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CGAP Newsflash: The Capacity Building Bottleneck A CGAP survey of 400 financial services providers and 200 capacity building services providers confirmed that the lack of capacity remains a major bottleneck for scaling up and diversifying quality financial services for low-income people. More than 40 percent of financial services providers surveyed indicated that improving the capacity of their business is their main challenge. The study also revealed that subsidies remain a key aspect of funding for capacity building services. The majority (85%) of financial services providers reported capacity building services to be worth their money. But in most regions, external support – in the form of subsidies and grants - for capacity building remains important for around two-thirds of the financial services providers. The survey results indicate that a sustainable market for capacity building services is still a long way off. Despite years of donor programs that have had an explicit goal of helping build the market for capacity building, the market—where it exists—is highly subsidized with few viable providers able to adapt to an evolving landscape. You have been sent this email because you are on the CGAP emailing list. If you prefer not to receive further emails, please email us at CGAP@WorldBank.org
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