CONCLUSION

This report represents the current state of practice of AFI member countries, however, its very nature and the speed of innovations driving regulatory changes will necessitate future updates and revisions.

The commitment and interest of AFI member countries in the digitization of financial services demonstrates that DFS is a lever with a significant impact on financial inclusion. Building a regulatory environment that is conducive to innovation and which protects institutions and consumers is a precursor to strengthening the use and adoption of financial services, particularly by the most vulnerable populations.

This report provides some indications, where appropriate, on the nature of financial inclusion in various countries. At the same time, it is nearly impossible to attribute increased financial inclusion to any single policy or even set of policies. After our review of the members and these 33 indicators, it is clear that the state of practice for DFS regulations is emerging and constantly evolving. Some areas can be seen as foundational, such as the need for national financial inclusion, FinTech and payment system strategies. Others are more transformative like digital identity and e-KYC, while CBDC and cryptocurrencies are emerging and may pose new opportunities and challenges for regulators globally.

This report, therefore, provides an important snapshot in time, demonstrating how regulators in AFI member countries are working to meet the challenges of developing a regulatory framework conducive to financial inclusion. As this work continues and evolves, the vision of AFI’s DFSWG is for this study to provide a strong basis for further follow up and robust analysis allowing members within the network to gain clear visibility of the regulatory gaps – and to then come up with appropriate interventions.