Brookings Institute launches financial and digital inclusion report

The Brookings Institute recently launched the 2016 Brookings Financial and Digital Inclusion Project, showcasing an in-depth evaluation of the usage of affordable financial services across 26 diverse countries. Robin Lewis, a research analyst and associate fellow at the prestigious Brookings Institution, shed light on the key findings of the report in an insightful interview with CNBC Africa. The report aimed to select countries that were geographically, politically, and economically diverse, with a focus on nations committed to advancing financial inclusion. The research highlighted the importance of access to formal savings accounts and other financial services in promoting financial inclusion. It emphasized the role of enabling regulatory environments in driving adoption and usage of financial services, especially among underserved communities. While progress has been made globally in expanding access to formal financial services, disparities still exist, with about two billion adults excluded from the formal financial system worldwide. The report pointed out that women and young people in Africa lag behind in financial inclusion, citing gaps in mobile phone ownership and financial literacy. Initiatives to promote financial literacy among these groups were discussed as a means to bridge these gaps. The role of digital financial services, particularly mobile money, was highlighted as a key driver of financial inclusion in many African countries, with Rwanda making significant strides in this area. Despite challenges such as punitive interest rates in markets like Kenya, the report emphasized the importance of diverse financial service providers and enabling regulatory frameworks in advancing financial inclusion. Overall, the report underscored the importance of continuous efforts by governments and stakeholders to promote financial inclusion and reduce disparities in access to formal financial services. The intersection of financial inclusion, regulatory frameworks, and digital innovation was a key theme throughout the interview, emphasizing the need for collaborative efforts to drive positive change in the global financial landscape.