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Forum Views - December 2024

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Introduction

Unseen Mandate: Central Banks Expanding Role in

Financial Inclusion

Financial inclusion is vital for reducing poverty, strengthening

financial stability, and driving economic growth. Central banks

in the global south are leading the charge, increasingly

adopting innovative strategies in collaboration with the private

sector, to expand financial access for underserved

populations. These efforts are key to achieving sustainable

development goals such as gender equality (SDG 5), decent

work and economic growth (SDG 8), and they merit ongoing

support.

Globally, central banks have long been tasked with traditional

roles: issuing currency, serving as bankers to the government,

acting as lenders of last resort, and ensuring price, monetary,

and financial stability. In emerging markets, however, with

additional challenges such as poverty and inequality, financial

inclusion has increasingly become a strategic priority for

central banks, acknowledging its role as a key enabler of

development, crucial for effective monetary policy and overall

economic stability.

This shift has been further driven by initiatives such as the

Alliance for Financial Inclusion (AFI), a global network of

central banks and policymakers established in 2008. As of

September 2023, AFI’s 86 member institutions from 76

countries have made 1,222 “Maya Declaration”

commitments—a set of policy actions aimed at advancing

financial inclusion on a national level.

Since taking the lead, the results have been significant.

According to the World Bank’s Global Findex report, the

percentage of adults with bank accounts globally increased

from 51% in 2011 to 76% in 2021. This success demonstrates

the convening power of central banks, which have brought

together diverse stakeholder groups to work towards a

common goal—tackling multiple development challenges

through inclusive financial systems.

CENTRAL BANKS AS CATALYSTS FOR

FINANCIAL INCLUSION IN AFRICA:

POLICY, INNOVATION & IMPACT

Aishah N. Ahmad, CFA

Central Bank of Nigeria

Experiences from countries like Nigeria, Rwanda, and

Eswatini highlight how regulatory leadership and innovation

can drive meaningful progress in financial inclusion and other

global challenges.

Over the past decade, Nigeria’s financial system has

transformed into a powerhouse of payments and financial

services innovation, attracting global investment and driving

significant growth in digital financial access. According to

EFINA, the country’s financial inclusion rate increased from

An Ecosystem Approach to Expanding Financial Access in

Nigeria

Globally, central banks have long been

tasked with traditional roles: issuing

currency, serving as bankers to the

government, acting as lenders of last

resort, and ensuring price, monetary,

and financial stability. In emerging

markets, however, with additional

challenges such as poverty and

inequality, financial inclusion has

increasingly become a strategic

p r i o r i t y f o r c e n t r a l b a n k s ,

acknowledging its role as a key

enabler of development, crucial for

effective monetary policy and overall

economic stability.

(Nigeria)

10

FORUM VIEWS - DECEMBER 2024

Global Insights

Former Deputy Governor

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