The framework recognises factors that contribute to financial inclusivity of products and services and the associated challenges are context-dependent
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The consultancy firm PricewaterhouseCoopers (PwC), under the commission of The Stellar Development Foundation, has created a global financial inclusion framework (“The Framework”) to assess the factors contributing to financial inclusivity. It targets companies and institutions in the emerging markets, particularly those with upcoming blockchain projects.
The framework outlines a structured four-phase assessment process that projects must follow to address financial inclusion challenges. Firstly, it involves defining the assessment’s scope. Secondly, it requires an analysis of the target population. Thirdly, it entails assessing how well the solution aligns with value parameters and identifying gaps. Finally, it prioritises identifying gaps based on their importance to devise effective strategies.
After completing these four phases, assessors will be able to comprehensively understand the financial solution’s strengths and weaknesses in promoting financial inclusion.
The value parameters underlined in the framework help in determining how well a financial solution fosters financial inclusion. These value parameters are grouped into four dimensions: Access, Quality, Trust and Usage. The first three dimensions are used to measure inclusion, while the fourth dimension measures a solution’s potential impact. Each of these parameters is further broken down into subcategories, which are then assigned a level from 1 to 4 based on how well they meet the target audience’s needs.
This framework is being used to help financial solution providers in Argentina, Colombia, Kenya, and the Philippines. In 2021, the Philippines had notably lower financial inclusion rates than neighbouring East Asia & Pacific countries. Conversely, Kenya demonstrated higher financial inclusion rates than neighbouring Sub-Saharan nations. Colombia exhibited lower financial inclusion rates among Latin American and Caribbean countries. In contrast, Argentina’s overall financial inclusion rates were similar but faced challenges in various demographic and economic aspects compared to regional peers.