Access to credit registries to financial service providers would also support the sustainability of the supply of such services. Such financial statistics also needs to evolve with the changing environment including on the range of products and services, the distribution channels and the relative performance of the borrower and the financier. This will allow for early detection of risks and vulnerabilities and thus allow for prompt policy responses to ensure sustainable financial intermediation for the underserved sector. Priorities 3: Strengthening the role of regulation and supervision The third area relates to the role of regulation and supervision in financial inclusion. Today, there is a growing consensus that the policy goals of financial stability, financial integrity, consumer protection and financial inclusion are complementary and mutually reinforcing. There is now a re-thinking of prudential and conduct regulation to reflect a more proportionate approach. The validation by global standard setting bodies that includes the Basel Committee on Banking Supervision, the Insurance Association of Insurance Supervisors, and the Financial Action Task Force that regulation should be commensurate with the risks, benefits and costs is a significant step towards improving the regulatory and supervisory conditions that will be consistent with the conditions for financial inclusion. While the principles of proportionality are widely embraced, there is much less clarity on how they can be applied in practice to reflect risks associated with low-income households and small businesses. The practical issues can be challenging particularly in the context of full service banks.

Therefore, AFI has an important role in leading the way in gathering examples of best practices based on specific country experience, in the area of financial inclusion and its relation to financial stability and consumer protection objectives. AFI is therefore also a key platform that brings together policymakers, financial service providers, telecommunication and technology industries to have greater awareness on the trends that can support the advancement of financial inclusion. Additionally, AFI’s engagement with international organisations is also key given the implications of their initiatives on financial inclusion. Conclusion Let me conclude. There is now greater appreciation that the level and quality of financial inclusion will have a significant impact on the prospect for balanced and sustainable growth. AFI has demonstrated its important role in leading the way for greater financial inclusion in the world economy. AFI is unique because its membership covers practitioners from developing and emerging economies, who can share approaches that can be customised to a respective country’s unique circumstances. We begin this two day global policy forum, with our vision firmly focussed on our long-term goal of universal access to quality financial services which will provide our communities with the chance to change. This Global Forum and AFI provides an unparalleled opportunity that brings together strategy, knowledge, expertise and best practices from across the AFI membership. This provides us with the real potential to make a difference in financial and economic inclusion and thus with the potential to transform lives. Thank you. 4  BIS central bankers’ speeches