G-24/AFI High-Level Roundtable on Financial Inclusion,
Spring Meetings, Washington, D.C.Monday,
18 April, 2018

Opening Remarks by Governor Fazle Kabir of Bangladesh Bank

Director of the G-24 Secretariat, Marilou Uy,

AFI Deputy Executive Director, Norbert Mumba,

Fellow Governors,

Representative from multilateral organizations,

Partners,

Distinguished guests,

Ladies and gentlemen;

It is my privilege to be present at the 10th Annual G-24/AFI Policymakers’ Roundtable at the IMF and World Bank Spring Meetings.

On this special occasion of the 10th Anniversary, it is timely to reflect on the discussions we have held here over the years and how they have influenced the financial inclusion global dialogue, channeling unique developing & emerging country perspectives on key thematic areas:

AFI has provided inputs towards shaping the agenda of the G20 Global Partnership for Financial Inclusion (GPFI), and it is encouraging to see that financial inclusion continues to feature as a topic at the highest levels in the G20 as well as in the Sustainable Development Goals (SDGs) adopted by the United Nations;

We have discussed in recent years how to confront the challenge of global bank de-risking which even today threatens to reverse the gains that have been made in financial inclusion in many developing countries. It is encouraging to see organizations such as the Financial Stability Board (FSB) and International Monetary Fund (IMF), which have participated actively in our Roundtables taking global leadership on this topic, though the challenge demands a continuing vigilance from policymakers;

As we are aware, in 2017 AFI introduced the new topics of Gender and Women’s Financial Inclusion following the launch of the Denarau Action Plan for Gender and Women’s Financial Inclusion, as well as conceptualizing additional peer learning activities for FinTech and RegTech which is financial inclusion focused. The latter topic will be the focus of our discussions here this evening.

AFI’s achievements over the last decade

Before I speak on FinTech, I would also like to highlight that this year – 2018 – marks not only the 10th Anniversary of the G24-AFI Annual Policymakers’ Roundtable, but also the 10th Anniversary of AFI itself as an organization.

AFI and its members have achieved a tremendous amount over the last 10 years, starting from 6 founding members in 2008, steadily growing to more than 100 member institutions from 91 developing and emerging countries today. In this time AFI has also become an International Organization headquartered in Kuala Lumpur and governed by its members. Collectively AFI members have enacted almost 400 pro financial inclusion policy changes, from e-money, agent banking and KYC regulations to enable growth of digital financial services, through to adoption of comprehensive national financial inclusion strategies across the network.

These policy changes have collectively led to tens of millions of people being financially included for the first time. Globally we still have a long way to go to complete the financial inclusion journey – and the release of the new Global Findex data tomorrow [19 April] will give us an indication of how far we need to advance. We may need to pause after 10 years to take stock of this remarkable achievement and the impact it will have on so many lives.

FinTech for Financial Inclusion

Turning to the topic of this evening’s Roundtable, FinTech for Financial Inclusion, I am pleased to see the progress that has been made in advancing peer learning on this topic since the G-24 and AFI last convened a year ago. AFI has followed members’ request to initiate specific capacity building events on FinTech and RegTech, as well as convening the FinTech Policy Forum held in Amman, Jordan earlier this month, and integrating FinTech into the work programs of the AFI Working Groups and Regional Initiatives.

The Government in my country Bangladesh in the latest 7th five year plan underscores the notion ‘leaving no one behind’, as advocated in the UN Sustainable Development Goals to achieve inclusive, equitable and environmentally sustainable socioeconomic growth. Accordingly policy thrusts on massive digitization to support financial inclusion and inclusive growth, bridging the gap between gender, age and region, alongside mitigation and adaptation to climate change threats has been undertaken. The Government promises to formulate and popularize low-cost mechanisms at citizens’ doorsteps for banking, money transfer and remittances to meet the demand of economic migration, accelerated urbanization and young, vibrant IT-focused millennial generation.

It is vital for regulators to strive to achieve an effective balance between embracing innovation, whilst safeguarding consumers and also the integrity and stability of the financial system. It is important that members of AFI and the G-24, FinTech innovators and other stakeholders now work together to identify and implement technological solutions which can address some of the most intractable financial inclusion challenges, such as de-risking, closing the financial inclusion gender gap, and the financial inclusion of vulnerable communities such as forcible displaced persons.

To create an enabling environment for financial inclusion through Fintech, I believe along with innovative technology there are more issues which seek careful nurture like:

• Communication and coordination across government agencies,
• Assessing risks associated with emerging technologies,
• Roles and responsibilities of public and private sector,
• Tackling group-specific barriers to financial inclusion.

I am looking forward to receiving the presentation of a draft framework on FinTech for Financial Inclusion by Professor Arner, and to the country presentations by Governor Njoroge of the Central Bank of Kenya and President Bernardo Gonzalez of CNBV Mexico, as well as to the contributions of other members and our partners around the table.

I look forward to fruitful discussions from the participants to make the rountable a grand success. Thank you all.