Advancing Competition for Financial Inclusion: Six Policy Considerations for Financial Sector Authorities

Weak competition remains a key barrier to deeper financial inclusion. Digital finance has intensified the issues stemming from concentrated markets. Yet many authorities remain unsure about how to act, either because they lack a formal competition mandate or because competition issues slip through institutional gaps. 

This Focus Note provides practical policy considerations for financial sector authorities to act on competition concerns using their existing mandates and regulatory toolkit. It argues that by applying a competition lens, authorities can promote competition in ways that advance financial inclusion while safeguarding stability, integrity, and consumer protection. It emphasizes that competition outcomes are shaped as much by regulatory choices as by market forces and authorities must act now. 

Drawing on country experiences from Brazil, Cambodia, India, Kenya, Mexico, Pakistan, South Africa, and the United Kingdom, the Focus Note identifies six practical policy considerations for authorities seeking to advance competition for financial inclusion: 

1. Using existing mandates to pursue competition-focused reforms.
2. Coordinating effectively across regulatory boundaries.
3. Managing trade-offs with core objectives.
4. Using infrastructure design and governance as policy tools.
5. Timing and sequencing interventions carefully as markets evolve.
6. Ensuring that design and implementation translate policy intent into competitive outcomes.