Areas of Expertise

IDG brings experience in creating a sound and inclusive financial sector in which small and medium enterprises, farms, and families have access for start-up, expansion and working capital, and in which banks and non-banks contribute to financial stability and inclusion. IDG teams have worked at the level of financial sector supervisors, banks, other finance providers, and companies, helping to improve supervision and stability, expand inclusion, and identify and develop bankable business concepts in order to source loan and lease financing to start and maintain local business growth. IDG has conducted education and training programs for the financial community on small business lending, introduced and promoted lease financing, and assisted in the establishment of Equity Funds. IDG has also conducted analysis of legal and regulatory environments for financial sectors, with recommendations for improvements.

IDG promotes the use of innovative technologies to expand financial inclusion. One example of this is the use of mobile money and mobile financial services, which can allow banks and non-banks to reach poor and rural populations, particularly in areas where it is not commercially viable to open bank branches. Another innovative solution is to collaborate with community-based knowledge workers trained in financial services, who can education local populations on how to access lending and other services and who also can facilitate the establishment and fulfillment of lending agreements and other financial transactions. While these innovative solutions traditionally have been utilized by micro-finance and other non-traditional organizations, commercial banks also can be taught how to make use of these innovations.

To improve financial stability and financial inclusion, IDG can advise central banks on strengthening supervision and regulation of the financial sector (banks and non-banks). This can include developing a risk-based approach to supervision and then implementing it through new criteria, processes and procedures, and through reviewing various policies regarding loan loss provisions, anti-money laundering, and others, to ensure that they ensure the integrity of the financial system without needlessly impeding provision of financial services to poor, remote and vulnerable populations.