An organisation backed by Citigroup and a global NGO comprised of 34 nations are teaming up to improve access to digital banking and financial services in Asia.

A philanthrophic group focusing on poverty and supported by the Citi Foundation has launched a programme in East Asia to help people gain access to digitally-delivered services such as banking.

The programme intends to draw ideas and best practices from “digital inclusion” efforts in China, Indonesia and the Philippines. The initiative will also work with policymakers in these three countries to apply global standards and ideas to digital inclusion.

“The policy environment is a crucial factor in closing the financial inclusion gap to over 2 billion un-banked people around the world. It helps determine the range and quality of formal financial services available and on how many marginalised customers take up and use the services on an ongoing basis,” Timothy Lyman, who leads the global policy architecture initiative at Consultative Group to Assist the Poor (CGAP), said.

“The rapid development of digital financial services promises to be a game-changing opportunity for reaching the excluded and underserved populations. However, a hasty adoption may also pose risks. We are pleased to partner with CGAP to better understand the implications of digital financial inclusion both at the global and country levels and work at advancing a more enabling and protective environment,” Regina Seow, regional head of corporate citizenship, Citi Asia Pacific, said.

The three countries were chosen for the following reasons:

- China has enabled, through its policies, a variety of payment companies to build on the vast usage of digital channels, such as the Internet, smartphones and e-commerce, leading to an expansion of digital financial services usage in the country;

- Indonesia has embarked on substantial policy reform to support the expansion of digital finance in the country. As reform is ongoing, there are opportunities to learn what approaches to supervision of digital financial inclusion hold the most promise; and

- the Philippines was the first country globally to launch mobile money. The active role that supervisors continue to play in assessing innovative approaches provides good practice examples of digital financial inclusion.

CGAP is a global partnership of 34 organisations that seek to advance financial inclusion and it is housed at the World Bank.