The Crucial Role of Microfinance within COVID-19 Recovery Efforts
This abstract is based on a blog originally published by FINCA Impact Finance.
Microfinance has long played a critical role in poverty alleviation. It gives people a hand up, empowering them to help themselves work their way out of poverty. However, the role of microfinance within COVID-19 recovery efforts is even more prominent. The microfinance infrastructure and technologies already in place will play a crucial role in keeping people connected to essential services throughout the pandemic and its recovery.
The microfinance industry is in a unique position to help people recover from the economic effects of unexpected lockdowns and social restrictions caused by the pandemic. Microfinance banks are already working with low-income and underserved communities without access to traditional financial services. As a result, they are extending critical lifelines to those most in need and hardest hit by the pandemic. This support comes in the form of small loans and other financial services to help struggling families and small businesses stay afloat.
And thanks to the investment that FINCA and other microfinance institutions have made in digital financial technologies, this engagement can be done safely. Services such as agent networks, e-wallets and mobile banking enable safe and convenient access to the financial services many people need to recover.
FINCA has a deep commitment to putting customers first. We offer solutions that help people not only sustain their own households but support the broader community as well. This has always been a central part of our mission, but its execution is crucial now more than ever. Accommodating and adapting to the needs of our customers has been a key part of our strategy throughout the pandemic and will continue to be just as critical throughout recovery.
For more information about the critical role of microfinance within the COVID-19 recovery effort, you can read the full article here.