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Financial Inclusion 2020: The Roadmap Principles

Throughanextensiveconsultativeprocess,theCenterforFinancialInclusionatAccionhasdevelopedasetof

recommendationstomovefinancialinclusionforward,usingtheyear2020togalvanizethoughtandaction.

Fiveworkinggroupsofglobalexpertsfromthepublicandprivatesectorseachdevelopedaroadmapthat

servesasaspringboardfordialogueandaction.Whiletheresultingroadmapprovidesprinciplesthatmaybe

broadlyendorsed,actionsintheseareasarenotcommensuratewiththescaleorscopeoftheneed.Ifwetruly

aimforanaudaciousvisionoffullinclusionby2020,thegapbetweenprinciplesandrealitymustclose.The

roadmapprinciplesaremeanttohelpthefinancialinclusioncommunitystayfocusedandaccountablefor

guidinginclusioninadirectionthatwillfulfillitspromisetoimprovelivesandboosteconomies.They

demonstratetheneedforastrongdemand-sideorientation,signalingthatfinancialinclusionisnotjustaboutexpandingaccess,butalsoaboutensuringqualitysothatusagewillbehighandcustomerswillbenefit.Below

arehigh-levelfindingsthathaveemergedfromeachofthefiveworkinggroups.ForthefullsetofRoadmaps,

pleasevisitwww.financialinclusion2020.org.

Financial Capability: Shift the ParadigmCurrently,theparadigmforfinancialcapabilityisfocusedonfinancialeducationasknowledgetransfer.

Instead,wemustthinkoffinancialcapabilityinlightofitsendgoal:soundfinancialchoicesandbehavior.

Peoplelearnbestbydoing.Toachievethis,stakeholdersinvolvedinfinancialinclusionhavea

responsibilitytointegratefinancialcapabilitybuildingintoeveryaspectoftheirworkandproducts,bothwithcurrentandprospectivecustomers.Thescaleoftheneedmeansthatmanyactorsarewelcome,

includingproviders,governments,non-profits,schoolsandothers.

Samplerecommendation:Developpartnershipstopromotefinancialcapabilitywithorganizations

thatinteractwithclientsatkeymomentswhenfinancialdecisionsareatstake,suchasimmigration

organizationsorhospitals.

Addressing Customer Needs: Easy to Say, Hard to Do

Peoplelivinginpovertyoftenactdifferentlythanweexpect.Theirfinanciallivesarenotlikethoseof

middleclasshouseholds.Whilethesolutionisforproviderstolistentocustomers,itiseasiersaidthandone.Listeningneedstohappenatalllevelsofanorganizationandinvolvesbothcurrentandprospective

customers.Tobetterunderstandprospectiveclients,providersalsoneedtobuildonabundantknowledge

thatalreadyexistsonthefinanciallivesofthepoorandinsightsfrombehavioraleconomicstocreate

productsanddeliverysystemsthatareusefulandvaluabletocustomers.

Samplerecommendation:Everyboardmemberofprovidingorganizationsshouldlistendirectlyto

customers,throughregularinterviews,customerpanels,orothermeans.

FinancialCapability

Addressing Customer

Needs

Technology-EnabledBusinessModels

CreditReporting

ClientProtection

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www.financialinclusion2020.org1101 15 St., NW, Suite 500, Washington, DC 20005 USA Tel 202.393.5113 Fax 202.393.5115 www.centerforfinancialinclusion.org

Technology-Enabled Business Models: Paving the Way for Dramatic Change

Regulatorsarekeytofacilitatingthesuccessoftechnology-enabledbusinessmodels.Theymustprovide

theenablingenvironmentthatallowsnewbusinessmodelsandspecializedproviderstooperatesmoothly

atthebaseofthepyramid.Governmentshavetheopportunitytousetheirresourcescreativelytopromote

thedevelopmentofavibrantfinancialinclusionsector,employinggovernment-to-personpaymentsandothertoolssuchasprocurementandselectivesubsidies.Supportingorganizationscanassistnational

regulatorstomeetthesteepchallengeofkeepingpacewithtechnology.

Samplerecommendation:Policymakerscanuseuniversalservicefundspaidbytelecommunications

companiestoincentivizemobilemoneytoreachremoteareas. Credit Reporting: It Takes a Village

Creditreportingsystemsthatworkforallpartiesareessentialforfinancialinclusion,butinmany

countries,thesesystemsarenotyetrealitiesfortheBOP.Manyactorsmustbeinvolvedinsustainedefforts

towardthisend,withproviders,governmentsandcreditreportingorganizationsworkingtogether.One

promisingdevelopment:thefinancialinclusioncommunityasawholecanencouragetheuseofalternativedatatoenablethinfilecustomerstoaccessfinancialservices,whileprotectingcustomerrights.

Samplerecommendation:Supportorganizationscansubsidizeserviceproviderstogearuptouse

creditreportingefficiently;suchprovidersfacehightransitioncosts.Client Protection: Everyones Promise

Aninfluxofnewandmainlylow-incomecustomerswillrequireurgentactiononconsumerprotection.

Providersmustbegintoincorporateclientprotectionintotheirprofessionalidentityand,backprinciples

upwithdetailedstandardsofpractice.Theregulatorygapinconsumerprotectionisenormous,prompting

theworkinggrouptocallforaglobalgoalofeffectiveclientprotectionregulationineverycountryby2020.

Samplerecommendation:Policymakersandconsumergroupscancreateforumsforpublicationof

consumercomplaintsorcomplaintsaboutservicestheyusetoincreaseconsumervoiceandprovider

accountability.Fullfinancialinclusioncouldbringindividuals,nationsandbusinessesenormousbenefits.Weknowwhat

needsdoing.Thepoliticalwillandbusinesscasearegettingstrongereveryyear.Withsustainedpursuitofthe

Roadmapprinciples,fullfinancialinclusionispossible.FI2020challengestheglobalfinancialinclusion

communitytocommittotheseprinciplesandthisgoal.

About Financial Inclusion 2020

Couldfullfinancialinclusionaroundtheglobebeachievedbytheyear2020?

Through the Financial Inclusion 2020 project, CFI isworking to build a movement thatmobilizes key stakeholders

aroundthegoaloffullfinancialinclusion,usingtheyear2020asafocalpointtoclarifythinkingandgalvanizeaction.By

bringingtogether private sectorplayers, regulators, industry developers, technologyproviders, andotheractors, the

projectpromotesreachingnewandunderservedmarketswithafullrangeofqualityservices.

Theprojectisworkingonthreefronts.MappingtheInvisibleMarketisaresearchprojectthatexaminesmajorforces

thatwillshapetheprogressof financialinclusionthroughaseriesofanalyticpapers,graphicpresentations,andonline

interactive data visualizations. A dynamic consultative process called Building a Roadmap to Financial Inclusion is

creating aset ofprinciplesfor achieving financial inclusionglobally. The findings ofbotheffortswill informa Global

ForumofleaderswhocaninfluencethepaceandqualityoffinancialinclusioninLondononOctober28-30,2013.