In recent years, climate shocks have become more frequent and intense, affecting communities across the globe. These events not only cause significant damage to infrastructure and livelihoods but also exacerbate poverty and inequality. As a result, building resilience has become a critical aspect of climate action.
The inclusive finance sector has been making strides in measuring vulnerabilities and financial readiness, but each country context is unique, and the types of climate shocks they face have diverse implications. This is where Fundle, a fintech startup based in Kigali, Rwanda, comes in.
Fundle provides an innovative mobile app designed specifically for informal sector workers, small-scale businesses, and self-employed individuals. The app offers access to financial services, personalized financial advice, and educational resources on financial management. What sets Fundle apart is its use of data-driven solutions to create credit scores that reflect individuals’ financial habits.
But how can this app help build resilience to climate shocks? Let’s take the example of a farmer in Rwanda. Climate change has brought about unpredictable weather patterns, leading to droughts and floods, which can wipe out entire harvests. As a result, farmers often struggle to access finance and insurance products that would help them recover from these shocks.
Fundle’s credit scoring system enables farmers to build a financial history that they can use to access credit and insurance products, which can help them bounce back after a climate shock. Furthermore, the app’s educational resources can help farmers make informed financial decisions, which can help them better prepare for and cope with climate shocks.
Fundle’s inclusive finance solutions are not just limited to farmers. The app is accessible to all informal sector workers and small-scale businesses, who are often the most vulnerable to climate shocks. By enabling them to build financial resilience, Fundle is contributing to the larger effort of building climate resilience and reducing poverty and inequality.
In conclusion, Fundle’s innovative use of technology and data-driven solutions is helping to address one of the most pressing challenges of our time – building resilience to climate shocks. Through its inclusive finance solutions, the app is empowering individuals and communities to take control of their finances and build a better future for themselves and the planet.