CGAP Launches Citi Foundation-Funded East Asia Program
CGAP Launches Citi Foundation Funded East Asia Digital Financial Inclusion Program
WASHINGTON, D.C., September 12, 2016 – The Consultative Group to Assist the Poor (CGAP) launched today the East Asia Digital Financial Inclusion Program funded by the Citi Foundation. This pioneering program aims to build knowledge exchange and experience sharing around frontier issues in effective policy making that support and enable financial inclusion through digital channels.
The goal of the new program is to leverage policymakers’ experience with supervision of digital financial inclusion in three selected countries in East Asia - China, Indonesia and the Philippines – to yield knowledge and best practices and share with standard-setting bodies and the global community. At the same time, the program will work with policymakers in these three countries to apply global knowledge around international standards and policies relevant to digital financial inclusion in their respective countries.
“The policy environment is a crucial factor in closing the financial inclusion gap to over 2 billion unbanked people around the world. It helps determine the range and quality of formal financial services available and on how many marginalized customers take up and use the services on an ongoing basis,” says Timothy Lyman, Lead of the Global Policy Architecture initiative at CGAP.
“The rapid development of digital financial services promises to be a game-changing opportunity for reaching the excluded and underserved populations. However, a hasty adoption may also pose risks. We are pleased to partner with CGAP to better understand the implications of digital financial inclusion both at the global and country levels and work at advancing a more enabling and protective environment,” says Regina Seow, Regional Head of Corporate Citizenship, Citi Asia Pacific.
The three program countries were selected based on the following profiles:
- China has enabled, through its policies, a variety of payment companies to build on the vast usage of digital channels, such as the internet, smartphones and e-commerce, leading to an expansion of digital financial services usage in the country.
- Indonesia has embarked on substantial policy reform to support the expansion of digital finance in the country. As the reform is ongoing, there are opportunities to learn what approaches to supervision of digital financial inclusion hold the most promise.
- The Philippines was the first country globally to launch mobile money. The active role that supervisors continue to play in assessing innovative approaches provides good practice examples of digital financial inclusion.
Three potential outcomes of the program include:
- Strengthened mechanisms for learning, information sharing, cooperation and co-ordination of activities related to digital financial inclusion.
- Improved global awareness of digital financial inclusion policy in East Asia.
- Improved capacity of policymakers (supervisors, in particular) to promote the interdependence that exists between financial inclusion, financial stability, integrity and consumer protection.
CGAP is an independent think tank that works to empower poor people to capture opportunities and build resilience through financial services. We test, learn and develop innovative solutions through practical research and active engagement with our partners on building responsible and inclusive financial systems that help move people out of poverty, protect their gains and advance global development goals. Housed at the World Bank, CGAP is supported by over 30 leading development organizations committed to making financial services meet the needs of poor people.
About The Citi Foundation
The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. We invest in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant cities. The Citi Foundation's "More than Philanthropy" approach leverages the enormous expertise of Citi and its people to fulfill our mission and drive thought leadership and innovation. For more information, visit www.citifoundation.com.