Financial Inclusion: How do We Make it Happen?

This paper presents World Savings Banks Institute ideas and proposals on financial inclusion, with specific focus on emerging and developing economies.

At recent G20 Summits, heads of governments have focused on measures to support economic recovery and reform financial systems. They have recognized the mutually reinforcing policy objectives of financial stability, integrity, inclusion and consumer protection. The paper states that financial inclusion:

• Should rank high on the priority list of global banking and financial standard-setting bodies and policy institutions;
• Should occur as the result of coordinated actions between stakeholders at national levels, across sectors;
• Involves giving access to an entire range of affordable, safe, accessible, adapted and usable financial services and products;
• Includes development of innovative financial services techniques in delivery modes, product design and business partnerships;
• Requires diverse and efficient financial services providers operating in a level playing field.

The international community should support development of inclusive financial sectors. They can do so by developing enabling regulatory and supervisory frameworks, defining supportive frameworks to encourage technology solutions for expanding access to finance, emphasizing importance of financial literacy efforts and ensuring appropriate level of consumer protection.