Digital Finance
The Benefits of Digital Finance
What is Digital Finance?
Digital finance is the term used to describe the impact of new technologies on the financial industry. It leverages these technologies to increase accessibility of financial services, particularly in areas lacking traditional banking infrastructure. It includes various products, applications, processes, and business models that have revolutionized banking and finance.
It is captivating to witness the current transition towards digitalization of financial services. New technologies facilitate consumers to have greater access to financial services; they improve the efficiency of the financial system and help financial institutions to better manage their risks. For instance, innovation and digitalization of the payment ecosystems enable financial institutions to reach unserved and underserved populations at scale. Many developing countries, especially in Africa, are leading the way when it comes to digital and mobile payment services, triggering economic and social change.
The increasing prevalence of digital finance is driven by several factors, including the widespread access to internet and the adoption of smartphones, the growth of e-commerce, and the rise of new technologies such as blockchain, big data, machine learning and artificial intelligence. These trends are enabling financial institutions and fintechs to offer a wider range of products and services, such as mobile banking, online group saving automation of loan decisions, and robo-advisory services for investments.
The importance of digital finance lies in its ability to increase financial inclusion, improve financial efficiency, and promote sustainable growth. For example, digital finance can provide access to financial services for underserved populations in rural or remote areas. It can also reduce transaction costs, improve risk management, and increase the speed and accuracy of financial transactions.
As digital finance continues to evolve, it presents both opportunities and challenges for traditional financial institutions, fintechs, regulators and policymakers. Balancing innovation with consumer protection is crucial, as is ensuring that the benefits of digital finance are shared fairly and equitably across society. Overall, digital finance is a rapidly changing and important topic that will continue to shape the financial sector and impact the lives of individuals and businesses around the world.
… and what does Fintech mean?
Fintech, an abbreviation for financial technology, involves using advanced tech to automate and enhance financial services. It includes applications like online banking, payment processing, cryptocurrencies, robo-advisors, and peer-to-peer lending. By using digital solutions and data analytics, fintech companies increase efficiency, accessibility, and convenience in finance. The rapid expansion of fintech has disrupted traditional banking, providing novel methods for consumers to manage finances and access capital.
Digital Finance in Financial Sector Development Projects
The Financial Sector Development department of GOPA AFC provides an array of advisory services and products to financial sector stakeholders in the field of digital finance.
In the following we present our best examples of creating and implementing digital financial products and services, to support a more inclusive and resilient financial sector worldwide.
We are proud of our contribution to building capacity among policymakers, regulators, and financial service providers to harness the opportunities of digital financial services. GOPA AFC has a longstanding record of performance and trust with central banks, regulatory agencies, and financial institutions in developing countries around the world. Involving stakeholders across the financial, telecommunication, and IT sectors along value chains is just one of the hallmarks of our work as change creator.
We thrive in supporting our clients around the world with our technical expertise, global experience, and innovative thinking for the deployment of innovative and sustainable business models for digital financial services. These can be for example, open banking, API (application programming interface) banking, and platform banking.
Digital and mobile payment services are often bundled with savings and loan products, including payment flows along agricultural value chains, especially in the micro sector. Integrating information about agricultural output with financial systems infrastructure creates opportunities for credit, which increases productivity of agricultural micro- and small businesses, hence further reducing poverty and vulnerability. Inter-linking these ecosystems with digital insurance solutions is one of the fascinating and rising innovations. Digitally reaching farmers with agriculture insurance products is but one example of the growing universe of new business models, which works for micro-, small- and medium entrepreneurs worldwide. In addition, through digital finance, government support to low-income households becomes more efficient and reliable.
Facts about Digital Financial Inclusion
Digital finance has the potential to foster access to formal financial services for many individuals in emerging and developing countries.
1.6 BILLION PEOPLE
especially women, could benefit from financial inclusion efforts driven by digital solutions until the year 2025.
