Woccu welcomes G20 leaders’ position on financial inclusion

Woccu says credit unions can play a critical role in reducing inequalities around the world

A commitment by G20 leaders to financial inclusion, announced at their summit in Bali earlier this month, has been welcomed by credit union apex Woccu.

The World Council of Credit Unions said the pledge, included in the final declaration, followed “significant outreach” by its representatives, along with credit union bodies from the G20 countries. G20 representatives were urged to “encourage international standard setting bodies to work more closely with national-level regulators on proportionality, which will allow credit unions to have more of an opportunity to increase financial inclusion”.

In their declaration, the G20 leaders endorsed the G20 financial inclusion framework on harnessing digitalization to increase productivity and foster a sustainable and inclusive economy for women, youth and MSME, and the updated G20/OECD high-level principles on financial consumer protection. The declaration also welcomes the updated G20/OECD high-level principles on SME financing.

“We commit to implement the G20 roadmap towards and beyond the Brisbane Goal, to foster financial inclusion and access to digital technologies, including to address the unequal distribution in paid and unpaid care and domestic work, with a focus on closing the gender pay gap,” reads the declaration.

Woccu said the G20 Financial Inclusion Action plan supports the adoption of enabling and proportionate legal and regulatory frameworks and believes the endorsement of these instruments will assist it in convincing national-level regulators “to tailor regulations for the size, risk and complexity of credit unions”.

“Credit unions can play a critical role in reducing inequalities around the world,” said Andrew Price, Woccu’s senior vice president of advocacy and general counsel, “but only if their community-based, member-owned, co-operative model is allowed to function properly.

“Proportionality is key to our success. We welcome the G20 recognition of this approach.”