Asia Pacific Forum On Financial Inclusion

Financial inclusion is a multidimensional concept and countries have chosen diverse methods of enhancing financial inclusion with varying degrees of results. The heterogeneity of financial inclusion is particularly striking in the Asia-Pacific region as member countries range from those that are at the cutting edge of financial technology to others that are aiming to provide access to basic financial services. The wide disparity is not only inter-country but also intra-country. The focus of this paper is to take stock of the current state of financial inclusion in the Asia-Pacific region by highlighting twelve stylized facts about the state of financial inclusion in these countries. The paper finds that the state of financial inclusion depends on several factors, but a holistic approach calibrated to specific country conditions may lead to greater financial inclusion.

Asia has made significant progress in financial inclusion, but both its across-country and intra-country disparities are among the highest in the world. The gaps between the rich and the poor, rural and urban populations, and men and women remain deep. Income is the main determinant of the level of financial inclusion; but other factors, such as geography, financial sector structure, and policies, also play important roles. While some countries in the Asia-Pacific region are leaders in fintech, on average the region lags behind others in several important areas such as online (internet) purchases, electronic payments, mobile money, and mobile government transfers. This Departmental Paper aims to take stock of the development and current state of financial inclusion and shed light on policies to advance financial inclusion in the region. The research focuses on the impact of financial inclusion on economic growth, poverty reduction, and inequality, linkages between financial inclusion and macroeconomic policies, as well as structural policies that are important for improving financial inclusion. Given the increasing importance of financial technologies (fintech), the paper also provides a snapshot of the fintech landscape in the Asia-Pacific.

The coronavirus disease (COVID-19) pandemic has highlighted the vital role of financial inclusion in supporting resilience and economic recovery among the most vulnerable populations in Asia and the Pacific. This publication identifies financial inclusion priorities to stimulate economic recovery and explores the challenges and opportunities of accelerated digital transformation. It proposes recommendations to aid policy makers and regulators. The publication shares insights from the 2021 Asia-Pacific Financial Inclusion Forum, a policy initiative of the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Process. It was prepared in collaboration with the APEC Business Advisory Council, the Asian Development Bank Institute, and the Foundation for Development Cooperation.

Asia and the Pacific continues to experience rapid development of innovative technology solutions driven by increased government support to help address the economic fallout of the coronavirus disease pandemic. This publication identifies the role that central bank digital currencies could play in overcoming some of the challenges of achieving financial inclusion. It proposes recommendations to aid policy makers and regulators. The publication shares insights from the Asia–Pacific Financial Inclusion Forum, a policy initiative of the Asia–Pacific Economic Cooperation Finance Ministers’ Process.

"The 2014 Asia-Pacific Forum on Financial Inclusion provides an opportunity to review trends, recent achievements, and challenges and opportunities related to financial inclusion and discuss how these developments are impacting different markets. The forum will strengthen capacities of government officials from developing member countries of ADB in implementing financial inclusion initiatives, as well as to provide policy suggestions in promoting financial inclusion in the region. Issues addressed: (i) increasing access to financial services for underprivileged groups particularly for lending, insurance, and remittance; (ii) developing innovative financial products and instruments for the poor; (iii) strengthening consumer protection; and (iv) promoting financial literacy."--Extracted from ADB Institute.

"The 2014 Asia-Pacific Forum on Financial Inclusion provides an opportunity to review trends, recent achievements, and challenges and opportunities related to financial inclusion and discuss how these developments are impacting different markets. The forum will strengthen capacities of government officials from developing member countries of ADB in implementing financial inclusion initiatives, as well as to provide policy suggestions in promoting financial inclusion in the region. Issues addressed: (i) increasing access to financial services for underprivileged groups particularly for lending, insurance, and remittance; (ii) developing innovative financial products and instruments for the poor; (iii) strengthening consumer protection; and (iv) promoting financial literacy."--Extracted from ADB Institute.