Evaluating British International Investment’s financial services portfolio: case studies
These detailed case studies follow an analysis of British International Investment's (BII) financial services portfolio.
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As the UK’s development finance institution, British International Investment (BII) helps solve the biggest global development challenges by investing capital to support private sector growth and innovation. BII is 100% owned by the UK government.
Longer-term evaluations of BII’s impact are critical to help the Foreign, Commonwealth and Development Office (FCDO) and BII better understand how, and in what contexts, BII’s investments deliver tangible, sustainable development impact on people, businesses, sectors and overall economies. This information is crucial to help BII target investments and track results in those businesses and sectors where it can have the most impact.
In 2021, FCDO published an initial portfolio-wide review of BII’s financial services sector investments. This analysis highlighted several areas for deeper analysis through primary, case study research. The areas included:
- microfinance
- financial tech
- micro, small and medium-sized enterprise (MSME) finance
- trade finance
These 3 case studies examine BII’s investments into 3 of these themes:
1. Reviewing the impact of microfinance in India: a case study of Arohan financial services
This case study explores BII’s investment in Aavishkaar Goodwell India Microfinance Development Company II which subsequently invested in Arohan Financial Services in 2012. Arohan is an Indian microfinance institution that provides loans to underserved groups, particularly women.
2. Evaluating the impact of investments in digital financial services: a case study of Direct Pay Online
This case study explores the potential for digital financial services to improve access to financial services for underserved individuals, using BII’s experience of investing in Apis and their follow-on investment into Direct Pay Online (DPO), a payment service provider offering digital solutions to small businesses.
3. Reviewing the impact of micro, small and medium-sized enterprise and business financing in Nepal: a case study of NMB Bank Ltd
This case study explores BII’s investment in NMB Bank Ltd (NMB), one of the leading commercial banks in Nepal with a strategic focus on MSME financing. The main objectives of the study were:
- to understand the role of banks in addressing the challenges faced by MSMEs, using BII’s direct debt investments in NMB as a case study
- to understand the impact of such investments on borrower business expansion