As a development finance institution (DFI), British International Investment (BII) aims to drive economic growth that improves the lives of people in low and middle-income countries. Through our venture capital (VC) investments, we support innovative early-stage companies with high growth potential that provide services to underserved individuals and businesses. This includes supporting technology-enabled financial services (fintech) companies that are increasing access to financial services in emerging markets.
This study takes a deeper look at our VC investments in fintech companies and the impact on households that have been using their products. Our investments include business models providing finance to micro, small and medium-sized enterprises (MSMEs), specialist-asset financing, fintech infrastructure, and credit scoring. Our goal is to understand the customers served by these companies, and their experience of using fintech products, including how they improve their access to financial services, their financial health and resilience, and ultimately their quality of life.
This study builds on the independent findings of our Industries, Technology, and Services Portfolio Review, which included an assessment of digital service providers in our VC portfolio. It highlighted how technology and innovation can create scalable solutions to socio-economic challenges in emerging markets. This study was a comprehensive exercise, involving engagement with nine companies and surveys with thousands of customers across India and Africa that were willing to share their experiences. We are grateful for their time and inputs, and for the work of impact measurement company 60 Decibels in collecting data from the people whose lives have been most impacted by our investments.
The findings have helped us understand that our fintech investments enhance financial inclusion among underserved populations and have a greater impact on women than on men, and on customers from low-income households than those from wealthier households. They have also identified areas where we need to innovate further to deepen our impact. We are sharing this study for others to learn from our experience and hope it will help strengthen approaches to inclusion across the impact investing community.
