Microfinance

Increasing financial access for traditionally underserved population, including women, poor households, vulnerable groups, and micro, small, and medium enterprises is critical to achieving inclusive and balanced economic growth.

ADB has been actively promoting innovation and best practices in this area. In its Strategy 2020, ADB says it will seek to create an enabling environment for financial inclusion, encompassing rural finance institutions and micro, small, and medium enterprises and explore new technologies to expand access to financial services. Further, the Financial Sector Operational Plan details the work ADB will do in the sector, recognizing that financial services should go beyond micro loans to include savings, payments and remittances, insurance, and pensions.

ADB’s support for inclusive finance is provided through loans, credit lines, investments, grants, guarantees, and technical assistance in the following areas (as defined in the 2014 Project Classification System):

  • microfinance
  • credit cooperatives and credit unions
  • agriculture finance and rural microenterprise
  • branchless/mobile banking
  • financial literacy and consumer protection
  • remittance management
  • savings mobilization
  • rural banks

ADB’s Microfinance Development Strategy ensures access to institutional financial services for a majority of poor and low-income households and their microenterprises. It aims to support the development of sustainable microfinance systems that can provide diverse, high-quality services.

To achieve its objective for microfinance, ADB focuses on:

  • creating a microfinance-friendly policy environment
  • developing financial infrastructure
  • building viable retail institutions
  • supporting pro-poor innovations
  • supporting social intermediation

ADB’s microfinance projects by thematic area

 

Institutional development

To achieve sector sustainability and expand outreach to more poor households, it is necessary to build up the capacity of institutions promoting financial inclusion. Strong institutions must be well governed and render quality financial services to their clients.

Besides supporting the development of existing institutions, ADB also supports the establishment of microfinance institutions in countries where there are few such services.

