More than 111 senior policymakers from 42 developing countries in attendance

 

Indonesia, 27 September 2010: The Alliance for Financial Inclusion (AFI) convened its second annual Global Policy Forum today under the umbrella theme of ‘Taking Financial Inclusion to the Next Level’.

 

As financial inclusion finds increasing resonance around the world, particularly in the aftermath of the global financial crisis, senior policymakers and AFI’s strategic partners are gathered in Bali through to September 29 at the only event-of-its-kind for financial inclusion policymakers.

 

Co-hosted by Bank Indonesia, the Forum is a unique arena for policymakers in developing countries to share information with each other about policy approaches that work. Their main challenge is to increase access to financial services for the poor and broadening the use of services by identifying innovative policy and institutional approaches.

 

During his keynote address, His Excellency, President of the Republic of Indonesia, Dr. H. Susilo Bambang Yudhoyono, commented: “Along the process, I call on all participants of this Forum to set your own national targets, develop your own objectives, commit to your own appropriate targets and allocate a certain budget for financial inclusion.

 

“Let us make this Forum a bridge between our national, regional and global efforts. Let us collaborate and synergize our works to eradicate poverty through financial inclusion.

 

 “As we approach the G20 Seoul Summit this November, innovative financial inclusion should be part of the ‘Development Issues’ agenda. Indonesia is ready to bring this issue to the attention of the G20 leaders,” he concluded.

 

Reinforcing the President’s words, Dr. Darmin Nasution, Governor, Bank Indonesia said: “Among the points that we will raise at this Forum, and that we hope will be heard by the G20 nations in the lead up to the Seoul Summit are, the need for strong leadership and commitment in poverty alleviation, the need for cooperation among relevant parties to broaden financial access and deepen usage, and the need for community empowerment which can be realized through financial education.”

 

Financial inclusion poses policy challenges on a massive scale and with an urgency that is unique to developing countries, which house 90% of the world’s unbanked population. A staggering 2.5 billion people around the world lack access to financial services and policymakers in developing countries have an important role to play in creating the conditions for improved access and in unlocking the economic potential of their populations.

 

The success of the world’s first-ever Global Policy Forum on financial inclusion in Nairobi, Kenya in 2009, is evidenced by the fact that financial inclusion is increasingly being recognized as a third strategic pillar in financial systems, alongside stability and integrity, by developing country policymakers. Leaders worldwide are recognizing the potential of a more inclusive financial services sector, and the issue is emerging as a priority – notably featuring prominently on the G20 Seoul Summit agenda this November.

 

Prof. Njuguna Ndung’u, Governor, Central Bank of Kenya and Chairman of AFI’s Steering Committee said: “In order to close the enormous gap between the banked and unbanked, we strongly believe that innovation of all kinds – in leadership, policy implementation, use of technology – will be the critical enabler of providing widespread access.”

 

As a case in point, he referenced Kenya’s remarkable strides in providing money transfer services to over ten million of its citizens through mobile phone technology. “But we are looking to build on this success and deepen financial access to the poor by expanding to provide other services such as microsavings – on the same platform,” he added.

 

Dr. Alfred Hannig, Executive Director, AFI added: “In AFI’s first year we have already seen how a strong policy community can have huge impact through sharing of knowledge and experience to identify policy options that are proven to work in the developing country context. As we look ahead, we are confident that our concept of ‘peer-to-peer’ learning will be translated into transforming the financial lives of those who need it the most.”

 

Reinforcing the President’s words, Dr. Darmin Nasution, Governor, Bank Indonesia said:  “Among the points that we will raise at this Forum, and that we hope will be heard by the G20 nations in the lead up to the Seoul Summit are, the need for strong leadership and commitment in poverty alleviation, the need for cooperation among relevant parties to broaden financial access and deepen usage, and the need for community empowerment which can be realized through financial education.”

 

Financial inclusion poses policy challenges on a massive scale and with an urgency that is unique to developing countries, which house 90% of the world’s unbanked population. A staggering 2.5 billion people around the world lack access to financial services and policymakers in developing countries have an important role to play in creating the conditions for improved access and in unlocking the economic potential of their populations.

 

The success of the world’s first-ever Global Policy Forum on financial inclusion in Nairobi, Kenya in 2009, is evidenced by the fact that financial inclusion is increasingly being recognized as a third strategic pillar in financial systems, alongside stability and integrity, by developing country policymakers. Leaders worldwide are recognizing the potential of a more inclusive financial services sector, and the issue is emerging as a priority – notably featuring prominently on the G20 Seoul Summit agenda this November.

 

Prof. Njuguna Ndung’u, Governor, Central Bank of Kenya and Chairman of AFI’s Steering Committee said: “In order to close the enormous gap between the banked and unbanked, we strongly believe that innovation of all kinds – in leadership, policy implementation, use of technology – will be the critical enabler of providing widespread access.” 

 

As a case in point, he referenced Kenya’s remarkable strides in providing money transfer services to over ten million of its citizens through mobile phone technology. “But we are looking to build on this success and deepen financial access to the poor by expanding to provide other services such as microsavings – on the same platform,” he added.

 

Dr. Alfred Hannig, Executive Director, AFI added: “In AFI’s first year we have already seen how a strong policy community can have huge impact through sharing of knowledge and experience to identify policy options that are proven to work in the developing country context. As we look ahead, we are confident that our concept of ‘peer-to-peer’ learning will be translated into transforming the financial lives of those who need it the most.”