Progress Report on the Implementation of the G20 High-Level Principles for Digital Financial Inclusion

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Global strides in financial inclusion face persistent gender gaps and literacy barriers, exacerbated by COVID-19's impact.

The 2020 Financial Inclusion Action Plan (FIAP) mandates a progress report on the implementation, of the G20 High-Level Principles (HLPs) for Digital Financial Inclusion.

The latest progress report utilizes a self-assessment survey, launched in June 2023, based on implementation guides. The report was prepared by the G20 Global Partnership for Financial Inclusion (GPFI), under the India G20 Presidency, with assistance from the UN-based Better Than Cash Alliance and the World Bank.

Responses to the survey from G20 and non-G20 countries are analyzed in this progress report. Additionally, research and data from global financial inclusion surveys such as the Global Findex Database and the International Finance Corporation’s reports on the finance gap for Micro, Small and Medium Enterprises (MSMEs), are included to offer a global perspective on financial inclusion. Key messages from the survey and GPFI (Global Partnership for Financial Inclusion) member feedback include:

Enhancing digital infrastructure, such as internet access and mobile connectivity, along with tools such as digital IDs and fast payments, can significantly improve financial services for underserved groups and small businesses.

Encouraging responsible use of technology is vital to support this progress. Responsible technology use should be encouraged to support this advancement. Coordination among various stakeholders in both financial and non-financial sectors, including public and private entities, is important.

Strengthening efforts to improve financial inclusion to also focus on consumer protection, financial literacy, and resilience, especially for vulnerable groups and small businesses.

Moving beyond just measuring access to ensure progress reports includes data on usage, quality, and developmental outcomes of financial services.

Promoting collaboration with standard-setting bodies is necessary to develop regulatory frameworks that responsibly promote innovation in advancing financial inclusion.