Impact
Since 2009, AFI members have developed and implemented over 820 policy changes to enhance financial inclusion. The level of attribution accorded to AFI for policy and regulatory reforms by members is 60 percent. This resulted in over 634 million people being brought to formal financial system as a result of AFI activities. Since 2016, members have attributed over 100 policies and regulations to AFI annually, an indication that the preparatory work going back many years is beginning to be realized.Organization
AFI's core mission is to empower policymakers to increase the access and usage of quality financial services for the underserved through the formulation, implementation and global advocacy of sustainable and inclusive policies. AFI is the only existing member-based organization with a strong network of central banks and other financial regulatory institutions, that have a specific focus or sole mandate on financial inclusion to support empowerment of the poor and aid the attainment of Sustainable Development Goals (SDGs) through smart policies and regulationsAFI Cooperation model
AFI’s cooperation model was designed to fulfil the objectives of supporting members’ financial inclusion agenda. Putting members in the driving seat of agenda setting for financial inclusion policy, AFI’s unique cooperation model is based on the following principles: * Effective governance with Board of Directors and management unit driven by values of transparency, accountability and flexibility * Apolitical and non-bureaucratic * Full ownership by members who lead and set the agenda for the network’s initiatives including Working Groups, Regional Initiatives and capacity building * Equality, inclusiveness and equity * Solid administrative and financial system with resources focused on operational and financial sustainability * Meaningful and binding partnerships with like-minded institutions * Permanence and agility * Sustainability of AFI services and knowledge resourcesHistory
Origins and until 2008
In 2006, there was an emerging recognition that policies mattered when it came to financial inclusion. There is also a huge sentiment around the potential of digital financial services for increasing financial inclusion for the unbanked population of the world. Dr. Hannig described the situation in 2006 as follows: Through the Gates Foundation, Dr. Alfred Hannig and the2009 to 2010
Less than two years after its launch, AFI went from an initial founding core group of five member institutions to members in more than 60 countries, representing nearly 70 percent of the world’s unbanked population. In 2009, the network saw the first AFI GPF, which was held in Nairobi, Kenya under the theme, ''A marketplace of ideas''. Grants to selected member institutions were introduced. In 2010, the2011 Maya Declaration
At the 2011 GPF in Mexico’s Riviera Maya, AFI members collectively adopted the Maya Declaration, a global initiative for responsible and sustainable financial inclusion that aims to reduce poverty and ensure financial stability for the benefit of all. It is a statement of common principles regarding the development of financial inclusion policy. More than 30 countries represented by AFI member institutions, went a step further by announcing specific and measurable commitments. As of October 2021, AFI member institutions have made a total of 885 Maya Declarations targets. The Maya Declaration has paved the way for various other accords. In recognition of these developments, both the G20 and the2013 to 2018
In 2013, AFI members adopted the Sasana Accord on Evidence- and Data-based Results, Accelerated Progress and Measurement of Impact. During the same year, AFI reached 100 member institutions overall with the addition of the Central Bank of Trinidad and Tobago In 2015, AFI members endorsed the Maputo Accord, which commits members to support access to finance for small and medium enterprises. It also established its headquarters in Kuala Lumpur, Malaysia, which are hosted by Bank Negara Malaysia. In 2016, AFI completed the final steps in its evolution from an exclusively donor-funded project into an independent and member-supported international network of policymakers. Members also endorsed the Denarau Action Plan for Gender Inclusive Finance to increase women's access to quality and affordable financial services globally — bridging the financial inclusion gender gap. In 2017, AFI members adopted the Sharm El Sheikh Accord on Financial Inclusion, Climate Change and Green Finance. In 2018, AFI set up its Africa Regional Office in Abidjan, Côte d'Ivoire, co-hosted by the country’s Ministres de l'Économie et des Finances and2019 onwards: COVID-19 pandemic and AFI's response
The COVID-19 pandemic triggered widespread unemployment and falling levels of gross domestic product and disproportionately impacting the most disadvantaged segments of populations. This led to the implementation of AFI’s COVID-19 Policy Response, which aimed to systematically deliver coordinated policy responses to help AFI members mitigate the impact of COVID-19 on financial inclusion policy implementation, especially for micro, small and medium enterprises (MSMEs), women, youth, forcibly displaced and other vulnerable segments of the population. Virtual engagements were conducted during the lockdown period with technical teams and leadership across its member countries to address specific issues. A series of member needs surveys were distributed to enable AFI to deploy rapid policy response guidelines. AFI partnered with theWorking groups
AFI has seven working groups. They serve as the technical backbone for generating knowledge, guiding and implementing policies, and developing policies. The working groups produce policy guidelines and tools for formulating financial inclusion policies, provide peer reviews, and contribute to the engagement of global standard-setting bodies (SSBs). They also all work on gender inclusive finance as a cross thematic area and have gender focal points. Since the first meeting was held in 2010, working groups have grown rapidly in size and number. As of March 2022, 76 member institutions from 65 developing and emerging countries participate in working groups. They represent the leaders of financial inclusion policy and, together, have passed over 520 policy changes in their respective jurisdictions. They also represent the thematic areas that AFI actively participates in: * Consumer Empowerment and Market Conduct (CEMC) Examines the importance of consumer empowerment and protection to improve the quality of financial services. CEMC Working Group also advances policy and regulatory issues related to consumer empowerment initiatives and market conduct regulations. * Digital Financial Services (DFS) Discusses issues related to digital financial services and promotes digital finance as a major catalyst in achieving financial inclusion in emerging and developing economies. The working group also develops policy guidelines, conducts peer reviews and engages the fintech industry and global SSBs. * Financial Inclusion Data (FID) Builds knowledge and good practices on areas related to financial inclusion measurements, such as indicators, methodologies, global