Financial
Inclusion
Day
Moderator
Gaiv Tata, Financial Inclusion Practice and Africa FPD Director, The
World Bank Group
Speakers
Fabiano Coelho, Financial Inclusion Expert, Banco Central do Brasil
Modupe Ladipo, CEO, EFINA
Niraj Verma, Senior Financial Sector Specialist, The World Bank Group
Yoko Doi, Financial Specialist, The World Bank Group
David Porteous, Managing Director, Bankable Frontier Associates
FINANCIAL INCLUSION STRATEGIES
Douglas Pearce
Financial Inclusion Practice Manager
FPD Forum
November, 2012
Wave of Financial Inclusion Commitments – 35 through AFI and G20
G 20
Non G20 Africa
Non G-20
• Brazil *
• Indonesia *
• Mexico *
• South Africa *
• Turkey *
• Burundi
• Congo Democratic
Republic
• Ethiopia
• Ghana
• Guinea
• Kenya *
• Malawi *
• Mozambique
• Namibia
• Nigeria *
• Rwanda *
• Senegal
• Tanzania *
• Uganda *
• Zambia *
• Armenia
• Bangladesh
• Chile *
• Colombia *
• Ecuador
• Fiji *
• Guatemala
• Malaysia
• Mongolia
• Pakistan
• Palestine
• Paraguay
• Peru *
• Philippines
• Solomon Islands
• Uruguay *
• Vanuatu
* Financial inclusion commitments made for June 2012 G20 Summit (G20 Peer Learning Program for FI)
Bold: Financial inclusion commitments under the Maya Declaration
NB: Other countries have set financial inclusion targets/strategies (inc. prior to 2010-2012), including:
India, UK, Morocco
4
International drivers for financial inclusion commitments
Under the “Maya Declaration” 34 financial regulators or ministries of finance have
made the following financial inclusion commitments
Create an enabling
environment that increases
access and lower costs of
financial services
Implement a proportionate
regulatory framework that
balances financial inclusion,
integrity, and stability
Integrate consumer protection
and empowerment as a pillar of
financial inclusion
Use data to inform policies and
track results
5
International drivers for financial inclusion commitments
17 countries made commitments in June 2012 under the G20 Financial Inclusion
Peer Learning Program for FI, to:
Create a high level coordination
platform or mechanism to improve
access to financial services and their
usage
• Dedicated unit in financial regulator
or ministry of finance, complemented
by high level coordination mechanism
•Involves Financial regulators,
relevant ministries and agencies,
private sector, civil society
Develop a National Strategy on
Financial Inclusion to achieve
specific goals or targets
• Road maps of actions, agreed and
defined at the national or
subnational level that stakeholders
follow to achieve FI objectives
• Provide a comprehensive
framework for prioritizing reforms
and actions
• Coordination mechanism for: target
setting, catalysing actions and
ensuring implementation, monitoring
progress.
6
Examples of Financial Inclusion Commitments
Ghana
(Bank of Ghana)
• achieve 70% financial
inclusion by 2017
• revise payment
system strategy
• develop a financial
literacy program
Guatemala
(Superintendencia de
Bancos)
• create a code of
good practice for
consumer protection
for all financial
service providers
• develop transparency
and disclosure
standards for
products and services
Malaysia
(Bank Negara
Malaysia)
• ensure 95% of the
adult population has
access to financial
services by 2014
• adopt innovative
channels to improve
agent and mobile
banking
• expand microfinance
and long-term
savings
Rwanda
• move from 21 % of
adult population to
have access to formal
financial services to
80% by 2017
• Adopt a National FI
Policy
• put in place a FI Task
Force
• set up FI indicators
and monitoring
• adopt a National
Financial Literacy
Strategy.
7
Financial Inclusion Strategies
Coordinate efforts with all relevant stakeholders, involve the
private sector (ideally not ‘top down’), define responsibilities
Expand and improve financial inclusion while maintaining
sufficient focus on financial stability, integrity, consumer
protection, and market conduct
Prioritized and sequenced, with binding constraints
addressed first, and capacity constraints taken into account
Standalone strategies, or action plans under FSD Strategies
8
Financial Inclusion Strategies
A comprehensive approach addresses at least these aspects
Access to
financial services
and products
Usage of financial
services and
products
Quality of financial
services and
products
• Allows new or
underserved
consumers to
take up financial
services and
products
• Reflects
outreach
(supply) and
demand-side
barriers
• The regularity
and frequency of
the take up of
financial
services/
products
• e.g. av. savings
balances, #
transactions per
account, #
electronic
payments etc).
