Pdf financial inclusion strategies reference framework. In june 2012, revised guidelines on financial literacy centres flcs. Financial inclusion, the development of novel methods to enable individuals at the base of the pyramid to access formal financial services and become part of the formal financial system, is considered a key prerequisite for lifting these populations out of poverty and for driving economic growth. The group is dedicated to supporting afi members in fulfilling commitments to the maya declaration and the g20 financial inclusion peer learning program. National partnership for financial inclusion it is a network of public and private actors engaged in coordinated efforts to promote appropriate. Pdf on jun, 2012, douglas pearce and others published financial inclusion. Pdf a study on status of financial inclusion in india. Determinants of financial inclusion in mexico based on the. Financial inclusion can help reduce poverty and inequality by helping people invest in the future, smooth their consumption, and manage financial risks. Financial inclusion strategies can be defined as road maps of actions, agreed and defined at the national or subnational level, that stakeholders follow to achieve financial inclusion objectives. For example, bateman 2012 has criticized financial inclusion as emerging new label and considered it mere rebranding of microfinance. In order to identify the relevant factors, we have built financial inclusion indicators using the multiple correspondences.
Launched in 2011, it includes more than 100 financial inclusion indicators in a format allowing users to compare access to financial services among adults worldwide including by gender, age and household income. The same is true for senegals plan senegal emergent 2035, which details financial inclusion objectives but does not go beyond that to meet the more specific requirements of a financial inclusion strategy. Guidance on the application of the core principles for effective banking supervision to the regulation and supervision of institutions relevant to financial inclusion issued for comment by 31 march 2016. Financial services that unbanked and underbanked households rely. We proudly present the va diversity and inclusion strategic plan for fy 20172020. Initial work has been done to assess the state of financial inclusion in the philippines, leveraging on datasets derived from regulatory reports provided by supervised institutions to the bsp, and on readily available information as of endyear 2011.
In doing so, this publication provides a comprehensive definition of financial inclusion and discusses issues related to measurement. This reference framework overview was prepared by the financial inclusion practice of the world bank. The world bank group plays a critical role in advancing financial inclusion in the world since it can leverage its financial sector expertise, country engagement and dialogue, financing and risksharing instruments, unique datasets and research capacity. An empirical study of financial inclusion and its strategic approach in the slums of mumbai by ramraj t. This paper provides the first analysis of the global financial inclusion global findex database, a new set of indicators that measure how adults in 148 economies save, borrow, make payments, and manage risk. The survey, which included comparisons to a similar survey conducted in 1997, found that americans with a personal financial plan feel more confident and report more success managing money, savings and investments than those who have not prepared a financial plan. Financial inclusion in india an assessment1 overcoming poverty is not a gesture of charity.
This paper explores the factors determining financial inclusion in mexico from the demand side, based on information from the 2012 national financial inclusion survey enif in the spanish acronym. Strategies for womens financial inclusion in het c. The g20 made the topic one of its pillars at the 2009 pittsburgh summit g20 2009. The strategy articulated the demandside, supplyside and regulatory barriers to. It is the protection of a fundamental human right, the right to dignity and a decent life. Financial inclusion is defined as the availability and equality of opportunities to access financial services. The global findex database is the worlds most comprehensive set of data on how people make payments, save money, borrow and manage risk. Sangeetha, kapil sai koushik abstract the unbanked population is a sizeable market at the base of the pyramid. The national partnerships objectives are described below.
Afi is the worlds leading organization on financial inclusion policy and regulation. Bsp constitutes a highlevel inclusive finance steering committee. Financial inclusion is where individuals and businesses have access to useful and affordable financial products and services that meet their needs that are delivered in a responsible and sustainable way. The g20 financial inclusion action plan fiap is one of the most important guiding documents for the financial inclusion movement. Integrity, commitment, advocacy, respect, and excellence. Appendix 1 knowsley financial inclusion forum membership. Role of banks in financial inclusion in india sciencedirect. Global journal of management and research october december 2012 page 1 profitable models for financial inclusion. Basel committee on banking supervision consultative document.
Adults around the world and in all income groups use an array of different financial services. Current situation of financial inclusion in india and its. Rather, the aim of expanding financial inclusion is to provide more households with access to safe and affordable financial services. The maya declaration is first commitment platform that enables afi members to set. Pdf recentpast financial inclusion has been emerging as priority for. I congratulate the g20 global partnership for financial inclusion for this new edition, which provides vital recommendations for countries in the g20 and beyond as they move rapidly to expand. The new microfinance handbook reflects a lesson we learned many years agothat sharing knowledge and best. Center for financial inclusion publication 12 opportunities and obstacles to financial inclusion the center for financial inclusion pursues the proposition that lowincome people deserve highquality financial services and that these services can best be provided through commercial models that incorporate social purpose. The central bank of nigeria cbn adopted the national financial inclusion strategy nfis in 2012. National partnership for financial inclusion l inclusion. Financial inclusion and global regulatory standards. Financial inclusion in asia asian development bank.