Rural households suffer particularly from a lack of financial infrastructure and high transaction costs, comprised of direct costs such as transportation expenses to reach the nearest bank branch, and also opportunity costs, such as the time spent on the journey or on waiting in queues before being served. High transaction costs are one of the reasons for limited access to finance, especially among farmers.
From a global perspective, additional efforts are needed to establish the appropriate regulatory frameworks to create an enabling digital finance environment for players such as mobile network operators, financial institutions, etc. With the fast and widespread distribution of mobile phones, agent networks, and various point-of-sale (POS) terminals, financial services are already much more accessible to previously excluded people.
Interoperability among different payment systems is the key to adopting digital financial services. Furthermore, the development of digital financial services becomes more and more important considering the increasing cross-border transactions resulting from international trade and migration. Money transfers or remittances can be designed at much lower costs and faster when interoperability has been achieved at the country and regional levels.
Nevertheless, significant variations in personal preferences and acceptance levels with regard to the use of digital financial services among different countries and layers of society need to be considered. Hence, building trust, boosting usage as well as awarenessraising efforts are highly relevant for encouraging the prospective clients to enjoy the benefits of digital financial services.
A Selection of Our Digital Finance Projects around the Globe
Ukraine, Moldova and Georgia
BRIDGING THE DIGITAL FINANCE GAP IN EASTERN EUROPE
Egypt
NATIONAL FINANCIAL INCLUSION STRATEGY
Cameroon
MARKET RESEARCH ON MOBILE MONEY AND AGENT PERFORMANCE
Ghana
PROMOTING AGENT BANKING
EMPOWERING GHANA’S GREEN FUTURE VIA DATADRIVEN DEVELOPMENT
BRANCHLESS BANKING IN RURAL GHANA
Nigeria
DRIVING WOMEN´S FINANCIAL INCLUSION
Jordan
INNOVATIVE FINANCING FOR MSMES
DIGITAL SOLUTIONS TO IMPROVE ACCESS TO FINANCE AND REMITTANCES
Papua New Guinea
NATIONAL FINANCIAL INCLUSION AND LITERACY STRATEGY
Mozambique
WIDEN THE ACCESS TO FINANCE VIA AGENCY BANKING
ENHANCING DIGITAL LITERACY FOR MSME s
Rwanda
DIGITALIZATION OF THE LENDING PROCESS
SETTING UP DIGITAL SERVICES FOR A MICROFINANCE BANK
Market Research on Mobile Money and Agent Performance in Cameroon
Market research on local mobile money sector, customers’ demand and agent performance (04/2018 – 12/2018) ABOUT THE PROJECT
Donor: International Finance Corporation (IFC)
In order to support one of the major telecommunication firms in Cameroon in offering customized loan and saving products, GOPA AFC conducted a countrywide quantitative and qualitative market study focusing on understanding the drivers of uptake of mobile money of customers and agents. Following an initial desk research, data mining, and customer segmentation, our experts conducted focus group discussions, phone interviews, mystery shopping, outcome screening and validations.
Based on the results, GOPA AFC elaborated recommendations that helped the client refine its mobile money strategy and better address the market demands. The study provided the necessary critical inputs for fine-tuning the existing service, developing relevant new products and services, and implementing effective marketing campaigns.
Consortium partners: Amarante Consulting
42%
39% OF PEOPLE IN CAMEROON (AGE 15+) HAD A MOBILE MONEY ACCOUNT, IN 2021. OF WOMEN
Representing a significant increase, from 15% in 2017.
Source: The World Bank: “Global Financial Inclusion Databank”, 2017 and 2021.
Branchless Banking in Rural Ghana
ABOUT THE PROJECT
Consulting services to support the roll-out of the e-zwich biometric payment infrastructure in rural areas (07/2012 – 12/2014)
Consulting services for the implementation of the rural financial services e-zwich project (09/2015 –06/2023)
Donor: KfW German Development Bank
Consortium partners: PHB Development
For more information: read our news about how we are promoting digital finance in Ghana.
