Inclusion and Linkages to Stability, Integrity and Consumer Protection

Financial sector policy makers and international standard-setting bodies (SSBs) pursue the four objectives of financial inclusion, stability, integrity, and consumer protection – what are collectively known as the I-SIP objectives. Financial inclusion – a more recent addition to the list of core policy objectives for financial sector regulators and supervisors – is receiving increasing recognition by both global bodies (e.g. the United Nations, the G20 Leaders and Finance Ministers/Central Bank Governors, the SSBs) and country-level policy making bodies.

How are financial inclusion and the other objectives linked? And how can policy makers pursue all four objectives in such a way that negative outcomes, or trade-offs between the financial objectives, are minimized?

CGAP has embarked on a work stream aimed at understanding just this. In 2012, CGAP carried out pilot research in South Africa to begin developing a framework to study I-SIP linkages in the context of country-level policy making, as well as to develop a methodology for policy makers to optimize the linkages in practice. Since then, similar rapid research exercises have been undertaken in Pakistan and in Russia. Further country-level I-SIP rapid research exercises are planned to continue refining both the I-SIP framework and within it the I-SIP methodology.

This work is building an evidence base for policy makers seeking better ways to pursue the I-SIP objectives simultaneously. The G20 Finance Ministers and Central Bank Governors, in their November 2012 communiqué, called for SSBs to provide guidance and engage with the G20’s Global Partnership for Financial Inclusion (GPFI) to study I-SIP linkages. In addition, the GPFI’s Subgroup on Regulation and SSBs (of which, CGAP is lead Implementing Partner) is exploring the linkages among the I-SIP objectives.



19 October 2017
This study looks at Pakistan’s nearly decade-old experience with regulating digital financial services (referred in the local context as branchless banking) as a test case for the RIA Lite methodology,
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English (24 pages)
10 July 2017
Under the right circumstances, financial inclusion, stability, integrity, and consumer protection (collectively referred to as I-SIP) can be positively related, and the failure to consider any one of these objectives can lead to problems.
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English (78 pages)

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