10009293-Development of inclusive financial services and products

Iraq faces a persistent gap between its people and the financial system. Banks have long leaned on large state-owned institutions, credit has flowed mainly to established borrowers, and micro and small businesses along with women entrepreneurs and displaced communities have been largely left out. ProDIGI project, full name Promoting Employment in the Digital and Green Economy in Iraq, is trying to change that in a practical, grounded way. ProDIGI is a multi-donor initiative commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), co-financed by the European Union, and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The project covers central and southern Iraq as well as the Kurdistan Region, with a focus on areas where joblessness, displacement, and limited access to services overlap. Within the project, Output 3 targets the financial inclusion side of the challenge. The starting point is a clear-eyed look at what the sector lacks: financial service providers that are capable, willing, and equipped to design products that fit the people they are supposed to serve. Banks and microfinance institutions in Iraq today mostly offer standardised products with high collateral requirements and limited digital capabilities.