• The degree to
which financial
services/
products meet
the needs of
consumers
• the degree to
which they can
benefit from
them
Impact of financial
services/products at
firm/household level
• in terms of
incomes,
poverty,
productivity,
employment,
gender...
Financial Capability and Consumer Protection are relevant to the Usage and Quality dimensions
9
Financial Inclusion Strategies
Can be broken down into six components
Data and
Diagnostics
Monitoring
Progress
Targets/
Objectives
Private sector
actions
Strategy
Public sector
actions
10
Data and
Diagnostics
Monitoring
Progress
Data & Diagnostics
Targets/Obje
ctives
Private
sector
actions
Strategy
Public sector
actions
Country level data
and diagnostics
inform the design,
sequencing, and
modification of
reforms, initiatives
Can also be valuable
to the private sector
for adapting the
design and delivery
of financial services
Indicators can be
used to set national
targets and monitor
progress towards
them
The G20 endorsed a ‘Basic Set of FI Indicators in June 2012:
CATEGORIES
Formally banked adults
Adults with credit by
regulated institutions
Formally banked
enterprises
Enterprises with
outstanding loan or line of
credit by regulated FIs
Points of service
G20 BASIC SET OF FINANCIAL INCLUSION INDICATORS
% of adults with an account at a formal financial institution
EXISTING MULTICOUNTRY SOURCE
Global Findex
No. of depositors per 1,000 adults OR No. of deposit accounts per 1,000 adults
IMF FAS/Regulators
% of adults with at least one loan outstanding from a regulated financial
institution
Global Findex
No. of borrowers per 1,000 adults OR No. of outstanding loans per 1,000
adults
IMF FAS/Regulators
% of SMEs with an account at a formal financial institution
No. of SMEs with deposit accounts/no. of deposit accounts OR No. of SME
depositors/no. of depositors
% of SMEs with an outstanding loan or line of credit
WBG Enterprise Surveys
IMF FAS/Regulators
WBG Enterprise Surveys
No. of SMEs with outstanding loans/no. of outstanding loans OR No. of
outstanding loans to SMEs/No. of outstanding loans
IMF FAS/Regulators
No. of branches per 100,000 adults
IMF FAS/Regulators
11
Data and
Diagnostics
Monitoring
Progress
Data & Diagnostics: Secondary Indicators in development
Targets/Obje
ctives
Private
sector
actions
Categories
Indicators
Existing Source
Dimension
Measured
Payments and
Remittances
% of remittance costs reduction
Remittances Prices
Worldwide (RPW)
Quality
Value of RTGS payments as a % of
GDP (global)
Global Payment
Systems
Survey/Measuring
Payment System
Development
Usage
Strategy
Public sector
actions
# of electronic transactions per capita
Usage
Other Financial
Services
Insurance, Forms of Credit
Global Findex
Access, Usage
Credit
Reporting
# of credit reports issued
Credit % to GDP registered in the
system
Doing Business (data
not publicly available)
Access
(additional indicators in development)
Financial
Capability
Indicator review in draft
Financial Capability
Surveys (country-level)
Quality
Financial
Consumer
Protection
New laws /amendments
Dispute resolution mechanisms in
place FCP regulatory units
Transparency measures
Global Financial
Regulator Survey
Quality
12
Data and
Diagnostics
Monitoring
Progress
Targets/Obje
ctives
Private
sector
actions
Strategy
Public sector
actions
Data & Diagnostics underpin Targets, Reforms,
Product design, Delivery mechanisms
In Mexico, data collection and analysis play a
central role in the financial inclusion strategy
• The 2011 National Household Survey of Financial
Services Usage was designed and collected to
construct a complete view of financial inclusion
• This national demand-side survey includes household
motivations for using financial services as well as
barriers to greater usage
• The survey is expected every 3 years and will
complement other CNBV initiatives to deepen and
broaden its financial inclusion data efforts
13
Coordination Structure for FI Strategies/Action Plans
Data and
Diagnostics
Monitoring
Progress
Targets/Obje
ctives
Private
sector
actions
Strategy
Nigeria
Public sector
actions
Kenya
Brazil
•Central Bank setting up a FI Secretariat to coordinate across its departments
•The FI Secretariat would report to the Financial Services Regulation Coordinating
Committee , which would provide updates to the National Economic Council