Below are some ADB inclusive finance projects related to institutional development.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
9010 TA THA Strengthening Specialized and Semi-Formal Financial Institutions to Support Financial Inclusion 1,500,000 8 Dec 2015
8932 TA PRC Pilot Program for Establishing a Support Framework for Sustainable Village Community Funds 300,000 21 Jul 2015
8861 TA REG Sustainable Financing of Small-Scale Agriculture in South Asia and Southeast Asia 750,000 23 Dec 2014
8762 TA TIM Expansion of Financial Services 750,000 20 Nov 2014
8391 TA VIE Strengthening Microfinance Sector Operation and Supervision 1,000,000 21 Jun 2013
8336 TA VAN Expansion of Rural Financial Services 225,000 15 Feb 2013
9170 Grant KGZ Women's Entrepreneurship Development 1,500,000 14 Jan 2013
8224 TA INO Improving Access to Finance in Aceh and North Sumatra 800,000 8 Nov 2012
2877 Loan VIE Microfinance Development Program - Subprogram 1 40,000,000 5 Jul 2012
7777 TA NEP Improving Access to Finance Sector Development Program 600,000 27 Jan 2011
9153 Grant BAN Institutional Support for Migrant Workers' Remittances 2,000,000 18 Jan 2011
7765 TA PRC Capacity Development of Partner Banks in Microfinance Wholesale Lending 225,000 29 Dec 2010
9152 Grant MON Promoting Inclusive Financial Services for the Poor 2,500,000 17 Dec 2010
7685 TA REG Market Study for a Non-Sovereign Microfinance Funding Initiative 135,000 29 Nov 2010
2686 Loan PNG Microfinance Expansion 13,000,000 28 Oct 2010
226 Grant PNG Microfinance Expansion 6,000,000 28 Oct 2010
2634 Loan UZB Second Small and Microfinance Development 50,000,000 21 Apr 2010
2617 Loan IND Micro, Small, and Medium Enterprise Development 50,000,000 26 Feb 2010
7499 TA VIE Microfinance Sector Development Program 500,000 21 Feb 2010
9140 Grant VIE Formalizing Microfinance Institutions 1,500,000 5 Oct 2009
9105 Grant PAK Microfinance for the Poorest 2,000,000 30 Jan 2007
2281 Loan IND Rural Cooperative Credit Restructuring and Development Program 1,000,000,000 8 Dec 2006
4887 TA IND Capacity Building for Rural Cooperative Credit Structure Reform 2,000,000 8 Dec 2006
4837 TA BHU SME/Microenterprise Development Program: Financing Component 500,000 11 Sep 2006
9088 Grant PHI Developing Financial Cooperatives 900,000 14 Mar 2006
4761 TA SRI Microinsurance Sector Development 600,000 3 Jan 2006
4755 TA CAM Developing Deposit Services in Rural Cambodia 600,000 21 Dec 2005
9079 Grant INO Restoration of Microenterprise and Microfinance in Aceh 2,000,000 28 Nov 2005
2199 Loan PHI Microfinance Development Program 150,000,000 22 Nov 2005
4693 TA PHI Support the Implementation of the Microfinance Development Program 500,000 22 Nov 2005
9075 Grant AZE Mahalla Business Development 0 20 Sep 2005
4638 TA VIE Implementing the Regulatory and Supervisory Framework For Microfinance 250,000 29 Aug 2005
4544 TA PHI Enhancing Access of the Poor to Microfinance Services in Frontier Areas 250,000 23 Dec 2004
4509 TA TIM Strengthening Microfinance Operations 500,000 20 Dec 2004
4491 TA AZE Developing Microfinance Regulations and Collateral Framework 800,000 17 Dec 2004
4430 TA PRC Rural Finance Reforms and Development of Microfinance Institutions 1,000,000 9 Nov 2004
4247 TA IND Rural Finance Sector Restructuring and Development 1,000,000 12 Dec 2003
4238 TA VAN Rural and Microfinance Outreach 250,000 4 Dec 2003
4172 TA VAN Diagnostic Study for Improving Access to Affordable Credit 150,000 14 Sep 2003
4135 TA LAO Rural Finance Development 150,000 2 Jul 2003
2000 Loan TAJ Microfinance Systems Development Program (Program Loan) 4,000,000 26 Jun 2003
2001 Loan TAJ Microfinance Systems Development Program (Project Loan) 4,000,000 26 Jun 2003
4093 TA AZE Microfinance Sector Development 400,000 11 Apr 2003
4068 TA KGZ Capacity Building in Savings and Credit Unions and Microfinancial Systems 550,000 19 Dec 2002
1963 Loan UZB Small and Microfinance Development 20,000,000 9 Dec 2002
4021 TA UZB Developing Prudential Regulation and Supervision of Savings and Credit Unions 400,000 9 Dec 2002
3814 TA PHI Microfinance for Rural Development 560,000 19 Dec 2001
3810 TA INO Rural Microfinance 1,000,000 18 Dec 2001
1848 Loan MON Rural Finance 8,686,000 25 Oct 2001
3743 TA TIM Microfinance Information Technology Systems Development 150,000 17 Oct 2001
3741 TA VIE Framework for Microfinance Development 300,000 12 Oct 2001
3707 TA SRI Rural Finance Sector Development 550,000 24 Aug 2001
5984 RETA REG Microfinance Outreach Initiatives of the Consultative Group to Assist the Poorest 500,000 17 Apr 2001
3635 TA UZB Pilot Testing of Rural Savings and Credit Unions 150,000 5 Mar 2001
1805 Loan PAK Microfinance Sector Development Program - Program Loan 70,000,000 13 Dec 2000
1806 Loan PAK Microfinance Sector Development Program - Project Loan 80,000,000 13 Dec 2000
1802 Loan VIE Rural Enterprise Finance 80,000,000 12 Dec 2000
3568 TA VIE Support of Rural Business 1,000,000 12 Dec 2000
3556 TA TIM Strengthening the Microfinance Policy and Legal Framework 250,000 6 Dec 2000
1768 Loan PNG Microfinance and Employment 9,595,000 19 Oct 2000
3435 TA TIM Microfinance 150,000 10 May 2000
1741 Loan CAM Rural Credit and Savings 20,000,000 27 Apr 2000
3413 TA LAO Rural Finance Development (TA Cluster) 2,020,000 9 Mar 2000
3397 TA MON Rural Finance 700,000 2 Feb 2000
1723 Loan KGZ Financial Intermediation and Resource Mobilization Program 35,000,000 17 Dec 1999
3344 TA IND Strengthening Microfinance Institutions for Urban and Environmental Infrastructure Finance 500,000 17 Dec 2099
3315 TA PNG Microfinance and Employment 150,000 29 Nov 1999
3270 TA CAM Capacity Building for Rural Financial Services 1,450,000 5 Oct 1999
3254 TA UZB Rural Savings And Credit Union Development 600,000 9 Sep 1999
3206 TA VAN Rural Financial Services 250,000 16 Jun 1999
5836 RETA REG Consultations on the Bank's Microfinance Strategy 400,000 1 Mar 1999
3143 TA PRC International Symposium on Microfinance and Urban Unemployment In PRC 150,000 23 Dec 1998
3078 TA BAN Establishment of a Framework for Sustainable Microfinance 800,000 29 Sep 1998
1634 Loan BAN Rural Livelihood 42,600,000 29 Sep 1998
2991 TA VIE Second Rural Credit 150,000 24 Feb 1998
2953 TA THA Strengthening Project Loan Appraisal and Risk Management of the Bank for Agriculture and Agricultural Cooperatives 600,000 19 Dec 1997
2939 TA PRC Reform of the Rural Credit Cooperative System 997,000 15 Dec 1997
2937 TA PAK Rural Microfinance 600,000 12 Dec 1997
1540 Loan THA Rural Enterprise Credit 200,000,000 18 Sep 1997
1529 Loan KGZ Rural Financial Institutions 12,500,000 21 Aug 1997
2836 TA NEP Rural Finance 500,000 6 Aug 1997
2818 TA CAM Rural Credit and Savings 600,000 26 Jun 1997
5723 RETA REG Fourth Consultative Group Forum 150,000 7 Feb 1997
2601 TA CAM Rural Credit Review 100,000 4 Jul 1996
1435 Loan PHI Rural Microenterprise Finance 20,000,000 23 Apr 1996
2558 TA PHI Strengthening Rural Microenterprise Finance 600,000 23 Apr 1996
2539 TA PRC All China Federation of Supply and Marketing Cooperatives 580,000 5 Mar 1996
2449 TA KAZ Study on Rural Credit and Savings 470,000 23 Nov 1995
2293 TA BAN Rural Livelihood 287,000 24 Jan 1995
2286 TA VIE Rural Finance 586,000 12 Jan 1995
2277(L)/ 1327 Grant INO Microcredit 1,000,000 29 Dec 1994
2214 TA PRC Cooperative Banking Development 600,000 1 Dec 1994
1327 Loan INO Microcredit 25,700,000 25 Oct 1994
1290 Loan MON Employment Generation 3,000,000 16 Dec 1993
2020 TA MON Institutional Enhancement for Employment Generation 598,000 16 Dec 1993
1849 TA INO Microcredit 455,000 23 Feb 1993
1840 TA MON Employment-generation 100,000 8 Jan 1993
1807 TA BAN Institutional Strengthening of Bangladesh Rural Development Board 600,000 17 Dec 1992
1617 TA PHI Rural Credit 640,000 28 Nov 1991
1067 Loan BAN Rural Women Employment Creation 8,000,000 13 Dec 1990
1161 TA INO Institutional Strengthening of Bank Umum Koperasi Indonesia 360,000 30 May 1989
940 Loan PHI NGO-Microcredit 8,000,000 22 Dec 1988
954 TA PAK Study of the Federal Bank for Cooperatives 350,000 12 Feb 1988
5207 RETA REG Study on Informal Credit Markets in Selected Developing Member Countries 350,000 11 Apr 1986
517 TA NEP Rural Cooperatives 250,000 27 May 1983

