bringing smart policies to life. overview afi at a glance why we were created how we add value afi...
TRANSCRIPT
Bringing Smart Policies to Life
Overview
• AFI at a glance
• Why we were created
• How we add value
• AFI in more detail – strategic focus, progress & outlook
• AFI is a global network of policymakers in developing countries.
• We provide our members with the tools and resources to share, develop and implement their knowledge of cutting-edge financial inclusion policies that work.
• Founded in 2008, officially launched September 2009: Our goal is to support developing country knowledge exchange on financial inclusion policy that will enable an extra 50 million people living under the poverty line to have access to formal financial services by 2012.
• As of 2010, AFI has members from Central Banks and leading financial regulatory institutions in over 40 countries, with institutions from an additional 40 countries also showing interest to join.
– This represents nearly 90% of the world’s unbanked population.
AFI at a glance
Why we were created
• Greater financial access is in everyone’s
economic and social interest (win-win)
• The scale of the opportunity is huge, especially in today’s economic climate
• Solutions are already there - need to be shared
The scale of the opportunity is huge
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.
Knowledge of the solutions is scattered across the globe
Developing countries have pioneered many of the most innovative solutions
Indonesia:1. Public bank reform 2. Diversifying products and providers (BPR)
India:Public bank reform
Kenya:M-banking
Uganda:Diversifying products and providers (MDI law)
South Africa:1. M-banking
2. Consumer Protection
Mexico:Public bank reform
Bolivia:Diversifying products and providers (FFP decree)
Brazil:1. Agent-banking2. Public bank reform
Philippines:M-banking (G-Cash,Smart Money)
Peru:Consumer Protection
Malaysia:Consumer Protection
Thailand:Public bank reform
Policymakers face a bewildering choice of partners
Nearly 200 financial inclusion players: who to use and when?
How AFI adds value
We bring together all the pieces of the puzzle
• We connect the knowledge…resources …and the right strategic partners at the right time
• … so that policymakers can select, develop and implement the best solutions for their countries’ individual circumstances.
• In short, we optimize the flow and quality of knowledge, enabling policymakers and partners to optimize the impact of their resources.
What we do
• Enable policymakers in developing countries to share and develop their knowledge of cutting-edge policies that deliver tangible results
– Online and face-to-face meetings (regional and global)– All learnings captured centrally so others can benefit– Focused on evidence-based policy areas
• Provide policymakers with grants to develop and implement their chosen solutions
– Short-term grants: e.g. diagnostic studies, drafting regulations – Longer-term grants: e.g. implementation and impact assessment
• Connect policymakers with the right partners across the value chain– From research institutes (e.g. NYU) and technical experts (e.g. CGAP)
to funders (e.g. World Bank) and the private sector (e.g. GSMA)
AFI in more detail
• Facts & figures
• Members
• Policy focus
• Knowledge exchange
• Grants
• Strategic partners
Facts & figures
Established
Funding source
Total Budget
Number of Grants
Time frame
Geographic reach
Location
• September 2008
• Bill & Melinda Gates Foundation
• $35M over 4 years
• 21 long-term grants• 44 short-term grants
• Sept 2008 – Sept 2012 (phase one)
• Developing countries around the globe
• Bangkok, Thailand
Maldives
Russia
Mongolia
China
Indonesia
Papua New Guinea
Nepal
Sri Lanka
Bangladesh
BrazilPeruColombia
Mexico
South Africa
Namibia
Nigeria
Cameroon
Gabon
Congo
DR Congo
Egypt
Mozambique
Zambia
Tanzania
UgandaKenya
Madagascar
MaliSenegal
GuineaBurkina Faso
Togo
BurundiRwanda
EthiopiaVietnam
Cambodia
Philippines
Malaysia
Thailand
Pakistan
Official AFI members
Benin
Timor-Leste
Palestine
Jordan
Lebanon
Syria
Iraq
Morocco
Algeria
Tunisia
SudanYemenNiger
Cote D‘Ivoire
Afghanistan
Ghana
Sierra-Leone
AFI Members
Fiji
Tuvalu
SamoaVanuatuTonga
Solomon Islands
In the process of joining
Uruguay
Nicaragua
Bolivia
Malawi
IndiaGuatemala
Honduras
Costa Rica
Panama
El Salvador
KyrgyzstanTajikistan
Uzbekistan
Laos
Dominican Republic
Policy focus
Support all effective, evidence-based policies. Focused set including:
Financial identityFacilitate building and use of financial identities for poor clients
Consumer protectionPromote policies that provide adequate consumer protection and education in financial services
Public bank reformsEnable state owned institutions to effectively provide financial services to the poor
Agent bankingEnable non-bank agents to
provide financial services
Mobile phone financial servicesIncrease access to financial services through mobile technologies
Formalizing Micro-savingsFacilitate adoption of new
providers and products for promoting micro-savings
New policy areas will be added as fresh evidence
emerges.
