Mastercard, ADB promote financial inclusion in APAC MSMEs

Mastercard’s fund is allotting $5m to the ADB.

The Asian Development Bank (ADB) and Mastercard Impact Fund are teaming up to promote financial inclusion and access for micro, small, and medium enterprises (MSMEs) across the Asia Pacific region.

The fund is allotting $5m to support up to $1b of ADB financing to financial institutions for lending to MSMEs.

The APAC region is estimated to account for 52% of the total emerging market MSME financing gap, which is estimated to be nearly $2.5t globally. Separately, 43% of formal SMEs are either unserved or underserved by financial institutions, Mastercard said in a press release announcing the collaboration.

The Mastercard Impact Fund intends to accelerate ADB's efforts to deliver financing to MSMEs across Asia-Pacific by providing risk-reducing capital, incentives and capacity building support to financial institutions.