This month we focus on the importance of multiple stakeholders working together to achieve meaningful financial inclusion; policy makers, banks, telcos, third party aggregators, agent network managers, all have significant roles to play in this mission. The lead stories include a) RBI Deputy Governor Dr. K. C. Chakrabarty’s speech on the challenges ahead in India, stressing the importance of a collaborative approach from all stakeholders, b) CGAP’s Xavier Faz’s blog explaining how countries are moving away from the bank-led model to allow growth of e-money by non-banks and c) a CGAP report that notes that interoperability amongst multi-party systems that is so crucial for expanding accessibility rarely happens on its own - key enabling interventions by regulators and government are critical for its success.
Dr. K.C. Chakrabarty’s address highlights the second wave of initiatives needed for rapid progress of financial inclusion, provides insights on critical challenges in India and stresses the need for the collective will of all stakeholders to overcome these challenges together.
Xavier Faz, Regional Manager for Latin America, CGAP, focuses on the changing environment in Latin America where the bank-led model is paramount, yet non-banks are increasingly being allowed to issue e-money. The article notes that amongst the non-banks, third party aggregators and agent network managers have taken the lead in these markets.
The CGAP blog summarizes a paper by Carol Coye Benson and Scott Loftesness that uses historical experiences to bring out relevant insights for branchless banking in emerging economies. The paper notes that interoperability amongst multi-party systems does not happen on its own and the regulator and government play critical roles in enabling it.
Section I: Policy – the latest from India’s policymakers
The monthly newsletter from the Indicus Centre for Financial Inclusion documents the latest news and views in the financial inclusion space, to provide a knowledge base that will help build understanding around how to accelerate the poor’s access to high-quality financial services.
The Indicus Centre for Financial Inclusion was launched in 2011 to distil and disseminate information on accelerating the poor’s access to high-quality financial services. The Centre is supported by the Bill & Melinda Gates Foundation. http://www.indicus.net/icfi