Financial Inclusion Data and Impact Working Group (FIDIWG)

Data has a fundamental role in establishing a common understanding of the current state of financial inclusion. It can be used by regulators, policymakers, and financial services providers in all policymaking processes: diagnosis of the state of financial inclusion, designing appropriate policies, setting financial inclusion targets, monitoring and evaluation which provide a feedback loop to adjust targets and initiate policy reforms. The main stages for measuring financial inclusion are:

1. Country specific definition of financial inclusion
2. Identification of data needs and data gaps
3. Data gathering
4. Data analysis, usage for decision-making process and dissemination

AFI’s Financial Inclusion Data and Impact Working Group (FIDIWG)

A platform dedicated to promoting and sharing practical knowledge and recommendations on financial inclusion measurements including core set indicators, measurement methodologies, policy models and other good practices by AFI member institutions.

FIDIWG aims to develop a common framework for measuring financial inclusion and sharing lessons learned on topics such as target setting, quantitative and qualitative measurement methodologies, and data analysis and dissemination to better inform policymaking and changes in regulation. Members actively promote the use and adoption of a framework within the AFI network at the international level.

View the FinNeeds toolkit, a measurement framework by insight2impact. This toolkit outlines the FinNeeds indicators to track and discusses the data sources and measurement approaches relevant for each element, as well as how to analyze the data for policy-ready insights.

Member
Institutions

Countries

Policy changes

Knowledge products

Chairs & Focal points

Chair

Mary Musombo Katepa

Co-Chair I

Chahrazade El Alaoui, Bank Al-Maghrib

Gender Focal Point Lead

Rita Kayibanda, National Bank of Rwanda

Gender Focal Point

Sesilia Nekwaya, Bank of Namibia

Gender Focal Point

Dr. Settor Amediku, Bank of Ghana

Objectives

Member Institutions

Banque Centrale des Comores
Banco Central de Reserva de El Salvador
Banco Central de São Tomé e Príncipe
Banco Central del Paraguay
Banco de Moçambique
Banco Nacional de Angola
Bangko Sentral ng Pilipinas
Bangladesh Bank
Bank Al-Maghrib
Bank Negara Malaysia
Bank of Ghana
Bank of Namibia
Bank of Papua New Guinea
Bank of Sierra Leone
Bank of Tanzania
Bank of Uganda
Bank of Zambia
Banque Centrale de la République de Guinée
Banque Centrale de Mauritanie
Banque Centrale de Tunisie
Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO)
Banque Centrale du Congo
Banque de la République du Burundi
Central Bank of Armenia
Central Bank of Egypt
Central Bank of Eswatini
Central Bank of Jordan
Central Bank of Iraq
Central Bank of Kenya
Central Bank of Lesotho
Central Bank of Liberia
Central Bank of Nigeria
Central Bank of Samoa
Central Bank of Solomon Islands
Central Bank of Sri Lanka
Central Bank of the Bahamas
Central Bank of The Gambia
Central Bank of the Republic of Uzbekistan
Central Bank of Sudan
Centrale Bank van Suriname
Comisión Nacional Bancaria y de Valores de México (CNBV)
Direction Générale du Trésor, Ministère de l’Economie et des Finances, Madagascar
Jordan Payments and Clearing Company
Financial Regulatory Commission of Mongolia
Maldives Monetary Authority
Microcredit Regulatory Authority of Bangladesh
Ministère de l’Économie et des Finances de la Côte d’Ivoire
Ministère des Finances et du Budget du Sénégal
Ministère des Finances de la République Tunisienne
Ministry of Finance – Eswatini
Ministry of Finance and National Planning Zambia
Ministry of Finance and Economic Development Zimbabwe
National Bank of Cambodia
National Bank of Rwanda
National Bank of Tajikistan
Nepal Rastra Bank
Palestine Monetary Authority
Reserve Bank of Fiji
Reserve Bank of Malawi
Reserve Bank of Vanuatu
Reserve Bank of Zimbabwe
Superintendencia de Bancos de la República Dominicana
Superintendencia General de Entidades Financieras de Costa Rica (SUGEF)

Subgroups & Planned Activities

Gender Inclusive Finance Data Subgroup:

Since 2016 when the Alliance for Financial Inclusion Network subscribed to the Denarau Action Plan to advancing gender inclusive finance and women’s financial inclusion, the Financial Inclusion Data Working Group focused on supporting the measurement of women financial inclusion and the gender gap in terms of access and usage of financial services to identify barriers and opportunities for policymaker, regulators, and the industry to enhance women financial inclusion. This has been done through supporting the collection, analysis, use and dissemination of sex-disaggregated data from the demand and the supply-sides. For instance, more recently, though the 2021 Global Findex has showed positive progress in terms of women financial inclusion and reduction of the women financial gender gap, the global data has also revealed a persistent lag in terms of women’s financial inclusion and an increase in the gender gap in some regions and countries.

