Financial Inclusion
Investing in companies that generate commercial financial returns and foster the development of an equitable and inclusive financial system.

An inclusive, efficient and transparent financial system promotes empowerment, embodies the principles of freedom and democracy and is critical to improving the lives of underserved people globally.

Financial inclusion can enable poor households to generate income, smooth consumption, protect against shocks, build assets and sustain livelihoods. It also creates an opportunity for all segments (low and moderate income households as well as micro, small and medium sized enterprises or MSMEs) to participate in the formal economy and therefore contribute to long-run sustainable growth.

However, because of missing, incomplete or obsolete infrastructure, lack of competition, and an inadequate enabling regulatory environment, low and moderate income households and MSMEs are often underserved by the financial system. The cumulative effect of large portions of the population being effectively excluded from formal financial services carries both private and social costs, and ultimately undermines economic growth and development.

Encourage Capital invests in companies that generate commercial financial returns and foster the development of an equitable and inclusive financial system. Encourage Capital seeks to develop investment solutions to promote financial inclusion which are scalable, replicable and commercially sustainable. We typically make active-minority investments in growth stage companies, and partner with talented management teams with strong operating experience to deliver financial services to underserved segments. These initiatives often leverage technology and business model innovation to drive financial inclusion at scale. In addition to traditional financial metrics, we also evaluate the direct impact (to customers) and systemic impact (to the financial system architecture) of our investments.

Please click here to view our investments.