66% 54% OVER THE PAST YEAR: of Ghanaians (aged 15+) have used digital payments. in rural areas
In 2021, 13% of all Ghanaians and 8% of rural Ghanaians made digital in-store merchant payments.
Source: The World Bank: “Global Financial Inclusion Databank”, 2021.
In 2007, the government of Ghana decided to reduce the Ghanaians reliance on cash, to mobilize domestic savings, to simplify access to banks, and reduce the cost of banking service delivery, extending financial inclusion. Therefore, it set up the Ghana Interbank Payment and Settlement Systems (GhIPSS), an agency responsible for interconnecting banks operating in the country, aiming to link all automated teller machines (ATMs) and e-zwich point of sales (POS) terminals. E-zwich, launched in 2018, is a countrywide biometric payment system, which allows the delivery of financial services to all parts of the population, and additionally working as anti-money laundering system.
Since 2012, GOPA AFC is supporting the roll-out of the e-zwich biometric payment system infrastructure in rural areas in the frame of two consecutive KfW projects, in order to make formal and affordable financial services available to all Ghanaians.
Our experts conducted a study on the roll-out of the e-zwich infrastructure in rural areas. Subsequently, we optimised and implemented e-zwich business as well as additional e-zwich products and trained the GhIPSS employees and agents. In the succeeding project, we were responsible for the procurement, installation, and sustainable operation of the ATM and POS devices and the e-zwich infrastructure.
Promoting Agent Banking in Ghana
ABOUT THE PROJECT
Ghana financial sector development project – Design agent banking business model, identification and specification of a suitable back-end ICT system for delivering via agents, and mapping of potential agent location in Ghana (11/2020 – 04/2021)
Donor: World Bank (WB)
Consortium partners: CDC, PCES
Furthermore, we implemented another project in Ghana that aimed to promote the financial sector’s soundness and individuals’ access to digital financial services. The greater part of rural communities in Ghana lack technology infrastructure like telecommunication and internet connectivity and the majority of the rural population are either un- or under-banked. The Rural Community Banks (RCBs) were the main providers of formal financial services to the low-income population in Ghana’s rural communities. They offer deposit, saving and credit products, money transfers and payment services, like ATMs and mobile banking. The ARB Apex Bank— serving as “mini” central bank for the RCBs in Ghana— aims to implement effective distribution channels for financial services that reach the under-served in the rural communities on a shared network of agency banking platform.
For more information: read our article about designing interoperable agent banking business model for ARB Apex Bank in Ghana.
The World Bank appointed us to expand the existing network of RCBs to provide banking to a larger customer base at low servicing costs. After extensive research, our experts developed an agency banking strategy for the implementation by ARB and the RCBs, including a suitable back-end IT system for delivering financial services via agents. Further, we provided guidelines, policies and procedures for the management of a profitable network of agents. Subsequently, we designed training methods and capacity building activities for agents as well as a dashboard to monitor agents’ performance, customer care and to assure high quality of the agent-based services.
Empowering Ghana’s Green Future via Data-Driven Development
ABOUT THE PROJECT
Accompanying Measure – Reform Partnership: Development Bank Ghana (04/2023 –03/2026)
Donor: KfW German Development Bank
Consortium partners: CDC Consult
For more information: read our news about the inception of the project, about the implementation of a new core banking software solution, or how we drive biodiversity finance
Our third transformative initiative in Ghana fosters inclusive growth and sustainable development and aims to position the Development Bank Ghana (DBG) as a leading data-driven development finance institution in Africa. By establishing a robust data science and analytics framework, we are paving the way for streamlined workflows, fostering adaptability for future products and collaborations, ensuring that every move DBG makes is backed by insightful data.
The enhancement of DBG’s IT infrastructure, including setting up a robust management information system, is currently underway. Our focus lies on a timely core banking system migration, ensuring seamless operations and aligning with the Bank of Ghana’s regulations. Moreover, we are simplifying DBG’s processes, evaluating legal frameworks regarding SME lending, aiming to improve SME access to finance and enhancing the understanding of global best practices. We further organize study tours to help shaping DBG’s strategic direction.