Hence, the FIDWG GIF Subgroup has been persistent in identifying and sharing best practices to ensure a better and more generalized financial sex-disaggregated data collection, especially from the supply-side data perspective allowing to identify potential barriers and opportunities to favor WFI. Currently, the FID Gender Subgroup has been involved with the Gender Inclusive Finance team in AFI to review a GIF mapping exercise including statistical and regulatory research including various AFI member institutions to identify key factors including policy and regulatory policies that are positively correlated with an increase on women financial inclusion and a reduction of the corresponding financial inclusion gender gap.

Planned deliverable: 1) Review and endorsement of the GIF Mapping projects, 2) Inform and develop the data component to be included in the forthcoming GIF Policy Model

Inclusive Green Finance Subgroup:

An increasing number of AFI members voiced interest in scaling up peer learning on ways to develop and implement financial inclusion policies that also have positive environmental outcomes.

This momentum culminated in September 2017 with the launch of the Sharm El Sheikh Accord on Financial Inclusion, Climate Change and Green Finance, endorsed by an overwhelming 94% of the AFI membership. The Accord commits AFI members to work together and with partners to identify, understand and implement financial inclusion policy solutions that also have positive outcomes for the environment, focusing on communities that are most vulnerable to climate change. As a preliminary step, FIDWG members agreed to work on an effort to define the key measurements from the demand and the supply-sides on the specific aspects related to ‘inclusive green finance’ and the 4Ps (provision, promotion, prevention, and protection) determining what and how should policymakers and other stakeholders measure its impact, and the role of climate data in financial regulation and policy making.

Planned deliverable: 1) Special Report on Measuring Inclusive Green Finance. Published November 2022. Adoption phase of the knowledge product. 2) Producing a publication on relevant case studies among the AFI network on measuring the three main aspects on Inclusive Green Finance including climate risk-assessment indicators, inclusive green finance funding sources, and inclusive green finance products and services penetration.

RegTech Taskforce for Financial Inclusion Data

Regulatory Technology (RegTech and Supervisory Technology (SupTech) including the automation and data-driven analysis of internal control systems (compliance, risk management, audit) and internal and external reporting are now essential tools allowing both authorities and regulated institutions to lower the costs of regulatory compliance and increase the quality of information for timely policy decision-making. FIDWG is focusing in identifying the adoption and adaptation of applicable and appropriate RegTech or SupTech solutions and processes, methods, and tools for regulatory reporting, compliance, and mandated regulatory objectives including financial inclusion related policies.

Planned deliverable: 1) Guideline Note on Regtech for Financial Inclusion data by 2023. 2) Develop and publish a Guideline Note on the use of RegTech and SupTech for financial inclusion data.

Financial Health

According to the UNSGSA, the definition or concept of Financial Health is “the extent to which a person or family can smoothly manage their current financial obligations and have confidence in their financial future”. This concept has gained global attention and interest from development institutions, policymakers and financial service providers as an overall goal or objective to promote among society, households, and individuals. The concept linked with financial inclusion, financial capabilities and other developmental policies is currently being analyzed by FIDWG to identify and define practical and consistent measurements and indicators for financial inclusion policymakers and regulators.

Planned deliverable: 1) Special Report on Measuring Financial Health. 2) Develop and publish a Special Report on Measuring Financial Health including inputs from CEMC on related issues from financial capability and consumer protection.

SME Financial Inclusion Data

FIDWG jointly with SMEFWG formulated and published the MSME data Policy Framework as a critical aspect to measure and track MSME finance policies from the financial inclusion perspective. The Subgroup is now focusing on identifying used cases and case studies to test and use the policy framework in benefit of SME policy formulation and implementation. An adoption phase for this important workstream is being implemented by the FIDWG Subgroup with the aim to test and adapt these measurements and indicators and then promote a wide adoption of them.

Planned deliverable: 1) MSME data Policy Framework, published December 2021. Adoption phase. 2) Sharing cases to enhance the adoption of the MSME finance data policy framework published last year.

Maya Declarations

Member institutions are increasingly making Maya Declaration commitments that fall under FID’s mandate. As of 2020, 116 commitments have been set that aim to improve the measurements and indicators for assessing financial inclusion. Form these 57 percent have already been completed.

Primary thematic area

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Consumer Empowerment  and Market Conduct

Consumer Protection

Financial Literacy and Financial Education

Maya Declaration targets

Completed

In progress

Completion rate

55%

52%

54%

53%

48%

49%

40,1%

38%

39%

44%

46,5%

FIDIWG & Gender

In line with the updated Denarau Action Plan, AFI members are committed collecting, analyzing and leveraging sex-disaggregated data (SDD) to promote greater women’s financial inclusion. SDD not only provides data on the level of financial inclusion by gender, but also informs development of evidence-based financial inclusion policies and regulations. In addition, it helps track the effectiveness of the efforts made to address barriers faced by women in access to finance.

While AFI members recognize the importance of collecting and analyzing SDD in designing and implementing policy interventions that increase women’s financial inclusion, gaps relating to data reporting still remain. It is critical for the AFI network to continue collaborating with private and public sector players to recognize the value of collecting and analyzing SDD to develop financial products and services that meet

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