Financial Inclusion Week - snapshots on FI from e-MFP Board members
In the context of FI2020 Week, we asked some e-MFP Board members to share their thoughts on:
What does financial inclusion mean for your organisation?
Ministry of Foreign and European Affairs - Directorate for Development Cooperation and Humanitarian Affairs, Luxembourg: Financial inclusion is universal access, at a reasonable cost, to a wide range of banking products and financial services made available to poor populations, provided by a variety of sound and sustainable institutions. It strives to enhance access to financial services for both individuals and micro-, small and medium-sized enterprises. These actors are usually locked out of the conventional banking system due to their low income. Inclusive finance helps them to finance their activities, save money, support their families and hedge against the risks of everyday life. In developing countries, access to financial services is crucial to strengthen financial sectors and domestic resource mobilization and can therefore make a significant contribution to social and economic development.
BNP Paribas: Financial inclusion translates into supporting microfinance, this is part of BNP Paribas' Corporate Social Responsibility approach. Thus BNP Paribas has become a privileged partner of several MFIs. In 2015 more than 250.000 people excluded from the traditional banking system were able to implement their projects and improve their living standard thanks the Group funding.
What role does your organisation play as a financial inclusion agent?
Ministry of Foreign and European Affairs - Directorate for Development Coperation and Humanitarian Affairs, Luxembourg: The role of the government of the Grand Duchy of Luxembourg, and more precisely the role of the Ministry of Foreign and European Affairs, is based on a long term perspective and aims at promoting the development of the inclusive and microfinance sector based in Luxembourg and in Europe by supporting innovative thinking and implementation of projects. Inclusive finance is an important tool to reduce poverty and Luxembourg's role as a financial inclusion agent is to support a better and more efficient deployment of its resources in specific sectors with the global goal to reduce poverty.
BNP Paribas: For BNP Paribas this is a strategic activity that promotes ambitious and socially responsible commitments. The role of BNP Paribas is to support all the needs of MFIs through financing (that can be direct or indirect) and other assistance: Direct financing to MFIs in Emerging Countires as well as in High Income OECD countries (totalling 16 countries), through direct investment into funds, through the customisation of managed SRI funds including 5% to 10% of investment into MFIs (Solidarity Saving funds), through the coordination of volunteers of the Bank providing their skills as technical assistance... The sum of the financial support accounts for EUR 240 m as of June 2016.