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G20 2020 Financial Inclusion
Action Plan
October 2020
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CONTENTS
List of Abbreviations and Acronyms ..................................................................................................................... 3
Foreword G20 Financial Inclusion Action Plan (FIAP) 2020 .................................................................................. 4
Executive Summary .............................................................................................................................................. 5
I. Introduction ................................................................................................................................................. 6
The Role of the GPFI ............................................................................................................................................. 6
Ten Years of the GPFI ........................................................................................................................................... 7
Streamlining of the GPFI ....................................................................................................................................... 8
II. The Evolving International Context and the Work of the GPFI ..................................................................... 8
COVID-19 Impact and Response ........................................................................................................................... 9
Reducing Remittance Costs ................................................................................................................................ 10
Advancing Financial Inclusion through Engagement with Regulation and Standard-Setting Bodies .................. 10
III. 2020 G20 Financial Inclusion Action Plan and Results Framework ............................................................. 11
Context of the G20 FIAP ..................................................................................................................................... 11
a) GPFI Overarching Objectives ...................................................................................................................... 11
b) Priorities for the 2020 G20 FIAP ................................................................................................................. 12
c) Cross-cutting Issues .................................................................................................................................... 13
d) Action Areas ............................................................................................................................................... 13
The Accountability Framework ........................................................................................................................... 14
Annex 1: Action Areas and Expected Results ..................................................................................................... 15
Annex 2: G20 FIAP Progress Report 2017–2020 ................................................................................................ 17
Annex 3: G20 High-Level Principles for Digital Financial Inclusion ..................................................................... 18
Annex 4: G20 High-Level Policy Guidelines for Digital Financial Inclusion .......................................................... 19
Annex 5: Sustainable Development Goals Relevant to Financial Inclusion ......................................................... 20
List of G20 Documents ....................................................................................................................................... 22
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LIST OF ABBREVIATIONS AND ACRONYMS
2030 Agenda
2030 Agenda for Sustainable Development
AAAA
Addis Ababa Action Agenda
AFI
Alliance for Financial Inclusion
AML/CFT
Anti-Money Laundering / Combating the Financing of Terrorism
BTCA
Better than Cash Alliance
CGAP
Consultative Group to Assist the Poor
DFI
Digital Financial Inclusion
DFS
Digital Financial Services
GPFI
G20 Global Partnership for Financial Inclusion
FDPs
Forcibly Displaced Persons
FIAP
G20 Financial Inclusion Action Plan
FinTech
Financial Technology
G20
Group of 20
HLPs
2016 G20 High-Level Principles for Digital Financial Inclusion
HLPGs
2020 G20 High-Level Policy Guidelines for Digital Financial Inclusion
IAIS
International Association of Insurance Supervisors
IFAD
International Fund for Agricultural Development
IFC
International Finance Corporation
IMF
International Monetary Fund
INFE
International Network on Financial Education
MSMEs
Micro, Small and Medium Enterprises
OECD
Organisation for Economic Co-operation and Development
SDGs
Sustainable Development Goals
SMEs
Small and Medium Enterprises
SSBs
Standard-Setting Bodies
UNSGSA
United Nations Secretary General’s Special Advocate
WBG
World Bank Group
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FOREWORD G20 FINANCIAL INCLUSION ACTION PLAN (FIAP) 2020
Her Majesty Queen Mxima of the Netherlands, UN Secretary-General’s Special Advocate
for Inclusive Finance for Development and Honorary Patron of the G20 GPFI.
The new edition of the G20 Financial Inclusion Action Plan (FIAP) comes at a very challenging, yet most opportune
moment, given the damaging impact of the COVID-19 pandemic across the world. We have witnessed severe
disruptions in economic activities and threats to socio-economic life, particularly for underserved segments, such
as SMEs, women, the poor, and smallholder farmers.
Access to vital financial services, as well as digital financial inclusion, have proven to be powerful tools to support
resilience and aid recovery. Countries that invested in digital public goods, such as digital IDs and interoperable
payment systems, and set up enabling regulations for digital finance, were able to quickly provide emergency
government payments for the most vulnerable and underserved groups.
These actions reaffirm the importance and urgency of carrying forward the work on financial inclusion and the
implementation of the G20 FIAP 2020 over the next three years. I welcome the recommendations to rapidly scale
quality access and use of sustainable financial services that consider the well-being of customers and contribute to
better outcomes. I concur with the two prioritized topics - digital financial inclusion and SME Finance - and I am
pleased to see the continued support for embedding financial inclusion in the work of the global financial standard
setters as well as the commitment to supporting the SDGs.
Since the establishment of the GPFI almost a decade ago, financial inclusion has made impressive progress. As of
2018, an astounding 3.8 billion people have access to formal financial services. This represents nearly 70% of all
adults, compared to 51% in 2011. Yet, at this time when people need basic financial services to protect themselves
against hardship and invest in their futures, we have to ask whether we’re advancing quickly enough and if the
quality of their inclusion is yet sufficient. To this end, implementing the 2020 G20 FIAP recommendations will be
crucial for succeeding under the streamlined structure, accountability framework, and stewardship of newly
appointed co-chairs. I encourage all countries to work together, to share insights, monitor progress, and to take
action.
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EXECUTIVE SUMMARY
The Global Partnership for Financial Inclusion (GPFI) is an inclusive platform for all G20 countries, interested non-
G20 countries and relevant stakeholders to carry forward work on financial inclusion and the implementation of
the G20 Financial Inclusion Action Plan (FIAP), endorsed at the G20 Summit in Seoul. The GPFI is committed to
advancing financial inclusion globally by increasing the quality of access to, as well as the use of, sustainable formal
financial services, thereby expanding opportunities for underserved and excluded households and enterprises as
an instrument to ensure well-being and sustainable development.
