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Digital-Financial Literacy as a Vehicle for Economic Inclusion

SpeakerS:

Graham MacMillan, President, Visa Foundation
H.H. Sheikha Shamma Bint Sultan bin Khalifa Al Nahyan, President & CEO, UAE Independent Climate Change Accelerators (UICCA)
Michael Piwowar, Executive Vice President, Milken Institute Finance
Nicole Goodkind, Senior Reporter, CNN
Tarek Mouganie, Founder & Group CEO, Affinity Africa

“As our world becomes increasingly digital, too many, particularly in emerging markets, still lack the financial tools needed to engage with the global economy.” Nicole Goodkind, Senior Reporter, CNN
“We need to move to this new model where we embrace collaboration, circularity; we embrace the sharing economy.” H.H. Sheikha Shamma Bint Sultan bin Khalifa Al Nahyan
“At the end of day you can provide the product and service, but if the trust isn't there, that it can deliver—that you're not going to lose your identity or have money taken from you—that's the essence of success for us.” Graham MacMillan
“Traditionally, people have entered the financial system through their banks, but that's changing.” Michael Piwowar
“Technology has been such a big driver in our continent, but historically the big focus around financial inclusion has been around access. I think we need to have a conversation about taking it a step further into affordability.” Tarek Mouganie

Key takeaways:

  • Digital financial inclusion is crucial for economic recovery: The COVID-19 pandemic has exacerbated existing inequalities and highlighted the need for greater financial inclusion that enable women and minorities in emerging markets to access the global economy. 
  • Purposeful design of digital financial services: There is no one-size-fits-all solution; digital financial services must be designed with purpose and centered around the specific needs of vulnerable communities, with nonprofits aiding in grant.making and investments for small and micro businesses. 
  • Investment in women-led small and micro businesses: Supporting women-led businesses is key to addressing market failures and driving inclusive economic growth, with intermediaries crucial for  reaching businesses and scaling impact. 
  • Embracing innovative solutions for the underserved: As digitization grows, proactive measures are needed to bridge the digital divide and ensure the underserved benefit in the green economy transition. 
  • Building trust in financial institutions: Trust is a significant barrier; underserved populations may be skeptical of new financial services, necessitating efforts to build credibility and demonstrate reliability. 

 

Action items:

  • Enhance collaboration between public and private sectors: Foster partnerships to bridge the digital financial gap by reaching vulnerable populations and improving digital literacy. 
  • Design inclusive financial services: Develop financial products and services with purposeful design centered on the needs of underserved communities, involving community-based organizations in the process.
  • Invest in support for small and micro businesses: Allocate resources to investment intermediaries that focus on women-led and minority-owned small and micro businesses to promote inclusive economic growth.
  • Promote financial literacy programs: Implement educational initiatives to build financial resilience among vulnerable communities, preparing them for future economic challenges.
  • Leverage technology for inclusion: Utilize innovative technological solutions to provide financial services to the underserved, ensuring digitization benefits all segments of society and supports the transition to a green economy.
  • Build trust with underserved populations: Engage in outreach and transparency to establish trust with communities that may be skeptical of financial institutions.

 

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