Under the leadership of the Chinese G20 Presidency, the G20 Global Partnership for Financial Inclusion (GPFI) developed a new set of High-Level Principles that encourage governments to promote a digital approach to financial inclusion. These Principles were endorsed by the G20 Finance Ministers and Central Bank Governors at their meeting in Chengdu on July 22-23, 2016.
Download here: G20 High-Level Principles for Digital Financial Inclusion
Digital technologies offer a powerful solution for expanding access to financial services to the estimated two billion adults globally who are still excluded from the formal financial system. By enabling innovative business models, digital technologies can help connect more people at lower costs – including those living in rural and remote areas - to critical financial services that help them manage their financial lives and, ultimately, offer a pathway out of poverty.
The new Principles complement the 2010 G20 Principles for Innovative Financial Inclusion, which were critical in drawing global attention to the issue of financial inclusion and spurring initial policy actions.
These 2016 Principles build on that success and reflect significant developments that have occurred over the past six years in terms of: (1) technological innovations in digital financial services, (2) availability of new G20-blessed and international standard-setting bodies’ standards and guidance, (3) enhanced electronic data quality and availability, and (4) growing awareness of the critical importance of infrastructure, standards, and conducive regulations beyond the financial sector for financial inclusion.
The new 2016 Principles are intended to catalyze country-level actions by G20 governments to drive financial inclusion using digital technologies, including through country action plans. Governments play a critical role in creating the enabling conditions for financial service providers to reach financially excluded customers while also ensuring that risks are mitigated and consumers are properly protected against threats such as fraud, cybercrime, over-indebtedness, and unethical business practices.
In their July 2016 Communiqué, the G20 Finance Ministers and Central Bank Governors asked the GPFI to report back to them in 2017 on the country-level actions taken to promote digital financial inclusion.