G20 leaders endorsed the original Financial Inclusion Action Plan (FIAP) at the Seoul Summit in 2010. This is an updated version of that plan. The latest FIAP reviews the progress of the Global Partnership for Financial Inclusion (GPFI) in implementing the original action plan, as well as revises some ongoing actions and adopts new actions. It also sets out how the GPFI will track and monitor progress against these actions in the future.
This report, compiled and published by the SME Finance Forum on behalf of the G20 Global Partnership for Financial Inclusion SME Subgroup, features case studies on promoting growth for small and medium enterprises (SMEs). The case studies codify a range of real-life examples of policy interventions and regulatory changes that promote SME growth through improved access to finance.
This Issues Paper framed the subject matter in the opening session of, and throughout, the 2nd GPFI Conference on Standard-Setting Bodies and Financial Inclusion: Standard Setting in the Changing Landscape of Digital Financial Inclusion. The event, hosted by the Financial Stability Institute from 30-31 October in Basel, explored both the potential benefits and potential risks to financially excluded and underserved populations flowing from digital financial inclusion.
Six global standard-setting bodies (SSBs), as well as the GPFI who are engaged in work relevant to digital financial inclusion, participated.
Both the full Issues Paper and a summary of key points are available for download.
A report by the World Bank Development Research Group, the Better Than Cash Alliance, and the Bill & Melinda Gates Foundation to the G20 Global Partnership for Financial Inclusion presents a synthesis of the evidence that the widespread adoption of digital payments in all their forms, including international and domestic remittances, can be instrumental in reaching the goals of the G20.
The Microcredit Regulatory Authority (MRA) of Bangladesh was concerned about the high interest and service charges set by MFI’s on consumers. They set out to develop a framework to protect consumers, while at the same time enable MFI’s to operate sustainably. The study describes the data gathering, the consultative process and the support provided in setting a fair and consistent rate. This policy is monitored regularly and continues to show compliance by MFI’s, improved efficiency in MFI operations and greater benefit to the end consumers.
The Bank of the Republic of Burundi (BRB) realized that they couldn’t develop effective financial inclusion policies without reliable data on access, usage and quality of financial services in the country. To this end and with support from AFI, they undertook a national demand-side survey to diagnose the state of financial inclusion. The study describes the multi-stakeholder approach, involving both the public and private sector and gives a summary of the findings. The findings enabled policy makers to identify barriers and areas of focus for financial inclusion, leading to the development a national strategy. The data also enabled policymakers to set national financial inclusion targets.
The financial inclusion situation in Mexico required policy development to address the disparities in usage and reach of financial services between urban and rural areas. The study describes the formation of the national coordinating body for financial inclusion and the development of a comprehensive data framework to inform policy. The banking agents, mobile payments and tiered-risk account policies and regulations introduced to increase financial inclusion, particularly in the under-served areas, are described. The effects of these interventions are quantified through appropriate data and the remaining challenges to improve the situation are identified.
The study describes the recent evolution of financial inclusion initiatives in the country. It highlights the development and use of core data indicators on access, usage quality and the influence of these on policy formulation. The introduction and results of banking agents are described, as well as the use of monitoring data that lead to the introduction of simplified accounts to increase usage after the banking agent innovation.
The Philippines introduced a micro-saving framework in 2010 to encourage savings in the microfinance market, through a simplified low cost account with a limit on daily balance. The study describes the steps that the regulator took when it appeared that the limit on the balance had an adverse effect on propensity to save. It describes the data gathering exercise and the subsequent policy adjustment, based on the analysis of the data. It highlights the success of the change in policy in terms of increased savings in micro-deposits.
South Africa faced significant inequalities at the beginning of the century, including constrained financial inclusion. As part of a social pact to improve the situation, the banking industry launched a joint simplified product, the Mzansi account. The study details the effect of the introduction of the product and the simultaneous improvement in physical access for banking services, through the use of agreed measurement efforts. It also assesses the situation after the Mzansi initiative and identifies current drivers and issues influencing further improved financial inclusion.