DBG’s foray into green finance and climate change mitigation involves us drafting a climate finance policy, developing a green taxonomy, and enhancing partner financial institutions’ awareness. The focus is on aligning financial products with environmental sustainability and driving a green finance agenda across the banking ecosystem.
In addition, we are empowering DBG’s team, selected partner financial institutions, and SMEs, through engaging workshops on business development services and leadership, as well as on green finance, biodiversity and gender finance.
Widen the Access to Finance in Mozambique via Agency Banking
ABOUT THE PROJECT
1. Improving framework conditions for a competitive private and financial sector (FAN)/ Mozambique (03/2015 – 11/2016)
2. Improving framework conditions for a competitive private and financial sector – RAMOÇ II (12/2016 – 11/2019)
3. IA3 financial system development, Mozambique (12/2019 – 02/2025)
Donor: German Corporation for International Cooperation (GIZ)
Consortium partners: ICC
For more information: read our articles about how we developed a new mobile app for digitising savings groups, FinTechs & its implications for market conduct, how we developed innovative savings solutions, and the impact of gender norms in women’s access and usage of financial services.
Mozambique counts among the world’s fastest growing economies in the past two decades, with massive foreign investments fueled by natural resource discoveries. However, in rural areas the density of bank branches and automated teller machines (ATMs) is very low. In 2015, the Central Bank approved the regulation on banking agents in Mozambique, aiming to geographically extend formal banking services and this way enhance financial inclusion of the rural population. The regulation allows an appointed agent to provide basic banking services on behalf of the bank, outside the traditional brick-and-mortar branches. Agents operate in areas where there are no other financial institutions, and thus provide services to the remote rural un- and under banked population.
GIZ designed three consecutive projects, implemented by GOPA AFC, to provide assistance to partner commercial banks in Mozambique, in expanding their outreach to unbanked areas and widen the access to finance via agency banking services in rural areas. We advised the Mozambican Central Bank on regulatory and supervision level to harmonize existing mobile money regulations into one unified regulatory framework. Our experts developed, for example, a risk-based supervision framework for digital financial services by outlining the key regulatory topics about mobile money. Moreover, we assisted partner banks with advisory services for developing digital customer-centric products and provided coaching on agency banking, agent management, and client recruitment.
In the third project, we continued to advise banks in setting up and optimizing agency banking and other innovative distribution channels in rural areas and introduce new gender-sensitive banking products, targeting agriculture and agro-processing. In addition, this project identifies gender-sensitive approaches to basic financial education and product development, within the framework of the national financial inclusion strategy. We further trained the Central Bank staff on dissemination of financial services in rural areas, consumer protection and market conduct, with focus on digital financial services supervision tools.
Sources: Bank of Mozambique: “National Financial Inclusion Strategy 2016 – 2022”; The World Bank: “Global Financial Inclusion Databank”, 2021.
Success Stories
With support from GIZ since 2017, banking agents in Mozambique have grown exponentially. GOPA AFC selected the project partner banks based on their interest to expand their operations in GIZ’s priority provinces, management’s interest and their willingness to co-finance the project. GIZ currently has a partnership with two banks— Access Bank (formerly BancABC) and Banco Letshego.
It is not only the un- and under banked customers who are benefitting; most bank agents are also very happy to be the authorized representatives of banks as they contribute to the development of their own communities and also support their own businesses as a result of more people walking into their stores and increasing their sales volume.
Farai Bacaimane Canazache, a resident of the city of Chimoio, used to keep his money under his mattress, was part of a savings group and invested in his own business. But everything changed for him when he started using the formal financial services of a commercial bank through a bank agent near his place.
It’s easy, safe and very fast. Bank agents are closer to the people than the bank branches and hence much more convenient and effective.
