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Liliana Rojas-Suarez presents her decision tree in Mexico City

Where Policy and Research Meet: Takeaways from Workshops on CGD's New Policy Decision Tree for Financial Inclusion

On October 10, CGD, in collaboration with the Alliance for Financial Inclusion (AFI), held a workshop in Mexico City to discuss CGD’s innovative tool that serves to diagnose the crucial impediments to digital financial inclusion in specific country contexts. There, we shared a draft of CGD’s forthcoming paper: A Decision Tree for Improving Financial Inclusion.

Mindful Saving in Tanzania: Strategies Women Use

The entrepreneur is a 59-year-old widow in the city of Mbeya, Tanzania. She has a covered dark corner space in an open market where she sells soft drinks during the day, adds beer in the evenings, and also sells prepared meals in an adjacent space. She recently took a 6-week long business training course from TechnoServe, which included instruction on how to access M-Pawa, a new Vodaphone mobile savings platform. This should allow her to gain better control of her income and invest in her business.

Blockchain Tech Adoption Makes Progress, But Is Still No Magic Bullet for Global Financial Inclusion

Distributed ledger technology, like Bitcoin’s blockchain, has the potential to transform cross-border payments, boost financial inclusion, and lessen the unintended consequences of anti-money laundering enforcement. Ripple, a fintech company using distributed ledger technology, made headlines recently, as did the appearance of a new cryptocurrency, Zcash. If you’ve gotten swept up in the enthusiasm around emerging financial technologies (fintech), you may think that the creaking system of international transfers in fiat currencies, and the problems of global financial exclusion associated with it, will soon come to an end. However, as we’ve said before, these innovations may not have as much of an impact as you expect.

How Do India’s Payments Banks Measure Against Key Principles for Financial Inclusion?

Keeping in mind the low levels of financial inclusion in the country, the Indian authorities have developed a broad strategy to improve access to financial services, as outlined in the report by the Committee on Comprehensive Financial Services for Small Business and Low Income Households, led by Nachiket Mor. Among the committee’s recommendations, payments banks are one innovative tool to further India’s goal of greater financial inclusion.

CGD and IMF Join Forces to Discuss Financial Inclusion

Does broadening financial access to large segments of the population pose risks to financial stability? Not necessarily, according to recent remarks by IMF managing director Christine Lagarde. Increasing access to basic financial transactions such as payments does not threaten financial stability, especially when appropriate supervisory and regulatory frameworks are in place. In fact, with the right regulatory supervision, increased access to financial services can result in both micro and macro benefits. Recognizing the macroeconomic and regulatory dimensions of financial inclusion, CGD and the IMF joined forces for a seminar to kick off the IMF Spring Meetings 2016.

Better Regulation Can Improve Financial Inclusion

Poor regulation is a key obstacle to financial inclusion. An enabling regulatory environment is critical for creating incentives for businesses to offer innovative financial services to the poor, and for underserved customers to take up formal financial services.