Central Bank Team Joins Top Financial Inclusion Forum
The 10th Global Policy Forum (GPF) of friendship ended on September 7 on a high note with more than 600 delegates from around the world in attendance. A high-level team from the Reserve Bank of Fiji attended the forum, led by deputy governor Esala Masitabua. Co-hosted by the Bank of Russia (CBR) in the city of Sochi, the 2018 Alliance of Financial Inclusion (AFI) forum successfully wrapped up amidst an intense week of meetings, lively plenary discussions and productive breakout sessions. Evgeniy Eberents, head of the Central Bank in the Southern Region, Bank of Russia, expressed in his closing remarks that “it is my hope that all decisions taken at the 2018 AFI GPF will carry through into the programmes and activities of the AFI network.”
Mr Eberents conveyed his delight at welcoming more than 660 delegates from around the world to the city.
“The 2018 AFI GPF has been a very professional forum,” he said.
The AFI network discussed and debated very openly about the gender gap and other issues that are often restricted by social norms — this is what we mean by a policy leadership alliance.”
The 10th AFI GPF revealed three key outcomes.
Panellists emphasised that there is real and growing evidence that financial inclusion is an enabler for many of the SDGs, and that this needs to be communicated more clearly at the national level to harness more support for financial inclusion initiatives.
Policy initiative launch
They included the launch of the Eastern Europe and Central Asia Policy initiative (ECAPI), the Sochi Accord on FinTech for financial inclusion and two policy frameworks for the issuance of financial inclusion policy models.
The Eastern Europe and Central Asia Policy Initiative (ECAPI) was approved and launched by AFI member institutions from the region.
The members were Central Bank of Armenia, National Bank of the Republic of Belarus, National Bank of Georgia, Financial Regulatory Commission of Mongolia, Bank of Russia, National Bank of Kazakhstan, National Bank of Tajikistan and Central Bank of Uzbekistan.
The ECAPI will drive new Maya Declaration commitments from members, focusing on closing the persistent gender gap and building resilience against the impacts of climate change on financial inclusion. At the annual general meeting (AGM) earlier this week, the AFI membership council unanimously endorsed the Sochi Accord on FinTech for Financial Inclusion.
Sochi accord
The Sochi Accord will encourage peer learning and progress on FinTech for financial inclusion, including the exchange of tested and transformative solutions to accelerate access and use of financial services.
FinTech is a new industry that uses technology to improve activities in finance. The Sochi Accord will usher in a new era of Maya Declaration commitments and quantified targets that would allow AFI members to harness the potential of FinTech in their countries.
This will help them improve financial inclusion, strengthen market conduct and consumer protection.
Maya declaration
The Maya Declaration is a statement of common principles regarding the development of financial inclusion policy made by a group of developing nations.
A recent AFI report provides additional guidance in this emerging area and elaborates the four key pillars of FinTech for financial inclusion in more detail.
The annual general meeting (AGM) of the AFI membership council approved two frameworks for the issuance of financial inclusion policy models. It was seen a major step forward in realising the vision of AFI as a global policy leadership alliance.
Held on September 6 in Sochi, Russia, this was the third AGM meeting since AFI became an independent, member-owned network.
AFI members were encouraged to use this guide to develop or improve their crossborder remittance policies and regulations.
Renewing efforts to close the gender gap and achieve the SDGs
Two key messages to come out of the global policy forum were closing the persistent gender gap in financial inclusion and achieving Sustainable Development Goals (SDGs) through financial inclusion.
The forum asked the question: why 980 million women are worldwide still unbanked?
The topic ‘renewed efforts to close the gender gap” highlighted the key factors responsible for the global gender gap in financial inclusion, which remains stubborn at nine per cent in developing and emerging countries.
Panellists pointed to lower levels of literacy, restrictive social norms and laws on women’s mobility and access to bank accounts, and unequal property and inheritance rights as just some of the reasons. Chair of the AFI gender and women’s financial inclusion Tukiya Mabula-Kankasa, highlighted the momentum in the AFI network with the Denarau Action Plan, which has been a tipping point.
On Wednesday at the AGM, AFI’s articles of association were amended to include diversity at the board and other levels of AFI. Since last year’s GPF, the gender and women’s financial inclusion (GWFIC) has made major progress, conducting training on a range of women’s financial inclusion issues and strengthening collaborations.
Financial inclusion and SDGs
The theme of collaboration also emerged in the panel, ‘Achieving sustainable development goals through financial inclusion,’ The topic explored how AFI can work with global development partners and funders to capture and highlight the contribution of financial inclusion toward the SDGs.
It also looked at how AFI fully leverage the extensive expertise and knowledge within the AFI network to advance the SDGs through financial inclusion.
Panellists emphasised that there is real and growing evidence that financial inclusion is an enabler for many of the SDGs, and that this needs to be communicated more clearly at the national level to harness more support for financial inclusion initiatives.
As Governor Jean Baden Dubois of Banque de la République d’Haiti, put it: “Financial inclusion fits very well with the objective of the SDGs.
“To me, talking of the SDGs is talking of financial inclusion. The number one goal is the reduction of poverty, which is one of the main points of financial inclusion.”