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    Financial Inclusion Principles

    Uploaded by

    Sarthak Garg
    The document outlines 9 principles for improving access to financial services for poor people through innovative approaches: 1) Leadership from government to alleviate poverty, 2) Promoting competition through diversity of affordable services and providers, 3) Encouraging technological and institutional innovation, 4) Comprehensive consumer protection, 5) Financial literacy and capability development, 6) Coordination across stakeholders, 7) Evidence-based policymaking through improved data, 8) Proportionate regulation based on risks and gaps, and 9) An appropriate regulatory framework reflecting standards and circumstances. These principles aim to spur innovation for inclusion while protecting stability and consumers in different country contexts.

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    Financial Inclusion Principles

    Uploaded by

    Sarthak Garg
    23 views1 page
    The document outlines 9 principles for improving access to financial services for poor people through innovative approaches: 1) Leadership from government to alleviate poverty, 2) Promoting competition through diversity of affordable services and providers, 3) Encouraging technological and institutional innovation, 4) Comprehensive consumer protection, 5) Financial literacy and capability development, 6) Coordination across stakeholders, 7) Evidence-based policymaking through improved data, 8) Proportionate regulation based on risks and gaps, and 9) An appropriate regulatory framework reflecting standards and circumstances. These principles aim to spur innovation for inclusion while protecting stability and consumers in different country contexts.

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    The document outlines 9 principles for improving access to financial services for poor people through innovative approaches: 1) Leadership from government to alleviate poverty, 2) Promoting competition through diversity of affordable services and providers, 3) Encouraging technological and institutional innovation, 4) Comprehensive consumer protection, 5) Financial literacy and capability development, 6) Coordination across stakeholders, 7) Evidence-based policymaking through improved data, 8) Proportionate regulation based on risks and gaps, and 9) An appropriate regulatory framework reflecting standards and circumstances. These principles aim to spur innovation for inclusion while protecting stability and consumers in different country contexts.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    23 views1 page

    Financial Inclusion Principles

    Uploaded by

    Sarthak Garg
    The document outlines 9 principles for improving access to financial services for poor people through innovative approaches: 1) Leadership from government to alleviate poverty, 2) Promoting competition through diversity of affordable services and providers, 3) Encouraging technological and institutional innovation, 4) Comprehensive consumer protection, 5) Financial literacy and capability development, 6) Coordination across stakeholders, 7) Evidence-based policymaking through improved data, 8) Proportionate regulation based on risks and gaps, and 9) An appropriate regulatory framework reflecting standards and circumstances. These principles aim to spur innovation for inclusion while protecting stability and consumers in different country contexts.

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    Principles for Innovative Financial Inclusion

    Innovative financial inclusion means improving access to financial services for poor people
    through the safe and sound spread of new approaches. The following principles aim to help
    create an enabling policy and regulatory environment for innovative financial inclusion. The
    enabling environment will critically determine the speed at which the financial services access
    gap will close for the more than two billion people currently excluded. These principles for
    innovative financial inclusion derive from the experiences and lessons learned from policymakers
    throughout the world, especially leaders from developing countries.

    1. Leadership: Cultivate a broad-based government commitment to financial inclusion to


    help alleviate poverty.

    2. Diversity: Implement policy approaches that promote competition and provide market-
    based incentives for delivery of sustainable financial access and usage of a broad range of
    affordable services (savings, credit, payments and transfers, insurance) as well as a
    diversity of service providers.

    3. Innovation: Promote technological and institutional innovation as a means to expand


    financial system access and usage, including by addressing infrastructure weaknesses.

    4. Protection: Encourage a comprehensive approach to consumer protection that


    recognises the roles of government, providers and consumers.

    5. Empowerment: Develop financial literacy and financial capability.

    6. Cooperation: Create an institutional environment with clear lines of accountability and


    co-ordination within government; and also encourage partnerships and direct
    consultation across government, business and other stakeholders.

    7. Knowledge: Utilize improved data to make evidence based policy, measure progress,
    and consider an incremental “test and learn” approach acceptable to both regulator and
    service provider.

    8. Proportionality: Build a policy and regulatory framework that is proportionate with the
    risks and benefits involved in such innovative products and services and is based on an
    understanding of the gaps and barriers in existing regulation.

    9. Framework: Consider the following in the regulatory framework, reflecting international


    standards, national circumstances and support for a competitive landscape: an
    appropriate, flexible, risk-based Anti-Money Laundering and Combating the Financing of
    Terrorism (AML/CFT) regime; conditions for the use of agents as a customer interface; a
    clear regulatory regime for electronically stored value; and market-based incentives to
    achieve the long-term goal of broad interoperability and interconnection.

    These principles are a reflection of the conditions conducive to spurring innovation for financial
    inclusion while protecting financial stability and consumers. They are not a rigid set of
    requirements but are designed to help guide policymakers in the decision making process. They
    are flexible enough so they can be adapted to different country contexts.

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