The 2020 G20 FIAP—a revision of the earlier 2010, 2014 and 2017 editions—comes at a time of crisis, as the COVID-
19 pandemic represents an extraordinary global challenge that is having a profound impact on the global economy,
including challenges for individuals and businesses, especially those related to financial inclusion. The GPFI will be
responsive to new global issues as they arise, adequately frame the Partnership’s work to reflect current
circumstances and address the crisis impact and the post-crisis economic effects. The GPFI reaffirms the G20
Leaders’ commitment to advance financial inclusion benefiting all countries and all people, including vulnerable
(such as elderly people, migrants and forcibly displaced persons) and underserved groups (including the poor,
women, youth, and people living in remote rural areas).
Following the Leaders’ mandate in the Buenos Aires Declaration for the GPFI to streamline its work program and
structure, the GPFI will prioritize its work under the 2020 G20 FIAP on digital financial inclusion (DFI) and SME
finance. As a result, the 2020 G20 FIAP will cover three components that GPFI members consider to be of the
highest priority: (i) GPFI overarching objectives; (ii) action areas under the agreed prioritized topics; and (iii) a set
of cross-cutting issues and topics to be taken into account across the work of the GPFI.
The GPFI will continue to provide leadership for the global financial inclusion community through its representation
in the G20 and ensure that the successful work undertaken to date is embedded and continued in order to channel
the G20 support for the integration of financial inclusion in the work of standard-setting bodies (SSBs).
The GPFI remains committed to supporting the 2030 Agenda as a valuable and effective framework for
development. In this context, this G20 2020 FIAP will continue to support countries’ progress toward the
implementation of a set of the Sustainable Development Goals (SDGs) relevant to financial inclusion.
Under the 2020 G20 FIAP, the stewardship of the accountability framework has been transferred from the
Subgroups Co-Chairs to the GPFI Co-Chairs, who will be accountable to GPFI members for the implementation of
the FIAP. This will ensure focus on the identified action areas within the FIAP. The new accountability framework
will ensure the GPFI alignment with the G20 objective of promoting economic growth, financial stability and
equality.
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I. INTRODUCTION
The Role of the GPFI
The Global Partnership for Financial Inclusion (GPFI) was created in 2010 at the Seoul G20 Summit as an inclusive
platform for G20 countries, interested non-G20 countries, Implementing Partners and Affiliated Partners. The GPFI
is committed to advancing financial inclusion globally by increasing quality access to, as well as use of, sustainable
formal financial services, thereby expanding opportunities for underserved and excluded households and
enterprises as an instrument to ensure well-being and sustainable development. The GPFI deploys its political
leadership and coordinating role to encourage financial inclusion efforts worldwide.
Significant progress has been made over the past 10 years to advance financial inclusion worldwide. Financial
access has risen 18 percentage points since 2011, when account ownership was at 51 percent. However, despite
this substantial progress in financial access, there are still more than 1.7 billion adults who remains unbanked.
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The
2020 G20 Financial Inclusion Action Plan (FIAP) reaffirms the G20 Leaders’ commitment to advance financial
inclusion benefiting all countries and all people. The focus of the GPFI’s efforts under the 2020 G20 FIAP is to
enhance the financial inclusion of vulnerable and underserved groups through leveraging digital financial
innovation while at the same time addressing new digital risks with financial education and financial consumer
protection. In addition, the GPFI will continue its commitment to furthering the financial inclusion of micro, small
and medium enterprises (MSMEs) to support the advancement of the global economy. This is a key prerequisite
for achieving sustainable development, as outlined in the G20 Action Plan on the 2030 Agenda for Sustainable
Development, including the implementation of the SDGs and the Addis Ababa Action Agenda on Financing for
Development (AAAA).
The GPFI will continue to provide leadership for the global financial inclusion community through its representation
in the G20 via policy analysis, advocacy, knowledge sharing and international cooperation.
The GPFI will be responsive to new global issues as they arise, adequately frame the Partnership’s work to reflect
current circumstances and address the crisis impact and the post-crisis economic effects.
At their meeting on 15 April 2020, the G20 Finance Ministers and Central Bank Governors (FMCBGs) endorsed the
G20 Action Plan in response to the COVID-19 pandemic,
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in which they agreed to “commit to promote financial
inclusion by maintaining accessible and affordable financial products and services through conventional and
responsible digital means while ensuring financial consumer protection” as part of the actions and commitments
to support domestic and global economies and help minimize the disruption resulting from containment measures
and their spillovers.
Financial inclusion is an important avenue to ensure financial resilience and limit the fragility of households and to
restore sustainable and inclusive growth; moreover, it is essential for supporting underserved and excluded
households and enterprises that will be most severely affected by the COVID-19 pandemic. Since ensuring financial
inclusion might prove more challenging but also more relevant now and in the years to come, this adds to the GPFI
the role of framing the Partnership’s work to reflect current circumstances and addressing the crisis impact and
the post-crisis economic effects.
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The Global Findex Database 2017, World Bank Group.
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G20 Finance Ministers and Central Bank Governors Communiqué, 15 April 2020.
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Ten Years of the GPFI
As the GPFI embarks on a new three-year FIAP in 2020, it also celebrates its tenth anniversary. This provides the
ideal time to review achievements, lessons learned and future opportunities in order to continue promoting
financial inclusion globally.
The GPFI was established in late 2010 against the backdrop of the global financial crisis, building on the work of the
G20 Financial Inclusion Experts Group (which subsequently became the GPFI). The G20 Leaders, recognizing
financial inclusion as one of the main pillars of the global development agenda, endorsed the original FIAP and the
GPFI as a systemic structure for its implementation. Financial inclusion was also highlighted as an important
component under the Seoul Development Consensus and the financial sector reform agenda.
