Despite a broad recognition that increased access to financial services can bring significant benefits to the poor, catalyzing economic development, financial inclusion in emerging markets and developing economies continues to lag far behind expectations. While a large number of countries have implemented policy changes to advance digital financial inclusion, results have been mixed. To that end, we are developing a first-ever DFS decision-making tool, A Decision Tree for Improving Financial Inclusion - an analytical framework that allows a systematic identification of the most problematic constraints for financial inclusion in country-specific settings.
CGD Policy Blogs
Here at CGD, we’re always working on new ideas to stay on top of the rapidly changing global development landscape. Whether it’s examining new technologies with the potential to alleviate poverty, presenting innovative ways to finance global health, assessing changing leadership at international institutions, or working to maximize results in resource-constrained environments, CGD’s experts are at the forefront of practical policy solutions to reduce global poverty and inequality. Get an in-depth look below at their thoughts on the 2018 global development landscape.
What's going to happen in the world of development in 2018? Will we finally understand how to deal equitably with refugees and migrants? Or how technological progress can work for developing countries? Or what the impact of year two of the Trump Administration will be? Today’s podcast, our final episode of 2017, raises these questions and many more as a multitude of CGD scholars share their insights and hopes for the year ahead.
The difficulties encountered by emerging markets’ regulators in balancing socially desirable innovations and possible risks are accountable for the slow development of fintech regulations in these economies. To address these problems, the framework developed in CGD’s report, Financial Regulations for Improving Financial Inclusion can support regulators’ efforts. This approach, based on three main principles, encourages the private sector to successfully adopt and adapt digital finance solutions for low-income populations while circumventing risks.
CGD continued its commitment to the subject of financial inclusion with the release this March of Financial Regulations for Improving Financial Inclusion. As co-chairs of the Task Force that produced this report, we are enthused to see much alignment between the High-Level Principles of the G20 and the CGD Task Force report.
Financial inclusion is a key development focus in Turkey’s agenda for the G-20 summit beginning this weekend (November 15). I am pleased to note that the international community’s efforts to broaden financial inclusion have continued to gain momentum since the 2010 G-20 Summit in Seoul, where the leaders of G-20 endorsed the Financial Inclusion Action Plan. The plan was built on the G-20 Principles for Innovative Financial Inclusion, which reinforced earlier recommendations in a 2009 report by CGD, Policy Principles for Expanding Financial Access.
Kenya has instituted a new tax that affects users of M-Pesa -- a widely popular phone-based money transfer service used by more than half of Kenya’s adult population. The new 10 percent excise duty on fees charged for money transfer services applies to mobile phone providers, banks, and other money transfer agencies. Operated by Safaricom, the largest mobile network operator in Kenya, M-Pesa accounts for the largest share of users of money transfer services. Users of M-Pesa products will therefore bear most of the impact of the tax.