Building Financial Infrastructure Reduces Poverty and Boosts Economic Growth Worldwide
Building financial infrastructure like credit reporting and secured transactions helps reduce poverty indirectly by promoting economic growth. Credit bureaus and collateral registries help lenders manage risk, leading to more accessible credit at lower rates. However, there is still limited evidence directly linking financial infrastructure to poverty reduction, highlighting a need for more research. The International Finance Corporation's program focuses on developing efficient secured transactions systems to increase access to finance, especially for small and medium enterprises.