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The 2010 G20 FIAP focused on the G20’s efforts from responding to the crisis to charting a path beyond the crisis
to reach a sustained, inclusive growth, particularly in three key areas: (i) enhancing dialogue and information-
sharing; (ii) promoting a knowledge base for SMEs financing and (iii) supporting regulations and strong financial
infrastructures that support the private sector. By implementing the FIAP, the GPFI contributed to important
advancements in financial inclusion, including mobilizing funding, promoting awareness and helping countries to
implement the G20 Principles for Innovative Financial Inclusion (2010), enhancing both the engagement with SSBs
to achieve recognition of financial inclusion in proportionate regulation and supervision, and cooperation with the
private sector.
In the 2014 G20 FIAP, the GPFI expanded its scope of focus by: i) including data harmonization to address the lack
of standardized data for financial inclusion’s measurement, which resulted in the development and update of the
G20 Set of Financial Inclusion Indicators; ii) moving beyond access to include responsible use of the financial
services through financial education and financial consumer protection, which resulted in a number of high-level
policy documents and recommendations; and iii) supporting the women’s economic empowerment agenda from
the financial inclusion point of view. The GPFI also significantly expanded the number of implementing partners
following the new tasks.
The GPFI also responded to the G20 commitments in areas such as digitalization—through the 2016 G20 High-Level
Principles for Digital Financial Inclusion (HLPs)—and remittances—through the G20 National Remittance Plans and
recommendations to foster innovation and promote competition to reduce remittance costs. In addition, the G20
Action Plan on SME Financing and its Implementation Framework were endorsed to encourage countries to take
action at a national level to enhance access to financial services for SMEs.
The 2017 G20 FIAP aligned the GPFI work with the 2030 Agenda for Sustainable Development, as financial inclusion
is a key enabler for several of the SDGs. It also identified new drivers of financial inclusion, as well as opportunities
and challenges brought by digitalization. In 2017, the GPFI implemented the G20 Action Plan on SME Financing and
delivered the Credit Infrastructure Country Self-Assessment Consolidated Report, with progress measured again in
2019. In 2018, the GPFI developed a set of key policies that support interventions to facilitate financial inclusion of
individuals and firms operating in the informal economy, summarized in the G20 Financial Inclusion Policy Guide.
The GPFI continued to enhance support for innovation while maintaining the integrity of the payments systems.
National Remittance Plans were submitted by 18 member countries, with progress on actions made in 2018 and
2019.
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Seoul Development Consensus for Shared Growth, 2010.
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Furthermore, the GPFI also reiterated the importance of reducing barriers for underserved and vulnerable groups.
In 2019, the GPFI identified policy priorities to identify and address the challenges associated with aging
populations and the global increase in longevity through the G20 Fukuoka Policy Priorities on Aging and Financial
Inclusion. In addition, the GPFI provided policy guidelines that facilitate the harnessing of responsible digital and
innovative technologies through the 2020 High Level Policy Guidelines for Digital Financial Inclusion for Youth,
Women and SMEs (HLPGs) and the three supporting reports.
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It continued its efforts to mainstream financial
inclusion in the work of SSBs to optimize the outcomes among policy objectives for financial inclusion, financial
stability, integrity of the financial system and the financial protection of customers.
Streamlining of the GPFI
Since 2010, the implementation of the FIAP has been pursued mainly by the GPFI’s Subgroups.
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In 2018, through
the Buenos Aires Leaders Declaration,
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G20 Leaders “endorsed the Global Partnership for Financial Inclusion
Roadmap which outlines a process to streamline its work program and structure” to continue to support economic
growth, financial stability and reducing inequality and to streamline its structure to align it more closely with other
working arrangements in the G20 Finance Track. Following this mandate, GPFI members engaged in a consultative
phase, which led to consensus that the number of workstreams and volume of deliverables should be reduced. The
work program proposal under the GPFI Roadmap identified two prioritized topics to be taken forward: Digital
Financial Inclusion (DFI) and SME Finance. Moreover, the results of the streamlining exercise also identified
additional issues that can be touched within the scope of the two main prioritized topics subject to further
justification and member’s consultation. Following the drafting process and as suggested in the work program
proposal, the 2020 G20 FIAP will accommodate two cross-cutting issues: Financial Inclusion of Underserved and
Vulnerable Groups (as well as the Advancement of Women’s Economic Empowerment), and Financial Consumer
Protection and Financial Literacy. In any case, future workplans will continue to accommodate any short-term
policy priorities of the future G20 Presidencies, which will be limited to a one-year term, unless the following G20
Presidency decides to continue with the same task as their priority.
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GPFI members agreed to appoint two long-term Co-Chairs for the duration of each FIAP. The Subgroups will cease
to exist as formal Subgroups from 2021, and the two appointed GPFI Co-Chairs, in cooperation with the incumbent
G20 Presidency, and in consultation with the Troika, will manage and maintain the work of the GPFI under a three-
year FIAP.
II. THE EVOLVING INTERNATIONAL CONTEXT AND THE WORK OF THE GPFI
The 2020 G20 FIAP builds on the GPFI’s work over the last ten years and will support the continuity of existing work
and established achievements. The GPFI will continue to monitor developments and facilitate sharing of good
practices to advance financial inclusion in both developed and developing countries. It will also be flexible enough
to accommodate issues and opportunities that may arise from the changing international financial inclusion
landscape over the three-year period, such as learning lessons from responses to the COVID-19 crisis, so as to
ensure that the GPFI’s priorities can adapt as new issues arise.
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Advancing the Digital Financial Inclusion of Youth, the OECD, July 2020; Advancing Women’s Digital Financial Inclusion, the Better Than Cash Alliance,
Women’s World Banking and the WBG, July 2020; Promoting Digital and Innovative SME Financing, the WBG, July 2020.
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Subgroups on: Regulation and Standard-Setting Bodies, SME Finance, Financial Inclusion Data and Measurement, Financial Consumer Protection and
Financial Literacy, Markets and Payment Systems.
