Digital Financial Services (DFS) are transforming the landscape for financial inclusion. The widespread adoption of mobile technology is bringing financial services to hard-to-reach and previously excluded populations. Digital payments, savings, loans and transfers are making financial services more efficient and more affordable. Through AFI’s DFS Working Group, knowledge products, and peer exchanges, we explore how policymakers can take advantage of the rise of technology to advance financial inclusion, while protecting consumers from emerging risks.

Data

Data is an essential building block of any financial inclusion strategy. Without access to accurate data, policymakers cannot design effective policies which effectively address the barriers which excluded populations face. Financial inclusion is hard to quantify (it goes far beyond access), and information on users’ needs can be challenging to obtain. Through AFI’s Data Working Group, knowledge products, and peer exchanges, we aim to fill this critical evidence gap, helping our members to formulate effective policies.

Consumer Empowerment

Ensuring that consumers have access to convenient, safe and high-quality financial products, that they are empowered to make smart financial decisions, and are treated fairly by financial service providers, is a top priority for AFI members. Through our Consumer Empowerment and Market Conduct Working Group and other activities, AFI works to promote financial literacy, to protect consumers from risk, to ensure that historically excluded groups can benefit from financial services, and to promote and stimulate healthy market competition.

Financial Inclusion Strategy

AFI members’ experience has shown that national financial inclusion strategies (NFIS) have the potential to significantly accelerate progress. Devising and implementing an effective NFIS is challenging, however, given the need to take account of a multitude of economic, demographic, social, cultural and geographical dimensions. Through AFI’s financial inclusion strategy workstream and peer learning, we help countries to develop, implement, monitor and evaluate their national financial inclusion strategies.

Inclusive Green Finance

Around the world, climate shocks are impacting central banks’ core mandate of ensuring price and financial stability. Financial inclusion has proven an effective way for countries to adapt to, and build resilience against, the impacts of climate change. AFI’s Inclusive Green Finance workstream helps central banks and financial regulators to devise green and climate-friendly policies, to green the financial sector, to protect vulnerable groups, and to accelerate the transition to a sustainable future.

Global Standards Proportionality

Global standards for financial stability and integrity are critical to ensuring safe and sound financial systems, but their implementation needs to be proportionate, risk-based and without unintended consequences for the promotion of financial inclusion. Through our Global Standards Proportionality Working Group and our engagement with standard-setting bodies, AFI supports members to implement global standards for financial stability and financial integrity proportionately and without unintended negative consequences for financial inclusion.

SME Finance

Micro, small and medium enterprises, representing about 90 percent of businesses globally, play a vital role in job creation and poverty alleviation. Often, however, their growth is hampered by constrained access to finance. AFI’s SME Finance Working Group shares knowledge and experience to allow members to develop policies which create a better financing landscape for small businesses, and which build entrepreneurs’ financial literacy.