Salomon Raydan

Salomon Raydan

Salomon Raydan is a specialist in alternative financial models, founder and president of the Foundation for Rural Finance (FUNDEFIR), and an Ashoka Fellow since 2001. Salomon holds a MA from the London School of Economics and Political Science. He is co-author of “The Other Microfinance” (2011) book.

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During the week of July 25th – August 8th, Salomon Raydan will continue the discussion on the Future of Financial Inclusion Innovation

How will the future of financial inclusion look like?  Ask Salomon Raydan, whose model is operating in 17 countries worldwide.

  1. 836 days ago

    Jen Ko

    Hi Salomon! I really enjoyed your article! I had a few questions: What do you mean by the new vision proposed in your recently published book “The other micro finance”? What would be the role of commercial banks under your vision and of government and regulatory agencies?



    • Salomon Raydan

      Jen, happy to hear you enjoyed reading the article and would like to know more about the book. In the book, we propose to study and understand informal mechanisms better than what have been done until today. To look at those mechanisms as complements and not as competitors of formal banking. Formal Banking should concentrate in amounts, terms and type of loans where they can be efficient (cost effective). Governments and regulatory agencies should stop criminalizing informal financial services. They should study them, help them to become more secure and efficient and help to provide poor people with reliable methods to improve some of their informal mechanism that are using massively any way.

      836 days ago


  2. 836 days ago

    Leandro Asensos

    Hey Salomon, I just read your article, very interesting view about banking and informal financial mechanisms. I have a question, do you believe traditional banks and informal financial mechanisms can work together as complements of each other or are they completely opposite to one another? If they can complement, in what areas do you see them collaborating? For ex. banking solutions for rural communities.



    • Salomon Raydan

      Hi Leandro, Thanks for your question. It raises a very important point. Both systems are complementary. Informal mechanisms are designed to deal with small amounts, shorts periods, and very different financial needs. They are able to adapt better to poverty, money cash flow, and peer pressure would help to produce money recovery. Formal banks are designed to deal with largest amounts, longer terms, and high returns on credits. That is why they are not so efficient (ie. expensive) dealing with poor populations. Think of it as a ladder: the first steps can be covered by informal mechanisms while higher levels should be attended by formal banking.

      836 days ago


  3. 837 days ago

    Natalie Zuniga

    Hi Salomon! Thanks so much for making yourself available for discussing your ideas with us! I have a question that was raised during the last #SocEntChat regarding the informal financial mechanisms. These mechanisms have traditionally been considered unsafe and expensive for poor communities. Can we improve and guarantee them as secure, valuable, and affordable – low cost – mechanisms that are tailored to the specific needs of the public? What would be needed to achieve this?



    • Salomon Raydan

      Hi Natalie! Thanks for the question. Of course I believe these mechanisms can be improved. Our method of Bankomunal (and others too) increases the level of security and effectiveness to some of these informal mechanisms. What is needed? to study them deeply, to understand their strength and weakness, and to produce an improved methodology for people to use.

      836 days ago


  4. 837 days ago

    Natalie Zuniga Gogny

    We are having a #SocEntChat about Financial Inclusion in Latin America, right now! Join us!



  5. 849 days ago

    Irma Cosico

    I missed the 1st SocChat and hope that the discussion on financial inclusion continues



    • Victoria Emanuelli

      Irma, we will have a follow up #SocEntChat in Spanish and Portuguese focus on Iberoamerica, where Salomón is also attending as panelist. It´s taking place next Tuesday, Agusut 7 at 2pm (Mexico, Colombia, Ecuador, Perú) 3pm (Chile) 4pm (Argentina y Uruguay). Look forward to read your tweets!

      843 days ago