The Key Selection Criteria for Capacity Building Support are:
- Objective of maximizing outreach to low-income households and micro, small and medium enterprises (MSMEs) especially in rural areas and/or with particular focus on low-income women.
- Innovative financial services and service delivery mechanisms with reduced transaction costs for both clients and financial institution that meet the specific financial needs of low-income households and particularly low-income women. Caution is given in promoting loan products, particularly in competitive financial markets with a high penetration rate of low-income households where a risk of client over-indebtedness exists.
- Innovative insurance and savings services with low transaction costs for both clients and the financial institution that help mitigate risks of low-income and very poor people, notably in rural areas.
- The CB support represents an innovative solution to financial inclusion as judged from the inclusive financial sector context of the country concerned. It has an important impact on SCBF target groups through selecting partner (financial) institutions with a specific market positioning.
- Training of staff of financial institution and their distributors in responsible finance practices vis-à-vis low-income and notably illiterate clients. Contributions to an improved financial literacy level of low-income actual and potential clients are desirable.
- Mobilization and development of local/regional competences and capacities, especially through hiring of local consultants and staff of local organisations as well as through the preference of having international consultants spending at least 60% of their expert days in-country.
- Contribution to industry building and knowledge sharing.
- Funding ceiling for PUW, FSW and FEW is at CHF 150’000 with a maximum length of 2 years (FSW max. 1 year). Preference is rather for small TA teams and favouring medium-term (20 to 40 expert days) assignments of consultants notably for more ‘immature’ partner financial institutions.