Digital Financial Services for Financial Inclusion
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Transcript of Digital Financial Services for Financial Inclusion
Bringing smart policies to life
Digital Financial Services for Financial
Inclusion
John Owens, Senior Policy Advisor, AFI
26 March 2015
Bangkok, Thailand
Bringing smart policies to life
Global Financial Inclusion Indicators
Source: Demirguc-Kunt & Klapper (2012), World Bank Policy Research Paper 6025
2.5 billion of adults do not have access to formal financial system
AFI | Alliance for Financial Inclusion
Bringing smart policies to life
Overview of AFI
AFI is a global network of policymakers in developing and emerging countries
•Founded in 2008, AFI’s goal is to support developing countries to develop and implement successful financial inclusion policies
•The goal of the AFI network is to accelerate the adoption of innovative
financial inclusion policy solutions, with the ultimate aim of making financial
services more accessible to the billions of people who do not have access
to the formal financial system.
Bringing smart policies to life
The AFI Timeline
• 125 Institutions, 95
countries
• Unique Peer Learning
network (working
groups)
• G20 Implementing
partner
• Maya Declaration
• More than 70 tangible
policy reforms
Concept design
Building the
Network
Activating the
Network
Enhancing Network
value
Policy-Driving
Network
Transition Planning
Independence
2008 2009 2010 2011 2012 2013-2015 2015-
Bringing smart policies to life
Growing Relevance of Financial Inclusion Globally
• Financial Inclusion is no longer only a development concern
but a cornerstone of economic development framework and
model
• Ministries of Finance and Central Banks are including Financial
Inclusion in their mandate together with stability and integrity
• Financial Inclusion is more and more understood in a broad
framework including access, usage and quality of a range of
financial services
• Developed countries are increasingly facing financial exclusion
problem
• G20 recognizes the benefits of financial inclusion for inclusive
growth, stability and integrity
AFI | Alliance for Financial Inclusion
Bringing smart policies to life
Opportunities
• Growing alignment of interests among governments,
private sector and global community
• Greater understanding on the issues related to financial
inclusion as well as more data
• Recognition of country specific conditions and developing
and emerging country-led approaches
• More open communications with International Standard
Setting Bodies
• Technological innovation and enabling regulatory
framework are driving new digital financial service
models that support financial inclusion
AFI | Alliance for Financial Inclusion
Bringing smart policies to life
Benefits & Opportunities of
Digital Financial Services
Source IFC Infographic: Bonny Jennings www.itldesign.co.za IAFI | Alliance for Financial Inclusion
Bringing smart policies to lifeAFI | Alliance for Financial Inclusion
E-money Services
Mobile Financial Services
Use of Agents
Key Models of Digital Financial
Services
Bringing smart policies to lifeAFI | Alliance for Financial Inclusion
Convergence & Interoperability
Financial
Inclusion
Bringing smart policies to life
DFS Policy, Regulatory and Oversight
Proportionate AML/CFT
•Tiered KYC Regulations
E-Money Operator Regulations
Remote Account Opening Rules
Agent Regulations
Interoperability
Fair access to ICT
Security and Fraud Mitigation
Consumer Protection Issues
Bringing smart policies to life
Regulatory Coordination
• Telecom operators as financial service
providers & banks as telecom operators
• USSD, Fair Access, Data Security
• Who provides oversight?
• Overlapping issues among regulators
• Coordination is critical and needs to be
improved
Bringing smart policies to life
Bangladesh: Mobile-Enabled Agent
Banking Success
AFI | Alliance for Financial Inclusion
Bangladesh Bank’s Role:
Agent Banking & Allowable
Services
Eligibility Criteria for Agents
Allowance of Non-Exclusive
Agreements
Risk & Operational Issues
Consumer Protection Principles
Coordination with BRTC
Results:
540,000 active agents
25.2 M registered clients
12.2 M active clients
Bringing smart policies to life
Philippines: Mobile-Enabled E-Money
• E-money regulations clearly
set forth by Bangko Sentral ng
Pilipinas
• E-money issuers under
Central Bank Supervision
• Agent guidelines issued
• Tiered KYC process
• Partnerships promoted with
the financial sector
• Interconnectivity between
financial players, payment
operators and e-money
issuers
Bringing smart policies to life
Solomon Islands: Mobile Banking for
Financial Inclusion
AFI | Alliance for Financial Inclusion
Central Bank of Solomon
Islands:
Agent Banking
Regulations
Expanded Eligibility
Criteria for Agents
Tiered KYC Regulations
Public Private Sector
Dialogue
Financial Literacy and
the role of the Private
Sector
Results:
From 80% without a bank
account 5 years ago, 80%
now have access to basic
banking services
Bringing smart policies to life
Bringing
smart
policiesto life [email protected]
www.afi-global.org
Thank [email protected]
@NewsAFI