Financial Inclusion Strategy: reaching a new level 26th International Finance Congress: Finance for Development St. Petersburg| Russia| 14 July 2017

National Financial Inclusion Strategy - Overview -

Overview - Introduction Context and global trends Increasing interest in NFIS; Demand for overall organizing framework and strategic approach; Additional stimulus through Mexican G 20 Presidency in 2012 (Los Cabos) 27 countries have NFIS commitments under Maya; NFIS Definition Comprehensive public document developed through a broad consultative process involving private and public sector stakeholders involved in financial sector development to systematically accelerate the level of inclusion (AFI FISPLG) Growing Trend for FI Strategies worldwide Mandated Comprehensive Coordinated Rationale for National Strategies Guiding Framework for all FI activities Acceleration of FI momentum What is AFI?

Overview – Rationale (1) Access Levels Correlated with FIS Existence N = 36 Account Penetration rate based on the 2014 World Bank’s Global Findex database. Indicator on existence of national financial inclusion strategies based on the AFI Country Policy Profiles data, from the AFI Data Portal. Analysis based on limited samples of data from the 2014 Policy Profiles Data.

Overview – Rationale (2) Access Levels Correlated with National Taskforce/Council N = 38 Account Penetration rate based on the 2014 World Bank’s Global Findex database. Indicator on existence of national taskforce/council based on the AFI Country Policy Profiles data, from the AFI Data Portal. Analysis based on limited samples of data from the 2014 Policy Profiles Data.

Overview – Rationale (3) Access Levels Correlated with National Targets N members targets = 13 N members no targets = 16 Increase in % of adults with accounts from 2011-2014 (ppt) Source: Data from World Bank Global Findex, compiled by AFI; AFI Maya Declaration Report 2014

Monitoring & Evaluation Financial Inclusion Strategy Stages Data Collection and Diagnostic Activities: Collection of supply-side data Collection of demand-side data Data Analysis (b) Strategy Formulation Agreement of definition and vision for financial inclusion Consultation with public & private sector stakeholders Development of action plan and targets …. Data Collection And Diagnostic Formulation Strategy Implementation Strategy (c) Strategy Implementation Policy Reforms Private Sector Response Establishment of architecture for implementation (e.g. National Council or Taskforce) Monitoring & Evaluation (d) Monitoring & Evaluation Tracking progress against core indicators Identifying if strategy is on track and any responses needed Effective strategy formulation & implementation involves a continuous feedback cycle 08/09/2014| AFI | Financial Inclusion Strategy Peer Learning Group (FISPLG)

Overview Source: AFI Country Policy Profiles Database, AFI Data Portal (www.afi-dataportal.org), accessed on 14 July 2017

Key Design Elements Mandate, Leadership & Consultative Process Clear Definition, Vision and Targets Data & Diagnostic Studies Setting Priorities Incorporating National Targets Taking policy lessons from other countries

Key Implementation Elements Action Plans Budgeting & Funding Coordination & Review Mechanisms Working Groups and Technical Committees Monitoring and Evaluating Frameworks Communicating the Strategy Closing the gender gap in financial inclusion

Final Products - Philippines and Tanzania Philippines’ National Strategy on Financial Inclusion Tanzania Financial Inclusion Framework

Focus Areas in National Strategies Key Strategy Focus (examples) Key Details Appropriate legislation & regulation Increase supply of services & access points Initiatives to increase demand Improved infrastructure Education policy DFS regulations Supervision frameworks Greater Access Greater Uptake E-money Mobile & internet banking Agent networks G2P transfers Financial literacy campaigns Relevant systems & stable internet connectivity National ID CGC, credit data & DFIs Level of Access < e.g. 60%

Focus Areas in National Strategies (2) Key Strategy Focus Key Details Students and youth Young adults MSME Targeted financial education campaigns Creation of more tailored & innovative products Special advisory services by Fis Increase usage of e-platforms Greater Usage Greater Quality Great Efficiency Regulation Competitive pressure/moral suasion Fintech Other innovations Level of Access > e.g. 60%

National Financial Inclusion Strategy - AFI Support -

AFI Support Capacity Building (trainings, joint learning programs, peer advisory service) Policy Grants for NFIS development Peer Review through FISPLG In-house expertise and advise Access to data & policy knowledge AFI Data Portal FIS Status of Practice Report FIS Toolkit Policy guideline notes

AFI Knowledge Products

Most recent publications- FISPLG

Data Portal Example: Malaysia’s National Financial Inclusion Strategy Source: AFI Country Policy Profiles, AFI Data Portal (www.afi-dataportal.org), accessed on 20 May 2016

Peer Advisory on in-country implementation of NFIS in Nigeria Objective: In-country implementation and support provided to members on NFIS implementation and coordination Participants: 6 AFI member institutions (from Seychelles, Bhutan, Mozambique, Lesotho, Sierra Leone and BCEAO) Key learning The NFIS in Nigeria brings all the stakeholders to the shared vision with defined roles and responsibilities Governance and coordination mechanism: effective stakeholders’ buy-in and collaboration resulted in the creation of F.I. Units in different agencies Steering Committee (Head of Institutions), meets twice a year Technical Committee (Head of concerned Departments from relevant institutions), meets twice a year Thematic Working Groups (currently 4), meet four times a year Outcome: Members shared their views on how AFI is unique in its endeavours by providing such platforms for members to learn from each other and showcase their experiences. Allowed for the increase and enhancement of members knowledge and capacity building in the implementation and coordination of NFIS. What is AFI?

Conclusion Growing and striking trend toward national strategies as essential frameworks for advancing financial inclusion There is now sufficient country experience of strategy formulation & implementation for rich peer learning The quality of the strategy is more likely to determine its impact than its mere existence Early evidence suggests grounds for optimism that national strategies can be catalysts for progress in financial inclusion What is AFI?

THANK YOU VERY MUCH Bringing smart policies to life info@afi-global.org www.afi-global.org