•Ministry of Finance, Ag/Rural/Telecoms, and the Private Sector, not yet part of the plans
• FI monitoring is under the supervision of the Central Bank (CBK)
• Financial Access Partnership between CBK & financial sector
players/stakeholders, to monitor FI
• Financial Inclusion Project at the Central Bank:
• integrates stakeholders to develop effective policies for financial inclusion
• collects, organizes, analyzes data and research on financial inclusion
Indonesia
• Vice President’s Office coordinates national FI policy initiatives in close
consultation with Bank Indonesia
United
Kingdom
• FI Taskforce was an independent body that advised HM Treasury and
monitored and evaluated progress on financial inclusion. Composed by
members from private, public, and non-profit sectors, serving in a personal
capacity, and on a voluntary basis
14
Data and
Diagnostics
Monitoring
Progress
Targets/Obje
ctives
Private
sector
actions
Strategy
Financial Inclusion Strategies increasingly take into
account Consumer Protection, Financial Capability
Public sector
actions
15
Data and
Diagnostics
Financial Inclusion Strategy: Public Sector actions
Monitoring
Progress
Targets/Obje
ctives
Private
sector
actions
Strategy
Public sector
actions
Government and regulators implement comprehensive
package of reforms to encourage financial sector activity
and innovation to meet financial inclusion targets
Regulatory &
Supervisory
reforms
To address barriers/constraints to: private
sector action and innovation, and
beneficial consumer take-up of services.
Financial
infrastructure
development
Critical to lower costs and risk for service
providers and for consumers.
Time and
scope-limited
Public
interventions
To address market failures, and stimulate
innovation/ expanded intermediation.
16
Data and
Diagnostics
Monitoring
Progress
Financial Inclusion Strategy: Public Sector actions
Targets/Obje
ctives
POLICIES AND REFORMS PROMOTING FINANCIAL INCLUSION
Private
sector
actions
Strategy
Public sector
actions
REGULATORY &
SUPERVISORY
REFORMS
Introduction of low income bank accounts
Competition Framework, Bank/NBFI licensing
Consumer Protection Frameworks, Dispute Resolution Systems
Regulatory & Supervisory Frameworks for
Micro/SME finance, Factoring, Leasing, Microinsurance...
Enable use of agent networks for delivery of FS
Legal framework for electronic payments, including e-signature law
Proportionate regulation/supervision of non-bank deposit-taking FIs
FINANCIAL
INFRASTRUCTURE
PUBLIC
INTERVENTIONS
Collateral Frameworks: Movable Collateral Registries, Collateral Law
Credit Information/Reporting Framework
Payments Systems Development
ID schemes to facilitate bank account opening and financial transactions
Appropriate accounting and auditing requirements for SMEs
Partial Credit Guarantee Schemes
Apex Facilities
Financial Awareness, Market Transparency
G2P Payments, CCTs – linked to financial accounts
Platforms to expand access to supply chain finance for MSMEs
17
Data and
Diagnostics
Monitoring
Progress
Examples of Public Sector Actions
Targets/Obje
ctives
Regulation to promote innovation: PHILIPPINES
Private
sector
actions
Strategy
Public sector
actions
• Increased financial access points through allowing a simplified branch called microbanking office
• Expanded the virtual reach of banks through an electronic money framework
• Enhanced loan transaction transparency and consumer protection requiring providers
to use a standard format of disclosure of effective interest rates
Government to person (G2P) payments : INDIA
• India’s National Rural Employment Guarantee Act made more than 45 million
payments to poor people living in rural areas
• People can receive their G2P payment from post office saving accounts, bank
accounts and from village officials
• So far the vast majority of accounts remain dormant. Nevertheless, banks expect that
over time new customers joining G2P programs will generate additional revenue to
them
Partial Credit Guarantee Schemes: CHILE & WEST BANK GAZA
• Chile Fogape Portfolio Guarantee model
• Allocates guarantees according to % of risk covered
• Guarantee fee to banks varies depending on loss rate
• West Bank Gaza
• Guarantees linked to technical assistance
• Banks receive assistance on SME finance lending
18
Data and
Diagnostics
Monitoring
Progress
Private Sector Actions: viable business models?
