The LEI: The Key to Unlocking Financial Inclusion in Developing Economies
All around the world, small and medium sized enterprises (SMEs) lack robust business credentials. As a result, millions are struggling to access trade finance and create partnerships, particularly in developing economies. This is a major obstacle impeding growth in the global digital economy.
The Legal Entity Identifier (LEI), as a globally recognized and standardized form of business ID, can solve this problem.
This eBook explores how financial institutions in developing economies can dramatically increase financial inclusion by becoming Validation Agents and equipping their SME customers with LEIs. This process can expand SMEs’ access to trade finance and broaden their participation in both domestic and international markets, ultimately increasing the flow of inbound capital needed to fuel economic development.
It also details the first such initiative, occuring in Zimbabwe, where GLEIF, NMB Bank Limited, LSEG (London Stock Exchange Group), Cenfri and Cornerstone Advisory Plus are collaborating to boost economic potential for SMEs across the region and beyond. The international flagship project was designed to expand financial inclusion among SMEs especially on the African continent. The mission has been financed with the support of the German Federal Government through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.