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Impact-Linked Fund for Gender Inclusive Fintech

Impact-Linked Fund for Gender Inclusive Fintech (ILF for GIF)

Catalyzing women’s financial inclusion with Impact-Linked Finance

Although female financial inclusion offers disproportionately deep and lasting impact benefits, women consistently continue to make up the majority of the world’s poor and financially excluded. Inclusive fintech solutions in emerging markets hold significant potential to close financial inclusion gaps by accelerating cost-effective and convenient access to financial services for women. Despite this, private sector investments in fintech companies are not geared toward leveraging this potential. Women-led fintechs and those that are already gender-inclusive struggle to access the capital they need to scale.

Impact-Linked Finance holds the potential to resolve this dilemma, aligning incentives to better serve marginalized women. While women are commercially attractive fintech customers in the long term, a targeted approach is needed to better serve them and create lasting value. Impact-Linked Finance enables and encourages this alignment by rewarding positive outcomes with financial incentives. The Impact-Linked Fund for Gender Inclusive Fintech (ILF for GIF) provides Impact-Linked Finance and technical assistance to fintechs to support a stronger focus on gender-transformative outcomes for financial inclusion. Fintechs, identified by renowned impact investment funds, are directly rewarded with financial incentives for achieving social impact, improving their profitability. The investment from the partnering impact funds helps the fintechs to scale, magnifying their impact even further.

In March 2022, this fund secured commitments of USD 13.4 million from the Swiss Agency for Development and Cooperation (SDC) and the Austrian Development Agency in a first closing. The full target fund size is USD 21 million.

 

The ILF for GIF Partners

Key features:

Crowding-in the private sector

For every dollar of impact-linked capital provided, the Fund will catalyze additional private sector investment through renowned impact-oriented Investment Manager partners.

Creating scalable sectoral impact

The ILF for GIF will build core partnerships with Ecosystem Enablers, such as incubators/accelerators, venture builders and intermediaries, specifically focused on marginalized women.

Technical assistance

Technical assistance will be available to fintechs and ecosystem enablers, and will include Impact Measurement & Management, gender-specific interventions & action plans, and migration-related support.

Research, learning & knowledge sharing

As a first-of-its kind facility, the ILF for GIF will focus on generating and sharing lessons, providing a blue-print for other gender-smart financing solutions, Impact-Linked Finance structures, and related support.

An empowering, locally-driven paradigm shift

The structure of the ILF for GIF shifts decision-making power to local partners who target impact objectives with locally-developed, contextually relevant solutions, rather than prescribed aid or support.

Summary of key features

The ILF for GIF Presentation

Are you curious to learn how the Impact-Linked Fund for Gender Inclusive Fintech will work? Feel free to check out the presentation below.

The ILF for GIF Launch Event

Meet the ILF for GIF partners for a highly inspiring session on how to push the boundaries in gender inclusion and migration!

On August 25, 2022, Jessica Espinoza from 2X Collaborative, Sana Kapadia from GenderSmart, Christine Schneeberger from SDC, Florian Kemmerich from Bamboo Capital Partners, Natasha Dinham from Roots of Impact, Lucas Tschan from iGravity, and more ILF for GIF partners and experts will provide you with inspiring food for thought and room for an open,  gender transformative Q+A. Register now to join us on the innovative side of finance.

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