G20 reaffirms support of WOCCU advocated position on financial inclusion
WOCCU urged a focus on proportionality to allow credit unions to expand reach
MADISON, WI (November 2, 2021) — The G20 reaffirmed its support for a World Council of Credit Unions’ (WOCCU) advocated position that national-level regulators put a greater focus on proportionality in the newly released G20 Rome Leaders’ Declaration, which embraces a commitment to enhancing the financial inclusion of vulnerable and underserved segments of society that credit unions should now have an even greater opportunity to serve.
The G20’s goal is to provide a guide for policymakers in their efforts to lay the groundwork for new financial inclusion strategies in the post-pandemic world. Further, the Leaders’ Declaration endorsed the G20 Menu of Policy Options focused on digital financial literacy and financial consumer protection, as well as the risk-based approach of the Financial Action Task Force, which aims to promote financial inclusion and ensure legitimate cross-border payments.
“We welcome the G20’s focus on financial inclusion and a risk-based approach to regulations. This means support for proportionality, which is the key to allowing credit unions to significantly advance the G20’s goal of promoting financial inclusion by fostering responsible finance through increased access to affordable financial services offered by credit unions. Direction to the international standard setters to focus on financial inclusion and risk-based approaches are crucial to ensuring credit unions can fulfill their mission and play a key role in reducing inequalities around the world,” said Andrew Price, WOCCU Senior Vice President of International Advocacy and General Counsel.
That commitment from the G20 is what Price and advocacy experts from WOCCU’s member credit union associations in the United States, Canada, Australia and South Korea were hoping for when they began advocating for proportionality in front of the G20 earlier this year. WOCCU hosted a recent webinar highlighting those efforts, which can be viewed here.
The G20 also reiterated its support for the G20 2020 Financial Inclusion Action Plan, which includes provision that allows for an enabling and proportionate legal and regulatory framework for digital financial inclusion that takes relevant G20 and international standard setting body standards and guidance into account.
Work on these issues will now turn to the Global Partnership for Financial Inclusion, as well as the next G20 Presidency in Bali, Indonesia. WOCCU will continue to engage with policymakers to ensure the ability of credit unions to play a crucial role in the global efforts to increase financial inclusion.
About World Council of Credit Unions
World Council of Credit Unions is the global trade association and development platform for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
World Council has implemented 300+ technical assistance programs in 90 countries. Worldwide, 87,914 credit unions in 118 countries serve 393 million people. Learn more about World Council's impact around the world at www.woccu.org.