As of 30 Jun 2016

Financial market infrastructure development

Adequate financial infrastructure has been a major issue in the finance sector of countries in Asia and the Pacific. This includes legal, information, and regulatory and supervisory systems for financial institutions and markets. This is one of the focus areas of ADB’s microfinance strategy. Specifically, ADB focuses on information systems and training facilities for financial inclusion development, improvement of supervisory regulations, and development of the self-regulation and performance standards of institutions.

Below are some ADB inclusive finance projects related to financial market infrastructure development.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
8532 TA MYA Financial Sector Reforms (Supplementary) 350,000 22 Dec 2015
9010 TA THA Strengthening Specialized And Semi-Formal Financial Institutions To Support Financial Inclusion 1,500,000 8 Dec 2015
8861 TA REG Sustainable Financing Of Small-Scale Agriculture In South Asia And Southeast Asia 750,000 23 Dec 2014
8587 TA VIE Supporting Microfinance Development 600,000 12 Dec 2013
8391 TA VIE Strengthening Microfinance Sector Operation and Supervision 1,000,000 21 Jun 2013
8336 TA VAN Expansion of Rural Financial Services 225,000 15 Feb 2013
9170 Grant KGZ Women's Entrepreneurship Development 1,500,000 14 Jan 2013
8250 TA REG Improving Financial Inclusion in Asia and the Pacific 750,000 6 Dec 2012
8224 TA INO Improving Access to Finance in Aceh and North Sumatra 800,000 8 Nov 2012
8108 TA VIE Supporting Microfinance Development Program 500,000 5 Jul 2012
2877 Loan VIE Microfinance Development Program - Subprogram 1 40,000,000 5 Jul 2012
7998 TA THA Development Of a Strategic Framework for Financial Inclusion 1,500,000 15 Dec 2011
7777 TA NEP Improving Access to Finance Sector Development Program 600,000 27 Jan 2011
9153 Grant BAN Institutional Support for Migrant Workers' Remittances 2,000,000 18 Jan 2011
7765 TA PRC Capacity Development of Partner Banks in Microfinance Wholesale Lending 225,000 29 Dec 2010
9152 Grant MON Promoting Inclusive Financial Services for the Poor 2,500,000 17 Dec 2010
7685 TA REG Market Study for A Non-sovereign Microfinance Funding Initiative 135,000 29 Nov 2010
2686 Loan PNG Microfinance Expansion 13,000,000 28 Oct 2010
226 Grant PNG Microfinance Expansion 6,000,000 28 Oct 2010
2634 Loan UZB Second Small and Microfinance Development 50,000,000 21 Apr 2010
2617 Loan IND Micro, Small, and Medium Enterprise Development 50,000,000 26 Feb 2010
7499 TA VIE Microfinance Sector Development Program 500,000 21 Feb 2010
9140 Grant VIE Formalizing Microfinance Institutions 1,500,000 5 Oct 2009
9105 Grant PAK Microfinance for the Poorest 2,000,000 30 Jan 2007
2281 Loan IND Rural Cooperative Credit Restructuring and Development Program 1,000,000,000 8 Dec 2006
4887 TA IND Capacity Building for Rural Cooperative Credit Structure Reform 2,000,000 8 Dec 2006
4837 TA BHU Sme/Microenterprise Development Program: Financing Component 500,000 11 Sep 2006
9088 Grant PHI Developing Financial Cooperatives 900,000 14 Mar 2006
4761 TA SRI Microinsurance Sector Development 600,000 3 Jan 2006
4755 TA CAM Developing Deposit Services in Rural Cambodia 600,000 21 Dec 2005
4693 TA PHI Support the Implementation of the Microfinance Development Program 500,000 22 Nov 2005
9075 Grant AZE Mahalla Business Development 0 20 Sep 2005
6254 RETA REG Joint Conference on Worker Remittances and Poverty Reduction with Inter-American Development Bank and United Nations Development Programme 150,000 30 Aug 2005
4544 TA PHI Enhancing Access of the Poor to Microfinance Services in Frontier Areas 250,000 23 Dec 2004
4509 TA TIM Strengthening Microfinance Operations 500,000 20 Dec 2004
4430 TA PRC Rural Finance Reforms and Development of Microfinance Institutions 1,000,000 9 Nov 2004
4247 TA IND Rural Finance Sector Restructuring and Development 1,000,000 12 Dec 2003
4238 TA VAN Rural and Microfinance Outreach 250,000 4 Dec 2003
4172 TA VAN Diagnostic Study for Improving Access to Affordable Credit 150,000 14 Sep 2003
4135 TA LAO Rural Finance Development 150,000 2 Jul 2003
4132 TA TAJ Institutional Strengthening of Microfinance Systems 640,000 26 Jun 2003
2000 Loan TAJ Microfinance Systems Development Program (Program Loan) 4,000,000 26 Jun 2003
2001 Loan TAJ Microfinance Systems Development Program (Project Loan) 4,000,000 26 Jun 2003
4093 TA AZE Microfinance Sector Development 400,000 11 Apr 2003
4068 TA KGZ Capacity Building in Savings and Credit Unions and Microfinancial Systems 550,000 19 Dec 2002