Targets/Obje
ctives
Private
sector
actions
Strategy
Private sector response influenced by public actions:
data, regulatory reforms, targets/decrees, subsidies/risk-sharing,
provisioning/risk-weighting requirements, restrictions on innovative
approaches...
Public sector
actions
Inclusive/Basic bank accounts with
less burdensome opening
requirements and not credit or
overdraft facilities at least at first
Innovative retail payments linked to
technological developments such as
the use of mobile phones to initiate
and receive payments
• They are now present in countries such as
Brazil, India, Indonesia, Kenya, Malaysia,
Mexico, South Africa, and the United
Kingdom
• Only 11 countries reported that innovative
payment products transactions represent
>5% total retail payment transactions
• The Mzansi Account initiative launched in
2004 in South Africa allowed the creation
of more than 6 million accounts
• Only 25% low-income countries process
cash transfers and social benefits
electronically and this % is only slightly
higher for public sector salaries and
pensions
• Yet 70 countries reported that usage of
innovative payment products is increasing
19
Data and
Diagnostics
Monitoring
Progress
Monitoring Progress, Impacts
Targets/Obje
ctives
Private
sector
actions
Strategy
Public sector
actions
Impact evaluation is an empirical assessment of whether a program or policy
has achieved desired objectives. It can help policymakers to:
• quantify the effects of different policies
• design the most effective interventions
• improve targeting
• refine policies to better fit objectives optimize the scarce use of resources
• understand the underlying mechanisms
Non-experimental
These methods rely on identifying a control group and
then using statistical techniques to ensure the impact
estimate is properly measured
Experimental
These approaches rely on a randomization device that
allows the evaluator to isolate the impact of a policy
•
•
•
•
Randomized Control Trials (RCTs)
oversubscription
randomized phase-in
encouragement design
•
•
•
•
difference-in-differences
instrumental variables
regression discontinuity
propensity score matching
•Tracking the impact of a policy, regulation, or program during its implementation (realtime impact evaluation) allows modifications to be made that can ensure that the
intended impacts are achieved
•Indicators can be tracked on a frequent and regular basis, while less-frequent impact
evaluations provide a more rigorous assessment of effects and cost-effectiveness
20
Data and
Diagnostics
Monitoring
Progress
Monitoring Progress, Impacts
Targets/Obje
ctives
Impact Assessment Framework offers the following guidance:
Private
sector
actions
Strategy
Public sector
actions
To isolate the effect that a policy has, it is important to do a rigorous
impact evaluation instead of relying on before-after comparisons
Impact evaluations planned ahead of the intervention offer more
evaluation method options.
There is no “one size fits all” approach to impact evaluation, the most
appropriate approach will depend on the operational characteristics of the
policy being evaluated
Evaluations can be complemented by qualitative assessments to provide
a better understanding on the functioning, limitations, and strengths of the
evaluated policy
Data collection is typically the most costly component of an evaluation.
