3 FUTURE OUTLOOK: PATH TO RECOVERY AND FINANCIAL INCLUSION

SECTION 3

FUTURE OUTLOOK: PATH TO RECOVERY AND FINANCIAL INCLUSION

Although the COVID-19 pandemic is still ongoing, regulators and policymakers have begun to look ahead towards recovery. The purpose of this is to ensure that as the world emerges from this global crisis, we are positioned on a path of sustainable and inclusive economic recovery.

AS DISCUSSED IN SECTION 2, COVID-19 has reinforced the necessity of well-integrated and inclusive financial ecosystems if we are to have resilient economies that have the capacity to withstand shocks. The opportunities and lessons generated by the pandemic are producing important policy trends and priorities across the AFI network.

The future outlook is premised on the dimensions listed below.

> Certain segments of the economy and population, such as micro and small businesses, women and other vulnerable groups, have been more severely affected. Recovery and reconstruction measures will need to address the specific needs of these segments. > Some key policy areas were de-prioritized, or had progress slowed due to nature of the pandemic. These include interoperability, digital infrastructure and IGF. These need to be revived.

> New policy priorities have emerged from the

COVID-19 experience. These have great potential to strengthen resilience and accelerate financial inclusion, and as such, need to be developed and supported.

RECOVERY POLICY PRIORITIES

Six key policy priorities that encompass the above dimensions have emerged across the AFI network.

1INVESTMENTS IN REGTECH & SUPTECH

2DRIVE TOWARDS DIGITAL INTEGRATION AND DFS INTEROPERABILITY

3INNOVATIONS IN ALTERNATIVE FINANCING AND FINTECH FOR MSME 4 DATA TO ASSESS POLICY EFFECTIVENESS

5GREEN RECOVERY AND RESILIENCE BUILDING

6INTEGRATION OF INTERSECTIONALITY AND GENDER- INCLUSIVE FINANCE