1963 Loan UZB Small and Microfinance Development 20,000,000 9 Dec 2002
4021 TA UZB Developing Prudential Regulation and Supervision of Savings and Credit Unions 400,000 9 Dec 2002
3814 TA PHI Microfinance for Rural Development 560,000 19 Dec 2001
3810 TA INO Rural Microfinance 1,000,000 18 Dec 2001
1848 Loan MON Rural Finance 8,686,000 25 Oct 2001
3743 TA TIM Microfinance Information Technology Systems Development 150,000 17 Oct 2001
3741 TA VIE Framework for Microfinance Development 300,000 12 Oct 2001
3707 TA SRI Rural Finance Sector Development 550,000 24 Aug 2001
5984 RETA REG Microfinance Outreach Initiatives of the Consultative Group to Assist the Poorest 500,000 17 Apr 2001
3635 TA UZB Pilot Testing of Rural Savings and Credit Unions 150,000 5 Mar 2001
1805 Loan PAK Microfinance Sector Development Program - Program Loan 70,000,000 13 Dec 2000
1806 Loan PAK Microfinance Sector Development Program - Project Loan 80,000,000 13 Dec 2000
1802 Loan VIE Rural Enterprise Finance 80,000,000 12 Dec 2000
3568 TA VIE Support of Rural Business 1,000,000 12 Dec 2000
3556 TA TIM Strengthening the Microfinance Policy and Legal Framework 250,000 6 Dec 2000
5952 RETA REG Commercialization of Microfinance 700,000 20 Nov 2000
5950 RETA REG Financial Services for Poor Women 600,000 16 Nov 2000
1768 Loan PNG Microfinance and Employment 9,595,000 19 Oct 2000
5929 RETA REG Microcredit Summit Asia and Pacific Regional Meeting 140,000 5 Sep 2000
3435 TA TIM Microfinance 150,000 10 May 2000
1741 Loan CAM Rural Credit and Savings 20,000,000 27 Apr 2000
3413 TA LAO Rural Finance Development (TA Cluster) 2,020,000 9 Mar 2000
3397 TA MON Rural Finance 700,000 2 Feb 2000
1723 Loan KGZ Financial Intermediation and Resource Mobilization Program 35,000,000 17 Dec 1999
3344 TA IND Strengthening Microfinance Institutions for Urban and Environmental Infrastructure Finance 500,000 17 Dec 1999
3315 TA PNG Microfinance and Employment 150,000 29 Nov 1999
3270 TA CAM Capacity Building for Rural Financial Services 1,450,000 5 Oct 1999
3254 TA UZB Rural Savings and Credit Union Development 600,000 9 Sep 1999
3206 TA VAN Rural Financial Services 250,000 16 Jun 1999
5836 RETA REG Consultations on the Bank's Microfinance Strategy 400,000 1 Mar 1999
3143 TA PRC International Symposium on Microfinance and Urban Unemployment in PRC 150,000 23 Dec 1998
3078 TA BAN Establishment of a Framework for Sustainable Microfinance 800,000 29 Sep 1998
1634 Loan BAN Rural Livelihood 42,600,000 29 Sep 1998
2991 TA VIE Second Rural Credit 150,000 24 Feb 1998
2953 TA THA Strengthening Project Loan Appraisal and Risk Management of the Bank for Agriculture and Agricultural Cooperatives 600,000 19 Dec 1997
2939 TA PRC Reform of the Rural Credit Cooperative System 997,000 15 Dec 1997
2937 TA PAK Rural Microfinance 600,000 12 December 1997
1540 Loan THA Rural Enterprise Credit 200,000,000 18 Sep 1997
1529 Loan KGZ Rural Financial Institutions 12,500,000 21 Aug 1997
2836 TA NEP Rural Finance 500,000 6 Aug 1997
2818 TA CAM Rural Credit and Savings 600,000 26 Jun 1997
2601 TA CAM Rural Credit Review 100,000 4 Jul 1996
1435 Loan PHI Rural Microenterprise Finance 20,000,000 23 Apr 1996
2558 TA PHI Strengthening Rural Microenterprise Finance 600,000 23 Apr 1996
2539 TA PRC All China Federation of Supply and Marketing Cooperatives 580,000 5 Mar 1996
2449 TA KAZ Study on Rural Credit and Savings 470,000 23 Nov 1995
2293 TA BAN Rural Livelihood 287,000 24 Jan 1995
2286 TA VIE Rural Finance 586,000 12 Jan 1995
1327 Grant INO Microcredit 1,000,000 29 Dec 1994
2214 TA PRC Cooperative Banking Development 600,000 1 Dec 1994
1327 Loan INO Microcredit 25,700,000 25 Oct 1994
1290 Loan MON Employment Generation 3,000,000 16 Dec 1993
2020 TA MON Institutional Enhancement for Employment Generation 598,000 16 Dec 1993
1961 TA VIE Development of Small-Scale Rural Credit 568,000 6 Oct 1993
1849 TA INO Microcredit 455,000 23 Feb 1993
1840 TA MON Employment-generation 100,000 8 Jan 1993
1810 TA PHI Institutional Strengthening of Cooperatives 1,400,000 22 Dec 1992
1679 TA LAO Preparatory Study for a Pilot Micro-Credit and Training Project 100,000 26 Mar 1992
1617 TA PHI Rural Credit 640,000 28 Nov 1991
1067 Loan BAN Rural Women Employment Creation 8,000,000 13 Dec 1990
1161 TA INO Institutional Strengthening of Bank Umum Koperasi Indonesia 360,000 30 May 1989
940 Loan PHI NGO-Microcredit 8,000,000 22 Dec 1988
954 TA PAK Study of the Federal Bank for Cooperatives 350,000 12 Feb 1988
5207 RETA REG Study on Informal Credit Markets in Selected Developing Member Countries 350,000 11 Apr 1986
517 TA NEP Rural Cooperatives 250,000 27 May 1983

