Facilitating Market Development to Advance Financial Inclusion

Emerging evidence from countries benefiting from donor and development financial institution (DFI) interventions that are coordinated, catalytic, and responsive to the market show significant increases in access to financial services. Given that markets are in a constant state of flux, market responsiveness is best effected through the use of an independent actor, a “facilitator”, that is close to the market and thereby able to monitor market developments on an on-going basis. This focus note explains the role of a facilitator and discusses several areas critical to building financial markets that work for the poor i.e. information, capacity building, incentives and a well-designed enabling environment.