Published on May 15, 2024, 12:21 am

CommentAccion, a global nonprofit, just unveiled the Accion Digital Transformation Fund, totaling $152.5 million. This fund is specifically aimed at large financial institutions, including microfinance entities that cater to small businesses currently underserved by the world’s financial system.

Over its extensive history spanning more than six decades, CommentAccion has been deeply engaged in the financial services sector. Initially, focusing on tailoring solutions for small businesses, smallholder farmers, and women, and subsequently providing investments and advisory services to traditional financial institutions and microfinance companies which then offer accessible products. Notably, CommentAccion has contributed to establishing 230 financial service providers in 75 countries.

In 2019, CommentAccion ventured into early-stage fintech investments with the inception of the Accion Venture Lab. With a fund size of $23 million dedicated to inclusive fintech startups globally. The Venture Lab has supported over 65 seed and Series A companies across Latin America, Southeast Asia, and Africa; noteworthy investments include Konfio, Lulalend, Fairbanc, and Khazna.

This move towards digital transformation aims to bridge the gap in digital inclusion highlighted by the pandemic. By providing growth capital and strategic support through equity investments ranging from $12 million to $15 million along with contributions from its partners. The main focus of this initiative is to encourage traditional financial institutions to enhance digital customer engagement for improved accessibility and choice for their customers.

The Accion Digital Transformation Fund will concentrate on companies serving micro, small, and medium-sized enterprises (MSMEs) predominantly in South and Southeast Asia, Latin America as well as Africa. Additionally, it plans on fostering between 10 to 12 investments while ensuring a balanced portfolio allocation across these regions.

Overall, this significant step by CommentAccion signifies a concerted effort towards fostering digital transformation within larger financial entities while continuing its mission of enhancing accessibility in financial services for underserved segments globally.

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