Global Financial Inclusion Efforts Gain Momentum

The Alliance for Financial Inclusion (AFI), a member-owned network of financial sector regulators and policymakers, has made significant strides in promoting financial inclusion globally. The organization’s members recently reaffirmed their commitment to closing the gender gap in financial inclusion at the Global Policy Forum 2016 held in Nadi, Fiji.

About the Alliance for Financial Inclusion

The AFI was established in 2008 to advance financial inclusion through better policies and approaches. Since its inception, the organization has grown rapidly into a global network of 117 institutions from 93 countries.

Commitments to Financial Inclusion

In 2011, the AFI introduced the Maya Declaration, a set of specific, measurable commitments made by policy makers from developing and emerging countries to unlock the economic and social potential of the poor through greater financial inclusion. The declaration was further expanded by the AFI membership through the Sasana Accord in 2013 and Maputo Accord in 2015.

Denarau Action Plan: Emphasizing Women’s Financial Inclusion

At the Global Policy Forum 2016, the AFI members endorsed the Denarau Action Plan (DAP), which highlighted the importance of considering best practices for women’s financial inclusion and gender considerations within national financial inclusion strategies. The plan also called for collaboration with other key stakeholders to create an enabling environment for women’s financial inclusion.

Global Recognition of Financial Inclusion

The efforts of the AFI have not gone unnoticed, as the G20 has also recognized the importance of financial inclusion in its global development agenda. In 2010, the G20 launched a Financial Inclusion Action Plan and established a Global Partnership for Financial Inclusion (GPFI) to promote financial inclusion in a sustainable manner.

National Financial Inclusion Strategies

According to the latest data from the AFI, 29 countries have National Financial Inclusion Strategies (NFIS) at the end of August 2016. Of these, 11 were in the Asia and Pacific region, eight in Sub-Saharan Africa, three in Europe and Central Asia, and seven in Latin America and the Caribbean region.

Encouraging Results

The World Bank has reported encouraging results from national strategy implementation, with over 200 million new accounts opened across the globe between 2011 and 2014. Countries with national strategies have done much better in increasing financial inclusion than those without national strategies.

Palestine’s Initiative to Develop a National Financial Inclusion Strategy

In the context of these global efforts, the Palestine Monetary Authority (PMA) and Palestine Capital Market Authority (PCMA) have taken an initiative to develop a NFIS in line with international best practices, including the G20 Principles for Innovative Financial Inclusion and good practices emphasized by AFI.