Young vendor in a local African market receiving payment via mobile phone transfer / Shutterstock

27 May 2021

AFI consultation: Policy Models for SME Finance and E-KYC

The AFI Management Unit invites partners and stakeholders from the general public to review and provide comments on two proposed policy models on financial inclusion covering digital identity and electronic Know Your Customer (e-KYC) as well as financing for micro, small and medium enterprises (MSMEs).

Both policy models were developed through AFI’s member-driven bottom-up approach, starting with their recommendation by AFI’s working groups to elevate proven practical policy solutions from network-wide best practices. They will be evaluated and reviewed by AFI’s Global Standards and Policy Committee (GSPC) before being presented to the AFI Board of Directors and Membership Council for ratification at the network’s Annual General Meeting.

Policy Model on Digital ID and e-KYC

Digital identification (ID) and e-KYC can accelerate the use of formal financial services particularly digital payments and other digital financial services in line with global standards, including for anti-money laundering and countering the financing of terrorism.

This innovative policy model defines pillars, principles and high-level recommendations for building, formulating and implementing digital ID systems and e-KYC regulations towards accelerating financial inclusion. It provides financial policymakers and regulators with guidance based on successful codified approaches applied in AFI member institutions, as well as key lessons and best practices from within and beyond the network. It aligns with global standards, including Financial Action Task Force’s guidance on digital ID and considers themes, such as data protection and data privacy. The policy model’s development was led by AFI’s Global Standards Proportionality Working Group.

To provide feedback that will enhance this policy model, please fill in our comment form (click here for the link) and send it to

Members of the AFI network whose digital ID and e-KYC status is not listed in Annex 1 are also encouraged to submit a response via this link to ensure that their experiences are captured and inform the further development of the policy model.

MSME Finance Policy Model

MSMEs are a major source employment yet access to finance often impedes growth across the sector. Government efforts have responded by focusing on fostering a more diversified and comprehensive environment for MSME finance that considers the needs of both the demand and supply side.

AFI’s MSME Finance Policy Model intends to enable regulators to improve the resilience of the MSME sector to withstand financial shocks, deal with the impact of climate change and address the needs of women and other vulnerable groups in the sector. It identifies the pillars, principles and provide high-level recommendations for the MSME finance policies, covering pre-formulation, formulation, implementation and measurement and evaluation of such policies. Its development was led by AFI’s SME Finance Working Group.

To provide feedback that will enhance this policy model, please fill in our comment form (click here for the link) and send it to

We welcome and encourage your participation. Please note that the deadline to receive comments is 12:00 UTC (20:00 Malaysia) on Friday, 11 June 2021.

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