Asia-Pacific Financial Inclusion Forum 2021: Emerging Priorities in the COVID-19 Era

By Asian Development Bank

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.

• Language: English
• Publisher: Asian Development Bank
• Release date: Dec 1, 2021
• ISBN: 9789292691912

Book preview

ASIA-PACIFIC FINANCIAL INCLUSION FORUM 2021

EMERGING PRIORITIES IN THE COVID-19 ERA

DECEMBER 2021

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

© 2021 Asian Development Bank

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Some rights reserved. Published in 2021.

ISBN 978-92-9269-190-5 (print); 978-92-9269-191-2 (electronic); 978-92-9269-192-9 (ebook)

Publication Stock No. TCS210469-2

DOI: http://dx.doi.org/10.22617/TCS210469-2

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Cover design by Francis Joseph Manio.

CONTENTS

FIGURES, TABLES, BOXES, AND CASE STUDIES

FOREWORD

Developing Asia has experienced remarkable economic growth and socioeconomic transformation over the past several decades. Nevertheless, the region continues to face enduring challenges of persistent poverty and increasing income inequality. The coronavirus disease (COVID-19) pandemic exacerbates these issues. Scarring inflicted by the pandemic on economies and human welfare threatens to reverse decades of hard-won gains in poverty alleviation and development across Asia. It hits those at the bottom of the economic pyramid the most, with women and other marginalized groups disproportionately affected. Yet every crisis presents opportunities. We need to embrace these by identifying effective policy responses—not only to support strong, sustained, and inclusive economic recovery, but also to rebuild smartly.

The pandemic has overturned many aspects of life, dramatically reshaping the way we work and live. It has also transformed financial systems worldwide toward considerably greater digitalization. Governments recognize the importance of financial inclusion, particularly digital financial inclusion, as a major driver of sustainable economic recovery. The Asia-Pacific Financial Inclusion Forum (APFIF), as a longstanding initiative of the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Process, is an important policy forum that enhances collective understanding of the importance of financial inclusion. Under the theme, Emerging Priorities in the COVID-19 Era, this year’s forum focused on the role fintech and innovative digital financial services can play in broadening financial inclusion and therefore realizing inclusive economic growth and resilience.

Based on the discussion, this publication provides valuable insights on the most effective ways financial inclusion strategies can be utilized to respond to the pandemic. This includes approaches for developing inclusive digital economies, supporting innovation, and improving the digital capabilities of institutions that serve the poor. The publication also examines emerging challenges and opportunities that result from an increasingly digitized world, such as the need to reconsider multiple dimensions of financial inclusion within the digital landscape. It is also imperative to develop innovative financing mechanisms to close digital infrastructure investment gaps and enhance efforts to ensure that digital finance services are both accessible and affordable to the poor.

This publication offers specific policy recommendations and steps for policy makers and regulators to consider to address these issues. It is my hope that these recommendations will provide useful guidance on how to harness digital financial services more effectively and ultimately lead us closer to the realization of an inclusive and prosperous region built upon a foundation of strong cooperation.

Yasuyuki Sawada