In a bid to foster digital financial inclusion in Mozambique, GIZ Mozambique and leading mobile money platform M-Pesa have formed a strategic partnership, supported by GOPA AFC. This collaboration aims to build a sustainable financial services model for rural micro, small, and medium enterprises, smallholder farmers, and low-income populations, focusing especially on women and youth.
M-Pesa, known for delivering financial services to underserved communities, plans to expand its services and product offerings in rural areas with GIZ's expertise in financial inclusion and literacy. This partnership also aligns with the objectives of Mozambique's Financial Inclusion Strategy for 2024 - 2030, particularly in promoting digital financial services and incentivizing digital saving products.
Farai Bacaimane Canazache Project beneficiary
Enhancing Digital Literacy for MSMEs in Mozambique
ABOUT THE PROJECT
Consulting Services to Delivery of Digital skills, Financial services, Technical and sector-specific for consumption linkages (11/2023 –11/2026)
Donor: The World Bank (WB)
Consortium partners: 3AK
For more information: read about how we are empowering 9,000 MSMEs with digital finance and market access.
To address these challenges, we designed a practical, accessible training program:
Leveraging social media for business – Entrepreneurs learn how to research competitors, track market prices, promote their products, attract buyers, and build lasting customer relationships beyond their physical location.
Digital literacy is a key 21st-century skill, essential for both social and economic success. Recognizing this, the Government of Mozambique— through its market-linkages program funded by the World Bank— has prioritized digital skills alongside marketing and finance. The program aims to equip 9,000 MSMEs in Northern Mozambique, half of them women-led, with the tools needed to grow and compete.
To strengthen MSMEs, particularly in digital finance, we provide training on financial services, digital tools for market access, and marketing strategies. We also develop training materials, prepare trainers, and ensure gender inclusion, helping businesses expand and improve financial access.
Mozambique’s enterprise landscape consists mostly of informal businesses, ranging from micro-enterprises (often single-person, women-led ventures) to medium-sized firms with employees and assets. However, a digital gender gap persists—women-owned businesses are typically smaller than those run by men, and women have lower levels of problem-solving and software skills. According to the UN Economic Commission for Africa, Mozambican men are 40% more likely than women to have internet access, with overall penetration at just 17.4%.
Using free digital tools for business management – MSMEs are trained to use office applications for sales and stock tracking, enabling them to manage records and monitor growth efficiently.
Driving Women´s Financial Inclusion in Nigeria
ABOUT THE PROJECT
Development of a strategy for leveraging agent networks to drive women’s financial inclusion in Nigeria (09/2021 – 03/2022)
Donor: Alliance for Financial Inclusion (AFI)
In 2016, Nigeria, along with other member countries of the Alliance for Financial Inclusion (AFI) committed to the Denarau Action Plan, which prescribes halving the global financial inclusion gender gap by 2021. One of its key aspects is to implement best practices in integrating policies for women’s financial inclusion and gender considerations within national financial inclusion strategies. Therefore, Nigeria developed and launched a framework for advancing women’s financial inclusion in 2020.
GOPA AFC supported the Central Bank of Nigeria in one of the strategies to build female agent networks, in order to drive women’s financial education and build their trust in financial services.
The real GDP in Rwanda grew by 8.2% in 2022.
For more information: read our news about discussing the strategy draft in a stakeholder workshop or about driving women’s financial inclusion in Nigeria by leveraging agent networks.
Based on a diagnostic study, international use cases, in-depth interviews with relevant stakeholders, as well as stakeholder engagement in workshops, our in-house experts drafted a strategy to leverage agent-networks for women’s financial inclusion as well as an implementation plan for the strategy.
Source: The World Bank: Country Rwanda Overview, 2023.
You can find the published study here.
Between 2016 and 2020 banking agents expanded their reach more than six-fold, to about two in ten adult Nigerians.
Source: Alliance for Financial Inclusion (AFI): ”National Strategy Leveraging Agent Networks for Women’s Financial Inclusion”, 2022.