Evaluations relying on existing data can save on this component
21
Data and
Diagnostics
WBG support to FI Strategies: mechanisms
Monitoring
Progress
Targets/Obje
ctives
Private
sector
actions
Strategy
Public sector
actions
World Bank
Development
Partners
• Global Knowledge
• Country
Dialogue/presence
• Specialist Expertise
• ESW, TA, Data,
Financing Mechanisms
• Networks, info-sharing
• Complementary
Expertise
• Financing, Funding
• Private Sector Focus
Capacitybuilding
Technical
Assistance
Data,
Analysis,
Knowledge
Investment
Loan or
Investment
DPL +
Operation
Policy
Matrix
Financial Inclusion Strategy
implementation, targets met
STRATEGY
STAGES
ACTIVITY AREAS
DATA,
DIAGNOSTICS,
MONITORING,
IMPACT ASSMT
- Microfinance,
Remittances,
Government to
Person Payments -
FINANCIAL
SERVICES
FOR SMEs
- SME Finance,
Trade Finance,
Agrifinance -
FINANCIAL
MARKET
INFRASTRUCTURE
- Payment Systems,
Retail Payments, Mobile
Payments, Securities
Settlement, Credit
Reporting Systems -
CONSUMER
PROTECTION
& FINANCIAL
CAPABILITY
- Responsible
Finance, Market
Conduct -
Financial Sector Assessment Programs (FSAPs)
FINANCIAL
SERVICES
FOR HHs
• Household &
Individual
Surveys
•Regulatory &
Market
Assessments
STRATEGY
DESIGN, TARGETSETTING
• Technical Guides
•Technical
Assistance
•Action Plans for
Reforms
• Global knowledge,
lesson-sharing
• Enterprise,
Financial
Institution
Surveys
•Regulatory &
Market
Assessments
• SME Finance
Policy Guide,
Impact Assessment
Framework
• Factoring toolkit
•Global
Payments
Systems
Survey
•Finl Market
Infrastructure
assessments
•Guidance , good
practices,
standards (inc. with
the BIS, CPSS)
•Action Plans for
reforms
• Consumer
Protection
(CP) / Finl
Literacy (FL)
diagnostics
• FL Surveys
• CPFL Action
Plans
• Good Practices
for Financial CP
• Smartkit for FL
• FL Impact studies
PUBLIC SECTOR
ACTIONS
(INC. PUBLIC-PRIVATE)
Technical
Assistance
and
Advice for
Reforms
DPLs –
Policy
Actions
Institution
and
CapacityBuilding
Systems
Development
Analytical
Reports,
Data
Knowledgesharing
•Reforms
•Guarantee
Schemes
• G2P/cash
transfer
programs
•Reforms
•Guarantee
Schemes
• Factoring
Platforms
PRIVATE SECTOR
ACTIONS
• Investment Lending
• Innovation Funding
• Technical
Assistance to
Financial Institutions
• Pilots of viable
business models
•Advisory Services
•Risk-Sharing
Mechanisms
• Legal & Policy reforms
• Systems and Institutional
Development
•Reforms
•Strengthening enforcement capacity
•Support to private sector codes of
conduct, self regulation
•Financial Awareness Programs
•Price Transparency initiatives
Financial Inclusion Support Framework
TA, Financing, Capacity Building - for Implementation of FI Commitments
Data & Diagnostics
5. Evaluation
 Diagnostics: FSAPs, Financial Infrastructure,
Consumer Protection, SME Finance, Payments
 Surveys: Enterprise, Financial Capability,
Access to Finance for individuals/HHs
Technical Assistance, Advisory Services
 Funding enables CSCs/TTLs to scale-up FI
support, address gaps, leverage loans
 Relevant areas: Micro & SME Finance,
Payments, Financial Consumer Protection/
Literacy, Insurance, Housing Fin, Capital Mkts
 In-country capacity: WB specialists, IFC
Advisory Services, development partners
•Up to 15
countries
•$60-70m TA, AAA,
capacity-building
•TA & AAA can
complement
DPLs/FILs
Capacity-Building
 Support for regulators, statistical agencies, industry
associations etc in developing capacity
Funding/risk-sharing for critical systems development
24
Reference Framework as a resource
Accessible reference point:
Review and synthesis of country experience and models
Links to and draws from range of technical guides
Country matrix of models for FI Strategy components
Countries can share models, insights (online version)
Focus themes include:
 Institutional framework: for country-led coordination,
monitoring, public and private sector roles
 Public sector models: for stimulating private sector action,
compensating for market failures, providing scale
 Financial infrastructure: legal & institutional framework
 Data: sources of data & diagnostics, strengths/
weaknesses, applications
25
Financial Inclusion - Brazil
Evolution
• Correspondent Banking
• Savings accounts
• Co-operative system
• Microcredit
26
Research CNI/ IBOPE –
Possui conta corrente ou conta de depósitos de
poupança? (%)
Acesso ao
sistema
bancário
• 37% dos
entrevistados não
possui conta corrente
ou de poupança.
