FROM THE MARGINS

How can we promote financial inclusion alongside financial stability and integrity? How do we capitalize on the transformational impact of technology while ensuring that disadvantaged and vulnerable groups are not left behind?

These critical questions will be discussed in the 2023 Global Policy Forum (GPF), the annual flagship event of the Alliance for Financial Inclusion (AFI). The AFI is a global network of central banks and financial regulators that are working together to promote people’s access to the formal financial system. It has 85 member institutions from 76 countries worldwide.

The Philippines will have the honor of hosting this year’s Global Policy Forum, which is slated for Sept. 12 to 15 at the Philippine International Convention Center in Metro Manila. The Bangko Sentral ng Pilipinas (BSP), a pioneer member of the AFI, is co-hosting the event, which will be attended by hundreds of participants, including heads and senior officials of central banks, financial regulators, international organizations, financial service providers and other AFI partners from all over the world.

Platform for inclusivity

The AFI GPF is the most comprehensive forum for regulatory institutions with an interest in promoting financial inclusion policy. It is a platform for regulatory institutions and financial inclusion advocates to exchange ideas as well as engage in peer-to-peer learning activities. It is also an opportunity to advance the cause of financial inclusion with private sector industry leaders.

The theme of the 2023 GPF is “Stability, Sustainability, and Inclusivity for Shared Prosperity,” which encapsulates the collective aspiration of AFI members, stakeholders, and partners for an inclusive and prosperous world. There are several plenary sessions, and I am excited to hear the discussions on micro-small-and medium-enterprises (MSMEs) in the face of climate change, as well as the AFI Leaders’ Public-Private Roundtable Discussion on how to advance the financial inclusion of women, youth and MSMEs.

I had been invited to be one of the speakers in the plenary session on Financial Inclusion for Shared Prosperity, focused on the building of a financial ecosystem that ensures no one is left behind. I am humbled that our grassroots-based microfinance network had been chosen to participate in this high-level dialogue. Our participation is a testament to the richness of the GPF as a global knowledge exchange platform. Hopefully, sharing our experiences in working with government regulators and other stakeholders to promote financial inclusion will push forward the global agenda to bring financial services to the unbanked.

Global leader

The Philippines is a recognized leader in financial inclusion. In 2015, our National Committee for the United Nations (UN) Year of Microcredit won an award at the UN International Forum to Build Inclusive Financial Sectors. The committee, chaired by the BSP with government and private sector representatives, was recognized for highlighting the role of microfinance in poverty alleviation. It was also cited for holding the National Microfinance Summit where a uniform set of performance standards for microfinance institutions was adopted.

The BSP received twice the AFI Peer Review Award, for its contributions in the peer review of policies of fellow regulators in the network. In 2018, The Economist Group’s Economist Intelligence Unit (EIU) ranked the Philippines as top four in the list of countries promoting financial inclusion. From 2014-2019, the country has been in EIU’s top five in terms of having a conducive environment for financial inclusion. From 2009- 2013, EIU’s global survey on microfinance ranked the Philippines number one in the world in terms of regulatory framework for microfinance.

Last year, the AFI launched the Nestor Espenilla, Jr. Financial Inclusion Award, named after our very own former BSP Governor “Nesting” Espenilla, Jr., who played a pivotal role in mainstreaming microfinance into the formal banking system. He institutionalized many initiatives to promote financial services for the poor and the marginalized.

PH financial inclusion

This year’s GPF will feature the “Financial Inclusion Journey of the Philippines,” which will showcase BSP’s collaboration with stakeholders to enable economic growth while promoting people’s direct access to financial product and services. Based on the program, BSP Governor Eli Remolona, Jr. will welcome this year’s GPF participants, while President Ferdinand Marcos, Jr. will deliver the keynote address during the opening ceremonies. It will certainly be a proud moment for the country.

Much headway has been made in financial inclusion advocacy, but the global challenge to bring the world’s 1.4 billion unbanked into the formal financial system continues to be a challenge. I cannot wait to see the world’s financial leaders take up the cudgels for financial inclusion in this global event. By sharing their experiences, knowledge and initiatives, regulatory institutions and financial inclusion advocates will surely have a greater impact in reaching those who are financially-excluded. I agree with the statement of Dr. Alfred Hannig, AFI executive director, in last year’s Global Policy Forum: “Moving forward and expanding greater financial inclusion can only be done together, as we face similar challenges and develop common solutions.”

(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to eight million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)