AKDN | Financial Inclusion

In 2025, AKF supported over 9,800 community-based savings and credit groups. These promote community-managed financial services as a way of increasing household financial assets and decreasing household vulnerability. CBSGs are self-managed groups of 15-25 people who join voluntarily and meet regularly. Systems are simple and transparent to ensure that the least literate and influential members participate and benefit. They are often led by women and serve as a platform for other interventions which promote access to financial literacy and social and economic opportunities.

The CBSGs and self-help groups also help community institutions and households access formal financial services and digital financial tools.

The Aga Khan Fund for Economic Development (AKFED) invests primarily in emerging economies and in initiatives that create sustainable enterprises and jobs. Economic empowerment and access to finance are key drivers of AKFED's approach. Its portfolio of banks, microbanks and insurance companies traces its origins to the cooperative societies and insurance providers established in the 1930s by Aga Khan III to serve communities with limited access to formal financial services in colonial times. Jubilee Insurance was founded in East Africa in 1937; the antecedents of DCB Bank were established in India in 1930; and the foundations of the DTB Group were laid in East Africa in 1946.

The credit and savings programme launched by the Aga Khan Rural Support Programme (AKRSP) in Pakistan’s Northern Areas in 1982 eventually led to the creation of microfinance banks in Pakistan (2002), Afghanistan (2003) and Tajikistan (2003). Kyrgyz Investment and Credit Bank (KICB) was established in 2001 under AKFED’s leadership, in collaboration with international financial institutions, to strengthen the Kyrgyz Republic’s banking system. Soon afterwards, at the request of the Government of Pakistan, AKFED participated in the privatisation programme and acquired a majority stake in HBL.

“Across its institutions, AKFED emphasizes the development of local human resources, promotes best practices in corporate governance, and supports product innovation focused on improving people’s quality of life.”

Sultan Ali Allana, AKFED Director and HBL Chairman

The Aga Khan Fund for Economic Development (AKFED) works to expand access to financial services through digital platforms, targeted products and community-based initiatives. Significant progress has been made in expanding access to financial services for millions of individuals and businesses, including unbanked and underserved customers, across the regions in which AKFED operates. Many of the small and medium enterprises (SMEs) it supports lack access to traditional financing. With flexible, responsible financial products, entrepreneurs can formalise operations, expand into new markets and strengthen local economies.
AKFED’s financial institutions design products and services to address the specific needs of women, whether they are first-time borrowers, business owners or household decision-makers. Through targeted initiatives and technology-enabled solutions, women’s access to financial services is being expanded, supporting financial independence, business growth, and stronger families and communities.
Youth-focused financial literacy programmes, accessible banking products and first-time borrower initiatives aim to build financial confidence and inclusion among younger generations. By supporting youth entrepreneurship and encouraging early savings habits, these institutions help equip young people with the tools needed to participate meaningfully in the formal economy.

Digital innovation is central to expanding financial access and improving operational efficiency. Investing in mobile banking, agent networks, e-wallets and paperless onboarding is enabling institutions to serve more clients in faster, safer and more cost-effective ways. These solutions not only increase convenience but also promote transparency, reduce barriers to entry, and support scalable, inclusive growth across the portfolio.
Customers are no longer dependent on physical branches: portfolio banks in Africa, Central Asia and South Asia can serve clients through digitally enabled touchpoints, even in the remotest locations. Portfolio institutions are also developing digital partnerships with merchants, suppliers, SMEs, telecommunications providers and other digital companies to deliver new products.