The IFC and the SPTF Social Investor Working Group held an Investor Forum from April 3-4, 2019 at IFC’s headquarters in Washington, D.C.
Participants shared investment lessons in social performance and impact management, discussed recent strategies for digital transformation, and shared latest developments in impact investing tools for financial inclusion and the larger impact space, critical to achieving the UN’s Sustainable Development Goals (SDGs). The meeting also included deep-dive sessions about how investors in financial inclusion and digital financial services (DFS) can assess and manage increased risks in the rapidly evolving digital finance landscape. Discussions included the latest initiatives among co-founding and new signatories of the Guidelines for Investing in Responsible Digital Financial Services, and its importance toward investing for impact.
View the agenda here.
View the participant list here.
Below are presentations, minutes, and background materials for the forum.
Overview of SPTF Social Investor Working Group
What makes us impact investors?
Roadmap for the Future of Impact Investing: Reshaping Financial Markets – Pages 41-48
Shared Investor Understanding of Impact – Impact Management Project Framework
SPI4 ALINUS Toolkit for Investors
How can investors measure and manage impact for financial inclusion and progress towards SDGs?
Background: Evolution from IRIS to IRIS+
Update on IRIS+ core metrics, February 2019 webinar: PowerPoint; Recording
Navigating Impact for Financial Inclusion
Responsible digital transformation of financial institutions
Digital Access: The Future of Financial Inclusion in Africa: This IFC publication documents learnings from seven years of the Partnership for Financial Inclusion program in Africa. It shares lessons learned, as well as highlights both the opportunities and the challenges in furthering financial inclusion.
- Developing a Strategy - Pages 44-48
- The business case for digital financial services - Pages 14-21
Digitalization and the SDGs
Updates on the Data Platform
Concept Note for Data Platform
Update on SPI4 ALINUS and SPI Online
Developing a strategy for digital transformation
Triple Jump presentation
Innovative partnerships for digital transformation
Brief on Proven Strategies for Making Fintech Inclusive
A high-level overview presentation on Catalyst Fund AAA Framework
OPTIX Program Two-Pager 2019, OPTIX FinHealth Results Leaflet 2019 (The OPTIX program is a digital and Fintech approach that partners with FSPs to develop specific financial strategies and tools for low-income people and to create new opportunities to improve their lives)
Operating Principles for Impact Management: Overview and Early Lessons for Digital Finance
What are the Impact Principles?
Responsible Investing in Digital Financial Services
Evolving Practices for Responsible Digital Financial Services
Smart Campaign presentation
Smart Campaign's draft Digital Credit Standards
Signatory and Investor Insights: Operationalizing the Guidelines:
- Guideline 1: Promote Responsible Investment in Digital Finance
SPTF-CDC Webinar: Evaluating Risks and Value to Clients. In this introductory webinar, Alex Rizzi of the Smart Campaign outlined specific client protection risks posed by FinTech, and Pim Engels of FMO discussed how his organization is adapting its due diligence process for FinTech investments.
- Guideline 2: Manage Risks Comprehensively with Growth of Digital Inclusion
SPTF-CDC Webinar: Evaluating Technology Risks and Opportunities. In this webinar, Monica Brand of Quona Capital discussed how her institution identifies technology risks and opportunities in FinTech investments, with the aim of creating value for end clients. Quona utilizes partnerships to identify such risks, and one partner - RippleWorks - joined the call to discuss how it helps investors manage technology risks.
IFC draft due diligence checklist for operational and investment officers involved in DFS
- Guideline 3: Foster a Proportionate Legal and Regulatory Framework
Paper on proportionate, risk-based KYC for mobile money
Paper on proportionate KYC for mobile money in Uganda
Paper on safeguarding mobile money funds against loss
- Guideline 4: Facilitate Interoperability and Infrastructure for DFS Ecosystems
Facilitate Interoperability and Infrastructures for DFS Ecosystems – Briefing Note (Coming soon)
SPTF-CDC Webinar: Evaluating Risks with Agent Network Management. In this webinar, Venkat Attaluri of MicroSave discussed the risks associated with agent network management, as well as the questions investors can ask about this risk during due diligence and monitoring of FinTech investments.
- Guideline 5: Establish Customer Identity, Data Privacy, and Security Standard
Accion toolkit on data protection
- Guideline 6: Promote Fair and Transparent Pricingè
Promoting Fair and Transparent Pricing – Briefing Note by DEG
SPTF-CDC Webinar: Evaluating Pricing and Pricing Transparency. In this webinar, Rafe Mazer of FSD Kenya discussed whether increased scale and efficiencies in digital financial services are leading to lower prices for end-consumers. Eliud Mungai of Branch International and Peace Osangir of Kopo Kopo discussed how their organizations disclose pricing to clients.
SPTF Webinar. In this May 2019 webinar, the SPTF Social Investor Working Group, Dr. Thomas Koch and Jessica Espinoza Trujano of DEG expanded on their briefing note. Isabelle Barrès of the Smart Campaign provided context for how this briefing note complements the work done to define parameters for responsible pricing in the inclusive finance sector. Recording; Minutes; DEG presentation; Smart Campaign presentation.
- Guideline 7: Improve Disclosure of Terms and Conditions for Customers
SPTF-CDC Webinar: Evaluating Repayment Capacity Analysis. In this webinar, Anup Singh of MicroSave and Rafe Mazer, a consumer protection expert who has worked with digital credit providers, discussed the risks associated with repayment capacity analysis and predatory marketing with respect to the sustainability and profitability of investments, as well as the impact on end-consumers.
- Guideline 8: Enhance Customer Services For Problem Resolution and Product Innovation
- Guideline 9: Prevent Over-indebtedness, Strengthen Digital Literacy and Financial Awareness
- Guideline 10: Track Progress to Mitigate Risks and Expand DFS Opportunities