Amando M Tetangco, Jr: The three Cs of Alliance for Financial
Inclusion's success
Speech by Mr Amando M Tetangco, Jr, Governor of Bangko Sentral ng Pilipinas (the central
bank of the Philippines), at the 2014 Alliance for Financial Inclusion Global Policy Forum,
Port-of-Spain, Trinidad and Tobago, 10 September 2014.
* * *
Salutation
Governor Jwala Rambarran; Governor Zeti of Bank Negara Malaysia, host of AFI's future
headquarters; ministers; fellow governors; Dr. Alfred Hannig; distinguished delegates; AFI
partners; ladies and gentlemen, good morning. It is a privilege to speak at the opening of the
2014 Alliance for Financial Inclusion (AFI) Global Policy Forum (GPF) - which has quickly
evolved into the world's major gathering of policymakers, regulators, prime movers and
advocates of financial inclusion. Today, we have a record number of over 400 participants, a
300 percent increase from the first GPF in 2009.
Let me thank Central Bank Governor Jwala Rambarran for hosting the 2014 GPF. We can
say that it is appropriate to hold this event here in the paradisical Trinidad & Tobago, a firmly
committed member of AFI. Moreover, Trinidad and Tobago is the birthplace of calypso
music.1 After all, the GPF is quite an upbeat, fun and engaging assembly of AFI members
and friends. Holding this GPF here on the 50th anniversary of the country's central bank, the
100th member of AFI, lends added color to this gathering.
Brief overview of AFI independence
As outgoing chair of the Steering Committee, I am privileged that my last opportunity to open
the GPF comes at this point in AFI's history. The past two years have been crucial to set in
motion the transformational processes that have driven the AFI journey to independence.
Now we are about to cross the proverbial Rubicon - as AFI leaves its "project" status and
becomes an international organization. We are embarking on a fundamental change that
requires our solid resolve as a global network.
AFI's transformation as an international organization with juridical identity will strengthen its
DNA - the member-driven, equitable, and inclusive nature of AFI's governance, membership,
and activities. This DNA has set AFI apart as a policy-driving network. It has effectively
mobilized financial sector policymakers, regulators and international organizations, to
proactively confront the challenges of financial exclusion.
The Cs of AFI's success
The success of AFI can be attributed to what we can call three Cs: (1) commitment,
(2) collaboration, and (3) concrete results.
Commitment is an important first step in the attainment of any goal. As one of the pioneer
members, the Bangko Sentral ng Pilipinas (BSP) can attest to the steadfast engagement of
AFI members and partners in activities and programs toward financial inclusion.
We have benefitted from the commitment of visionary funding partners who believed in the
concept of AFI and sustained us in our journey toward increasing access to financial services
for the poor. The trust and support of the Bill and Melinda Gates Foundation, German
International Cooperation (GIZ), Federal Ministry for Economic Cooperation and
Development (BMZ) and other donors like the Australian Agency for International
Development (AUSAID), facilitated the exponential growth of AFI. Within six short years, it is
now a network of 120 member institutions from 95 developing countries. Future
commitments from like-minded donors will surely fortify AFI's ability to continuously
undertake its important mission.
AFI would not be what it is now without the commitment of members who devoted substantial
time, resources and expertise to make AFI activities fruitful and successful. If we count just
the face-to-face meetings of the seven AFI working groups2, we get a total of 57 meetings
from 2010 to 2014. Steering Committee meetings, and those of the Subcommittees on
Independence, Host Country Evaluation and Global Standards, are not yet accounted in this
number. If "time is gold", then it is clear that the membership definitely invested so much in
the AFI journey.
Underpinning this investment in time and resources is AFI members' commitment to
achieving our shared vision of a financially inclusive world. AFI members firmly supported the
Maya Declaration in 2011 and the consequent Sasana Accord in 2013. These declarations
are documentary proof of members' dedication to implement concrete and measurable
policies and programs that expand inclusion in their respective jurisdictions.
To date, 47 out of 120 member institutions have publicly articulated their own Maya
commitments. While targets and accomplishments vary from country to country on account
of domestic contexts, the most significant outcome of the Maya Declaration is increased
institutional accountability. By AFI's count, a total of 71 measurable policy improvements
have been made by Maya countries.
The second C is a blend of collaboration and cooperation, which describe (1) how AFI
members interact with each other, and (2) how the AFI network engages with external
stakeholders.
Collaboration and cooperation is inherent in the design of AFI's signature platforms - the
working groups and the knowledge exchanges.