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G20 Leaders’ Declaration 2018: Building Consensus for Fair and Sustainable Development.
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Global Partnership for Financial Inclusion, “Proposed GPFI Work Program,” 2019.
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In this evolving international context, the GPFI’s work with SSBs to mainstream financial inclusion will remain
essential, as will continuous attention to the important role that remittance flows play to drive financial inclusion
and development.
The GPFI remains committed to supporting the 2030 Agenda as a valuable and effective framework for
development. In this context, the 2020 G20 FIAP will continue to support countries’ progress toward the
implementation of a set of SDGs relevant to financial inclusion. To this end, the GPFI will further expand
cooperation between G20 and non-G20 countries as well as enhance the links with the private sector.
The GPFI has identified key areas of work to monitor the progress and deliver successful outcomes for the
implementation of previous work as well as to align it as appropriate with the relevant SDGs (see Annex 5).
COVID-19 Impact and Response
In 2020, the global COVID-19 pandemic restricted business activities and limited access to face-to-face financial
services due to physical social containment measures, shedding light on the relevant role of digital financial
services. This global outbreak has the potential to cause long-term economic, security and social consequences at
both national and global levels. The pandemic threatens to disproportionately impact low-income and developing
countries and has the potential to increase existing inequalities in all countries by raising poverty and damaging
especially those who are financially excluded, including underserved and vulnerable groups and MSMEs.
The crisis induced by the COVID-19 pandemic has had a strong negative impact on global remittances, with
remittance flows to low- and middle-income countries projected to drop by around 20 percent in 2020 (US$109
billion), the sharpest decline in recent history.
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The COVID-19 pandemic also strongly affects women. Women are
more likely to be employed in the informal economy, which renders them more likely to lose employment and
income during the pandemic and less likely to be able to access government welfare schemes or bank loans.
Likewise, MSMEs, especially those in the informal sector, are acutely vulnerable to the impact of the crisis. The
elderly are another heavily affected group, as they are the most affected health-wise by the virus and less digitally
included. Protecting and enhancing financial inclusion for all is key to mitigating the negative economic and
financial impact stemming from COVID-19 and to supporting the global economic recovery and medium- and long-
term financial resilience and well-being of citizens and enterprises.
Through the GPFI Statement on COVID-19 response issued in 2020,
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the GPFI recognized that improving financial
inclusion will mitigate negative economic externalities stemming from the outbreak of the pandemic, although
combating the negative impact of the pandemic on financial inclusion will require a collective multi-pronged effort
in the upcoming months and years. For this reason, the GPFI is determined to continue its work to further promote
responsible access to financial services and products and to improve financial consumer protection and financial
literacy, with a primary focus on underserved and vulnerable groups and SMEs. Promoting the use of responsible
innovative technologies to reach financially excluded and underserved groups will be essential.
As the COVID-19 pandemic represents an unprecedented global challenge that requires a coordinated global
response, the GPFI also reaffirmed the G20 commitment under the G20 Action Plan in response to the COVID-19
pandemic to promote financial inclusion and to strengthen coordination across G20 and non-G20 countries. As
such, countries will be encouraged to share their experiences of the measures implemented to enhance financial
inclusion to mitigate the impact of COVID-19 , while ensuring financial consumer protection and the support in the
recovery phase.
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“COVID-19 Crisis Through a Migration Lens,” Migration and Development Brief 32, KNOMAD, World Bank, April 2020.
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GPFI Statement on COVID-19 Response, 2020.
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Reducing Remittance Costs
The G20 recognizes the value of remittance flows in helping to drive strong, sustainable, balanced and inclusive
growth. In 2014, G20 Leaders agreed to a plan (the G20 Plan to Facilitate Remittance Flows) to facilitate remittance
flows by including the following actions: working to reduce the global average costs of transferring remittances to
five percent; supporting country-led actions to address the cost of and improve the availability of remittance
services, particularly for low-income people; and using remittance flows to drive financial inclusion and
development.
At the Antalya Summit in 2015, G20 Leaders agreed that national remittances plans would be reviewed annually
and updated every two years. The GPFI has facilitated the preparation of the G20 countries National Remittances
Plans annually, with updates every two years to monitor progress, and will continue to do so under the 2020 G20
FIAP. This will contribute to the work aimed at reducing remittances’ costs and dealing with the challenges posed
by indiscriminate de-risking.
Specific attention will be devoted to the opportunities offered by economies of scale and innovation in financial
technology where such innovation aligns with globally recognized standards (e.g. policy-level standards set by SSBs
and technology-level standards set by relevant bodies).
Advancing Financial Inclusion through Engagement with Regulation and Standard-Setting Bodies
Financial inclusion is an essential component of the financial sector that can facilitate sustainable development.
There are interdependencies between financial inclusion, financial stability, the integrity of the financial system
and the financial protection of consumers.
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The GPFI has made significant contributions to the work on global
standard-setting over many years and has joined the Bank for International Settlements and global SSBs in adopting
the “enhanced cooperation arrangements.” This is a significant milestone in the integration of financial inclusion
in the work of SSBs to foster permanent workstreams focusing on financial inclusion.
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The GPFI will continue to provide leadership for the global financial inclusion community through its representation
in the G20 and ensure that the successful work undertaken to date is embedded and continued in order to channel
G20 support for the integration of financial inclusion in the work of SSBs, as appropriate.
The Co-Chairs will continue the engagement with global financial SSBs and other relevant global bodies on areas
for cooperation and complementarities regarding financial inclusion issues in their work. The arrangements of the
GPFI engagement are reflected in the permanent responsibilities of the GPFI Co-Chairs outlined in the GPFI Terms
of Reference.
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Research shows, for example, that high-quality financial sector supervision, which broadens credit access, can lead to an increase in financial stability. See
Financial Inclusion: Can It Meet Multiple Macroeconomic Goals? 2015. IMF Staff Discussion Note 15/17, Washington, DC, September.
