Emerging Insight: Integrated financial services for better risk management

Article | 20 September 2023
In a new paper we explore how financial institutions are providing integrated solutions to enable low-income households and small enterprises to prepare, manage and cope with risks more effectively. The cases explored in the paper use savings as an anchor to build these comprehensive solutions. This approach involves integrating a range of services, simplifying customer experiences and providing holistic risk management. Offering the products as a savings solution makes them more accessible to a wider client base, while allowing institutions to offer lasting protection and cultivate client loyalty.

The business case for small deposits, emergency loans and small-ticket insurance policies can be challenging in an all-cash economy. But the emergence of mobile money and the digitization of back-end processes are creating new opportunities to reach scale in a cost-efficient manner. Digital technology can be leveraged to educate clients about the integrated solutions, enable cross-selling through direct sales to customers, facilitate payments and reduce transaction costs. These solutions can empower vulnerable communities to embrace disciplined saving practices and foster financial stability. As technology evolves, the impact of digital solutions on risk management will grow and improve financial inclusion and resilience for those who need it most.

Learn more in our latest publication on integrated financial services for better risk management.