Floods and microfinance: What financial inclusion really means

When Typhoons Nando and Opong battered the Philippines in recent weeks, they left behind not only wrecked homes and lost livelihoods, but also the painful reminder that the poorest of the poor pay the highest price.

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Year after year, billions are allocated for flood control projects, yet systemic corruption drains these funds long before they reach the communities that need them. Levees crumble, drainage remains clogged, and informal settlers living along waterways are left to face the fury of swollen rivers. For these families, rebuilding after disaster is not only about salvaging what is left of their homes —it is about finding the resilience to recover their lives.

After spending decades working in poverty eradication, I have seen one truth borne out time and again: when people are given access to financial tools — credit, savings, training, insurance and community support — they can recover faster. They may not control the weather, nor the corruption in high offices, but with financial inclusion, they gain at least a fighting chance.