While most development assistance, whether from governments, non-profits, or foundations, assumed that resource-constrained communities were unable to solve their own problems, the founders of Grassroots Finance Action slowly began to notice conflicting research.

They realized that despite the best efforts of the financial inclusion gurus to link the poor to banks, microfinance, and mobile money, communities had found a way to manage their own finances. In poor countries, there are currently 600 million villagers who save in informal savings circles and $640 billion in remittances being sent home by immigrants living in wealthy countries. Communities had found the solution to reach and allow for even the ultra-poor to save, all without the outside help of government and development aid agencies.

As the founders of Grassroots Finance Action discovered the innovative and resourceful nature of villagers, they formed the organization to continue to learn about local solutions, empower community leaders, and showcase community-driven ideas to eventually transform the top-down approach to development.