The Role of Financial Services in Humanitarian Crises
The last CGAP report, The Role of Financial Services in Humanitarian Crises, seeks to enhance the knowledge of policy makers and donors on the role of financial services mitigating humanitarian crises. The report also recommends actions that policy makers and donors can take to improve the provision of financial services to crises-affected populations, and identifies future research and policy priorities.
According to the report, financial exclusion is particularly acute among crisis-affected countries despite the use and usefulness of financial services in crises situations. Over 75 percent of adults living in countries with humanitarian crises remain outside of the formal financial system. However, demand for financial services in crisis contexts is high.
Evidence shows that financial services have a positive role to play in crises situations. For instance, remittances help maintain consumption during difficult periods. Savings can provide a form of self-insurance.
The report points out that the lack of effective policies and crises preparedness impedes the delivery of financial services. It mentions the need for a sustained commitment of Financial Services Providers to leverage financial services as a tool to mitigate humanitarian crises. Donors can play an important role in supporting market players to prepare for and manage crisis situations.
