Our work seeks to promote financial inclusion for un- and underbanked small businesses and communities in emerging and frontier markets. Loans that are extended to end borrowers via Responsible Financial Institutions or “RFIs” that MicroVest invests in help close the financing gap for millions of micro, small and medium enterprises (MSMEs) and promote financial inclusion for underbanked communities worldwide.
MicroVest’s Social Impact Framework, anchored on four core pillars of Impact Investing Leadership, Institution Building, Financial Inclusion, and Financial Health, frame our progress not just through direct and indirect impact but also as it relates to the following United Nations Sustainable Development Goals (SDGs):
The United Nations recognizes financial service providers as a key strategic partner in achieving the Sustainable Development Goals (SDGs). MicroVest is committed to furthering this global agenda and holds itself accountable by actively tracking its social impact from the number of institutions it finances to the percent of female end borrowers served. MicroVest is committed to playing an active role providing impact investing leadership. Our seventeen-year track record as one of the first U.S.-based microfinance investors puts us in a unique position to provide guidance around best practices as the industry continues to evolves.
We promote inclusive growth and industry transparency by selectively identifying and financing RFIs with strong governance practices, dedicated management teams, and an unwavering commitment to their clients’ wellbeing. The infusion of private capital to RFIs deepens the financial sector in a given country, which contributes directly to economic growth by allowing for the more efficient allocation of capital. As the financial sector scales, more businesses can secure the capital they need to grow, students can finance their educations, and families can save for their futures.
The World Bank estimates that about a quarter of the world’s population lacks access to the basic financial services. Financial exclusion jeopardizes communities, micro, small and medium sized enterprises (MSMEs) and families by leaving vulnerable people in the hands of loan sharks or other high-risk informal services. By lending to responsible, well-run financial institutions, MicroVest provides the capital that institutions need to grow, and in turn, offer more products and services to more people and businesses previously excluded from the financial world.
MicroVest strives to create a world in which access to financial tools translates to improved economic and social outcomes for individuals and small, entrepreneurial businesses. By facilitating financial inclusion, we are opening up the gateway to financial health, where individuals can effectively manage their day to day finances, build financial resilience to weather unanticipated shocks, and pursue financial goals. By identifying and financing responsible institutions that also prioritize this end goal, MicroVest is committed to building a future where financial health for individuals and small businesses is the norm.