On 15 January 2016, the Financial Regulatory Commission (FRC) of Mongolia, a member of the Alliance for Financial Inclusion (AFI), hosted the “Development of Financial Market National Forum” in coordination with the Asian Development Bank (ADB) and Japan Poverty Reduction Fund at the Government Palace in Ulaanbaatar, Mongolia.

The forum highlighted a range of issues covering the financial sector with the goal of developing and enhancing relationships among relevant actors, supporting fair competition, strengthening public confidence in the markets, and increasing the efficiency of the whole sector.

Participants included high-level national policymakers and regulators, as well as representatives from multiple foreign and international organizations. It was co-organized by the Economics Standings Committee of the Parliament of Mongolia, the Ministry of Finance of Mongolia, and the Bank of Mongolia, which is also a member of AFI.

During the opening remarks, Ms. Narantuya Zagdkhuu, Chair at FRC, noted 75 percent of the population in the country over 15 years old who own a bank account, along with high usage of mobile banking, demonstrating financial inclusion in Mongolia is on par with developed countries in these categories. However lower amounts of savings, high-cost financial recourse and lack of knowledge in savings and insurance among individuals need to be addressed for financial service delivery.

“Our challenges also include integration into the regional financial activities through meeting the international regulatory standards and improving our capacity for competence,” said Ms. Zagdkhuu. “Moreover, the forum aimed to understand the timely needs of the institutions and organizations regulated by the FRC and discuss the peer-to-peer based policy regulatory frameworks.”

National discussion at the forum also addressed the National Strategy of Financial Market Development-2025, which includes the National Financial Inclusion Strategy co-submitted by the FRC, Ministry of Finance, the Bank of Mongolia and the World Bank.

AFI partnered with the ADB and the European Bank of Reconstruction and Development in an informative session called “Financial Inclusion—Ways to Reduce Poverty.”

Notably, during the session, Mr. Pavel Shoust, from AFI member the Russian Microfinance Center (RMC), discussed the role of digital financial services in enhancing effectiveness and financial inclusion.

“Smart financial inclusion policy can reduce inequality, contribute to overall sustainable economic development and stability and is an invaluable part of mainstream economic and development work,” said Mr. David Ambadar, Regional Coordinator for Asia at AFI. “AFI members are proven global financial inclusion leaders, and it was great to see the Bank of Mongolia and the Financial Regulatory Commission raising awareness around the importance of implementing evidence-based financial inclusion policy in Mongolia.”