TO FINANCIAL SERVICE OR FORMAL NON-BANK SERVICES IN NIGERIA (2020)
Digitalization of Lending Processes in Rwanda
Rwanda aims for a cashless economy and a financially included population. Therefore, it implemented the Rwanda National Payment System Strategy 2018 – 2024 that encourages the use of electronic payments by all residents of Rwanda, to achieve a cashless society.
Technical assistance programme to various EIB financial sector operations in East and Central Africa (05/2014 – 10/2020)
Donor: European Investment Bank (EIB)
Consortium partners: Integration International Management Consultants
For more information: read the project brochure
Source: The World Bank: Country Rwanda Overview, 2023. 8.2%
Rwanda’s largest, partially state-owned Bank of Kigali (BoK) embarked on the digitalization of the SME lending processes and started using an online-based knowledge management platform. GOPA AFC assisted in its configuration, customization, and implementation for the first digitalization project for SME lending in East Africa.
A fully customizable and intuitively accessible digital platform for SME businesses, integrated at the core of the lending process, gathers information from every client interaction to support front-end, operational, and risk management activities. From initial contact to loan application and approval, monitoring and collection, as well as collateral and document management, impact measurement, and credit risk management, this platform streamlines the entire lending process. With its implementation, BoK achieved:
Largely paperless digitalized lending significantly speeded up the entire
Substantially improved lending-related communication and information flow across departments and branches, and thereby increased efficiency.
Increased SME-lending knowledge through process digitalization and use of contextual intelligence.
Setting up Digital Services for a Microfinance Bank in Rwanda
Strengthening the back office
Rwanda (09/2018 – 05/2019)
Our GOPA AFC experts collaborated with AB Bank Rwanda (ABR) to enhance their digital finance strategy and marketing approach. We refined ABR’s digital finance strategy and developed a comprehensive digital finance change management process. To further bolster their marketing efforts, we implemented a call centre, encompassing budgeting, setting targets, establishing policies and procedures, quality control, and staffing needs.
Alongside these activities, we also assisted ABR in strengthening their Environmental and Social Management System (ESMS). We supported the bank in gathering and using environmental and social data. Jointly, we developed a strategic 3-year ESMS plan and created an ESMS training module for the staff to ensure the successful implementation and upkeep of the ESMS.
Donor: Nordic Microfinance Initiative, AB Rwanda
IN FOCUS DIGITAL FINANCE PROJECTS IN MENA
National Financial Inclusion Strategy for Egypt
Promotion of access to financial services for small and medium enterprises – National financial inclusion survey and strategy (02/2019 - 12/2021) ABOUT THE PROJECT
Donor: German Corporation for International Cooperation (GIZ)
Consortium partners: Altai
For more information: read our article on Promoting financial inclusion in Egypt. 34% 11% of consumers in Egypt receive digital transfers make payments using digital financial services.
Source: Central Bank of Egypt: Financial Inclusion Strategy (2022-2025), 2022.
Financial inclusion is recognized to reduce extreme poverty and boost economic growth. To this day, Egypt’s financial inclusion numbers lie below the global average.
To improve the supply of financial services for households and micro, medium and small enterprises (MSMEs), the Central Bank of Egypt (CBE) needs accurate data, to do proper evaluations and to develop policies and respective actions.
GOPA AFC supported the CBE in conducting and drafting a national financial inclusion survey and strategy, to enable evidence-based policy making for greater financial inclusion in the country. We conducted the first national representative financial inclusion survey in Egypt and built a data set as evidence base and baseline for future monitoring. Grounded on the analysis of the collected data and consultation of all relevant national stakeholders, our experts guided the CBE in drafting the national financial inclusion strategy. Financial technology and digital financial infrastructure were identified as crucial enablers for the national financial inclusion strategy. The set of recommended policy actions included the digitalization of government payments and financial services and expanding digital financial literacy among MSMEs and consumers.
Innovative Financing for MSMEs in Jordan
98% of companies in Jordan are MSMEs, however only around 10% of all bank loans are granted to MSMEs, which often forces them to finance themselves through their own resources, limiting the growth potential.