Data & measurementFacilitate increase and improvement financial inclusion data – critical for devising evidence-based policy
Channels Enablers
Knowledge exchange
Online and face-to-face, aided by grants
South-south exchange
Policy champion
pools
Regional working groups
Peer reviews
Working interactions
Discussion forums
Web conference
Global policy forum
Global seminars per policy area
Regional access
conferences
Knowledge-sharing forums
Online database
Policy help desk/Blog
National seminars
Publications and
presentations
Publications E-newsletterResearch
Papers/Policy briefs
Face-to-face exchanges Online exchanges
Global activities Regional activities National activities
AFI Grants
Short-and long-term, covering the full policy cycle
AFI Grants
Long-termShort-term
• Diagnostic studies• Draft regulations• Training
• Develop and implement new regulations
• Impact assessments
• Regional seminars• Study tours• Peer reviews
Grant to the Russian Microfinance Center for Russian policymakers to visit Brazil to learn about agent banking and its regulations
Grant to Bank Indonesia for developing innovative financial identity policy for the poor
Grant to Treasury of Pakistan for short-term assistance for drafting mobile phone banking regulation
Knowledge Exchange
Grants
An effective and impartial, end-to-end processExample: Long-term grant
Potential grantee
prepares concept
note
Internal panel reviews
concept note
Potential first tranche
(up to 20k) distributed
Applicant develops
proposal with assistance
from program manager
Discussions with policy
makers
Grant assessment
panel reviews proposal
Grant approved and next tranche
disbursed
Internal panel appraises
project proposal
“Light process”
- maximum 5 pages
Rejected
ApprovedApproved
No go
Conditional
Strategic partners
Support across the value chain, from policy design to implementation
AFIPolicymakers
Donors/Technical assistanceE.g. DFID, CGAP, BMZ/GTZ, USAID, World Bank, AFD, JICA
Standard setters E.g. BIS, FATF, IAIS
Private sectorE.g. ABAC, GSMA, Omidyar Network, Vodafone
Research partnersE.g. CENFRI, University of Chicago, Yale,Finmark, Harvard, NYU, FAI, OPM
Microfinance industryE.g. Accion, FINCA, Grameen, SEEP
Progress & outlook
• Milestone - Global Policy Forum 2009
• Progress
• Moving forwards
The first gathering of our members & strategic partners
AFI Global Policy Forum 2009
At the Forum•Over 80 policymakers from 37 countries
•High-level speakers and participants (Prime Minister, Governors, Deputy Governors etc.)
•80 strategic partners
•Active engagement & intense discussions
•Positive feedback on the Forum (99% satisfied)
•Very supportive of AFI and our new approach
Concept•Following the value chain of financial inclusion policy-making
•Knowledge-sharing among policymakers
•Practical solutions
•Innovative, interactive, member-driven
Progress so far
Key orientation for 2009: Building AFI and its Network
• Organizational structure in place– Steering Committee members appointed: Kenya, Mexico, Philippines, Thailand– Management unit in Bangkok
• Well-developed operational systems– Grant-making procedure established– Interactive web site and online network platform under development
• Rapidly expanding membership base– Central banks and regulatory institutions from 40 countries have already joined*– Institutions from additional 40 countries have shown interest to join
• Variety of grants already approved– E.g. Kenya-Brazil, Afghanistan-Philippines knowledge-exchange grants– First long-term concept note approved for Russia on agent banking– More grants in pipeline
• Growing AFI profile
– Network has gained global recognition, resulting in active involvement in a number of high-level processes (including G20)
*Figures as of April 2010
Moving forward
Key orientation for 2010: Activating the network and delivering services
• AFI working groups to be launched− 4 working groups identified so far (M-banking, Pacific, AML/CFT, and Financial Inclusion data)
• AFI web site revamp and online network platform launch– Online platform will provide members with a range of knowledge sharing and connecting features
• AFI Policy Notes and Policy Briefs− Notes and briefs on policy focus topics will be launched; policymakers invited to contribute
• AFI Policy Champion Program to be launched
• M& E system established, grant programs fully in place
• AFI Membership Needs Assessment and Financial Inclusion Policy surveys launched
• Contribution to the G-20 Working Group on Financial Inclusion Experts Group/ATISG
• Next Global Policy Forum: September 2010 • Will be shaped and driven by policymakers; practical, interactive, results-oriented
*Figures as of April 2010
