• Inclusive fintech startups are early-stage, venture-backed enterprises creating innovative credit products for microenterprises in emerging markets, which holds great promise for the future of microenterprise finance.
• In this note, we highlight strategies employed by fintech startups that benefit microenterprises via three core innovations: improved use of data and analysis innovations; channel partnerships for reach and distribution that increase convenience for microenterprises; and tailored pricing and loan terms that better match loans to microenterprises' cash flows to limit repayment pressure and risk of over-indebtedness.
• This focus note features a range of case studies based on CGAP’s work piloting microenterprise finance products and primary and secondary research, providing an illustrative view of microenterprise fintech models' potential and realized impacts.

-------------------------------------------------------------------------------

CGAP is a Strategic Partner of the SME Finance Forum