WOCCU Applauds G20 Finance Track Focus on Financial Inclusion

The Italian G20 Presidency at the Fourth G20 Finance Ministers and Central Bank Governors meeting (Finance Track) issued its Communique addressing Financial Inclusion (among other topics). 

WOCCU, together with its member credit union associations have placed efforts toward asking the G20 to give direction to national-level regulators to increase financial inclusion vis-à-vis a focus on the importance of proportionality.  The importance of this is that it allows smaller cooperative depository institutions such as credit unions to fulfill their mission and greatly reduce inequalities and promote inclusive growth.  More importantly, proportionality, if applied appropriately, can significantly advance the G20’s goals of promoting financial inclusion by fostering responsible finance through increased access to responsible and affordable financial services offered by credit unions.

WOCCU applauds the G20 focus on financial inclusion and is pleased to see that the Communique issued by the Finance track includes the following passage:

We reaffirm our commitment to enhancing digital financial inclusion of vulnerable and underserved segments of society, including micro, small and medium-sized enterprises (MSMEs), carrying forward the work of the Global Partnership for Financial Inclusion (GPFI) and implementing the G20 2020 Financial Inclusion Action Plan. We therefore endorse the G20 Menu of Policy Options for digital financial literacy and financial consumer and MSME protection “Enhancing digital financial inclusion beyond the COVID-19 crisis”, with the aim to provide a guide for policymakers in their efforts to lay the ground for new financial inclusion strategies in the postpandemic world. We look forward to the review of the G20/OECD High-Level Principles for Financial Consumer Protection in 2022. 

WOCCU will continue to work on this guide for policymakers noting the importance of providing for proportionality that will allow credit unions to maximize its ability to fulfill its mission of serving marginalized, underserved, and financially excluded populations.

A copy of the Communique can be viewed here and a copy of the G20 Menu of Policy Options included in the “Enhancing digital financial inclusion beyond the COVID-19 crisis” can be viewed here.

A recent webinar by WOCCU on Credit Unions and the G20: The Push for Financial Inclusion outlining its efforts with the G20 can be viewed here.