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Concerned SSBs are the Financial Stability Board, the Basel Committee on Banking Supervision, the Committee on Payments and Market Infrastructure,
the Financial Action Task Force, the International Association of Deposit Insurers, the International Association of Insurance Supervisors and the
International Organization of Securities Commissions.
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GPFI Terms of Reference – 2020.
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III. 2020 G20 FINANCIAL INCLUSION ACTION PLAN AND RESULTS FRAMEWORK
Context of the G20 FIAP
The 2020 G20 FIAP builds upon the work of the previous FIAPs and is informed by the outcomes of the streamlining
and prioritization work completed under the Roadmap to 2020. The 2020 G20 FIAP is forward-looking, with action
areas and expected results identified through a consultative process within the GPFI.
This process included the analysis of FIAP survey results, which reflected the views of G20 countries, non-G20
countries, Implementing Partners, and Affiliated Partners, as well as consultation among GPFI members and the
G20 FIAP Progress Report 2017-2020.
As a result, this revised G20 FIAP will cover three components that GPFI members consider to be of the highest
priority: (i) GPFI overarching objectives; (ii) action areas under the agreed prioritized topics; and (iii) a set of cross-
cutting issues and topics to be taken into account across the work of the GPFI. Financial inclusion is a multi-
dimensional knowledge field, and other topics can be touched upon within the scope of the two main topic areas.
Figure 1: 2020 G20 Financial Inclusion Action Plan Framework
Following the streamlining and prioritization of the GPFI, members were consulted on potential action areas and
expected results/deliverables for the 2020 G20 FIAP, with consideration of the overarching objectives of the GPFI,
cross-cutting issues and the priority topics identified under the streamlining exercise (DFI and SME finance).
a) GPFI Overarching Objectives
To advance progress on financial inclusion with a forward-looking perspective and a more streamlined and focused
agenda, the GPFI will continue to advance global development agendas through financial inclusion as a crucial way
to promote sustainable and inclusive growth with the following overarching objectives:
• Provide policy analysis, recommendations and high-level principles for guidance.
• Monitor financial inclusion developments as per the G20 Financial Inclusion indicators.
• Advocate for promoting financial inclusion globally.
• Facilitate coordination among GPFI members and global bodies to support specific global financial inclusion
efforts in G20 and non-G20 countries.
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b) Priorities for the 2020 G20 FIAP
Following the priority-setting streamlining exercise, and apart from the short-term priorities to be set by future
G20 presidencies, the GPFI agreed on two main prioritized topics: DFI and SME finance.
Digital Financial Inclusion
The GPFI describes digital financial inclusion broadly as “the use of digital financial services to advance
financial inclusion.” It involves the deployment of digital means to reach financially excluded and underserved
populations—recognizing the particular significance for women—with a range of formal financial services
suited to their needs, delivered responsibly at a cost affordable to customers and sustainable for providers.
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This includes the deployment of secure and responsible digital-enabled services that extend the reach of
formal financial services on a sustainable basis and addressing the potential risks of such technologies,
including data protection and privacy issues, cyber security, over-indebtedness as well as money-laundering,
terrorist proliferation financing, fraud, and other illicit finance risks. Financial education and consumer
protection complemented with regulation are key factors in protecting and empowering the most vulnerable
groups.
The term “digital financial services” (DFS) covers the whole set of financial products and services, including
payments, remittances, transfers, savings, credit, insurance, securities, financial planning and account
statements. DFS are delivered via digital/electronic devices such as e-money (initiated online or on a mobile
phone / wallet app) or an instrument such as a payment card that connects to a digital device (e.g., POS
terminal), and regular bank accounts.
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SME Finance
The GPFI focuses on improving SMEs access to finance in G20 and non-G20 countries, particularly in low-
income and developing countries. SMEs play a crucial role in employment, job creation, investment,
innovation and economic growth globally. They account for about 90 percent of businesses and more than 50
percent of employment worldwide, and their success is therefore crucial for the recovery of the world’s
economy in times of crisis and for economic progress in other times.
It is critical to ensure that viable SMEs around the world—specifically those led by difficult-to-reach and/or
underserved segments, including women entrepreneurs, youth entrepreneurs, rural entrepreneurs, forcibly
displaced persons, and other vulnerable groups—have access to responsible financial services.
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Global Standard-Setting Bodies and Financial Inclusion: The Evolving Landscape.
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The description of digital financial services is referred to in the 2014 GPFI Issues Paper on Digital Financial Inclusion and the Implications for Customers,
Regulators, Supervisors and Standard-Setting Bodies. See also the 2016 Payments Aspects of Financial Inclusion Report from the joint task force of the
Committee for Payments and Markets Infrastructure (CPMI) and the World Bank Group (PAFI Report).
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c) Cross-cutting Issues
Cross-cutting issues are the themes that will be addressed and considered in the activities, action areas and
deliverables of the work of the GPFI. The following cross-cutting issues will be reflected in the action areas and
deliverables during the duration of the 2020 G20 FIAP under the priorities of DFI and SME finance:
1. Promote the expansion of financial services among the hard-to-reach segments of the population, particularly
targeting underserved and vulnerable groups,
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as well as the advancement of women’s economic
empowerment.
2. Promote financial consumer protection and financial literacy by means of collaboration and coordination with
multilateral organizations, including the G20/OECD Task Force for Financial Consumer Protection and the
International Network on Financial Education.
d) Action Areas
Four action areas have been identified to guide the work of the GPFI over the next three years (2021–2023) under
the two priorities of DFI and SME finance. It is expected that implemented actions will focus on those most in need.
Therefore, action areas should support the reduction of both access and usage barriers for the underserved and
vulnerable groups.
Digital Financial Inclusion
1. Encourage effective implementation of the 2016 G20 High-Level Principles for Digital Financial Inclusion
in G20 and non-G20 countries, particularly with respect to underserved and vulnerable groups,
according to national circumstances.
