Banking the Unbanked: Innovative Business Models Championing the Financial Inclusion of Latin America’s MoP

Abstract

Using a series of case studies, we analyze innovative business models aiming primarily at financial inclusion of the LAC MOP segment through consumer goods purchases, simultaneously securing scalability and stakeholder’s profitability. These models simultaneously optimize social and financial returns through the interchangeable use of stakeholder’s resources and capabilities and clear alignment of their interests. Financial institutions absorb consumer goods companies into the value chain as distributors of their (financial) products and services to MoP using the company’s existing distribution channels and their established reputation. Consumer goods companies expand their offers with, for them, unorthodox financial tools and services, financially formalizing and including MOP members while increasing their customer-focus flexibility and sales.Finally, we provide lessons on how to develop inclusive businesses achieving direct developmental impacts through the provision of essential goods, services, and jobs, unlocking new forms of innovation and entrepreneurial activity critical to accelerating inclusive growth of emerging markets.