Financial Inclusion Support Framework April 2014 Financial & Private Sector Development
Financial Inclusion: Global Momentum Countries with headline commitments to financial inclusion • Over 50 countries have headline commitments and targets, including through the Maya Declaration, and G20 Peer Learning Program for Financial Inclusion (Los Cabos 2012, Mexico G20 Presidency). • The UN Secretary General’s High Level Panel on the post-2015 MDGs recommended bank accounts for women and universal access to financial services as enabling targets • Partners to countries in making and meeting FI targets include: 2
The World Bank Group and Financial Inclusion • The World Bank Group offers a comprehensive set of instruments to support policy and legal reforms, financial infrastructure, guarantee mechanisms, regulatory standards, financing platforms, and financial sector investment & innovation • Instruments include financing, policy advice, data, and technical assistance. • Financing, technical assistance, diagnostics and advisory services in >80 countries MENA region Global Technical assistance Principles, technical guides , through WB-IFC MENA survey data, research MSME facility >80 Indonesia Mozambique Data, analysis and advisory CPFL Diagnostic, Support inputs to support countries to FSD/FI Strategy, Government/Regulator-led Mobile/Innovative FI reforms, inc. for Payments Technical innovative payments and Assistance financial education Nigeria Tunisia, Egypt Jordan Housing Finance and DFI Post-revolution financing SME Finance diagnostics leading Projects, Data & Research and TA to support MSME to TA and investment loan, to inform FI policies sector Advisory services for financial 3 infrastructure
Financial Inclusion Support Framework Launched in April 2013, to offer comprehensive, multi-year support for achieving national strategies and targets. Builds on and leverages WBG capacity, and offers national lead agencies a mechanism for scaled-up and coordinated assistance aligned with their priorities. FISF is comprised of three components: Financial Inclusion Country Support Research and Challenge Programs Models Technical assistance and capacity Results-based financing to Agricultural finance, women and building programs for up to 20 accelerate financial sector finance, impact and cost countries. First programs are in response to FI reforms. effectiveness of FI reforms Indonesia, Mozambique, Rwanda 4
Scope of FISF Country Support Programs Sectors supported will be determined by country priorities and by diagnostics/data analysis, and may include: Agricultural Micro & SME Payments Finance Finance e.g. Innovative Retail e.g. Agricultural insurance, Microfinance, Payments, G2P payments, SME Finance, Housing MF supply chain finance Remittances Financial Financial Consumer Financial Capability Protection Infrastructure e.g. Market conduct Financial education, Secured transactions, supervision, disclosure of financial literacy credit information, UIDs information 5
FISF enables Transformative Approaches Example: G2P Payments and Financial Inclusion Access Usage Quality G2P or CCT transfers are The beneficiary uses the The beneficiary knows his made through an account. account not only to receive rights and obligations and is The beneficiary now owns payments, but also to conduct capable of shopping around for and accesses the account to transactions, save, and get the best products and services access to other services. that best suits his/her needs. receive the payments. Regulated savings Competitive financial markets with barriers Transactional instruments such accounts . as mobile wallets and cards. to serving low-income consumers removed. ID systems help with Financial infrastructure allows C CPFL programs help inform h KYC requirements. consumers to build credit information. and protect consumers. 6
FISF enables Transformative Approaches Example: Financial Consumer Protection/ Capability Reduced information asymmetry Opens up beneficial access to finance – Individuals and enterprises can select products and services which meet their needs and objectives, while fully understanding their cost, terms and conditions. Expanding access Increased financial capability to financial services An increasing number of countries are developing financial in a responsible literacy/education strategies, aiming at improving consumers’ manner. levels of financial knowledge and awareness. Enhanced consumer protection Consumers are protected from possible market abuses, competition is encouraged, and trust in the financial sector develops, encouraging financial inclusion. 7
FISF: harnesses range of cross-WBG expertise & products (modelled on design of Indonesia program) Catalytic Technical Assistance 1. Data, knowledge, in-depth diagnostics – to underpin evidence-based policymaking 2. Experts, Advisory Inputs, Knowledge-Sharing – to ensure effective and timely reforms 3. Training, Capacity-Building – to enable governments & regulators to accelerate reforms INFORMS INFORMS ENHANCED BY SET Program of Policy Reforms, FINANCING, OUT IN National Financial ADVISORY Regulatory measures, Strategies SERVICES & Initiatives TRAINING TO FINANCIAL SECTOR ENABLE AND ENABLE AND PROMOTE PROMOTE Investment and Innovation – expanding financial access Private sector (supply-side) response leading to – wider range of financial products, expanded clientele (lower income clients, higher proportion of women), more transparent and competitive markets, MSMEs better able to finance trade, jobs, and growth. 8
Country Selection How can countries benefit from the FISF? After receiving a request for support received from their lead entity for financial inclusion (e.g., Central Bank, Ministry of Finance), countries will be selected for assistance using the following criteria: 1 Commitment to financial inclusion Significant level of country commitment to financial inclusion and financial literacy through a national Si commitment and/or national targets. Dedicated capacity and lead counterpart D 2 Dedicated financial inclusion capacity in a financial regulator (or MoF), and ideally some form of national coordination framework. Potential for impact P 3 Potential for progress and impact, and clear need for FISF support (not duplicating existing programs) . 4 Approval by FISF Steering Committee 9
Relevant Knowledge Resources for FISF Responsible Finance FI Strategies Global Survey on Website Reference Framework Innovative Retail Payments responsiblefinance.worldbank.org bit.ly/FIStrategiesReferenceFramework worldbank.org/financialinclusion Good Practices for Financial Financial Inclusion Financial Inclusion Consumer Protection Indicator Monitoring Strategies Resource Center bit.ly/GoodPracticesConsumerProtection http://datatopics.worldbank.org/g20fidata/ worldbank.org/financialinclusion
Recommend
More recommend
