The Intergovernmental Group of Twenty Four (G-24) and the Alliance for Financial Inclusion (AFI) jointly hosted a roundtable on financial inclusion at the sidelines of the IMF/World Bank Group Spring Meetings held on 13 April 2016 in Washington, D.C. The meeting focused on mitigating the impact of de-risking1 and embracing the digital financial services opportunity. Governor Amando M. Tetangco, Jr. (center) delivered the Keynote Remarks on the future trends in financial inclusion. Governor Tetangco highlighted the enormous potential of digitization of financial services in driving scale in financial inclusion, and at the same time the need to properly manage the attendant risks to this emerging trend. On the issue of de-risking, the Governor emphasized the need for a balancing act between policy objectives of promoting financial integrity and financial inclusion. Wholesale de-risking should be avoided as it brings negative unintended consequences, particularly restricting the flow and increasing the cost of remittances.
1 De-risking is a phenomenon whereby global banks are terminating or severely restricting relationships with certain clients such as money transfer operations/remittance companies. It is largely driven by regulatory AML/CFT concerns of global banks.