As of 30 Jun 2016

Remittance and payment services

Remittances are potential drivers of a country’s economic growth and development. They can reduce poverty and help raise household expenditures on higher education and health. But remittances can also have negative effects. If not channelled through the formal system, remittances can be the source for money laundering, smuggling, terrorism, and other illegal activities.

While the volume of remittances channelled through banks and money transfer companies—formal remittances—is rapidly increasing, a large proportion of remittances are still transferred through informal channels. This is due to a combination of factors, including limited financial sector development, regulatory barriers, inadequate financial literacy, and poor market competition. ADB projects focus on capturing a larger volume of the remittances in the formal financial system through the use of technology and financial innovations.

Below are some ADB inclusive finance projects related to remittance and payment services.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
9153 Grant BAN Institutional Support for Migrant Workers' Remittances 2,000,000 18 Jan 2011
6254 RETA REG Joint Conference on Worker Remittances and Poverty Reduction with Inter-American Development Bank and United Nations Development Programme 150,000 30 Aug 2005

As of 30 Jun 2016

Microfinance funding

Funding is a vital element in rolling out projects that will improve access to finance and ensure sustainability in the finance sector. The bulk of microfinance funding is direct, which supports portfolio growth of microfinance institutions.

Microfinance funders may be private or public. Public funders, such as bilateral and multilateral agencies, development finance institutions, and local government, are motivated by development and social objectives. Private funders, which include private and institutional investors, foundations, and nongovernment organizations, may have business or profit motives, in addition their social goals.

