Financial sector development
Financial sector development is a crucial aspect of the development process, given the vital role it plays in mobilizing capital and savings for investment and consumption smoothing. Building a well-functioning financial sector is hence at the center of policy interest for inclusive economic transformation. The need for evidence in this agenda cannot be underscored. We contribute to this goal by conducting research and policy analysis and offering technical capacity strengthening focusing on three areas;
Access to and usage of relevant and affordable financial products and services is an instrumental tool of poverty alleviation and inclusive growth. The work of CPD entails research and policy analysis to ascertain the extent, drivers and consequences of prevailing levels of financial inclusion. Our research hence focuses on the two components of financial inclusion, namely, financial access and financial literacy. We attempt to illuminate the differences (by gender, socio-economic status, etc.) in access to and utilization of financial products and recommend evidence-based policies and strategies to enhance financial inclusion and narrow any prevailing gaps between groups of people (for example women versus men).
Access to financial product like a bank account is simply a necessary condition for financial inclusion. For an individual, household or firm to make use of the available financial products, there is a need for knowledge of the financial product as well as financial literacy needed to reap maximum benefit out of the product. For this reason, we provide training to individuals, households, enterprises and coo-operatives in areas of financial literacy and financial management. This is meant to help beneficiaries make informed financial decisions and use financial products to improve livelihoods, payments efficiency and service delivery and increase the profitability of their enterprises. We work with financial literacy training service providers to tailor our training to the needs of our respective beneficiaries
Our research in this sub-theme attempt to provide contextual analysis of the digital financial services ecosystem in our service countries. This includes analysis of trends of digital financial innovations, their uptake and utilization by different end users – individuals, households, enterprises, governments, among others. We also conduct an analysis of the factors that drive the uptake and utilization of digital financial services and make recommendations for policy and regulatory interventions to maximize their development potential. This helps to foster the use of evidence in the ongoing agenda in many African countries to transform payments and financial services from cash to digital platforms.
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