2. Promote the development of responsible innovative payment systems that provide affordable, secure,
interoperable, transparent, and inclusive payment solutions across borders and within G20 and non-
G20 countries to support progress on reducing the cost of remittances, while maintaining consumer
protection and requisite disclosures.
SME Finance
1. Identify and promote national and global policy options (and support the ensuing implementation
efforts) that may facilitate the expansion and diversification of financial services, including leveraging
digital financial services, to SMEs in G20 and non-G20 countries, considering the broad economic and
industry trends.
2. Identify and promote institutional-level good practices, in G20 and non-G20 countries, specifically
targeted at improving the full range of financial services for SMEs (including those managed by
underserved and vulnerable groups).
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As per the definition in the 2017 FIAP; underserved groups (including the poor, women, youth, and people living in remote rural areas) and vulnerable
groups (such as elderly people, migrants and forcibly displaced persons) are disproportionally excluded from the financial ecosystem and may not have
access to digital financial services or may be reluctant to adopt them. Hence, the GPFI focuses on targeting underserved and vulnerable groups in its action
areas and integrating this concern as a crosscutting issue in its work.
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The Accountability Framework
The GPFI is an inclusive platform for all G20 countries, interested non-G20 countries and relevant stakeholders,
which reports to the G20 FMCBGs and, through the G20 Sherpas, to the G20 Leaders, notably via the annual GPFI
Progress Report. The GPFI Terms of Reference set out the detailed roles and responsibilities of all GPFI members
in the execution of the activities of the GPFI.
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The stewardship of the accountability framework has been transferred from the Subgroups Co-Chairs to the GPFI
Co-Chairs, who will then be responsible to GPFI members for the implementation of the FIAP. This will ensure focus
on the identified action areas within the FIAP. It will further guarantee the coordination of the work of the GPFI
with that of other G20 workstreams, notably the G20 Finance Track, and the Development Working Group (DWG)
as well as other relevant workstreams. In addition, the new accountability framework will ensure the GPFI’s
alignment with the G20 objective of promoting economic growth, financial stability and equality.
Figure 2: Accountability Framework
The GPFI Co-Chairs are responsible for managing the activities of the GPFI for a three-year period coinciding with
the duration of the FIAP, with the incumbent G20 Presidency, and in consultation with the Troika. The Co-Chairs
will monitor the implementation and progress of the FIAP, including preparation of the annual GPFI Progress
Reports and the three-year FIAP Progress Report endorsed by the GPFI members summarizing the GPFI progress
achieved. The G20 Presidency in consultation with the GPFI Troika, will monitor Co-Chairs’ progress on the FIAP
under the Accountability Framework.
16
GPFI Terms of Reference – 2020.
17
ANNEX 2: G20 FIAP PROGRESS REPORT 2017–2020
The G20 FIAP Progress Report 2017–2020 report provides a review of the work of the G20 Global Partnership for Financial
Inclusion (GPFI) achieved under the 2017 G20 Financial Inclusion Action Plan (FIAP). The 2017 FIAP contains nine action areas
which are consistent with the overarching objectives of the GPFI. The action areas are described further through the results
framework, which sets out the expected results for each action area and how the work of the GPFI supports the five cross-
cutting issues set out in the FIAP. The work of the GPFI has been allocated across relevant Subgroups and was supported by
Implementing Partners:
The SME Finance Subgroup carried forward the implementation of the 2015 G20 Action Plan on SME Financing through the
report of countries self-assessments in 2017; and in 2019. The report measured progress in the implementation of credit
infrastructure reforms and highlighted key areas for further improvement. The Subgroup has progressed the improved co-
ordination, collection, and reporting of the available SME Finance ‘macro’ country-level data available and ‘micro-level’ data
collected by development finance institutions, individual banks and other lenders and financiers. The report on Alternative Data
Transforming SME Finance was produced in 2017 focusing on the opportunities of digitalization of SME finance and alternative
data present to narrow the financing gap for SMEs while recommending further policy actions. In addition, the Subgroup has
made policy recommendations specifically targeted at helping MSMEs led by women, youth and other vulnerable and
underserved groups through a number of reports and collaborative work with other GPFI subgroups and fora.
The Regulation and Standard-Setting Bodies (SSB) Subgroup has significantly engaged with policymakers and the private sector
to integrate financial inclusion into the work of global SSBs. The most significant milestone under the 2017 – 2020 FIAP was
the adoption of the “enhanced cooperation arrangements” in early 2019 by the Bank for International Settlements (BIS),
concerned SSBs, the Financial Stability Institute (FSI), and a set of organizations representing the financial inclusion community,
with the GPFI playing the lead role. These arrangements provide the framework for semi-annual and annual co-ordination
arrangements to facilitate in-depth discussion among SSBs and the financial inclusion community. Leading up to the adoption
of the “enhanced cooperation arrangements,” the Subgroup has supported events and outreach activities of SSBs, including
the 2018 “Fourth FSI - GPFI conference on SSBs and innovative financial inclusion: implications of fintech and other regulatory
and supervisory developments” and support for the SSBs at the individual level.
The Financial Consumer Protection and Financial Literacy (FCPFL) Subgroup has taken forward the G20 Leaders’ commitments
on financial literacy and financial consumer protection through promoting and supporting activities on data harmonization used
to measure financial literacy. The Subgroup, working with implementing partners have developed a database of financial
literacy initiatives which can be used by public and private sector stakeholders to improve financial education. The work of the
Subgroup has addressed the cross-cutting issues of digitalisation, to identify financial literacy initiatives and policy options to
help consumers better manage any potential digital risks and benefits. Policy guidance has been produced, with the support of
OECD and other supporting Implementing Partners, including: G20/OECD Policy Note on Financial Consumer Protection in the
Digital Age, G20/OECD Policy Note on Digitalisation and Financial Literacy and Data Protection and Privacy for Alternative Data.