Below are some ADB inclusive finance projects related to microfinance funding.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
7325 / 2855 NLE PRC Microfinance Wholesale Lending Facility 20,000,000 28 Mar 2012
7325 NLE REG Microfinance Risk Participation Program 190,000,000 13 Dec 2010
2634 Loan UZB Second Small and Microfinance Development 50,000,000 21 Apr 2010
1963 Loan UZB Small and Microfinance Development 20,000,000 9 Dec 2002
1805 Loan PAK Microfinance Sector Development Program - Program Loan 70,000,000 13 Dec 2000
1806 Loan PAK Microfinance Sector Development Program - Project Loan 80,000,000 13 Dec 2000
1768 Loan PNG Microfinance and Employment 9,595,000 19 Oct 2000

As of 30 Jun 2016

Branchless banking and digital finance

Branchless banking and digital finance have reduced the cost of delivering financial services and increased the convenience of accessing them. These technological and business model innovations have facilitated the delivery of financial services outside conventional bank branches. The use of agents and information and communication technology (such as POS terminals, mobile applications, and services), have addressed the challenges associated with putting up physical bank branches or requiring rural customers to travel to urban areas.

While branchless banking and digital finance promote financial inclusion, they carry risks. These include reliability of the technology, inaccurate recording of transactions, and inadequate data privacy and protection, among others. For these innovations to be successful, an enabling regulatory environment must be in place that will balance financial inclusion with financial stability and consumer protection.

Below are some ADB inclusive finance projects related to branchless/mobile banking.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
9067 TA REG Promoting Financial Inclusion through Financial Technology 750,000 23 Dec 2015
8723 TA SOL Strengthening Financial Inclusion 600,000 24 Sep 2014

As of 30 Jun 2016

Financial literacy

Financial literacy is the ability to understand basic information about financial products and services, while financial capability refers to the ability to apply financial knowledge and understanding. This is particularly important for poor households that are more vulnerable to future economic shocks and need greater protection from fraud. ADB supports financial awareness building among poor households and basic literacy training to access formal financial services.

Below are some ADB inclusive finance projects related to financial literacy.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
8532 TA MYA Financial Sector Reforms (Supplementary) 350,000 22 Dec 2015
8768 TA THA Advancing National Financial Literacy 500,000 25 Nov 2014
8723 TA SOL Strengthening Financial Inclusion 600,000 24 Sep 2014
9170 Grant KGZ Women's Entrepreneurship Development 1,500,000 14 Jan 2013
8250 TA REG Improving Financial Inclusion in Asia and the Pacific 750,000 6 Dec 2012
8108 TA VIE Supporting Microfinance Development Program 500,000 5 Jul 2012
2877 Loan VIE Microfinance Development Program - Subprogram 1 40,000,000 5 Jul 2012
8108 TA VIE Supporting Microfinance Development Program 500,000 5 Jul 2012
7998 TA THA Development of a Strategic Framework for Financial Inclusion 1,500,000 15 Dec 2011
9153 Grant BAN Institutional Support for Migrant Workers' Remittances 2,000,000 18 Jan 2011
7765 TA PRC Capacity Development 0f Partner Banks in Microfinance Wholesale Lending 225,000 29 Dec 2010
9152 Grant MON Promoting Inclusive Financial Services for the Poor 2,500,000 17 Dec 2010
226 Grant PNG Microfinance Expansion 6,000,000 28 Oct 2010
2686 Loan PNG Microfinance Expansion 13,000,000 28 Oct 2010
9105 Grant PAK Microfinance for the Poorest 2,000,000 30 Jan 2007
9088 Grant PHI Developing Financial Cooperatives 900,000 14 Mar 2006
4755 TA CAM Developing Deposit Services in Rural Cambodia 600,000 21 Dec 2005
2199 Loan PHI Microfinance Development Program 150,000,000 22 Nov 2005
4693 TA PHI Support the Implementation of the Microfinance Development Program 500,000 22 Nov 2005
4638 TA VIE Implementing the Regulatory and Supervisory Framework for Microfinance 250,000 29 Aug 2005
4544 TA PHI Enhancing Access of the Poor to Microfinance Services in Frontier Areas 250,000 23 Dec 2004
4491 TA AZE Developing Microfinance Regulations and Collateral Framework 800,000 17 Dec 2004
3635 TA UZB Pilot Testing of Rural Savings and Credit Unions 150,000 5 Mar 2001
5952 RETA REG Commercialization of Microfinance 700,000 20 Nov 2000
5950 RETA REG Financial Services for Poor Women 600,000 16 Nov 2000
3413 TA LAO Rural Finance Development (TA Cluster) 2,020,000 9 Mar 2000
3344 TA IND Strengthening Microfinance Institutions for Urban and Environmental Infrastructure Finance 500,000 17 Dec 1999
1634 Loan BAN Rural Livelihood 42,600,000 29 Sep 1998
2539 TA PRC All China Federation of Supply and Marketing Cooperatives 580,000 5 Mar 1996
1810 TA PHI Institutional Strengthening Of Cooperatives 1,400,000 22 Dec 1992
1807 TA BAN Institutional Strengthening of Bangladesh Rural Development Board 600,000 17 Dec 1992
1067 Loan BAN Rural Women Employment Creation 8,000,000 13 Dec 1990

