https://doi.org/10.1080/0376835X.2018.1498766 [Citations: 18]Balancing Flexibility and Discipline in Microfinance: Innovative Financial Products That Benefit Clients and Service Providers
Laureti, Carolina
Hamp, Michael
(2011)
https://doi.org/10.2139/ssrn.2155291 [Citations: 3]Borrowing channels, purposes, and household investment and consumption: evidence from Nepal
Kondratjeva, Olga
Journal of Consumer Affairs, Vol. 55 (2021), Iss. 4 P.1591
https://doi.org/10.1111/joca.12355 [Citations: 0]Financing Agriculture and Rural Areas in Sub-Saharan Africa: Progress, Challenges and the Way Forward
Meyer, Richard L.
(2015)
https://doi.org/10.2139/ssrn.2705948 [Citations: 7]- Development impact bonds: learning from the Asháninka cocoa and coffee case in Peru
- Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa
- Value chain development for rural poverty reduction: A reality check and a warning
- Impact assessment of commodity standards: towards inclusive value chains
- What is cocoa sustainability? Mapping stakeholders’ socio-economic, environmental, and commercial constellations of priorities