Innovative approaches for the financial inclusion of MSMEs in Jordan: Innovative MSME financing (09/2022 –08/2025)
Donor: German Corporation for International Cooperation (GIZ)
For more information: read our article on how AFC joins forces with GIZ Jordan for the financial inclusion of MSMEs through innovative approaches, about our role in enhancing financial services for Jordanian MSMEs and about our latest digital solutions for the country’s financial sector.
To improve the access to finance for growth-oriented MSMEs in the country, GOPA AFC assisted the Central Bank of Jordan in creating an enabling environment for innovative MSME financing, supporting the implementation of supervision and regulatory practices for alternative financing products. We further strengthened the capacity of banks, microfinance institutions, credit companies, leasing companies, crowdfunding companies, payment service providers as well as specialized fintechs, to enable them to provide innovative financial services for MSMEs. In addition, we aimed to improve the access to financial services for women-led businesses.
The first step involved our FSD experts conducting an in-depth analysis of the barriers MSMEs face in accessing finance and identifying potential opportunities for digital solutions. In a second step, we developed together with the selected partner financial institutions, financial services based on digital solutions that are closely tailored to the needs of MSMEs, and monitored the pilot testing. At the same time, we trained the staff on how to adapt financial services on their own and supported them in adjusting internal processes and IT systems.
USD 6.8 M
The total transaction value in the digital investment segment is projected to: in 2023
Source: Statista: “FinTech – Jordan“, 2023.
Digital Solutions to Improve Access to Finance and Remittances in Jordan
ABOUT THE PROJECT
Improving access to remittances and other financial services through digital solutions (Digi#ances) (10/2016 – 07/2018)
Donor: German Corporation for International Cooperation (GIZ)
Consortium partners: Altai Consulting
For more information: read our article on Digi#ances: giving the Jordanian population and Syrian refugees access to finance or watch our explanatory cartoons from Jordan on 1. How does a mobile wallet work? 2. How do I open a mobile wallet? and 3. What is a mobile wallet agent?
Jordan is one of the main host countries for refugees from the neighboring crisis and conflict regions, particularly Syria. While roughly one-fifth of Syrian refugees reside in camps, the majority live within host communities outside of these camps. These refugees, as well as low-income Jordanians, suffer from limited access to formal financial services and rely on cash transactions or informal channels, e.g. for sending or receiving money from family members outside of Jordan (remittances).
To increase the awareness of digital financial services among potential users, we conducted financial literacy trainings and various awareness raising activities, such as outreach events and social media campaigns to improve user capacities and create trust. In order to design and realize the measures in an adequate manner, we worked jointly with the Jordan River Foundation.
The first months of the project focused on developing an awareness and financial literacy roadmap and intensively exploring the different needs of the beneficiaries. Our team identified several use cases or situations where the target group could benefit from digital financial services. These could be as simple as the possibility of paying utility bills or sending money to family members. Based on these findings, we elaborated different core messages as well as developed and designed marketing materials and products for the roll-out of the financial literacy measures and awareness raising campaigns.
UNHCR provided regular cash assistance through mobile wallets to:
Sources: UNHCR: Refugee Camps, 2023; Reliefweb: “Financial Inclusion of Refugees in Jordan - Knowledge Note”, November 2022.
IN
FOCUS DIGITAL FINANCE PROJECT IN EASTERN EUROPE
Bridging the Digital Finance Gap in Georgia
ABOUT THE PROJECT
Technical Assistance Programme to various EIB Microfinance Operations in Ukraine, Moldova, and Georgia (ENTAFI) (01/2019 – 06/2023)
Low financial literacy and limited access to financial products, such as savings accounts, remain widespread among poorer households and micro and small merchants, in Georgia, particularly in rural areas. Many small businesses and farmers continue to struggle with financial literacy and access to tailored banking solutions.
