Moving from Financial Inclusion Measurement to Setting Appropriate Targets
02/19/2014 - 12:07pm
Taking financial inclusion forward and making a real impact in the lives of low-income people and small enterprises has been featuring prominently in the international financial inclusion agenda. This was acknowledged in the St. Petersburg Leader’s Declaration, where explicit reference was made to “informed financial inclusion target setting and monitoring” as desired outcomes of financial inclusion efforts.
Significant components of the work undertaken in the GPFI had as an objective the enablement of policy formulation and target setting. In particular, the G20 Financial Inclusion Indicators, developed by the GPFI Data and Measurement Subgroup, provided a concrete toolset on which to base financial inclusion targets. The question of how to best approach target setting was also explored by the Subgroup, resulting in the information note “Financial Inclusion Targets and Goals: Landscape and GPFI View”.
The note gives the rationale for financial inclusion target setting, provides an overview of the main approaches to target setting and sketches the global context in which target setting is being discussed. The conclusion is reached that target setting and monitoring should be undertaken at the national (country) level, with global aspirational goals being helpful to prioritize financial inclusion efforts. The note was accepted by the GPFI at the Plenary meeting in St. Petersburg on October 22, 2013, and represents the view of the group on the most appropriate way in which to pursue this very important aspect of financial inclusion.