The G20 reaffirmed its support for CUNA and World Council of Credit Unions' call for 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, World Council senior vice president of international advocacy and general counsel.
That commitment from the G20 is what Price and advocacy experts from World Council'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.
World Council hosted a webinar highlighting those efforts, which featured CUNA Chief Advocacy Officer Ryan Donovan.
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.