Bringing Smart Policies to Life - Banco Central Do Brasil · through Mexico, Brazil, South Africa, and AFI •The Core Set of indicators may be adopted by the GPFI as part of their

Bringing Smart Policies to Life

III Fórum Banco Central sobre Inclusão Financeira

Brasilia, Brazil

November 21, 2011

• AFI is a global network of policymakers in developing countries

• Officially launched September 2009, our goal is to increase global financial inclusion through the adoption and implementation of innovative financial inclusion policies.

• We provide our members with the tools and resources to share, develop and implement these cutting-edge policies solutions

• AFI currently has members from Central Banks and leading financial regulatory authorities in more than 78 countries

AFI at a glance

5 Working Groups

• Exchange experiences, lessons

• Co-author papers, tools

• Peer Review

Global Measures of Financial Inclusion

About half of the world’s population (~2.5 billion) is “unbanked”

<20%

20-40%

40-60%

60-80%

>80%

% of households without

access to financial services

Source: World Bank Composite Measure of Access to Finance 2007, AFI visual modification.

Evidence-Based Policymaking

Why measure?

Diagnose the state of

financial inclusion

Design appropriate

policies

Monitor changes over time

Evaluate policy impact

Financial Inclusion Data Working Group

Potential new members:

1. Ministry of Finance, Jamaica

2. Ministry of Finance, Senegal

3. Bank of Nigeria

4. Bank of Ghana

1. Central Bank of Brazil (Chair) 9. National Treasury of South Africa

2. CNBV Mexico (Vice-Chair) 10. Bank of Thailand

3. Bank Indonesia 11. Ministry of Finance, Uganda

4. Central Bank of Kenya 12. Bank of Uganda

5. Bank Negara Malaysia 13. Bank of Zambia

6. Bank of Burundi 14. Bank of Tanzania

7. SBS Peru 15. Ministry of Economy & Finance, Senegal

8. BSP Philippines

5. Banca de las Oportunidades, Colombia

6. Superintendency, Colombia

7. Bank of Namibia

8. National Bank of the Republic of Belarus

Financial Inclusion Data Working Group

Objectives

I. Develop a common framework among AFI members for

measuring financial inclusion.

II. Share lessons learned on target setting, survey

methodology, analysis, and usage of data to inform

policymaking.

III. Promote the adoption of the framework in a broader

international context

Framework for Measuring Financial inclusion

Usage

Quality

Access Ability to use financial

services

-Physical proximity

-Minimum barriers

Actual usage of financial

services

-Usage of what products

-Patterns of use

Appropriateness of service

-Convenience

-Security

-Consumer Protection

-Fin. Literacy

Core Set of Financial Inclusion Indicators

Dimension Core Indicators

Access 1) Number of access points per 10,000 adults

2.1) % of administrative units with at least one access point

2.2) % of total population living in administrative units with at least one

access point

Usage 3.1) % adults with at least one type of regulated deposit account

3.2) % adults with at least one type of regulated credit account

AFI Data Working Group and GPFI

G-20’s Global Partnership for Financial Inclusion (GPFI)

•Recognized data as a priority

•Created a subgroup on Data & Measurement

•AFI’s Data Working Group is represented in the Subgroup

through Mexico, Brazil, South Africa, and AFI

•The Core Set of indicators may be adopted by the GPFI as

part of their financial inclusion measurement framework.

Financial Inclusion Data Working Group

Lessons Learned

I. Ownership

II. Harmonization

III. Start with what you have

IV. Keep in mind your policy questions

V. Partnerships

Financial Inclusion Data Working Group

Next Steps

•Catalogue of “road tested” indicators

•Quality measurement

•Demand-side surveys

Thank you!