In a recent report, “Inclusão Financeira,” the Central Bank of Brazil presents the bank’s financial inclusion initiative, which aims for improvements in governance, transparency, regulation, credit, technology, distribution channels and product diversity [1].
According to the Center for Financial Inclusion, an initiative of US-based nonprofit ACCION International, the report proposes that microfinance institutions (MFIs): (1) create a certification system for MFI transparency; (2) establish credit bureaus to assist MFIs in preventing over-indebtedness; (3) introduce alternate distribution channels such as mobile technology that can be less expensive and more reliable; (4) diversify products to meet the needs of “low-income markets;” and (5) offer consumers financial education so that they can utilize the services and products to their best advantage.
For the entire report (in Portuguese), you may visit: http://www.bcb.gov.br/pre/microfinancas/anais_I_forum_inclusao_financeira%20indd.pdf
By Nisha Koul, Research Associate
Sources and Additional Resources:
[1] Center for Financial Inclusion Blog story, “Brazil’s Central Bank Calls for Changes to Boost Financial Inclusion,” http://centerforfinancialinclusionblog.wordpress.com/2011/08/11/brazil%E2%80%99s-central-bank-calls-for-changes-to-boost-financial-inclusion/
Central Bank of Brazil Report, “Inclusão Financeira,” http://www.bcb.gov.br/pre/microfinancas/anais_I_forum_inclusao_financeira%20indd.pdf
MicroCapital.org story, July 2, 2010, “MICROCAPITAL BRIEF: G20?s Financial Inclusion Experts Group (FIEG) Releases Nine “Principles for Innovative Financial Inclusion” at Leadership Summit in Toronto, Canada,” https://www.microcapital.org/microcapital-brief-g20s-financial-inclusion-experts-group-fieg-releases-nine-principles-for-innovative-financial-inclusion-at-leadership-summit-in-toronto-canada/
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