Engagement has also been scaled-up on to encourage public-private sector initiatives to advance responsible finance, financial
inclusion, and financial literacy, including support of the Responsible Finance Forum and a global awareness campaign on the
financial education of young people.
The Markets and Payment Systems (MPS) Subgroup has been working with SSBs such as the Financial Stability Board (FSB),
Financial Action Task Force (FATF) since 2018 to monitor recommendations on remittances services providers access to banking
services, address the decline of correspondent banking relationships and establish a supportive policy and regulatory
environment for competitive remittances markets. Annual progress has been reported and biannual updates were made to
National Remittance Plans and their objectives. The Subgroup has promoted the reduction of the cost of sending remittances,
taking into account systemic causes of high remittance transfer costs and ensuring the quality of remittances services and
service delivery. In consultation with G20 members, a wide range of measures, appropriate to each country’s circumstances
have been implemented, to continue the work to reduce the average cost of transactions and to address the needs of different
remittance corridors.
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ANNEX 3: G20 HIGH-LEVEL PRINCIPLES FOR DIGITAL FINANCIAL INCLUSION
The G20 stands at an unprecedented time when our leadership has the potential to drive the growth of inclusive economies by
promoting digital financial services. Two billion adults globally do not have access to formal financial services and are excluded
from opportunities to improve their lives. While tremendous gains in financial inclusion have already been achieved, digital
financial services, together with effective supervision (which may be digitally enabled), are essential to close the remaining gaps
in financial inclusion. Digital technologies offer affordable ways for the financially excluded—the majority of whom are women—
to save for school, make a payment, get a small business loan, send a remittance, or buy insurance. The 2010 G20 Principles for
Innovative Financial Inclusion spurred initial efforts and policy actions. These 2016 High-Level Principles for Digital Financial
Inclusion build on that success by providing a basis for country action plans reflecting country context and national circumstances
to leverage the huge potential offered by digital technologies. These eight principles are based on the rich experience reflected
in G20 and international standard-setting bodies’ standards and guidance. They also recognize the need to support innovation
while managing risk and encouraging development of digital financial products and services.
PRINCIPLE 1: Promote a Digital Approach to Financial Inclusion
Promote digital financial services as a priority to drive development of
inclusive financial systems, including through coordinated, monitored,
and evaluated national strategies and action plans.
PRINCIPLE 2: Balance Innovation and Risk to Achieve Digital
Financial Inclusion
Balance promoting innovation to achieve digital financial inclusion
with identifying, assessing, monitoring and managing new risks.
PRINCIPLE 3: Provide an Enabling and Proportionate Legal and
Regulatory Framework for Digital Financial Inclusion
Provide an enabling and proportionate legal and regulatory framework
for digital financial inclusion, taking into account relevant G20 and
international standard setting body standards and guidance.
PRINCIPLE 4: Expand the Digital Financial Services Infrastructure
Ecosystem
Expand the digital financial services ecosystem—including financial and
information and communications technology infrastructure—for the safe,
reliable and low-cost provision of digital financial services to all relevant
geographical areas, especially underserved rural areas.
PRINCIPLE 5: Establish Responsible Digital Financial Practices to
Protect Consumers
Establish a comprehensive approach to consumer and data
protection that focuses on issues of specific relevance to
digital financial services.
PRINCIPLE 6: Strengthen Digital and Financial Literacy and
Awareness
Support and evaluate programs that enhance digital and financial
literacy in light of the unique characteristics, advantages, and risks of
digital financial services and channels.
PRINCIPLE 7: Facilitate Customer Identification for Digital Financial
Services
Facilitate access to digital financial services by developing, or
encouraging the development of, customer identity systems, products
and services that are accessible, affordable, and verifiable and
accommodate multiple needs and risk levels for a risk-based approach
to customer due diligence.
PRINCIPLE 8: Track Digital Financial Inclusion Progress
Track progress on digital financial inclusion through a comprehensive
and robust data measurement and evaluation system. This system
should leverage new sources of digital data and enable stakeholders
to analyse and monitor the supply of—and demand for— digital
financial services, as well as assess the impact of key programs and
reforms.
19
ANNEX 4: G20 HIGH-LEVEL POLICY GUIDELINES FOR DIGITAL FINANCIAL INCLUSION
The G20 High-Level Policy Guidelines on Digital Financial Inclusion for Youth, Women and SMEs provide indicative
and non-binding policy guidance for national-level authorities, building on the G20 High-Level Principles for Digital
Financial Inclusion (2016). These high−level policy guidelines are relevant to public− and private−sector entities
seeking to take full advantage of the opportunities from digital technologies to advance financial inclusion. An
enabling and resilient digital infrastructure that provides affordable access to financial products and services is
essential. Whilst identifying the opportunities of digital financial services to advance financial inclusion, it is also
important to address and mitigate the potential risks (e.g., AML/CFT, cybersecurity, and financial stability). It is
essential to ensure that appropriate financial consumer and data protection and privacy are balanced along with
digital financial literacy initiatives.
The HLPGs are centered around four key policy areas: Promoting an enabling, resilient and responsible digital
financial infrastructure and ecosystem; Promoting responsible and inclusive policy making; Promoting inclusive
growth through an enabling regulatory framework for responsible digital financial services; and Promoting digital and
financial literacy and capability, and supporting financial consumer and data protection against potential risks. The
HLPGs have been informed by the supporting reports, that are specific to addressing the needs of youth, women and
SMEs. These reports provide a range of featured policy options that are specific for each group and are used as
examples to showcase the relevance of the High−Level Policy Guidelines in addressing the needs of youth, women
and SMEs.
