FAI’s Managing Director Tim Ogden was cited in an article in Philanthropy News Digest about the successes and failures of the microfinance movement, and how technology is changing the future of microlending. Ogden discussed the ongoing need for subsidy in microfinance, how to factor in the true costs of digitization, and the risk that high-tech approaches exclude the poorest and hardest-to-reach populations.
"The great success of microfinance,” said Ogden, “has been in radically increasing the number of people who have control of their own decisions because they now have access to some financial tools that enable them to choose to save, to borrow, to insure themselves, to send money, all at their choosing, rather than somebody else's. For microfinance to thrive, it needs to find a mechanism that allows for continuous subsidy and a new narrative that is more honest about the actual cost of each small investment.”
Read the entire article, by Daniel X Matz, here.
Editor’s Note: I’m going to assume that you are seeing plenty of AI content (news and papers, not AI slop, though I’m sure you’re getting plenty of that too) from other sources, so I’m trying to think hard about the marginal value that the faiV can provide. As far as I’ve gotten so far: a) make sure that directly AI-related content does not take up more than 2 of the 5 items, and b) try to focus specifically on the cybersecurity issue for financial inclusion. Beyond that, I’m open to feedback on the value you get from the faiV in relation to AI to help guide us in the future. On a different note, I’ll be making a brief cameo appearance at the e-MFP Inclusive Finance Conference to moderate the opening plenary. If you haven’t registered, do so and I hope to see you there! - Tim Ogden