G20 Development Working Group Submissions slide image

G20 Development Working Group Submissions

Alignment with Core G20 and DWG Mandate Whilst work around the data is technical, it may have important ramifications in terms of better equipping policy-makers in order to develop specific and targeted policy measures to advance financial inclusion. Work on data contributes to the G20's broader objectives of financial inclusion and in turn to economic growth and poverty reduction. COMMITMENT 36: Adopt the G20 Financial Inclusion Action Plan, including by strengthening and expanding data availability for measuring financial inclusion Implementation 1456 The objective of this work is to develop a set of financial inclusion indicators based on data already available through robust ongoing data surveys or data which could be obtained relatively easily (e.g. from the AFI, IMF). Both individuals and enterprises are considered in the development of the set of indicators, but with particular emphasis on lower- income individuals and smaller SMEs. It is intended that the results can be widely used and tailored to different types of country-specific policy needs. To this end, the indicators had to be broken down further to focus on women, young adults and certain income categories. The first phase in this work was to develop a Basic Set of Indicators to cover the core financial services of savings accounts and credits, and outreach through branches. The second phase, currently underway, is to expand the coverage of the Basic Set to include a complete set of G20 financial inclusion indicators covering all basic products, the appropriate use of these products, physical as well as electronic and mobile reach, with indicators also reflecting the state of financial literacy and consumer protection. In addition, policy documents - Financial Inclusion Data: Assessing the Landscape and Country-level Target Approaches and Financial Inclusion Target- Setting Assessment: Findings and Recommended Approach (Phase 1) - have been produced, which contribute to wider work on financial inclusion around the world. Lessons Learned across Financial Inclusion Pillar On data, it is important that the endorsed indicators should be obtained from and rely on existing data sources that contain the following features: (1) statistical robustness and strong methodology supported by established institutions; (2) wide coverage of countries (i.e. not limited to a few studies, coverage has to reflect a significant share of the world); (3) continuity (the source cannot be a one-off data study, but a continuous, frequent survey that will allow for a historical trend analysis). On SSBs, the challenges of applying international standards and guidance to countries with limited institutional capacity are increasingly recognized. It is important to do more in such contexts to support appropriate, proportionate and effective country-level implementation. The principal global SSBs have by now appropriately aimed for flexibility to be applied across a wide range of country contexts. But their advisory guidance has yet to be consistently reflected in widely varying situations with country-level policy-makers, regulators and supervisors, and in specific challenges faced by countries with higher current levels of financial exclusion and lower levels of regulatory and supervisory capacity. 45
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