It is about Financial Inclusion

1. Bringing Smart Policies to Life

2. Overview
• AFI at a glance
• Why we were created
• How we add value
• AFI in more detail – strategic focus, progress & outlook

3. • AFI is a global network of policymakers in developing countries.
• We provide our members with the tools and resources to share, develop
and implement their knowledge of cutting-edge financial inclusion policies
that work.
• Founded in 2008, officially launched September 2009: Our goal is to
support developing country knowledge exchange on financial inclusion
policy that will enable an extra 50 million people living under the poverty line
to have access to formal financial services by 2012.
• As of 2010, AFI has members from Central Banks and leading financial
regulatory institutions in over 40 countries, with institutions from an
additional 40 countries also showing interest to join.
– This represents nearly 90% of the world’s unbanked population.
AFI at a glance

4. Why we were created
• Greater financial access is in everyone’s
economic and social interest (win-win)
• The scale of the opportunity is huge,
especially in today’s economic climate
• Solutions are already there - need to be shared

5. The scale of the opportunity is huge
About half of the world’s population (~2.5 billion) is “unbanked”
<20%
20-40%
40-60%
60-80%
>80%
% of households without
access to financial services
Source: World Bank Composite Measure of Access to Finance 2007, AFI visual modification.

6. Knowledge of the solutions is scattered across
the globe
Developing countries have pioneered many of the most innovative solutions
Indonesia:
1. Public bank reform
2. Diversifying products
and providers (BPR)
India:
Public bank reform
Kenya:
M-banking
Uganda:
Diversifying products
and providers
(MDI law)
South Africa:
1. M-banking
2. Consumer
Protection
Mexico:
Public bank reform
Bolivia:
Diversifying products
and providers
(FFP decree)
Brazil:
1. Agent-banking
2. Public bank reform
Philippines:
M-banking (G-Cash,
Smart Money)
Peru:
Consumer Protection
Malaysia:
Consumer
Protection
Thailand:
Public bank reform

7. Policymakers face a bewildering choice of
partners
Nearly 200 financial inclusion players: who to use and when?

8. How AFI adds value
We bring together all the pieces of the puzzle
• We connect the knowledge…resources …and the
right strategic partners at the right time
• … so that policymakers can select, develop and
implement the best solutions for their countries’
individual circumstances.
• In short, we optimize the flow and quality of
knowledge, enabling policymakers and partners to
optimize the impact of their resources.

9. What we do
• Enable policymakers in developing countries to share and develop
their knowledge of cutting-edge policies that deliver tangible results
– Online and face-to-face meetings (regional and global)
– All learnings captured centrally so others can benefit
– Focused on evidence-based policy areas
• Provide policymakers with grants to develop and implement their
chosen solutions
– Short-term grants: e.g. diagnostic studies, drafting regulations
– Longer-term grants: e.g. implementation and impact assessment
• Connect policymakers with the right partners across the value chain
– From research institutes (e.g. NYU) and technical experts (e.g. CGAP)
to funders (e.g. World Bank) and the private sector (e.g. GSMA)

10. AFI in more detail
• Facts & figures
• Members
• Policy focus
• Knowledge exchange
• Grants
• Strategic partners

11. Facts & figures
Established
Funding source
Total Budget
Number of Grants
Time frame
Geographic reach
Location
• September 2008
• Bill & Melinda Gates Foundation
• $35M over 4 years
• 21 long-term grants
• 44 short-term grants
• Sept 2008 – Sept 2012 (phase one)
• Developing countries around the globe
• Bangkok, Thailand

12. Maldives
Russia
Mongolia
China
Indonesia
Papua New Guinea
Nepal
Sri
Lanka
Bangladesh
Brazil
Peru
Colombia
Mexico
South
Africa
Namibia
Nigeria
Cameroon
Gabon
Congo
DR Congo
Egypt
Mozambique
Zambia
Tanzania
Uganda
Kenya
Madagascar
Mali
Senegal
Guinea
Burkina Faso
Togo
Burundi
Rwanda
Ethiopia
Vietnam
Cambodia
Philippines
Malaysia
Thailand
Pakistan
Official AFI members
Benin
Timor-Leste
Palestine
Jordan
Lebanon
Syria
Iraq
Morocco
Algeria
Tunisia
Sudan
Yemen
Niger
Cote
D‘Ivoire
Afghanistan
Ghana
Sierra-Leone
AFI Members
Fiji
Tuvalu
Samoa
Vanuatu
Tonga
Solomon Islands
In the process of joining
Uruguay
Nicaragua
Bolivia
Malawi
India
Guatemala
Honduras
Costa Rica
Panama
El Salvador
Kyrgyzstan
Tajikistan
Uzbekistan
Laos
Dominican
Republic

