Mayada El-Zoghbi

Press Release

<strong>Washington, DC, September 9, 2019</strong>—Global nonprofit Accion announced today that <a href="/bio/mayada-el-zoghbi">Mayada El-Zoghbi</a> has joined as new Managing Director of the Center for Financial Inclusion at Accion (CFI), an action-oriented think tank that develops insights, advocates on behalf of clients, and collaborates with stakeholders to achieve a comprehensive vision for financial inclusion.

“Throughout her career, Mayada has been at the forefront of the inclusive finance community,” CFI Advisory Council chair Paul Tregidgo said. “This alignment with the focus of the Center for Financial Inclusion at Accion, and her recent work on emerging topics in financial inclusion – like the relationship between financial services and well-being, and ways to extend financial services to the most excluded like women, youth and the forcibly displaced – uniquely position her to lead the Center into the future.”

“For more than a decade, CFI has played an important role, challenging and engaging the financial services industry to better serve, protect, and empower people around the world. I am pleased that Mayada El-Zoghbi has accepted to join as the new managing director. Her extensive experience in research and advocacy position her as the right leader to build on CFI’s strong foundation of innovative, industry-shaping work,” said Accion CEO and President Michael Schlein.

Mayada has been a leader in financial inclusion for some time. She comes to CFI from CGAP, a World Bank-based think tank, where she served as Lead for Strategy, Research &amp; Development, and previously managed CGAP’s work with the donor and investor community. From 2002 to 2009, Mayada founded and then managed a development consulting firm. She has also led numerous technical assistance, evaluation, and research assignments; served as a research director for a USAID initiative; and lectured at Columbia University's School of International and Public Affairs (SIPA). She started her career working with several nonprofit organizations establishing inclusive financial institutions in Bosnia and Herzegovina, Croatia, Kosovo, and the Palestinian Territories.

Mayada holds a master’s degree in international affairs from SIPA at Columbia University and a bachelor's degree in business from the University of Minnesota. A dual national of Egypt and the United States, she is fluent in English and Arabic.

In its first decade, the Center for Financial Inclusion at Accion established itself as a powerful advocate for the protection and empowerment of underserved clients. It established the world’s first global consumer protection campaign - the Smart Campaign - which has set standards for inclusive financial services that have now been adopted by 100 institutions serving over 40 million people around the world. Its other initiatives include executive leadership training opportunities like the Africa Board Fellowship Program and Harvard Business School-Accion Program on Strategic Leadership in Inclusive Finance; the Financial Inclusion Equity Council, a membership organization for equity investors in microfinance institutions; and extensive research on emerging issues related to financial inclusion.

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<strong>About the Center for Financial Inclusion at Accion</strong>

The Center for Financial Inclusion at Accion (CFI) is an action-oriented think tank that engages and challenges the industry to better serve, protect, and empower clients. We develop insights, advocate on behalf of clients, and collaborate with stakeholders to achieve a comprehensive vision for financial inclusion. We are dedicated to enabling 3 billion people who are left out of – or poorly served by – the financial sector to improve their lives.
<a href="http://www.centerforfinancialinclusion.org/">www.centerforfinancialinclusion.org</a>
<a href="https://twitter.com/CFI_Accion">@CFI_Accion</a>

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<strong>Media Contact</strong>

Center for Financial Inclusion at Accion
<a href="/bio/virginia-moore">Virginia Moore</a>
<a href="mailto:vmoore@accion.org">vmoore@accion.org</a>
+1 202.393.5113

Mayada El-Zoghbi Is the New Managing Director of the Center for Financial Inclusion at Accion

With support from the Citi Foundation and FMO, CFI launches board effectiveness program for leaders at the nexus of social enterprise and financial services. 

<strong>WASHINGTON, DC, August 27, 2019</strong> – The Center for Financial Inclusion at Accion (CFI) has launched an executive education program for financial service providers serving low-income communities in emerging markets. Through peer learning and exchange, the <a href="/about/what-we-do/board-leadership-for-impact-program">Board Leadership for Impact Program</a> will empower executives and board members to foster client centricity, lead digital transformation, sustain business growth and drive social impact. In partnership with the <a href="https://www.citigroup.com/citi/foundation/">Citi Foundation</a> and <a href="https://www.fmo.nl/">FMO</a>, the Dutch development bank, supporting program implementation and participant scholarships, the Board Leadership for Impact Program will offer multiple in-person workshops per year coupled with a robust virtual portal.

