To and approaches in agreement with the national

To provide guidance
in countries’ efforts to improve financial inclusion, the World Bank Group’s
recently released Global Financial Development Report 2014. It is the most comprehensive study yet on
the subject, highlighting new evidence on policies that improve—and those that
undermine—access to finance. It can help countries in charting the road towards
greater financial inclusion.

 

FINDINGS – STRATGIES ADOPTED BY COUNTRIES

Each
country context varies, including in terms of availability of data and
diagnostics, institutional capacity to implement reforms, financial market
structure, level of financial infrastructure, and political priorities.

To fit
each country context, the WBG provides tailored solutions and approaches in
agreement with the national stakeholders. In addition, the WBG is uniquely well
placed to leverage cross-sectoral collaboration and draw together expertise
ranging from rural/agricultural finance, social transfers, and digital IDs, to
investments and risk sharing, among others.

Here are
a few country examples to illustrate the type of tailored support the WBG
provides.

1.    
Indonesia’s NFIS
was launched in June 2012 with the vision of “achieving a financial system that
is accessible by all layers of the community to promote economic growth,
poverty reduction, and income equality in Indonesia”. Drawing on in-depth
survey data conducted by the WBG, the NFIS outlines more than twenty
initiatives that would enhance financial inclusion in the country. The NFIS
provides the basis for a coordinated effort involving all major stakeholders
from the government, private sector, and civil society. With support from the
WBG, the authorities are working towards the establishment of a National
Financial Inclusion Council that would drive forward the financial inclusion
agenda. The WBG has agreed on a country support program providing technical
support across a range of NFIS priority areas (including payments, MSME
finance, consumer protection/financial literacy), and supports the Indonesian
authorities to establish a M framework for NFIS implementation.

2.    
The World Bank Group is
supporting Mexico in
implementing its NFIS, which was launched in June 2016. The WBG will support
Mexico’s NFIS implementation through active projects to strengthen financial
sector oversight, foster credit and expand financial inclusion.

3.    
The WBG is supporting the State
Bank of Pakistan (SBP) to design and launch its NFIS. A WBG
team has provided extensive technical analysis, facilitated consultation
workshops, and proposed a coordination mechanism structured in the form of a
taskforce or steering committee composed of representatives from different
implementing agencies and other relevant actors. The next stage will be for the
WBG team to jointly draft the NFIS with the SBP and Securities and Exchange
Commission (SECP), as part of the overall SBP-led process.

4.    
The WBG supported the national
authorities in Peru to develop a NFIS, which was launched by
presidential decree in July, 2015. The WBG supported the Multisector Financial
Inclusion Commission to draft and refine a comprehensive NFIS that promotes the
use of electronic transaction instruments, access to savings, insurance, and
financing, as well as consumer protection and financial education programs.
Shortly before the launch of the NFIS, the Peruvian government, the World Bank,
and the IMF organized a Financial Inclusion Conference in
Lima in June 2015 as part of the Road to Lima events leading up to the
Annual Meetings.

5.    
The WBG is supporting the Central
Bank of Paraguay (BCP) in formulating its NFIS and setting up a
coordination mechanism for its implementation. The NFIS preparation began with
the involvement of the WBG and the Gallup Poll organization to complete an
individualized Global Findex survey,
specifically designed for Paraguay. The WBG complemented the results of the
survey by producing a Supply Side Background Technical Note, a Demand Side
Background Technical Note, and a Legal and Regulatory Framework Background
Technical Note to inform the NFIS. The Paraguay NFIS was launched in
December 2014 and the WBG is now supporting the establishment and initial work
of a National Technical Committee for Financial Inclusion.

6.    
The World Bank Group is
supporting the National Bank of Ethiopia (NBE) to design and launch its
NFIS. Drawing on data provided by the NBE and the Global Findex Survey, a WBG
team has provided extensive technical analysis, facilitated consultation
workshops, and helped to develop a coordination mechanism for the NFIS. After
the launch of the strategy, the next stage will be for the WBG team to help
implement the coordination mechanism and M&E system for NFIS
implementation. 

7.    
The Central Bank of Haiti
(BRH) has spearheaded efforts to draft the country’s NFIS, in collaboration
with the WBG. Based on an initial draft informed by previous analytical work
conducted by the WBG in the country, stakeholder workshops and bilateral
consultations were conducted to gather inputs from public and private sector
stakeholders. The WBG supported BRH in organizing and moderating these
consultations, as well as provided advisory inputs to the Presidential
Commission that will oversee and coordinate the implementation of the strategy
after its launch.

8.    
The Central Bank of Mozambique
(BdM) is in the process of drafting a NFIS, with WBG expert drafting inputs.
The authorities are exploring options for the establishment of a national
financial inclusion coordination structure, informed by an overview of
international models and experience provided by the WBG. In addition, the WBG will
conduct a review and mapping of available data collected to inform
recommendations on improvements for future data collection and the development
of a M framework, with key performance indicators and targets. Finally,
the WBG plans to support BdM and other authorities in the implementation of the
NFIS reforms and activities.

The WBG
can offer a unique range of expertise and knowledge, on financial inclusion
strategies and reforms and more broadly (covering areas such as financial
education, financial stability, social transfers, and rural finance), in order
to support the design and development of National Financial Inclusion
Strategies or Action Plans.

COMMON FEATURES OF FINANCIAL
INCLUSION STRATEGIES