25%
37%
16%
22%
Sim, somente conta corrente
Sim, somente conta poupança
Sim, ambas
Não
27
Cooperativas – PAC/Sedes por 10.000 adultos (2000)
Pts por dez
mil adultos Municípios
0,00
4.099
0,01 a 7,5
1.389
7,51 a 15
19
15,01 a 25
0
Mais de 25
0
1
2
Inclui: Sedes, Agências, PAC e PAE 28
Cooperativass – PAC/Sedes por 10.000 adultos (2010)
Pts por dez
mil adultos Municípios
0,00
3.339
0,01 a 7,5
2.144
7,51 a 15
76
15,01 a 25
5
Mais de 25
1
1
2
Inclui: Sedes, Agências, PAC e PAE 29
Thank you!
fabiano.coelho@bcb.gov.br
Bacen/Denor
30
India’s Financial Inclusion Approach
Niraj Verma, SASFP
FPD Forum and Learning Week – Financial Inclusion Day
November 8, 2012
Financial inclusion in India : a snapshot over time
“Govt must do” ………………………………………Market can play some role…………… “Govt enabler
/facilitator,
market doer”
1900
1950s
1960-70s
1980-90s
1990s
2000s
Rapid MFI growth
Agri-coops,
Post office
savings,
remittances
Imperial
Bank to
SBI – rural
branches
Nationalize
banks –
grow rural
branches,
mandated
priority
lending
Banks as ‘Public Utilities’
Apexes –
NABARD
and later
SIDBI, rural
banks
(RRBs),
growth of
rural
branches
Microfinance –
MFIs and SHGs
(NGO driven)
Indexed crop
insurance
established
Growth of
private sector
banks
2010-12
Weather indexed
insurance
Clash between
govt SHG and
MFI programs
Start of BankingCorrespondent
(BC) models
Focus on
responsible
finance
Reforms – rural
banks
Govt push - BCs
AND
Rapid growth of
SHGs (Govt
driven)
Market
infrastructure
development –
CIBs, UID
Banks + More market based approaches
??
???
Characteristics - India’s Financial Inclusion approach
Banks
Rural banks
Sharp focus:
devpt +
political
economy lens
Specialized
institutions/
apexes
Rural Coops
Multiagency/
channels
MFIs
POs
SHGs
BCs
Apexes
UID
FI = S + C + R + I
Credit info. bureaus
MFI regulations
Market
infrastructure
Grievance redressal
Banking 
Public utility
function;
mandates…
…yet market
players
welcome…
Mixed
approach
Innovations:
product and
delivery
Priority
sector: 40%
What has this achieved
Innovations
Outreach
Indexed crop insurance -29
mn
Deep retail network
POs 160 mn savings a/cs
UID – biometric dB,
‘permeation strategy’,
G2P
Lenders driven
responsible
finance
45 mn credit a/cs (coops)
27 mn loan a/cs (MFIs)
Kissan Credit Card
80 mn MFI loan
a/cs with CIB
5 mn SHGs
45 mn credit a/cs (banks)
Microfinance –
commercially funded
Market
infrastructure
29 mn insured farmers a/cs
Regulation focused
on responsible
finance
What lessons and what next
Much done and much to do: Access has expanded significantly…yet, a large % of
households lack adequate A2F
- State: has a justifiable role, but has to evolve with market & use ‘smarter subsidies’
- Priority sector: Redistributive policy - What if not there? Cost and/or opportunity?
