WEF in Davos features AFI’s Public-Private Dialogue platform in advancing global financial inclusion

During this year’s World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, AFI hosted a special high-level meeting on 21 January to discuss how greater dialogue and cooperation between the public and private actors could accelerate the progress of financial inclusion policy and help improve the lives of the world’s unbanked. AFI’s Public Private Dialogue initiative, or PPD, was first introduced at the 2014 AFI Global Policy Forum (GPF) in Port of Spain, Trinidad and Tobago, and has since gained considerable interest.

Opening remarks were delivered by Charlie Scharf, CEO of VISA Inc., who called on the private sector to engage relevant stakeholders, and highlighted the importance of raising awareness of financial inclusion. Private sector participants included Walt Macnee, Deputy Chairman of MasterCard, and other senior business executives from the payments, banking, telecommunications and insurance industries. Maura Donlan, Director at Omidyar Network, AFI’s funding partner, also took part. AFI members were represented by South Africa’s Finance Minister Nhlanhla Nene, Governor Benno Ndulu from Bank of Tanzania (BOT), and Governor Njuguna Ndung’u from Central Bank of Kenya (CBK). This event was implemented with support from VISA Inc.

The meeting introduced the AFI PPD to a broader range of private sector leaders. There was agreement that financial inclusion is a key driver for economic growth and stability, and that systematic private sector input in the policymaking process would enhance scaling up innovation. By expanding knowledge sharing and peer learning beyond the AFI Network to the vital actors in the private sector, financial inclusion’s impact could see exponential growth.

As mentioned by Alfred Hannig, Executive Director at AFI, “By working together we can make financial inclusion not just good public policy, but also good business. Through this open and neutral platform we will create clarity around key risk issues and appropriate regulatory responses which will lead to greater security for market participants and regional consistency. Our success in this field will be positive for the national goals of our members, for the corporate goals of private sector players and, most importantly, it will make a real difference in the lives of the poor.”

In the discussion moderated by Stephen Kehoe, Head of Global Financial Inclusion at VISA Inc., it was agreed that it is key to establish the right ecosystem and that both public and private sector play a critical role in reaching the poor with innovative financial services and business models while sensibly managing the risks.

The meeting concluded with a general agreement that the AFI PPD provides a unique platform for the private sector to systematically inform policymakers about key regulatory challenges and opportunities to advancing financial inclusion at the global, regional, and national levels. More specifically, AFI will work a diverse range of private sector stakeholders to enhance training and capacity building for AFI members; contribute technical expertise to AFI’s Working Groups; scale up AFI’s regional initiatives; enhance members’ knowledge on new operational models and technologies; and advance financial inclusion data collection and analysis. Moreover, there was strong support from both private and public sector to make the PPD a permanent platform and to use AFI as the primary interlocutor to drive the dialogue. The AFI PPD is expected to play a major part in the AFI 2015 Global Policy Forum taking place in Maputo, Mozambique 2-4 September.

Financial inclusion continued to take a featured role at WEF on 23 January through a second private session moderated by The Economist’s Matthew Bishop, and with opening remarks from H.M. Queen Maxima of the Netherlands. Senior financial inclusion leaders from the public and private sector discussed payment platforms, enabling regulatory environments and new partnership models.

All in all, this year’s WEF meetings highlight financial inclusion’s critical role in today’s economic development agenda. A stronger partnership with the private sector will be key to financial inclusion reaching its full potential, and the AFI PPD program will be instrumental in driving the process forward.