FMO considers backing for Accion digital transformation fund

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Dutch development bank FMO is considering a commitment to a global investment fund sponsored and managed by Accion, the nonprofit investor focused on improving financial inclusion around the world. If approved, FMO will invest $25 million in the Accion Digital Transformation Fund which will target growth capital investments in microfinance institutions (or MFIs) in Africa, Asia, and Latin America.

The Fund’s investments will be made in support of each of its MFI investee’s digital transformation plans, helping them increase their outreach to underserved banking customers in each of these regions. The fund’s strong focus on digital transformation efforts within MFIs is a key differentiator to other financial inclusion funds, a fact that seems to be a key factor in piquing FMO’s interest. The ability of MFIs to better address the needs of the underbanked in emerging markets is a strong fit with FMO’s goals to increase financial inclusion, helping to empower entrepreneurs and their local communities, support innovation, and serve the poorest populations in each of these markets.

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