- Expanding market infrastructure (incl. responsible finance) and outreach
-
Credit information
Better regulation/supervision & ‘Smart’ oversight (Lenders leverage for responsible finance)
ESR mantra: support channels that can be Efficient, Scalable and Responsible
- Use multiple channels, using comparative advantage as key principle
-
MFIs: for credit and BCs for deposits
POs, banks, mobile cos., remittance cos.: payments
- Leveraging existing retail networks optimally:
-
Distribution to ‘last mile’ is expensive, leveraging is critical
- New product development and process innovation
-
Combined weather and area yield indexed crop insurance, warehouse receipts
Technology application (mobile phones for insurance, payments, etc)
FPD Forum 2012 & Learning Week
Financial Inclusion Day: National Strategies for Financial Inclusion
8 November 2012
Yoko Doi
Senior Financial Specialist
Financial and Private Sector Development Department
The World Bank Indonesia
36
Indonesia’s commitments towards Financial Inclusion
2007
2008
2009
2010
2012
2011
1st ASEAN Financial
Inclusion Week
hosted by Indonesia
Bank Indonesia co-hosted
AFI annual meeting in
Indonesia
G20 meeting in Los Cabos, the
President signed the joint
commitment together with Mexico
and Chile to a reciprocal learning
program on financial inclusion
Indonesia hosted ASEAN
meetings: Financial Inclusion
became one of priority area for
discussion
NSFI development
Pilot of CCT through Bank account
Gov Mid-term Development Plan 2010-2014: (Improving A2F for MSMEs and MWs)
KUR (GoI Credit Guarantee Program)
Fin Literacy for MWs
MW Microinsurance Reform
Bapepam LK Master Plan 2010-2014 (Facilitation of Microinsurance Development)
Microinsurance Regulatory Framework
TabunganKu (Basic bank account)
Branchless Banking
Ayo Ke Bank Initiatives (Public Financial Education)
Reform on PNPM Mandiri RLFs Scheme
Financial Identity Number for MSMEs Initiatives
E-money, NPGW, Int’l Remittance Services etc
37
The World Bank Engagement in Indonesia
2008
2007
2009
2010
2012
2011
DPLs
NSFI development
Reform on GoI funded PNPM Mandiri RLFs Scheme
TA for Fin Literacy for Migrant Workers
Research on Fin. Literacy Assessment on MWs
Microinsurance Regulatory Framework
Microinsurance
Marketplace
Review on MW Microinsurance
Islamic Finance for MSMEs
Assessment on KUR (GoI Credit Guarantee
Program) & M&E Advice
Strengthening Savings &
Loans Cooperatives
Branchless Banking regulatory review
Evaluation of TabunganKu
(Basic bank account)
Two Diagnostics
Studies
Diagnostic Stage
TA for Central Bank Payment System Dept
(E-money, NPGW, Int’l Remittance Services etc).
Series of dissemination and public awareness efforts on Financial Inclusion
Individual Projects
(TA to GoI etc.)
Macro / National Strategy &
Individual Projects
38
Indonesia: Financial Inclusion: Measures & Challenges

Effective Measures



High-Level of Commitments (President, Governor of Central Bank and Minister
levels)
Development of National Strategy and a series of policy discussions among
various ministries and regulators
Challenges

Degree of understanding of Financial Inclusion among policy makers is diverse.
 i.e. beyond credit, beyond banking sector, beyond financial sector, linking it
into poverty reduction & local economic development , and linking it to public
policy and public finance;

Coordination among regulators / government agencies and private sectors and
establishing effective partnership;
Creating Financial Inclusion as an integrated agenda for other government
priorities (i.e. Poverty Reduction, Local Economic Development etc.);
Data collection, Monitoring and Evaluation (M&E) for effective policy reform /
policy development;
Setting long term goals with sustainable form of financial inclusion for policy
makers



39
The role of the World Bank in supporting financial inclusion
priorities
Providing awareness of Financial Inclusion and broader concept sof Access
to finance among senior policy makers / regulators and private sectors
 Bringing Global Practices and Lesson learnt from other countries including
on-going discussions
 Research (i.e. Diagnostic studies), Policy Advice and Technical Assistance
 Facilitating coordination among regulators and ministries, and private
sectors
 Analyzing on-going Gov priorities (challenges) and advising to include
Financial Inclusion components/elements to these priorities (Holistic
approach)
 Monitoring and Evaluation (M&E) and on-going policy advice
Resources:
 Trust Funds (country focused / Area focused (i.e. FIRST Initiatives) )
 Cross Support from Practice Groups
 Cross Support to other department (DEC. SD. HD etc)
 Joint-Work with IFC

40
The video and presentations from
today’s workshops will be available
online on the OneFPD website.
Type “financialinclusion” into your
intranet browser, and click on
learning.