The working groups, with a membership total of at least 194 individuals, function as
"communities of practice". As peers on equal footing, they share and discuss ideas to
produce outputs that are relevant in policymaking and program development. These outputs
include guideline notes, discussion papers, surveys, data indicators, case studies and peer
reviews - which we collectively call knowledge products. These products constitute majority
of the AFI library, and serve as useful references for AFI members and external interested
parties.
Like other AFI members, the BSP benefited from the working groups, as we implemented
various aspects of our financial inclusion agenda. For example, our national baseline survey
on financial inclusion was enriched thru peer reviews by CNBV Mexico and Bank of Tanzania
in the Data Working Group. Our regulatory perspective on digital financial inclusion was
constantly deepened thru the interactions in the Mobile Financial Services Working Group.
These are just a few examples, considering that the BSP is an active member in all the
working groups, save for the regional group of Pacific Islands.
On the other hand, the knowledge exchange (KX) - one of the most availed of grants by AFI
members - is a structured, purposive and onsite study visit. As recipient of one, and host of
20 AFI knowledge exchanges since 2010, the BSP can attest that the KX is mutually
beneficial to the visitor and the host. It facilitates open, candid dialogue among regulators
facing similar issues, but operating in different domestic situations.
Many policy solutions are informed by lessons learned from knowledge exchanges. For
example, our consumer protection framework and financial education program were inspired
by what we learned, in no small measure, from a KX with Bank Negara Malaysia. We shared
our regulatory experience with colleagues from the Bank of Tanzania, and later provided
insights on their draft electronic money regulations. I am sure that other AFI members also
have interesting stories to tell about their KX experiences.
Collaboration and cooperation likewise characterize AFI's engagement with external
stakeholders. This approach has resulted in rewarding partnerships and increased global
attention on financial inclusion. Let me cite some examples:
We have initiated, and will continue to deepen the engagement with Standard Setting Bodies
(SSBs) thru a structured peer learning program. Global standards greatly affect the level of
exclusion, as well as the range, quality and affordability of financial products available to
clients at the bottom of the pyramid. AFI is in a unique position to contribute value to the SSB
discussions; given the wealth of experience that the membership has in practicing the
proportionality principle; in a manner that is conducive for financial inclusion.
Presently, the BSP chairs the Basel Consultative Group Workstream on Financial Inclusion.
This working group aims to form an overall risk picture on financial inclusion that would be of
particular relevance to banking supervisors around the world. AFI members provided
invaluable inputs to the workstream thru their participation in the Range of Practice Survey.
As implementing partner of the G20 Global Partnership for Financial Inclusion (GPFI), AFI
has gained stature as the voice of the developing world in the area of financial inclusion. We
significantly contributed to the development of the G20 Principles for Innovative Financial
Inclusion.
Finally, AFI's regular collaboration with the G24 in conducting policy forums, continues to
deepen awareness on financial inclusion issues, and inspire action among G24 member
countries.
Commitment, collaboration and cooperation are necessary, but insufficient to beget success.
These factors must translate into a third C - concrete results.
The results-oriented culture of AFI ensures that policy solutions, regulatory enhancements
and program interventions always benefit the ultimate stakeholder whom we all target to
serve: the financially-excluded. To date, we have seen policy solutions that resulted in:
16.7 million mobile money accounts for 15 percent of adults, achieved within
•
2.5 years in Bangladesh
• 7 million mobile money accounts for 67 percent of adults, achieved within 7 years in
Kenya
• 19.4 million basic bank accounts for 27 percent of adults, achieved within 5 years in
Mexico
• 26.7 million mobile money and cash card accounts, achieved within 4 years in the
Philippines
• 1.7 million savings accounts for 25 percent of adults, achieved within 4 years in
Rwanda
This sampler data from selected AFI members reinforce the importance of impact
measurement and monitoring. As responsible policymakers and program implementers, we
must verify that our actions are indeed achieving inclusion objectives. We can only claim true
success if we have incontestable proof that global partnerships and national goals
adequately empower our ultimate stakeholders.
Conclusion
As I end my term as Chairman of the Steering Committee, allow me to extend deep
appreciation to my distinguished colleagues in the Committee, all member institutions, our
strategic partners and donors, and the AFI Management Unit, for your unwavering support.
Your active and thoughtful participation in the Committee, and in AFI processes, has made
our work much more manageable and gratifying. I am pleased to announce that the Steering
Committee will be led by incoming Chair Daniel Schydlowsky of Peru.
As I contemplated an appropriate end to my opening remarks, TNT came to mind; not only
because it resembles the initials of our host country Trinidad "n" Tobago; but also because of
the massive force of change that we want to take place in our respective countries. Let us all
keep the three Cs of AFI aglow to see forceful initiatives in AFI's future - to catapult financial
inclusion to greater heights around the world.
Thank you and good morning.