Financial Inclusion & Financial Stability: National & International Frameworks

“If the misery of the poor be caused not by the laws of nature, but by our institutions, great is our sin.” – Charles Darwin

The realisation of Sustainable Development Goals (in particular, SDG’s Goal 1—No Poverty) set by the United Nations (UN) requires giving considerably stringent attention and concerted efforts also to financial inclusion. In 2004, the Khan Commission was setup by the Reserve Bank of India (RBI) to explore Financial Inclusion. The recommendations of the commission were included in mid-term policy review (and so arrived the advent of simplified banking accounts).

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GPFI 2019 Japan: Elderly Financial Inclusion & India

The Global Partnership for Financial Inclusion (GPFI), launched in 2010, carries the mission of ensuring comprehensive financial inclusion. The platform for the G20 countries, non-G20 countries and pertinent stakeholders also aims to execute the G20 Financial Inclusion Action Plan (readied at the G20 Summit in Seoul). The Germany GPFI Presidency in 2017 was held with the theme, “Sustainable and Responsible Financial Inclusion of Forcibly Displaced Persons.” In 2018, the Argentina GPFI Presidency was held with the theme, “Building Consensus for Fair and Sustainable Development.” Building on the German and Argentina themes, in 2019, the Japan GPFI presidency fulfils the troika (of immediately preceding, present, and future presidency nations) of GPFI partnerships with the theme, “Aging and Financial Inclusion.” The G20 Leaders’ Summit 2019 will be held on June 28 – 29 in Osaka, Japan. Financial inclusion is essential for elevating livelihoods of the deprived and the elderly population. Continue reading “GPFI 2019 Japan: Elderly Financial Inclusion & India”

India in the Global Microscope for Financial Inclusion 2018

Introduction

The Global Microscope report released periodically by the Economist Intelligence Unit gauges the enabling environment for financial inclusion (furthering the objectives of the Sustainable Development Goals) considering 5 diverse categories (government and policy, stability and integrity, products and outlets, consumer protection, and infrastructure) and 55 countries. The 2018 research report witnessed the model development of the key enablers of financial inclusion. It also saw the inculcation of the indicators on digital financial services to the research methodology. The Global Microscope report essentially discusses the key growth topics of the developing economies: consumer protection, enabling environment, financial inclusion strategy, policy, regulation, and government initiatives, and trends. The Microscope assesses the regulatory and policy environment to which the key players in the financial inclusion domain are exposed to: banks, NBFCs, digital money issuers, and cross-border payment companies. The vital contributions of inclusive insurance, financial agents, FinTech firms, and credit information companies (CICs) are also examined.

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G20, India, & Financial Inclusion: En Route to 2022 Summit

Introduction: The Milieu

The 1990s witnessed the advent of microfinance at the mainstream in international development policies. There was a prime focus on market development by private financial firms. As the decade of the 2000s approached, the ambience of state legitimacy (via policies and strategies of financial inclusion) made its way. The warranted summoning of government interference is owing to the (still incumbent) ailing realities shaped by the worrying existence of social and geographical inequalities, gender biases, etc. With this stance, financial inclusion is envisioned as an instrument to establish, transform, and reinforce state institutions. The deployment of financial inclusion (social) policies in India is meant to facilitate access to marginalised (susceptible) populations of afresh rights and inclusivity. Also, such social policies having financial inclusivity agenda at the core could also promote the incoming of new alternatives to organise the behaviour of recipient (fragile) segment of the society.

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FinTech Adoption, Financial Inclusion, & The Next Regulatory Challenges

Introduction to FinTech

Investopedia defines FinTech as: “new tech that seeks to improve and automate the delivery and use of financial services. At its core, FinTech is utilised to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilising specialised software and algorithms that are used on computers and, increasingly, smartphones.”

Ernst & Young’s (EY) definition of FinTech is as follows: “FinTech: organizations combining innovative business models and technology to enable, enhance and disrupt financial services.” EY also states that its FinTech definition also encompasses, apart from early-stage start-ups and new entrants, a reference also to scaling firms, growth-stage firms, and non-financial services firms. The uniqueness of FinTech stems from the nature of its characterisation and the market conduct regulation (of the firms), collectively to which it’s (the FinTech industry) subjected owing to the fact that it manages assets, incomes, wealth, retirement funds, and salaries of people subscribing from all walks of life (for this reason, FinTech’s mass-adoption-rate and financial inclusion matters, to ensure a holistic growth of the financial services industry and its stakeholders).

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Microfinance & Financial Inclusion: Servicing the Marginalised India

‘‘The Poor stay poor, not because they are lazy but because they have no access to capital.” – Laureate Milton Friedman

Introduction to Microfinance

Microfinance (erstwhile microcredit) is a financial service offering loans, savings, and insurance to entrepreneurs and small enterprises that lack proper access to banks or investors. The primary objective of microfinance is to make available to the underserved individuals (since they lack the credit or resources to subscribe to a regular bank loan) the required money so as to invest in their nascent business projects. Continue reading “Microfinance & Financial Inclusion: Servicing the Marginalised India”