MESSAGE FROM THE EXECUTIVE DIRECTOR

The 2019 AFI Annual Report marks the first year of the implementation of the Phase III Strategy (2019–2023), which aims to strengthen AFI’s position as a global policy leadership alliance in financial inclusion.

We are proud to report that AFI achieved all planned initiatives in this critical first year while maintaining a high level of member satisfaction during a period of dynamic growth. We remain humbled by the trust and confidence of our members and external funders who have continued to support AFI’s course by mobilizing resources to meet our expanding capacity and resource needs.

We are pleased to note that AFI’s interventions continued to support members in achieving their national financial inclusion goals. In 2019, members reported 117 policy reforms in various thematic areas. These policy changes have helped members address priority financial inclusion challenges in their countries in line with the AFI Accords, and are intended to create an enabling environment for advancing financial technologies in areas such as SME finance and inclusive green finance, as well as address barriers facing disadvantaged segments of the population, such as women and youth. We expect to see more impact as we respond to members’ evolving policy needs with enhanced support for in-country implementation, including grants, in-country technical assistance missions and peer advisory.

In line with the strategic focus of Phase III, AFI is becoming a technical content leader. The AFI Working Groups and Regional Initiatives are developing practical regulatory and supervisory tools that have been used to train over 600 technical officials through our capacity building programs. We also elevated high-impact policy lessons and evidence to provide policy and regulatory guidance. The network-wide adoption of AFI’s first two Financial Inclusion Policy Models — the Policy Model for E-Money and the Policy Model for the AFI Core Set of Financial Inclusion Indicators are living documents that will be enhanced based on members’ policy implementation and the dynamics of the financial sector ecosystem. Broadening AFI’s funding base with new funding from the governments of Germany, Sweden, Luxembourg, France and United Kingdom has been instrumental in launching new workstreams and scaling up existing workstreams to meet members’ demands. Funding from donors complemented the significant and steady mobilization of membership fees. Fee payments from 78 members signaled positive uptake of the revised membership fee rate in 2019, with two new members joining AFI in 2019.

We enriched AFI’s collaborative approach by expanding global discourse on the convergence of financial inclusion challenges across diverse jurisdictions in developing and developed economies. We held two successful global dialogues in 2019: the Global Thought Leadership Conference in Abidjan, Côte d’Ivoire and the Global Dialogue on Regulatory Approaches for Inclusive FinTech in Prague, Czech Republic. The practical solutions that emerged from these global dialogues addressed converging challenges in financial inclusion, such as financial and regulatory technologies, emerging risks in digital financial services ecosystems, consumer protection and market conduct and balancing the triple objectives of financial integrity, financial stability and financial inclusion.

On behalf of AFI, I wish to thank the Board of Directors and AFI Committees for their oversight and strategic guidance, which has helped to strengthen the network’s accountability and deliverables. I also commend the management and staff of the AFI Management Unit for your dedication and commitment to achieving AFI’s goals. Finally, I would like to acknowledge and appreciate all our members and partners for your continuous support and commitment to maintaining AFI as a unique global institution focused on advancing financial inclusion through the leadership of financial sector regulators and policymakers based on a peer-to-peer cooperative model.

I am eager for yet another successful year as we work together to bridge the financial inclusion divide in access, usage and quality of financial services. I am confident that with the resolve of our network, we will be able to address the challenges and embrace the opportunities ahead.

Dr Alfred Hannig

Executive Director, AFI