Large corporations have the finances and knowledge to support social entrepreneurs, who may have a business idea and model figured out, but often lack the means to deliver. Increasingly, these corporations are working with social entrepreneurs to tap into an unfamiliar market – the 90% of the population that they typically ignore, while treating only the richest 10% as their customers. The tides are turning and corporations are finding a new place in many emerging economies.
The SEEP Network is the world’s largest community of microfinance associations. It provides global perspectives on the advancement of microfinance ensuring relevance with respect to local needs, broad participation, and leadership of practitioners.
“We understand the powerful role microfinance associations can play in promoting financial inclusion and improved standards of practice” said Jenny Morgan, Director of the Association Development Community of Practice at the SEEP Network. “By investing in these associations to increase transparency and develop their capacity to serve their members, clients of microfinance institutions will benefit.”
The partnership comes as microfinance scales and commercializes in Africa, calling on the need to support greater consumer protection and financial transparency within the industry. It will allow nearly 500 microfinance institutions with a total of 6 million clients improve their core management capacity.
“Client protection and transparency are essential principles of responsible microfinance,” said Reeta Roy, President and CEO of The MasterCard Foundation. ”This partnership will enable African microfinance associations to mainstream client protection principles across the industry, so that clients benefit from the responsible delivery of financial services.”
Based in Toronto, Canada, The MasterCard Foundation was established in 2006 through a gift of shares from MasterCard Worldwide to advance microfinance and youth learning to promote financial inclusion and prosperity in developing countries.
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