IFC, MAS, and the Forum collaborate to enhance digital inclusion through financial services, aiming to reduce inequalities in emerging and developing economies.
The International Finance Corporation (IFC), Monetary Authority of Singapore (MAS), and the World Economic Forum (the Forum) have inked a Memorandum of Understanding on 14th November 2023, marking the initiation of a strategic partnership. The focus of this collaboration is to advance digital inclusion in emerging and developing markets, addressing the disparities faced by individuals and small businesses.
The partnership aims to find innovative ways to enhance the affordability and accessibility of digital services for underserved communities and Micro, Small, and Medium-sized Enterprises (MSMEs). In tandem with financial institutions and FinTech companies, the trio will work towards creating guidelines for digital financial inclusion financing instruments. These efforts include initiatives to promote these guidelines in the Asian market, ultimately fostering a more inclusive digital landscape.
IFC, leveraging its extensive network in emerging and developing markets, will spearhead the development of these guidelines, covering aspects such as digital financial inclusion products, eligible assets, and measurement and reporting mechanisms. MAS will explore synergies with existing initiatives like the SME Financial Empowerment and Financial Transparency Corridor Programmes, with a specific focus on improving financing access for MSMEs in emerging markets. The World Economic Forum, through its international network, will play a pivotal role in promoting and sharing these innovative solutions and learnings globally.
Allen Forlemu, Regional Industry Director, Financial Institutions Group, Asia and the Pacific at IFC, emphasized the need for innovative financial instruments to address the significant challenge of improving digital inclusion in emerging markets. Forlemu stated, “Traditional financing mechanisms alone cannot address this challenge,” expressing IFC’s commitment to collaborating with MAS and the World Economic Forum to mobilize the necessary resources for this cause.
Sopnendu Mohanty, Chief FinTech Officer at MAS, expressed pride in the partnership, highlighting its potential to allow previously underserved individuals and MSMEs consistent and affordable access to digital information, services, and products. The partnership, according to Mohanty, aims to promote developments in emerging markets, support quality education, and reduce inequalities.
Sebastian Buckup, Co-Head, Centre for the Fourth Industrial Revolution, and Member of the Executive Committee, World Economic Forum, reflected on the importance of the partnership in translating recommendations into actionable steps. He emphasized the vitality of channeling financing towards digital public infrastructure, digital skills, and digital services for the underserved, aligning with the World Economic Forum’s commitment to the EDISON Alliance’s objectives.
Source – Monetary Authority of Singapore & IFC
