Bringing Smart Policies to Life
Overview
•
AFI at a glance
•
Why we were created
•
How we add value
•
AFI in more detail – strategic focus, progress & outlook
AFI at a glance
•
AFI is a global network of policymakers in developing countries.
•
We provide our members with the tools and resources to share, develop
and implement their knowledge of cutting-edge financial inclusion policies
that work.
•
Founded in 2008, officially launched September 2009: Our goal is to
support developing country knowledge exchange on financial inclusion
policy that will enable an extra 50 million people living under the poverty line
to have access to formal financial services by 2012.
•
As of 2010, AFI has members from Central Banks and leading financial
regulatory institutions in over 40 countries, with institutions from an
additional 40 countries also showing interest to join.
– This represents nearly 90% of the world’s unbanked population.
Why we were created
•
Greater financial access is in everyone’s
economic and social interest (win-win)
•
The scale of the opportunity is huge,
especially in today’s economic climate
•
Solutions are already there - need to be shared
The scale of the opportunity is huge
About half of the world’s population (~2.5 billion) is “unbanked”
% of households without
access to financial services
>80%
60-80%
40-60%
20-40%
<20%
Source: World Bank Composite Measure of Access to Finance 2007, AFI visual modification.
Knowledge of the solutions is scattered across
the globe
Developing countries have pioneered many of the most innovative solutions
Peru:
Consumer Protection
Thailand:
Public bank reform
Malaysia:
Consumer
Protection
Mexico:
Public bank reform
Brazil:
1. Agent-banking
2. Public bank reform
Bolivia:
Diversifying products
and providers
(FFP decree)
South Africa:
1. M-banking
2. Consumer
Protection
Kenya:
M-banking
Uganda:
Diversifying products
and providers
(MDI law)
India:
Public bank reform
Philippines:
M-banking (G-Cash,
Smart Money)
Indonesia:
1. Public bank reform
2. Diversifying products
and providers (BPR)
Policymakers face a bewildering choice of
partners
Nearly 200 financial inclusion players: who to use and when?
How AFI adds value
We bring together all the pieces of the puzzle
•
We connect the knowledge…resources …and the
right strategic partners at the right time
•
… so that policymakers can select, develop and
implement the best solutions for their countries’
individual circumstances.
•
In short, we optimize the flow and quality of
knowledge, enabling policymakers and partners to
optimize the impact of their resources.
What we do
•
Enable policymakers in developing countries to share and develop
their knowledge of cutting-edge policies that deliver tangible results
– Online and face-to-face meetings (regional and global)
– All learnings captured centrally so others can benefit
– Focused on evidence-based policy areas
•
Provide policymakers with grants to develop and implement their
chosen solutions
– Short-term grants: e.g. diagnostic studies, drafting regulations
– Longer-term grants: e.g. implementation and impact assessment
•
Connect policymakers with the right partners across the value chain
– From research institutes (e.g. NYU) and technical experts (e.g. CGAP)
to funders (e.g. World Bank) and the private sector (e.g. GSMA)
AFI in more detail
•
Facts & figures
•
Members
•
Policy focus
•
Knowledge exchange
•
Grants
•
Strategic partners
Facts & figures
Established
• September 2008
Funding source
• Bill & Melinda Gates Foundation
Total Budget
• $35M over 4 years
Number of Grants
• 21 long-term grants
• 44 short-term grants
Time frame
• Sept 2008 – Sept 2012 (phase one)
Geographic reach
• Developing countries around the globe
Location
• Bangkok, Thailand
AFI Members
Uzbekistan
Iraq
Russia
Syria
Lebanon
Palestine
Tunisia
Mexico
Guatemala
Honduras
El Salvador
Nicaragua
Costa Rica
Panama
Mongolia
Kyrgyzstan
Morocco
Jordan
Dominican
Mali
Algeria
Republic Senegal
Niger
Burkina Faso
Guinea
Sierra-Leone
Togo
Cote
Colombia
D‘Ivoire Benin
Peru
Brazil
Bolivia
Nigeria
Ghana Cameroon
Uruguay
Gabon
Congo
Namibia
China
Nepal
Egypt
Sudan
Yemen India
Ethiopia
Sri
Uganda
Lanka
Kenya
Rwanda
Burundi
Maldives Indonesia
Madagascar
Thailand
Tanzania
Malawi
Mozambique
Zambia
South
Africa
DR Congo
Official AFI members
In the process of joining
Malaysia
Afghanistan
Pakistan
Bangladesh
Laos
Vietnam
Cambodia
Tajikistan
Philippines
Papua New Guinea
Tuvalu
Solomon Islands
Vanuatu
Samoa
Fiji Tonga
Timor-Leste
Policy focus
Support all effective, evidence-based policies. Focused set including:
Channels
Enablers
Financial identity
Facilitate building and use of
financial identities for poor clients
Agent banking
Enable non-bank agents to
provide financial services
Mobile phone financial services
Increase access to financial
services through mobile
technologies
Formalizing Micro-savings
Facilitate adoption of new
providers and products for
promoting micro-savings
Consumer protection
Promote policies that provide
adequate consumer protection and
education in financial services
New policy areas will be
added as fresh evidence
emerges.