As of 30 Jun 2016

Financial consumer protection

Consumer protection is one of the vital policy objectives of inclusive finance. Transparency, fair treatment, and effective recourse must be considered in ensuring financial consumer protection. Effective regulations protecting the welfare of consumers are necessary to lower the risks for poor households, which are inexperienced in and have little knowledge of finance. The government plays an important role in regulating inclusive finance players and enforcing measures to ensure their competitiveness and transparency.

Below are some of ADB's inclusive finance projects related to financial consumer protection.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
8532 TA MYA Financial Sector Reforms (Supplementary) 350,000 22 Dec 2015
8250 TA REG Improving Financial Inclusion In Asia and The Pacific 750,000 6 Dec 2012
8108 TA VIE Supporting Microfinance Development Program 500,000 5 Jul 2012
2877 Loan VIE Microfinance Development Program - Subprogram 1 40,000,000 5 Jul 2012
7998 TA THA Development Of A Strategic Framework for Financial Inclusion 1,500,000 15 Dec 2011
7765 TA PRC Capacity Development 0f Partner Banks in Microfinance Wholesale Lending 225,000 29 Dec 2010
226 Grant PNG Microfinance Expansion 6,000,000 28 Oct 2010
7499 TA VIE Microfinance Sector Development Program 500,000 21 Feb 2010
4887 TA IND Capacity Building for Rural Cooperative Credit Structure Reform 2,000,000 8 Dec 2006
9088 Grant PHI Developing Financial Cooperatives 900,000 14 Mar 2006
4755 TA CAM Developing Deposit Services in Rural Cambodia 600,000 21 Dec 2005
4693 TA PHI Support the Implementation of the Microfinance Development Program 500,000 22 Nov 2005
4638 TA VIE Implementing the Regulatory and Supervisory Framework for Microfinance 250,000 29 Aug 2005
4544 TA PHI Enhancing Access of the Poor to Microfinance Services in Frontier Areas 250,000 23 Dec 2004
4491 TA AZE Developing Microfinance Regulations and Collateral Framework 800,000 17 Dec 2004
3635 TA UZB Pilot Testing of Rural Savings and Credit Unions 150,000 5 Mar 2001
5952 RETA REG Commercialization of Microfinance 700,000 20 Nov 2000
5950 RETA REG Financial Services for Poor Women 600,000 16 Nov 2000
5929 RETA REG Microcredit Summit Asia and Pacific Regional Meeting 140,000 5 Sep 2000
3413 TA LAO Rural Finance Development (TA Cluster) 2,020,000 9 Mar 2000
3344 TA IND Strengthening Microfinance Institutions for Urban and Environmental Infrastructure Finance 500,000 17 Dec 1999
3143 TA PRC International Symposium on Microfinance and Urban Unemployment in PRC 150,000 23 Dec 1998
2539 TA PRC All China Federation of Supply and Marketing Cooperatives 580,000 5 Mar 1996
1067 Loan BAN Rural Women Employment Creation 8,000,000 13 Dec 1990
5207 RETA REG Study on Informal Credit Markets in Selected Developing Member Countries 350,000 11 Apr 1986

As of 30 Jun 2016

Gender

Women may have very limited control over household financial affairs and can be dependent on their husbands’ access to financial services. Addressing the gender issue in financial inclusion is more than just formulating projects that target women as a market. These projects should aim to elevate the role of women in the society to be at par with male clients. ADB's inclusive finance projects focus on helping women increase their financial literacy, access financial services and products, and participate in financial activities.