Recognizing this gap, GOPA AFC played a key role in the ENTAFI project, to strengthen financial inclusion in Georgia, Ukraine, and Moldova.
Donor: European Investment Bank (EIB)
Consortium partners: NIRAS, MFC
For more information: read about the lasting impact of the ENTAFI project.
We provided technical assistance to banks and microfinance institutions, improving their credit risk management, financial product offerings, and compliance with banking regulations. At the same time, we trained MSMEs in financial literacy, digital finance, and business management, ensuring they could access funding and expand their businesses effectively.
A major achievement was our support for Kalo.ge, an online platform by Credo Bank that equips Georgian farmers with financial and agricultural knowledge. We developed 30 expert articles and 25 educational videos, increasing the platform engagement. By the project’s completion, Kalo.ge had over 50,000 active users, helping farmers navigate digital finance tools, improve their business strategies, and adopt modern agricultural practices.
70.5% 62% of adults in Georgia own a transaction account, and close to: have sent or received digital payments.
Source: World Bank’s Global Findex (2021).
IN FOCUS DIGITAL FINANCE PROJECT IN OCEANIA
National Financial Inclusion and Literacy Strategy in Papua New Guinea
PROJECT
Formulation of national financial inclusion policy and financial literacy strategy (08/2016 – 11/2016 & 06/2017 – 10/2017)
Donor: Centre for Excellence in Financial Inclusion (CEFI)
are living in rural areas and do not have access to formal financial service.
Source: Bank of Papua New Guinea: “Financial Inclusion”, 2023.
Papua New Guinea (PNG) has a population of 7 million, with 85% living in rural areas. Most of the population, especially in rural regions, has very limited access to formal financial services.
With a continuously growing mobile penetration in the last years, mobile money services represent a strong opportunity in increasing the financial inclusion throughout the country.
Driven by these challenges and opportunities, the Centre for Excellence in Financial Inclusion (CEFI) established by the Bank of Papua New Guinea, trusted GOPA AFC to formulate PNG’s financial inclusions and financial literacy strategy. The strategy comprises nine priority areas: digital financial services, inclusive insurance, financial literacy and financial education, financial consumer protection, informal economy and agricultural finance, SME finance, resources sector engagement, data collection and dissemination as well as government engagement.
One of the project’s priorities was to support the innovative use of technology for scaling up financial access and promote the expansion of digital financial services to reach the remote parts of the country.
With the active involvement of private and public stakeholders, GOPA AFC established a holistic and fully enabling long-term regulatory framework, promoted innovative use of identification data for financial inclusion, increased financial access points in rural areas, achieved broad interoperability across the payment system, and reduced reliance on cash, and digitalized government payments.
About GOPA AFC’s Financial Sector Development Department
GOPA AFC’s specialised Financial Sector Development (FSD) team was established over 30 years ago. Within the GOPA Consulting Group, GOPA AFC is the competency centre for financial sector development.
Around the globe, GOPA AFC develops tailor-made credit and saving products and establishes appropriate regulation and supervision systems. We advise financial institutions— including commercial and central banks, mortgage companies, microfinance and apex institutions— as well as MSMEs and smallholder farmers.
5,755
Our In-House Digital Finance Expert
Federico Bilder
Senior Project Manager
Federico.Bilder@gopa-afc.de
Federico Bilder has worked extensively in the finance sector across more than 25 countries in Africa, Europe, Central Asia, Latin America, and the Middle East on projects related to access to finance and digitalization. He has over 20 years of experience as an independent consultant and senior manager for financial institutions' networks.
He has a successful track record in implementing technical assistance projects, access to finance and blended finance schemes, financial sector assessments, and evaluation missions. His areas of expertise include Digital Financial Services, Value Chain Financing, and Sustainable Finance. He also has substantial experience supporting startups, including AgTechs, with strategy, digitalization, and financial modeling.
Mr. Bilder holds an MSc in Management and Public Policy and has numerous certificates in financial inclusion, design thinking, digital money, blockchain, and supply chain analytics.