standards and principles. * Financial Inclusion Strategy (FIS) Promotes the development, implementation, and monitory and evaluation of national financial inclusion strategies. * Global Standards Proportionality (GSP) Provides technical support on the proportionate application of global standards while supporting, exchanging and discussing measures that strengthen and balance both financial sector stability and integrity. * Inclusive Green Finance (IGF) Discusses and creates financial policies that build resilience to mitigate and adapt to the effects of climate change, and to facilitate a just transition towards a low carbon economy. * SME Finance (SMEF) Promotes the discussion and implementation of smart policies that facilitate the access of MSMEs to finance and provides a platform for members to discuss related challenges and opportunities. In addition, AFI working groups cover current and emerging global trends that have the potential for widespread impact. Member institutions have significant interest in developing policies that mitigate the challenges posed by the following policy areas: * Forcibly displaced persons * Gender inclusive finance * Inclusive fintech * Youth financial inclusionRegional Initiatives
Regional initiatives bring AFI closer to its members and strengthen regional cooperation in financial inclusion. They also enhance the network’s ability to support its members working on specific regional priorities, sharing regional knowledge and translating global financial inclusion issues into practical implementation at the regional and national level. The network has five key regional initiatives:African Financial Inclusion Policy Initiative (AfPI)
AfPI is the primary platform for AFI members in Africa to support and develop financial inclusion policies and regulatory frameworks, and to coordinate regional peer learning efforts. From AFI’s regional office in Abidjan, Côte d'Ivoire, AfPI brings together high-level representatives from African financial policymaking and regulatory institutions to enhance the implementation of innovative financial inclusion policies across the continent. Key AfPI initiatives include leaders’ roundtables, private-public dialogues, capacity building workshops, developed-developing country dialogues and meetings of its experts’ group on financial inclusion policy. As of 2021, 39 AFI member institutions from 37 countries participate in AfPI. Together, they have implemented 251 policy changes that can be attributed to the regional initiative’s work in financial inclusion. They have also published 15 knowledge products and 331 Maya Declaration commitments.Eastern Europe & Central Asia Policy Initiative (ECAPI)
Launched at the 2018 AFI GPF in Sochi, Russia, ECAPI aims to resolve regional challenges and elevate the voice of Eastern European and Central Asian nations on key financial inclusion policy issues. Countries within the region require focused and tailored solutions to tackle its financial inclusion challenges, including low levels of financial literacy, high volume of remittances and underdeveloped consumer protection policies. While the region has witnessed significant advancements in financial access in recent years, at least 121 million people remain excluded from formal banking. Through the activities implemented in ECAPI, members aim to: * Increase access to financial services for the 50 percent unbanked youth. * Address the regional six percent gender gap. * Reduce the 25 percent gap in access between those with lower and higher levels of education. * Focus on advancing financial inclusion for the poorest 40 percent of the population. As of 2021, seven AFI member institutions in seven countries collaborate under ECAPI. They have implemented 29 policy changes linked to the regional initiative’s work in financial inclusion, published four knowledge products and made 53 Maya Declaration commitments.Financial Inclusion for the Arab Region Initiative (FIARI)
FIARI is a regional platform created amid growing demand from member institutions for tailored solutions to regional financial inclusion issues. Launched by the Arab Monetary Fund, GIZ and AFI in 2017, and later joined by the World Bank, it aims to enhance access to financial services in the Arab region through effective coordination mechanisms and supporting the implementation of national financial inclusion policies. As of 2021, FIARI comprises 22 AMF member institutions, including eight AFI members. Within the AFI network, members’ contributions has led to the implementation of 34 policy changes and 74 Maya Declaration commitments in the Arab Region.Financial Inclusion Initiative for Latin America and the Caribbean (FILAC)
FILAC is a regional initiative that aims to be the driving force for advancing financial inclusion in Latin American and Caribbean countries. It was launched in 2016 with support from Canada’s International Development Research Center. As of 2021, FIARI’s 12 AFI members in 11 countries have implemented 99 policy changes and published 13 knowledge products. They have made 174 Maya Declaration commitments.Pacific Islands Regional Initiative (PIRI)
Officially launched in Dili, Timor-Leste, in 2015, PIRI aims to make formal financial services accessible to all Pacific Islanders through its unique model of south-south engagement and peer learning. The region has one of the highest rates of unbanked persons globally due to factors including geographically dispersed islands, small populations and limited banking infrastructure. The initiative invites AFI member institutions to share in a common vision while working toward ensuring that financial services are widely accessed throughout the region. With PIRI, AFI has created a unique model of south-south engagement and peer learning that aims to provide all low-income Pacific Islanders with access to formal and informal financial services. As of 2021, the regional initiative comprised eight AFI members in eight countries. Their work has contributed to 65 policy changes and led to the publication of eight knowledge products. Members have made 66 Maya Declaration commitments.AFI Global Policy Forum
The AFIMembers
AFI's members consist of central banks, monetary authorities, and other financial institutions. AFI members are responsible for choosing the policies to focus on.Donors and partners
In 2016, AFI completed its transition from being an exclusively donor-funded project into an independent and member-supported international network of policymakers. However, AFI still continued to form strategic collaborations with a variety of global donors and partners from both the public and private sectors. These include:https://www.afi-global.org/sites/default/files/publications/2019-09/AFI_AR18_stg11.pdf * French Development Agency (AFD) * German Federal Ministry of the Environment, Nature Conservation and Nuclear Safety (BMU) * German Federal Ministry of Economic Cooperation and Development (BMZ) *See also
* Maya Declaration *References
External links
* {{Official website, https://www.afi-global.org/ Non-profit organisations based in Malaysia International educational organizations Microfinance organizations Economic development organizations