G20 Development Working Group Submissions
FINANCIAL INCLUSION
More than two billion adults are excluded from
financial services and hundreds of millions of small
and medium-sized enterprises (SMEs) face serious
constraints on accessing finance. Financial inclusion
is fundamental to: improving the livelihoods of the
poor; supporting SMEs; driving job creation and
inclusive sustained growth; and increasing resilience.
For this reason, G20 Leaders incorporated it as a
pillar within the Seoul MYAP on Development.
Three overarching commitments were adopted in
the Financial Inclusion Pillar. First, to establish a
global partnership for financial inclusion "to provide
a systematic structure for implementing the G20
Financial Inclusion Action Plan in close collaboration
with the Alliance for Financial Inclusion (AFI), the
Consultative Group to Assist the Poor (CGAP),
and the International Finance Corporation (IFC)."
Second, the G20 would conduct an SME Finance
Challenge and provide a finance framework in
order to "mobilize grant and risk capital for winning
proposals from the SME Finance Challenge and
for scaling up successful SME financing models."
Finally, the G20 committed to implementing the
Financial Inclusion Action Plan.
This work has been taken forward through the
Global Partnership for Financial Inclusion (GPFI). It
was launched in Seoul, Korea, on 10th December
2010 as "an inclusive platform for all G-20
countries, interested non-G20 countries and relevant
stakeholders" to carry forward work on financial
inclusion, including implementation of the Financial
Inclusion Action Plan endorsed by the G20 Summit
in South Korea.
The first GPFI meeting held in Seoul in December
2010 established three subgroups: Principles
for Innovative Financial Inclusion and Standard-
Setting Bodies (SSBs) Engagement; SME Finance;
and Financial Inclusion Data and Measurement.
The GPFI has the G20 troika as co-chairs and
implementing partners: the AFI, CGAP, IFC and
World Bank. Its Honorary Patron is H.M. Queen
Máxima of the Netherlands.
Saint Petersburg Accountability Report on G20 Development Commitments
42
Chapter 2
Implementation of G20 Commitments
on Development
Financial Inclusion Success Story
Developing a national strategy on financial inclusion
is an important step that can start the accountability process
and create monitoring mechanisms. Implementation of these
strategies may result in stronger financial stability and economic
growth.
Since 2009, G20 Leaders have reiterated their
commitment to financial inclusion and recognized the benefits
of universal access to diverse financial services for individuals
and enterprises. They endorsed an Action Plan, and created the
GPFI to provide G20 and non-G20 countries with an inclusive
platform for peer learning, knowledge sharing, policy advocacy
and coordination on financial inclusion for relevant stakeholders.
The Mexican G20 Presidency launched an initiative
building on this momentum to galvanize and support countries
even more. Over 40 countries have set national goals and
targets of financial inclusion in the last 2 years, including
through the G20 Financial Inclusion Peer Learning Program and
the Maya Declaration of the Alliance for Financial Inclusion.
Each committed to creating cross-sector national coordination
mechanisms and preparing national strategies to achieve
financial inclusion according to their country context, to be
backed by good data. They also committed to sharing their
experience, as part of the G20 Financial Inclusion Peer Learning
Program.
The countries' commitments are already paying
dividends. In October 2012, Nigeria launched its National
Strategy for Financial Inclusion. The strategy sets the ambitious
targets of 70% access to payments and 60% access to savings
accounts. In doing so, Nigeria joins Brazil, which launched
a National Action Plan for Strengthening the Institutional
Environment in May 2011. Chile, Tanzania, Mexico, and
Rwanda are among other countries preparing national strategies.
In 2013, a 4th sub-group on Financial Literacy and
Financial Consumer Protection was established and
the OECD became a new implementing partner. The
GPFI implements and coordinates financial inclusion
activities with other relevant stakeholders and the
6 The work under the Financial Inclusion Pillar has been taken
forward through the GPFI. The GPFI has the G20 troika as co-
chairs and implementing partners, such as the AFI, CGAP, IFC,
OECD and World Bank involved.View entire presentation