Swedfund invests in Accion fund
Swedfund, Sweden’s development finance institution, announced an investment of up to $15 million in the Accion Digital Transformation Fund, focusing on the digital transformation of financial institutions in developing countries.
An estimated 1.7 billion adults worldwide lack a basic account with a financial service provider and most of them are in developing countries. At the same time, two thirds of the unbanked adults have a mobile phone. Hence, digitalisation can play an important role in making financial products and services more accessible and adapted to the needs of the target population. Also, digital solutions facilitate further improvement of responsible lending and collection practices, as well as more efficient business models.
”Cost, distance, and lack of documentation are some of the main reasons for not having a bank account in developing countries. Digitalisation is a tool to increase outreach and create impact. Accion is also an impact investor with significant experience from working with other DFIs,” says Jane Niedra, head of financial inclusion at Swedfund.
The fund meets 2X Challenge criteria with 20% females in senior management.
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