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

2. National Financial Inclusion Strategy
- Overview -

3. 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?

4. 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.

5. 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.

6. 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 (ppt)
Source: Data from World Bank Global Findex, compiled by AFI; AFI Maya Declaration Report 2014

7. 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)

8. Overview
Source: AFI Country Policy Profiles Database, AFI Data Portal ( accessed on 14 July 2017

9. 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

10. 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

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

12. 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%

13. 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%

14. National Financial Inclusion Strategy
- AFI Support -

15. 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

16. AFI Knowledge Products

17. Most recent publications- FISPLG

18. Data Portal Example: Malaysia’s National Financial Inclusion Strategy
Source: AFI Country Policy Profiles, AFI Data Portal ( accessed on 20 May 2016

19. 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?

20. 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?

21. THANK YOU VERY MUCH Bringing smart policies to life