Derived from CFI’s five-year <a href="https://content.centerforfinancialinclusion.org/about/what-we-do/africa-board-fellowship-program/">Africa Board Fellowship Program</a>, which fostered the growth and development of more than 300 executives and board members of financial service providers serving more than 10 million clients in Africa, the Board Leadership for Impact Program will now expand to include early stage to mature companies offering financial services to underserved customers that operate in emerging markets around the world.

“Our experience with leadership development through peer exchange will inform our efforts through this new program to cultivate a community of leaders who have the skills and the network to help their organizations thrive,“ said <a href="/bio/deborah-drake">Deborah Drake</a>, Vice President, Center for Financial Inclusion at Accion. “Tackling challenges like achieving sustainable growth or pursuing digital transformation, particularly as a mission-driven organization, takes strategic leadership at the board level.”

Through role play, simulations and facilitated discussion, participants will gain new perspectives, skills, and knowledge on topics critical to social enterprise growth and impact, including risk management, board dynamics, digital transformation and inclusive digital finance. They will join an active community of alumni of the Center for Financial Inclusion at Accion’s <a href="https://www.centerforfinancialinclusion.org/get-involved#fellow-exec-ed">executive education programs</a>.

“By developing and strengthening leadership skills that drive business growth and social impact, our partnership with the Center for Financial Inclusion at Accion will help accelerate financial inclusion and economic progress around the world,” said Florencia Spangaro, Director of Programs, Citi Foundation.

“FMO is a proud partner of Accion for over a decade and we realize that creating a lasting impact starts in the board room. Strengthening the management of financial service providers and enterprises will help ensure business longevity and commitment to underserved customers,” said Gerbrich Salverda, Capacity Development Officer at FMO.
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<strong>About the Center for Financial Inclusion at Accion</strong>

The Center for Financial Inclusion at Accion (CFI) is an action-oriented think tank that engages and challenges the industry to better serve, protect, and empower clients. We develop insights, advocate on behalf of clients, and collaborate with stakeholders to achieve a comprehensive vision for financial inclusion. We are dedicated to enabling 3 billion people who are left out of – or poorly served by – the financial sector to improve their lives.
<a href="http://www.centerforfinancialinclusion.org/">www.centerforfinancialinclusion.org</a>
<a href="https://twitter.com/CFI_Accion">@CFI_Accion</a>
<p style="text-align: center;"><strong>###</strong></p>
MEDIA CONTACT

Center for Financial Inclusion at Accion
<a href="/bio/virginia-moore">Virginia Moore</a>
<a href="mailto:vmoore@accion.org">vmoore@accion.org</a>
+1 202.393.5113

The Center for Financial Inclusion at Accion Launches Executive Education Program for Financial Service Providers to Enable Business Growth and Social Impact

Citi Foundation provides $1.2 million to CFI to strengthen leadership development and capacity building globally.

<strong>WASHINGTON, DC, February, 12, 2019</strong> – The Center for Financial Inclusion at Accion (CFI) and the <a href="https://www.citigroup.com/citi/foundation/">Citi Foundation</a> announced a new partnership to strengthen financial institutions specializing in reaching underserved communities in emerging markets. The Citi Foundation is providing $1.2 million in funding to support the three-year initiative.

“Our partnership with the Center for Financial Inclusion at Accion will help develop and strengthen the next generation of financial inclusion leaders who in turn will accelerate financial inclusion and economic progress for families and communities across the world,” said Florencia Spangaro, Director of Programs, Citi Foundation.