Below are some of ADB’s inclusive finance projects related to gender.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
8480 TA UZB Improving Rural Small Business Access to Finance 500,000 1 Oct 2013
9170 Grant KGZ Women's Entrepreneurship Development 1,500,000 14 Jan 2013
9153 Grant BAN Institutional Support for Migrant Workers' Remittances 2,000,000 18 Jan 2011
9152 Grant MON Promoting Inclusive Financial Services for the Poor 2,500,000 17 Dec 2010
226 Grant PNG Microfinance Expansion 6,000,000 28 Oct 2010
2634 Loan UZB Second Small and Microfinance Development 50,000,000 21 Apr 2010
2617 Loan IND Micro, Small, and Medium Enterprise Development 50,000,000 26 Feb 2010
2199 Loan PHI Microfinance Development Program 150,000,000 22 Nov 2005
2000 Loan TAJ Microfinance Systems Development Program (Program Loan) 4,000,000 26 Jun 2003
2001 Loan TAJ Microfinance Systems Development Program (Project Loan) 4,000,000 26 Jun 2003
1806 Loan PAK Microfinance Sector Development Program - Project Loan 80,000,000 13 Dec 2000
1805 Loan PAK Microfinance Sector Development Program - Program Loan 70,000,000 13 Dec 2000
5950 RETA REG Financial Services for Poor Women 600,000 16 Nov 2000
1741 Loan CAM Rural Credit and Savings 20,000,000 27 Apr 2000
3206 TA VAN Rural Financial Services 250,000 16 Jun 1999
1634 Loan BAN Rural Livelihood 42,600,000 29 Sep 1998
2937 TA PAK Rural Microfinance 600,000 12 Dec 1997
2818 TA CAM Rural Credit and Savings 600,000 26 Jun 1997
2454 TA SAM Microcredit for Women's Enterprises 100,000 28 Nov 1995
2293 TA BAN Rural Livelihood 287,000 24 Jan 1995
2286 TA VIE Rural Finance 586,000 12 Jan 1995
2277(L)/ 1327 Grant INO Microcredit 1,000,000 29 Dec 1994
1327 Loan INO Microcredit 25,700,000 25 Oct 1994
1849 TA INO Microcredit 455,000 23 Feb 1993
1067 Loan BAN Rural Women Employment Creation 8,000,000 13 Dec 1990
940 Loan PHI NGO-Microcredit 8,000,000 22 Dec 1988

As of 30 Jun 2016

Savings mobilization

Poor households, because of limited facilities, are often unable to deposit their savings in banks. Despite developments in the financial inclusion sector, savings mobilization has accounted for an insignificant portion of financial services being offered by microfinance institutions. To address this issue, ADB projects provided to the microfinance sector in Asia and the Pacific support the promotion of domestic savings mobilization. Improved savings mobilization can strengthen the sustainability of microfinance institutions as well as expand their outreach.

Below are some ADB inclusive finance projects related to savings mobilization.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
9088 Grant PHI Developing Financial Cooperatives 900,000 14 Mar 2006
2818 TA CAM Rural Credit and Savings 600,000 26 Jun 1997
2449 TA KAZ Study on Rural Credit and Savings 470,000 23 Nov 1995

As of 30 Jun 2016

Studies and conferences

Below is a list of ADB inclusive finance studies and conferences.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
6254 RETA REG Joint Conference on Worker Remittances and Poverty Reduction with Inter-American Development Bank and United Nations Development Programme 150,000 30 Aug 2005
5929 RETA REG Microcredit Summit Asia and Pacific Regional Meeting 140,000 5 Sep 2000
5836 RETA REG Consultation on the Bank’s Microfinance Strategy 400,000 1 Mar 1999
3143 TA PRC International Symposium on Microfinance and Urban Unemployment in PRC 150,000 23 Dec 1998
5723 RETA REG Fourth Consultative Group Forum 150,000 7 Feb 1997
1673 TA MLD Study the Feasibility of Establishing a Long Term Credit Bank in Maldives 95,000 26 Feb 1992
1137 Loan PHI Second NGO Microcredit 30,000,000 28 Nov 1991
1360 TA PHI Second NGO Microcredit 98,900 24 Aug 1990
5207 RETA REF Study on Informal Credit Markets in Selected Developing Member Countries 350,000 11 Apr 1986

As of 30 Jun 2016

Related areas

Microinsurance

Microinsurance protects the poor from the impact of possible crises and unexpected shocks, such as death in the family, illness, or natural calamities. The target clients of microinsurance are typically those who are unable to afford traditional insurance products, with microinsurance premiums tailored to the living standards of the clientele. ADB supports projects that strengthen the capacity of government regulators and microinsurance providers in developing member countries.

Below are some ADB inclusive finance projects related to microinsurance.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
7998 TA THA Development of a Strategic Framework for Financial Inclusion 1,500,000 15 Dec 2011
4761 TA SRI Microinsurance Sector Development 600,000 3 Jan 2006

As of 30 Jun 2016

Green finance

Green finance describes a broad range of funding services for environment-oriented technologies, projects, industries, or businesses. This includes products such as credit cards, loans, and insurance that encourage customers to use more sustainable, environment-friendly practices.

Below are some ADB inclusive finance projects related to green finance.

Approval Number Type of Project Country Title of Project Amount (US$) Approval Date
0346 Grant TAJ Access to Green Finance 10,000,000 25 Jun 2013
8394 TA TAJ Access to Green Finance 750,000 25 Jun 2013
2449 TA KAZ Study on Rural Credit and Savings 470,000 23 Nov 1995
1810 TA PHI Institutional Strengthening of Cooperatives 1,400,000 22 Dec 1992
1617 TA PHI Rural Credit 640,000 28 Nov 1991

As of 30 Jun 2016