What Progress Have We Made to Increase Financial Inclusion through Movable Property Lending?
This webinar is part of a series we are calling "Principled Interest," a monthly webinar that will bring together diverse perspectives to discuss a range of development finance topics.
Inclusive finance business models and MPL offerings have reached a point of maturity. COVID-19 has heightened SMEs’ need for access to finance. Movable property lending (MPL) is a solution that commercial finance companies can provide to (W)SMEs in the “Missing Middle” . While many economies have developed legal frameworks for movable property-secured transactions and created modern web-based collateral registries, a number of barriers have limited widespread adoption of MPL in most developing economies. What progress has been made thus far, and what types of finance providers are using the approach? In this webinar, we will review cases in which MPL increases borrowing opportunities for enterprises and individuals who lack fixed assets, such as land and buildings to offer as collateral. We will examine cases from Colombia, Kenya and Vietnam. The audience will learn tools to map the environment and decision making in the private sector; identify barriers preventing financial institutions from adopting and scaling MPL; learn specific tactics for financial institutions to overcome barriers to MPL adoption and scalability; and what opportunities are there for accelerating impact?