Through peer-to-peer learning and executive education programs, CFI builds organizational and human capacity around the globe to deepen and sustain financial inclusion. Its programs include the <a href="/about/what-we-do/hbs-accion-program-on-strategic-leadership-in-inclusive-finance/">Harvard Business School (HBS)-Accion Program in Strategic Leadership in Inclusive Finance</a> (SLIF), an intensive week-long course providing management and leadership training to those shaping the microfinance industry; and the <a href="/about/what-we-do/africa-board-fellowship-program/">Africa Board Fellowship Program</a> (ABF), a governance focused six-month peer learning and exchange program for board members and executives of African financial institutions serving low-income clients. Citi Foundation funding will support both programs, supporting scholarships for HBS-Accion SLIF participants who demonstrate financial need and supporting the optimization and expansion of ABF.

“We are grateful to the Citi Foundation for recognizing the importance of investing in leaders who are working on-the-ground toward financial inclusion,” said <a href="/bio/deborah-drake">Deborah Drake</a>, Vice President, CFI, and head of the governance portfolio. “ABF and HBS-Accion SLIF alumni gain useful skills and knowledge, particularly around governance issues, as well as new relationships and strong networks that they can use immediately and draw on over time.”
<p style="text-align: left">Additionally, the Citi Foundation’s support will contribute to the launch of a new global executive education program to help C-suite leaders and board members of financial institutions effectively and sustainably serve underserved communities. Arriving in fall 2019, with seminars in Asia and Africa, this new program will focus on governance, risk management, growth, client centricity and other mission-critical issues.</p>

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<strong>About the Center for Financial Inclusion at Accion</strong>
The Center for Financial Inclusion at Accion (CFI) is an action-oriented think tank that engages and challenges the industry to better serve, protect, and empower clients. We develop insights, advocate on behalf of clients, and collaborate with stakeholders to achieve a comprehensive vision for financial inclusion. We are dedicated to enabling 3 billion people who are left out of – or poorly served by – the financial sector to improve their lives.
<a href="https://www.centerforfinancialinclusion.org">www.centerforfinancialinclusion.org</a>
<a href="https://twitter.com/CFI_Accion">@CFI_Accion</a>

<strong>About the Citi Foundation </strong>
The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. We invest in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant cities. The Citi Foundation's "More than Philanthropy" approach leverages the enormous expertise of Citi and its people to fulfill our mission and drive thought leadership and innovation. For more information, visit <a href="https://www.citigroup.com/citi/foundation/">www.citifoundation.com</a>.

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MEDIA CONTACT

Center for Financial Inclusion at Accion
<a href="/bio/virginia-moore">Virginia Moore</a>
vmoore@accion.org
+1 202.393.5113

The Center for Financial Inclusion at Accion and the Citi Foundation Announce Partnership to Strengthen and Expand Executive Leadership in the Financial Inclusion Sector

New technology is delivering considerable benefits to the financial inclusion market – but is also creating new risks that service providers need to manage if they are to succeed. This is the main conclusion of a new survey of the risks (or Banana Skins) in the provision of financial services to people in emerging markets who have little or no access to these services.

Technology Risk Is High in Financial Inclusion Market

<strong>Washington, D.C. (June 25, 2018)</strong> — The Center for Financial Inclusion at Accion (CFI) and the Institute of International Finance (IIF), with support of MetLife Foundation, released a report that examines how new types of data and new data tools present an unprecedented opportunity for financial service providers to understand and serve clients—particularly credit-seeking "thin-file" clients who are otherwise excluded from the formal financial sector

New Report: Banks Increasingly Embrace Data to Reach Underserved Customers

Press Releases

Tess Johnson

Madeleine Longwell

Being to the point, on topic, and not being shy about reaching out with questions are good tactics. 

