The Asia-Pacific Financial Inclusion Summit opened on March 21, 2017 in Ha Noi, bringing together over 450 key stakeholders, thought leaders and practitioners from 30 countries to further the financial inclusion agenda in the region. The Summit was hosted by the State Bank of Vietnam and organized by the Citi Foundation and the Foundation for Development Cooperation (FDC), in partnership with the Banking with the Poor Network (BWTP), the Economist Group.
Themed “Advancing Financial Inclusion in a Digital Age”, the Summit will explore the opportunities and challenges of the next generation of financial inclusion, and showcase the latest technology and innovations in financial products and services for the unbanked and underserved.
SBV Deputy Governor Nguyen Thi Hong
In the keynote speech to open the Summit, Madam Nguyen Thi Hong, Deputy Governor of the State Bank of Vietnam (SBV) stated that, in recent years, the financial inclusion process worldwide had achieved positive outcomes with enabling better access of people and businesses to financial services; narrowing the gaps between rural and urban areas; significant expansion of financial infrastructure investment; improving indicators for growth, development and poverty reduction; and effective using of social resources in a efficient manner.
On behalf of the SBV Management Board, Deputy Governor highly appreciated the joint-efforts of the Citi Foundation, the Foundation for Development Cooperation, partners and donors in working closely with the SBV to organize this Summit.
Deputy Governor said: “More organizations are offering new financial products and services that change the form and nature off the market and are shaping the future of financial inclusion. This rapid change presents challenges in term of management, monitoring and risk of information and system security. Therefore, it is critical to harmonize the goal of financial innovation, integration and consumer protection to maximize the benefits of financial inclusion”.
Vietnam wishes to receive the attention and cooperation from international donors and organizations and international and domestic financial institutions to assist Vietnam in achieving effective and sustainable development and implementation of financial inclusion.
President of the Citi Foundation Brandee McHale
Speaking upon the motivation of Citi Foundation’s efforts to organize the Summit in several consecutive years, Madam Brandee McHale, President of the Citi Foundation said: “Citi and the Citi Foundation have long supported financial inclusion because we recognize that it is a critical driver of social and economic growth. Since 2010, the Citi Foundation has invested over $275MM to support financial inclusion programs worldwide including Asia Pacific”. Madam McHale stressed: “Citi Foundation believed that beyond enabling financial access, it is as important to ensure we empower communities through education and training. We want to help people adopt the financial behaviors that help them save, build and preserve assets, and understand how to effectively use financial products and services for the financial stability of their homes, families and businesses”.
Financial inclusion has progressed remarkably throughout the Asia – Pacific region. Advances in technology, new products and services, creative public – private partnership, ingenious business model as well as deeper insights into client needs are all driving rapid transformation across Asia’s financial inclusion ecosystem. The link between financial inclusion and equitable growth has also been recognized and major global platform, including the United Nation’s Sustainable Development Goals, embraced the goal of broader access to financial services. Financial inclusion has grown to be seen as a rule, not an exception.
Plenary panel discussion
Nevertheless, there still about 2 billion unbanked worldwide, of which the Asia-Pacific region accounts for more than half. The lack of access and usage as well as the need for favorable regulatory frameworks continues to constrain the growth of thousands of Micro, small and medium sized enterprises, impede women’s access to economic opportunity, and disadvantage many small, vulnerable communities. Continued progress will rely on an ecosystem of financial service providers, government, regulators, technology and communications services, and trusted intermediaries that can adapt and respond to changing client preferences and market needs. And creative solutions are needed to be found in order to tackle big challenges and harness opportunities to close the gaps and better enable financial inclusion in a digital age throughout the Asia Pacific.
For the case of Vietnam, the country has more than 60 million people living in rural areas, accounting for 52% of the total labor force, who are the main target group requiring supports, especially through financial inclusion. The Communist Party and the Government of Vietnam have paid much attention to agriculture and rural area with a number of directions and preferential policies. These policies are focusing on expanding credit serving for rural and agricultural performance; attracting investment and restructuring agricultural and rural area, supporting for recovery from natural disasters, etc. In the coming time, Vietnam will continue to create more favorable environment for people and businesses in getting easier and more efficient access to financial services, contributing to socio-economic development and sustainable poverty reduction.
The Asia-Pacific Financial Inclusion Summit 2017 was organized in the context of Vietnam actively participating in the joint effort with international community to accelerate financial inclusion progress. Vietnam wishes to receive the attention and cooperation from international donors and organizations and international and domestic financial institutions to assist Vietnam in achieving effective and sustainable development and implementation of financial inclusion.
The Summit will take place on March 21 & 22, 2017 at the JW Marriott in Hanoi, Vietnam.
Mai Huong