CDC has long recognised the critical role a strong and resilient financial sector plays in supporting economic growth and wellbeing. The Group has backed financial institutions since 1949 when it invested in the forerunners of the Malaysia Building Society and Singapura Finance.
Today, investments in financial institutions make up approximately a third of the CDC’s portfolio. The recently published financial institutions sector strategy sets out why and how CDC invests in financial institutions in more detail.
It is well known that sometimes maximising the development impact of a financial institution requires support beyond the scope of investment capital. Financial institutions in countries where CDC invests often require multi-dimensional support, both through investment capital and non-commercial instruments such as grants and technical assistance, to innovate and sustainably scale products and services to reach new and vulnerable clients.
The unique nature of financial institutions – and the systemic role they play in economies – influences how technical assistance and grant projects should be designed and delivered effectively. CDC commissioned Tandem to consolidate industry lessons and develop guidance to complement the approach to investing in the financial sector.
“We hope that fellow investors and providers of technical assistance and grants also find it valuable to enhance the development impact and sustainability of their work within the sector.”
If you’d like to learn more about making effective use of grants and technical assistance to support financial institutions, CDC is hosting a webinar in partnership with CGAP on this topic on Friday 17 July 2020.
Read the full report: Making effective use of grants and TA to support financial institutions.
Original source: CDC
Published on 19 June 2020