Blog Post

With the deadline for the 2020 <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/hbs-accion-program-on-strategic-leadership-in-inclusive-finance">HBS-Accion Program on Strategic Leadership in Inclusive Finance</a> rapidly approaching -- applications are due Tuesday, January 21 -- we thought it would be helpful for the admissions team to offer some insights on crafting the best possible program and scholarship application to raise your chances of acceptance.
<h2>1   Be specific</h2>
A lot of times, applicants answer the questions generally, which makes it hard for us to judge their application against other candidates or how useful the program would be to them in their work. A few of our prompts ask for an example or to list three challenges they face, and often people just list one challenge, or don’t answer the entire question, which is a pretty easy way to eliminate applicants right away.
<h2>2   Stay on topic</h2>
This is similar to the above. Applicants to the HBS-Accion Program have unique and deep experiences, and we look forward to learning more about them in reading their applications. However, this program is fairly specific – both in terms of the course content and the profile of applicants and their respective institutions – so to level the playing field, we encourage you to review the questions/prompts closely to make sure you answer them directly. This will help us better equally compare the merits of each application.
<h2>3   Be concise</h2>
We also have word limits on the short answer questions, and they are often ignored, or applicants use the additional information box to write an entire essay when, often, it’s not necessary. When there’s too much information, it’s sometimes challenging for us to decipher what’s the actual answer to the question and what’s just extra information.
<h2>4   Reach out with questions</h2>
In general, most of the people who have emailed us with questions this year have ended up submitting stronger applications. Clarifying is a good way to make sure you provide a relevant answer to a question that otherwise might be confusing. This happens a lot with the scholarship question in particular.
<h2>5   Answer all the questions</h2>
We understand the application is long (we want to be thorough!), but each required question must have a response associated with it. We think your application is a reflection of how you might perform during the course, so please take the time to complete it in full and with special care.
<h2>6   Answer in complete sentences and check spelling and grammar</h2>
We understand that English isn’t the first language of a sizable percentage of our applicants. We don’t expect applicants to be world-class writers in English – after all, this isn’t a scholarly degree program. But there is a fair amount of reading and writing involved, and being able to share your unique perspectives in a clear and cogent manner is important to getting the most out of the program. This is why we encourage you or a friend to proofread your application and use your word processor’s spelling and grammar check function.

6 Tips for a Stronger Application: HBS-Accion Program on Strategic Leadership in Inclusive Finance

Ethan Loufield

Shweta Vashisht

Our fast-changing digital times and the lack of clarity on the interpretation of current regulations mean that informed consent is hard to come by in financial inclusion. This is the second in the "Data Protection and Financial Inclusion: Why It Matters" blog series. 

As more people are connecting to more financial services digitally, we’re seeing growing calls for individuals to have greater control over how their data is being used and by whom. At the heart of consumers’ ability to control their data is the notion of consent, but what consent means in practice can vary considerably and can often be difficult for providers to ascertain in a meaningful way from a consumer standpoint.

