Strengthening Financial Inclusion Through Responsible Finance Practices

The Private Sector Financial Institutions Division of the Private Sector Operations Department will coordinate the TA. The required areas of expertise for the international and national experts include financial education, microfinance, governance, institutional strengthening, risk management, consumer protection, and training. The TOR is based on initial assessment by our partners, but will be further fine-tuned after rapid assessment of the participating microfinance institution (MFI).

Access to finance is often cited as one of the primary obstacles for micro and small enterprises. Institutions targeting this market segment are mostly only microfinance institutions. Across Asia and the Pacific, many of these institutions also struggle to obtain commercial funding for growth and to be able to meet demands of their clients. The Microfinance Program of ADB’s Private Sector Operations Department was therefore designed to address the financing gaps. It encourages private sector participation to ensure local currency lending to the sector.

The objective is to improve the financial capability of at least 50,000 clients (95% women) of the selected participating MFIs. The experts will:

• Take stock of available financial education material in the country, including digital or other cost-efficient technology using applications
• Select, as necessary revise or standardize education materials —in cooperation with the selected MFIs
• Be innovative in design of roll-out and delivery of financial education in view financial literacy levels, cultural/language context, costs, sustainability and continued provision of financial education after project end by the MFI, e.g. using cloud platforms for MFIs to easily share and use material
• Prepare pilot and roll out strategy
• Deliver financial capability, coaching, and training through innovative technologies, engaging MFI staff and users in a two-way conversation about their financial services and their financial understanding
•  Priority will be given to firms that can show case innovative delivery of financial education through technologies since this will provide opportunity to reach a larger target group cost efficiently