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Rationale
In
order to profitably expand access to financial services towards
the low income end of the market financial providers will
need to test innovative products, technologies and delivery
channels that lower costs and are well-suited to the target
market. The fund essentially removes the constraints of undertaking
risk and incurring high capital costs associated with testing
and scaling-up innovations. The primary focus of the fund
will be to support technology based affordable financial services
and to encourage innovative schemes to reach out to marginalized
groups in rural areas. The proposed fund will be managed by
private sector professionals with adequate fund management
and development expertise.
Benefits
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Help to overcome informational asymmetries and capital
market failures hampering the introduction of, new and
risky technologies
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Facilitate a demonstration affect associated with successful
new approaches, facilitating wider industry learning
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