Visa and IFC Launch $200 Million Risk-Sharing Initiative to Boost Digital Financial Inclusion in Emerging Markets
Visa and the International Finance Corporation (IFC), a member of the World Bank Group, have announced a strategic partnership to launch a new credit risk-sharing initiative. The program aims to accelerate financial inclusion and expand access to digital financial services for underserved consumers and small businesses across emerging markets.
Under this initiative, the IFC will share the credit settlement risks associated with Visa transactions for participating financial institutions. This mechanism enables these institutions to connect unbanked consumers and small enterprises to global digital payment networks, enhancing their capacity to offer secure and widespread payment solutions.
Targeting Sub-Investment Grade Institutions
The newly established facility is projected to support up to $200 million in risk sharing over a five-year period. The initial rollout phase will focus on 14 countries within Latin America and the Caribbean. Ultimately, the initiative targets extending its benefits to approximately 50 financial institutions that currently hold sub-investment grade credit ratings.
By mitigating one of the primary challenges faced by financial institutions in emerging markets—credit risk constraints that limit their integration into global payment networks—the risk-sharing model provides the necessary flexibility to reach entirely new customer segments. This allows millions of individuals and small businesses to safely save, spend, borrow, and grow, thereby integrating them more deeply into the formal digital economy.
Unlocking Economic Opportunities
Paul Fabara, Chief Risk and Client Services Officer at Visa, emphasized that expanding access to digital payments can unlock substantial new economic opportunities. He noted that the partnership with the IFC will empower financial institutions to deliver secure and reliable payment solutions to a broader demographic in emerging markets, ultimately driving financial inclusion and global economic participation.
Mohamed Gouled, Vice President of Industries at IFC, highlighted that this initiative reflects the critical role of innovation and partnerships in generating economic opportunities where they are most needed. Easing the constraints that limit financial institutions' participation will directly increase the availability of digital payment solutions for entrepreneurs and small businesses. Gouled added that broader access to digital payments helps businesses reach new customers, scale operations, and create jobs, reinforcing the role of financial inclusion in driving sustainable, long-term economic growth.