The G20 reaffirmed its support for the call by CUNA and the World Council of Credit Unions for regulators at national level to put more emphasis on proportionality in the new G20 Rome Declaration of the leaders, which includes a commitment to improve the financial inclusion of vulnerable and underserved segments of society that credit unions should now have an even greater opportunity to serve.
The objective of the G20 is to provide a guide to policy makers in their efforts to lay the groundwork for new strategies for financial inclusion in the post-pandemic world. Additionally, the leaders’ statement endorsed the G20 Policy options menu focused on digital financial literacy and financial consumer protection, as well as the Financial Action Task Force’s risk-based approach, which aims to promote financial inclusion and ensure legitimate cross-border payments.
“We welcome the focus of the G20 on financial inclusion and a risk-based approach to regulation. This means support for proportionality, which is key to enable credit unions to significantly advance the G20 goal of promoting financial inclusion by fostering responsible finance through increased access to affordable financial services offered. by credit unions. It is essential to orient international standard setters towards financial inclusion and risk-based approaches to ensure that credit unions can fulfill their mission and play a key role in reducing inequalities in the world ”, said said Andrew Price, senior vice president of the World International Council. lawyer and general counsel.
This G20 commitment is what Price and advocacy experts from Global Council member credit union associations in the United States, Canada, Australia and South Korea hoped for when they began advocating for proportionality before the G20 earlier this year.
The World Board hosted a webinar highlighting these efforts, which featured Ryan Donovan, CUNA’s Chief Advocacy Officer.
The G20 also reiterated its support for the G20 Financial Inclusion Action Plan 2020, which includes a provision enabling an enabling and proportionate legal and regulatory framework for digital financial inclusion that takes into account relevant standards and guidance from the G20 and international standard-setting bodies.
Work on these issues will now turn to the Global Partnership for Financial Inclusion, as well as the upcoming G20 Presidency in Bali, Indonesia. WOCCU will continue to engage with policy makers to ensure the capacity of credit unions to play a critical role in global efforts to increase financial inclusion.