Public bank reforms
Enable state owned institutions to
effectively provide financial services to
the poor
Data & measurement
Facilitate increase and improvement
financial inclusion data – critical for
devising evidence-based policy
Knowledge exchange
Online and face-to-face, aided by grants
Face-to-face exchanges
Global activities
Regional activities
Working
interactions
South-south
exchange
Policy
champion
pools
Regional
working
groups
Knowledgesharing
forums
Global policy
forum
Global
seminars per
policy area
Regional
access
conferences
Publications
Publications
and
presentations
Online exchanges
National
activities
Peer
reviews
National
seminars
Discussion
forums
Web
conference
Online
database
Policy help
desk/Blog
E-newsletter
Research
Papers/Policy
briefs
AFI Grants
Short-and long-term, covering the full policy cycle
Knowledge Exchange
• Regional seminars
• Study tours
• Peer reviews
Grant to Treasury of
Pakistan for short-term
assistance for drafting
mobile phone banking
regulation
Grant to the Russian
Microfinance Center for
Russian policymakers to visit
Brazil to learn about agent
banking and its regulations
AFI
Grants
Short-term
Long-term
• Diagnostic studies
• Draft regulations
• Training
• Develop and
implement new
regulations
• Impact
assessments
Grant to Bank
Indonesia for
developing innovative
financial identity
policy for the poor
Grants
An effective and impartial, end-to-end process
Example: Long-term grant
Approved
Discussions
with policy
makers
Potential
grantee
prepares
concept
note
Internal panel
reviews
concept note
Potential first
tranche
(up to 20k)
distributed
Approved
Applicant
develops
proposal with
assistance
from program
manager
Internal panel
appraises
project
proposal
Grant
assessment
panel reviews
proposal
Conditional
Rejected
“Light
process”
- maximum 5
pages
No go
Grant
approved and
next tranche
disbursed
Strategic partners
Support across the value chain, from policy design to implementation
Research partners
E.g. CENFRI,
University of
Chicago, Yale,
Finmark, Harvard,
NYU, FAI, OPM
Donors/Technical
assistance
E.g. DFID, CGAP,
BMZ/GTZ, USAID,
World Bank, AFD,
JICA
AFI
Policymakers
Standard
setters
E.g. BIS,
FATF, IAIS
Private sector
E.g. ABAC,
GSMA, Omidyar
Network, Vodafone
Microfinance
industry
E.g. Accion, FINCA,
Grameen, SEEP
Progress & outlook
•
Milestone - Global Policy Forum 2009
•
Progress
•
Moving forwards
The first gathering of our members & strategic
partners
AFI Global Policy Forum 2009
Concept
• Following the value chain of financial inclusion
policy-making
• Knowledge-sharing among policymakers
• Practical solutions
• Innovative, interactive, member-driven
At the Forum
•Over 80 policymakers from 37 countries
•High-level speakers and participants (Prime
Minister, Governors, Deputy Governors etc.)
•80 strategic partners
•Active engagement & intense discussions
•Positive feedback on the Forum (99% satisfied)
•Very supportive of AFI and our new approach
Progress so far
Key orientation for 2009: Building AFI and its Network
•
Organizational structure in place
– Steering Committee members appointed: Kenya, Mexico, Philippines, Thailand
– Management unit in Bangkok
•
Well-developed operational systems
– Grant-making procedure established
– Interactive web site and online network platform under development
•
Rapidly expanding membership base
– Central banks and regulatory institutions from 40 countries have already joined*
– Institutions from additional 40 countries have shown interest to join
•
Variety of grants already approved
– E.g. Kenya-Brazil, Afghanistan-Philippines knowledge-exchange grants
– First long-term concept note approved for Russia on agent banking
– More grants in pipeline
•
Growing AFI profile
– Network has gained global recognition, resulting in active involvement in a number of highlevel processes (including G20)
Moving forward
Key orientation for 2010: Activating the network and delivering services
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AFI working groups to be launched
− 4 working groups identified so far (M-banking, Pacific, AML/CFT, and Financial Inclusion data)
•
AFI web site revamp and online network platform launch
– Online platform will provide members with a range of knowledge sharing and connecting
features
•
AFI Policy Notes and Policy Briefs
− Notes and briefs on policy focus topics will be launched; policymakers invited to contribute
•
AFI Policy Champion Program to be launched
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M& E system established, grant programs fully in place
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AFI Membership Needs Assessment and Financial Inclusion Policy surveys launched
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Contribution to the G-20 Working Group on Financial Inclusion Experts Group/ATISG
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Next Global Policy Forum: September 2010
• Will be shaped and driven by policymakers; practical, interactive, results-oriented
Thank you!
Alfred Hannig
[email protected]
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policymakers in developing countries