13. Policy focus
Support all effective, evidence-based policies. Focused set including:
Financial identity
Facilitate building and use of
financial identities for poor clients
Consumer protection
Promote policies that provide
adequate consumer protection and
education in financial services
Public bank reforms
Enable state owned institutions to
effectively provide financial services to
the poor
Agent banking
Enable non-bank agents to
provide financial services
Mobile phone financial services
Increase access to financial
services through mobile
technologies
Formalizing Micro-savings
Facilitate adoption of new
providers and products for
promoting micro-savings
New policy areas will be
added as fresh evidence
emerges.
Data & measurement
Facilitate increase and improvement
financial inclusion data – critical for
devising evidence-based policy
Channels Enablers

14. Knowledge exchange
Online and face-to-face, aided by grants
South-south
exchange
Policy
champion
pools
Regional
working
groups
Peer
reviews
Working
interactions
Discussion
forums
Web
conference
Global policy
forum
Global
seminars per
policy area
Regional
access
conferences
Knowledge-
sharing
forums
Online
database
Policy help
desk/Blog
National
seminars
Publications
and
presentations
Publications E-newsletter
Research
Papers/Policy
briefs
Face-to-face exchanges Online exchanges
Global activities Regional activities National
activities

15. AFI Grants
Short-and long-term, covering the full policy cycle
AFI
Grants
Long-term
Short-term
• Diagnostic studies
• Draft regulations
• Training
• Develop and
implement new
regulations
• Impact
assessments
• Regional seminars
• Study tours
• Peer reviews
Grant to the Russian
Microfinance Center for
Russian policymakers to visit
Brazil to learn about agent
banking and its regulations
Grant to Bank
Indonesia for
developing innovative
financial identity
policy for the poor
Grant to Treasury of
Pakistan for short-term
assistance for drafting
mobile phone banking
regulation
Knowledge Exchange

16. Grants
An effective and impartial, end-to-end process
Example: Long-term grant
Potential
grantee
prepares
concept
note
Internal panel
reviews
concept note
Potential first
tranche
(up to 20k)
distributed
Applicant
develops
proposal with
assistance
from program
manager
Discussions
with policy
makers
Grant
assessment
panel reviews
proposal
Grant
approved and
next tranche
disbursed
Internal panel
appraises
project
proposal
“Light
process”
- maximum 5
pages
Rejected
Approved
Approved
No go
Conditional

17. Strategic partners
Support across the value chain, from policy design to implementation
AFI
Policymakers
Donors/Technical
assistance
E.g. DFID, CGAP,
BMZ/GTZ, USAID,
World Bank, AFD,
JICA
Standard
setters
E.g. BIS,
FATF, IAIS
Private sector
E.g. ABAC,
GSMA, Omidyar
Network, Vodafone
Research partners
E.g. CENFRI,
University of
Chicago, Yale,
Finmark, Harvard,
NYU, FAI, OPM
Microfinance
industry
E.g. Accion, FINCA,
Grameen, SEEP

18. Progress & outlook
• Milestone - Global Policy Forum 2009
• Progress
• Moving forwards

19. The first gathering of our members & strategic
partners
AFI Global Policy Forum 2009
At the Forum
•Over 80 policymakers from 37 countries
•High-level speakers and participants (Prime
Minister, Governors, Deputy Governors etc.)
•80 strategic partners
•Active engagement & intense discussions
•Positive feedback on the Forum (99% satisfied)
•Very supportive of AFI and our new approach
Concept
• Following the value chain of financial inclusion
policy-making
• Knowledge-sharing among policymakers
• Practical solutions
• Innovative, interactive, member-driven

20. Progress so far
Key orientation for 2009: Building AFI and its Network
• Organizational structure in place
– Steering Committee members appointed: Kenya, Mexico, Philippines, Thailand
– Management unit in Bangkok
• Well-developed operational systems
– Grant-making procedure established
– Interactive web site and online network platform under development
• Rapidly expanding membership base
– Central banks and regulatory institutions from 40 countries have already joined*
– Institutions from additional 40 countries have shown interest to join
• Variety of grants already approved
– E.g. Kenya-Brazil, Afghanistan-Philippines knowledge-exchange grants
– First long-term concept note approved for Russia on agent banking
– More grants in pipeline
• Growing AFI profile
– Network has gained global recognition, resulting in active involvement in a number of high-
level processes (including G20)

21. Moving forward
Key orientation for 2010: Activating the network and delivering services
• AFI working groups to be launched
− 4 working groups identified so far (M-banking, Pacific, AML/CFT, and Financial Inclusion data)
• AFI web site revamp and online network platform launch
– Online platform will provide members with a range of knowledge sharing and connecting
features
• AFI Policy Notes and Policy Briefs
− Notes and briefs on policy focus topics will be launched; policymakers invited to contribute
• AFI Policy Champion Program to be launched
• M& E system established, grant programs fully in place
• AFI Membership Needs Assessment and Financial Inclusion Policy surveys launched
• Contribution to the G-20 Working Group on Financial Inclusion Experts Group/ATISG
• Next Global Policy Forum: September 2010
• Will be shaped and driven by policymakers; practical, interactive, results-oriented

22. Alfred Hannig
Alfred.hannig@afi-global.org
Thank you!