Promoting an Enabling, Resilient and Responsible Digital
Financial Infrastructure and Ecosystem
HLPG 1: Promote a competitive environment for banks and
non−banks and support the development of a widely
accessible, secure and responsible digital infrastructure and
interoperable payment systems.
HLPG 2: Encourage the availability and affordability of tailored
digital financial products, while addressing the need for
AML/CFT safeguards and the necessary customer
due−diligence measures and digital−identity systems.
Promoting Inclusive Growth through an Enabling Regulatory
Framework for Responsible Digital Financial Services
HLPG 5: Support regulatory and legal reforms that reduce
unequal access to responsible digital financial services, which
results from social, economic, and cultural inequalities.
HLPG 6: Consider developing a regulatory framework that
supports responsible innovation in private and public
sectors.
Promoting Responsible and Inclusive Policy Making
HLPG 3: Improve the availability and accuracy of
disaggregated data with regards to access to and the use of
financial products and services.
HLPG 4: Support the adoption of targeted policies and
initiatives in national strategies.
Promoting Digital and Financial Literacy and Capability, and
Supporting Financial Consumer and Data Protection against
Potential Risks
HLPG 7: Enhance financial, business and digital literacy and
capabilities through targeted interventions and by leveraging
technology.
HLPG 8: Support financial consumer protection measures,
including data protection, that address the needs of youth,
women and SMEs.
20
ANNEX 5: SUSTAINABLE DEVELOPMENT GOALS RELEVANT TO FINANCIAL INCLUSION
While the Sustainable Development Goals (SDGs) adopted by the 2030 Agenda do not explicitly target financial
inclusion, greater access to financial services is a key enabler for many of them. More inclusive financial services can
help achieve the following:
Eliminating extreme poverty (SDG 1)
By providing poor people with services they need to make investments and manage unexpected
expenses, financial inclusion facilitates the elimination of extreme poverty. Savings allow families to
increase their capacity to invest in human capital such as health and education.
1.4 Ensure that all men and women, in particular the poor and the vulnerable, have equal rights to
economic resources, as well as access to basic services, ownership and control over land and other
forms of property, inheritance, natural resources, appropriate new technology and financial services,
including microfinance.
Reducing hunger and promoting food security (SDG 2)
By leading to bigger investments in the planting season, financial services can help farmers increase
their production to meet the food needs of growing populations and bolster greater food security,
resulting in higher yields.
2.3 Double the agricultural productivity and incomes of small-scale food producers, in particular
women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and
equal access to land, other productive resources and inputs, knowledge, financial services, markets and
opportunities for value addition and non-farm employment.
Achieving good health and well-being (SDG 3)
Financial services like medical insurance can provide a formal channel for mitigating the risks of health
emergencies, by giving people the ability to manage medical expenses without depleting their savings
and rebound from a health crisis.
3.8 Achieve universal health coverage, including financial risk protection, access to quality essential
health- care services and access to safe, effective, quality and affordable essential medicines and
vaccines for all.
Promoting gender equality (SDG 5)
Financial services help women assert their economic power, which is key to promoting gender equality.
Increasing account ownership among the world’s 2 billion unbanked adults, which most of whom are
poor women, would help promote gender equality.
5.a Undertake reforms to give women equal rights to economic resources, as well as access to
ownership and control over land and other forms of property, financial services, inheritance and natural
resources, in accordance with national laws.
21
Promoting sustained, inclusive and sustainable economic growth, full and productive
employment and decent work (SDG 8)
When people and MSMEs have access to the financial services they need to improve their lives and
businesses- savings, payments, insurance as well as credit – we ensure that people and enterprises have
the chance to make the most of their own resources.
8.3 Promote development-oriented policies that support productive activities, decent job creation,
entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-,
small- and medium-sized enterprises, including through access to financial services.
8.5 Achieve full and productive employment and decent work for all women and men, including for
young people and persons with disabilities, and equal pay for work of equal value.
8.6 Substantially reduce the proportion of youth not in employment, education or training.
8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to
banking, insurance and financial services for all.
Building resilient infrastructure, promote inclusive and sustainable industrialization
and foster innovation (SDG 9)
Access to appropriate financial services, particularly credit, is likely to allow more businesses to be
started and allow existing firms to expand their services by enabling greater investment.
9.3 Increase the access of small-scale industrial and other enterprises, in particular in developing
countries, to financial services, including affordable credit, and their integration into value chains and
markets.
Reducing income inequality within and among countries (SDG 10)
By lowering costs for remittance transfers, more money reaches the recipients which they can spend
for education, health, consumption and investments – and in the end reduces inequalities.
10.5 Improve the regulation and monitoring of global financial markets and institutions and strengthen
the implementation of such regulations.
10.6 Ensure enhanced representation and voice for developing countries in decision-making in global
international economic and financial institutions in order to deliver more effective, credible,
accountable and legitimate institutions.
10.c Reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate
remittance corridors with costs higher than 5 per cent.
22
List of G20 Documents
G20 Action Plan on the 2030 Agenda for Sustainable Development
G20 2010 Principles for Innovative Financial Inclusion
G20 Action Plan on SME Financing
G20 Action Plan on SME Financing Implementation Framework
G20/OECD High-level Principles on Financial Consumer Protection
G20 OECD/INFE High-level Principles on National Strategies for Financial Education
Addis Ababa Action Agenda on Financing for Development
2030 Agenda for Sustainable Development
G20 2017 Financial Inclusion Action Plan (FIAP)
G20 Action Plan – Supporting the Global Economy through the COVID-19 Pandemic
G20/OECD 2015 High-Level Principles on SME Financing
G20 High-Level Principles for Digital Financial Inclusion
G20 Plan to Facilitate Remittances Flows
G20 Policy Guide
G20 Fukuoka Policy Priorities on Aging and Financial Inclusion
G20 High-Level Policy Guidelines on Digital Financial Inclusion for Youth, Women and SMEs
G20 FIAP Progress Report 2017–2020
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