In 2012, 65,000 youth in 8 countries in subsaharan africa received financial literacy training through uncdfyouthstart. Rangarajan, 2008 setting up of a national rural financial inclusion plan with a target of providing access to financial services to at least 50 per cent of excluded rural households by 2012 and the remaining by 2015 encouraging shgs in excluded regions, measures for urban micro. Through this paper an attempt has been made to provide an overview on status of financial inclusion in india in past few years. Interview with queen maxima in the munich re foundation annual report 2012. We do so under the guiding principles of our icare values. A memberowned network, we promote and develop evidencebased policy solutions that improve the lives of the poor through the power of financial inclusion. The world bnak recently developed financial access by the end of twenrttwenty and also the government of india embrace specific policies for. The data, which measures accessibility, use, and quality of financial services, can be used by countries to support their financial inclusion goals. The journey from microfinance to financial inclusion began in earnest when we understood that clients need diverse services such as savings, payments, and insurance, as well as loans.
Report of the financial inclusion in india chairman. Those that promote financial inclusion argue that financial services can be. Mobile banking and mobile money adoption for financial. Financial inclusion forum4, the financial subjectthe ultimate goal of efforts aimed at increasing financial inclusion is not simply a rise in the share of households that rely on services provided by banks. In particular, the world bank, afdb and imf publications on financial inclusion6. Given the rapidly increasing range of products and service providers, a key supervisory concept is proportionality calibrating regulatory and supervisory approaches according to financial inclusion indicators, 2004 and 2012 graph 4.
We are united in our resolve to promote growth and jobs. Board approved financial inclusion plan fips to be rolled out by banks over the next three years. The g20 financial inclusion indicators assess the state of financial inclusion and digital financial services, nationally and globally. The financial inclusion initiatives of the bsp are focused on the major areas of 1 policy, regulation and supervision, 2 financial inclusion data, 3 financial education and consumer protection, and 4 financial inclusion advocacy. Know your customer manual for banks and other financial institutions. Successful strategies coordinate efforts with the main. However, for these kinds of initiatives to achieve greater. The plan focuses on reviving agriculture, raising investment in infrastructure, and improving skills. Financial inclusion facilitates the poor and disadvantaged section of society with a right to access the basic financial services such as savings, credit, insurance, transfer and. The work on national strategies for financial education was launched in 2009 as an integral part of the oecd project on financial education, as a complement to financial consumer protection and inclusion measures with a view to strengthening financial stability and development.
Financial inclusion and monetary policy in emerging asia. In 2008, the alliance for financial inclusion afi was founded as a peer exchange body for regulators from developing countries. Indeed, financial inclusion has been suggested to be a tool for addressing critical issues of persistent poverty and underdevelopment alliance for financial inclusion 2012, p. Financial inclusion is achieved when adults 1 have easy access to a broad range of financial. A multidimensional index 4 indicators by choosing the weighs exogenously, based on researchers intuition. The comments of the mid term report has been very helpful in shaping up. Also, financial inclusion drives over indebtedness and lacks demonstrable poverty impact duvendack et al.
The g20 first agreed to pursue a financial inclusion agenda in 2008, and in 2010 it established the global partnership for financial inclusion to carry the agenda forward. The main gpfi priorities in 2020 will be 1 formulating highlevel policy guidelines on digital financial inclusion for youth, women and smes and supporting reports. Banks can reach out to the underprivileged sections of society by partnering with governments and making financial services available at a nominal cost. The relationship between financial inclusion and gdp. G20 fukuoka policy priorities on aging and financial inclusion. Global findex sample report having used a mobile phone. As an example, financial inclusion has been a driving force behind financial innovation cpss 2012. The breadth of financial inclusion in a region of a country is usually measured by the percentage of. The objective of the financial inclusion strategy fis peer learning group is to create a platform for afi members to develop and implement national financial inclusion strategies. Financial inclusion in africa african development bank.
Rbi defines financial inclusion as a process of ensuring access to. Nadar in indian journal of management it and engineering, volume 3, issue 2 issn. Pdf global journal of management and research october. Alliance for financial inclusion bringing smart policies. This underscores the importance of access to finance for economic growth and the promotion of income equality e. Since we last met, the global recovery has continued to face a number of challenges.
Read a summary of the report pdf, 261kb read the full survey report pdf, 670kb. Catalyst for financial inclusion bank the unbanked with digital channels c. Global financial development report 2014 contents vii 1. Financial inclusion is defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost rangarajan, 2008 in the report of the committee on financial inclusion in india.