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Women’s Entrepreneurship Finance Community of Practice (CoP) - Leveraging Alternative Data

01 December 2021
Time:
8 : 00
to
9 : 30
EST ( GMT
-05:00
)
Convert
-05:00
Online
African Women holding a table with coin stacks
Background
The objective of the new Women Entrepreneurs Financing Community of Practice (CoP) is to effectively share knowledge and best practices, tools and innovative products to facilitate increased services to W-SMEs. To discuss and agree on how best to build a sustainable community of practice, we organized the first meeting on December 16th, 2020. Its purpose was to discuss and agree on priority areas of focus and how to best structure the CoP to serve memberson how best to build a sustainable community to effectively share lessons learned on how to increase financial services to W-SMEs. About 40 members and IFC staff from diverse regions and institutions attended the meeting. 
 
 
Leveraging Alternative Data in Financing and Evaluation of W-SMEs
Women-SMEs (W-SMEs) disproportionately lack access to traditional credit facilities through banks and other traditional lenders compared to their male counterparts. There is also limited gender disaggregated supply side credit data on SME borrowers. This information asymmetry has paved the way for identifying new ways to assess the creditworthiness of SMEs, including the use of alternative data in credit reporting and impact assessment. In many markets, lenders are finding new ways of accelerating offerings to underserved individuals and businesses, making decisions based on alternative data. For women, who have historically been the victims of unconscious bias in lending decisions, leveraging alternative data in credit decisions could create a level playing field and facilitate access to gender disaggregated data for operational and policy interventions.
 
The adoption of alternative data comes with various challenges and concerns that need to be addressed for it to be effectively leveraged. However, access to credit for W-SMEs and individuals can be enhanced and expanded by promoting the use of alternative data in credit reporting.  Complementing traditional data sources with alternative data sources can assist in the design of more custom-made financial products and services.
 
The pandemic has verified a high digital adoption rate by women and a growing crop of technology focused lenders are putting the use of digital data, customer needs, and advanced analytics at the center of their business models, setting forth new blueprints for disrupting the SME lending status quo. 
 
 
On December 1st from 8 a.m. to 9.30 a.m. EST, volunteers from the Council of Europe Development Bank (CEB) and their partner financial institutions (PFIs) will showcase models and share experiences in utilizing alternative data in credit operations, risk management and impact evaluation. They will dive deep into the opportunities alternative data presents to closing the financing gap for W-SMEs.
 
Objectives of the discussion
Showcase approaches and share experiences in utilizing alternative data in credit operations and impact measurement of W-SMEs
Deep dive into challenges, managing risks and solutions in the use of alternative data
Leveraging alternative data in the design and implementation of custom products and services for W-SMEs
Share insights on techniques and methodologies in leveraging alternative data in impact evaluation and policy interventions 
Facilitate participants contribution in sharing unique experience and solutions 
 
 
Being a CoP, member participants will also be encouraged to share their own unique experiences in this area, including achievements and questions they are now asking on the topics below:
 
Registration is open for members on Member's portal.
 
By registering to this event, you agree to the SME Finance Forum/IFC Event Privacy Notice.
 
If interested in participating, please contact Minerva Kotei for more information.