In the EU, the GDPR has <a href="https://gdpr.eu/gdpr-consent-requirements/">defined consent</a> as being free, informed, specific and unambiguous. It also necessitates an opt-out option for data subjects, allowing for the partial or complete withdrawal of any previously given consent, and for the removal of all gathered personal data. But while these requirements may be good for consumers, they’re also tough for providers to implement. Just ask Google, which was <a href="https://www.reuters.com/article/us-google-privacy-france/france-fines-google-57-million-for-european-privacy-rule-breach-idUSKCN1PF208">fined 50 million euros</a> last year after the French data protection authority concluded that it “lacked transparency and clarity in the way it informs users about its handling of personal data and failed to properly obtain their consent for personalized ads.”
<h2>Flexibility Needed for Smaller Providers</h2>
So, if a tech giant, operating in Europe with all the resources and expertise at their disposal, can run afoul of these new consent requirements, does it make sense for governments in developing countries to try to adopt similar rules? India’s response for now has been yes. The current version of its pending data protection bill incorporates the same consent principles as GDPR. However, one legal observer we spoke to expressed concerns that the bill says nothing about what this consent architecture will look like and the ways in which consent will be sought. For smaller providers like microfinance institutions, fintechs and small finance banks that are trying to reach underserved segments with higher levels of illiteracy, obtaining consent as currently defined in the bill would pose a significant challenge, as elaborated below. Moreover, providers leveraging digital technologies to serve customers who might not be that digitally literate or understand the ways their data can be used may find it nearly impossible to meet such high standards of consent. The likes of Google might be able to figure it out over time, but smaller providers would need more flexible rules and support to comply.
<blockquote>Google might be able to figure out high-standard consent, but smaller providers would need more flexible rules and support.</blockquote>
For further evidence on how providers are already coming up short on consent, a recent <a href="http://documents.worldbank.org/curated/en/677281542207403561/Financial-Consumer-Protection-and-New-Forms-of-Data-Processing-Beyond-Credit-Reporting">World Bank report on new forms of data processing</a> laid out many limitations of practices around consent, such as lengthy and complex consent forms, incomplete information, and standardized, inflexible terms offered on a “take it or leave it” basis. As a result, providers are often seen to be doing the bare minimum to comply with existing data protection requirements. In recounting the deficiencies identified in a study by the Centre for Internet and Society on fintech privacy policies in India, a <a href="https://cis-india.org/internet-governance/blog/the-wire-shweta-mohandas-july-30-2019-in-india-privacy-policies-of-fintech-companies-pay-lip-service-to-user-rights">recent article</a> noted that one rule “requires a fintech company to provide an option to withdraw consent. Twenty-three percent of the companies allowed the user to opt out or withdraw from certain services such as mailing list, direct marketing and in app public forums, but they did not allow the user to withdraw their consent completely.” Such findings have led various observers to rightly question <a href="https://www.cgap.org/blog/data-protection-and-financial-inclusion-why-consent-not-enough">how effective consent really is</a> in practice and to propose <a href="https://www.cgap.org/blog/3-data-protection-approaches-go-beyond-consent">other approaches</a> to give consumers more meaningful control over their data.
<h2>The Futility of Trying to Keep Up with New Approaches to Consent</h2>
This all stands to reason, but it again begs the question as to how providers who are already having a hard time complying at a minimal level could ever keep up with these new approaches. Indeed, in discussing the variety of data protection principles and standards that already exist around the world, the previously mentioned World Bank report also hastened to point out that “such principles may often be difficult to implement, particularly in low-capacity environments and/or where changes in the financial sector are fast paced.” As our interviewees attested, low-capacity environments and fast-paced changes are very much the rule, not the exception, and the path from principles to implementation is littered with landmines.
<blockquote>Low-capacity environments and fast-paced changes are very much the rule, not the exception.</blockquote>
One case we encountered centered around the issue of informed consent. Last year, the Reserve Bank of India <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-slaps-rs-5-crore-penalty-on-airtel-payments-bank-for-violation-of-norms/articleshow/63235308.cms">fined Airtel Payments Bank</a> the equivalent of roughly $700,000 for “contravening the Operating Guidelines for Payments Banks and directions issued by RBI on Know Your Customer (KYC) norms.” Airtel Payments Bank is majority owned by Bharti Airtel, one of the largest mobile operators in India, and in 2017 complaints started to emerge among mobile subscribers that Airtel Payments Bank had opened new bank accounts without their consent. According to <a href="https://www.financialexpress.com/economy/uidai-airtel-payments-bank-case-company-claims-no-wrongdoing-heres-how-you-can-avoid-the-trap/979401/">reports</a>, when new Airtel mobile subscribers first opened their Airtel mobile app, a pre-ticked consent box would appear on the welcome screen which, unless unchecked, would authorize the use of the same <a href="https://uidai.gov.in/what-is-aadhaar.html">Aadhaar</a>-based eKYC verification required to open the mobile account to also open an Airtel Payments Bank account. Over 2.3 million customers reportedly had new bank accounts created that they did not realize had been opened. Further complicating the matter was the fact that government subsidies would automatically be sent as direct benefit transfers to each beneficiary’s most recent Aadhaar-linked bank account, resulting in the equivalent of about $6.6 million in subsidies being deposited into these accounts. Airtel Payments Bank maintained that it had properly obtained consent to open these accounts but committed to working with the government to ensure compliance. We spoke with Akhil Verma, the current Chief Information Security Officer of Airtel Payments Bank, and he said the bank’s failure to notify customers of this caveat and obtain their explicit permission before allowing this was considered grounds for insufficient consent.
<h2>Out of Step With Modern Digital Reality</h2>
Another concern we heard from the other side of the globe was that some consent requirements are out of step with modern realities. According to Mariano Fuentes, Legal Advisor with ASBANC, the banking association in Peru, its data protection law (which was originally passed in 2011) is outdated for the digital times we now live in and does not do a thorough job of clarifying the ways consent can be obtained. Banks in Peru can obtain consent for personal data digitally, but “sensitive” personal data, which not only includes data on things like race or health, but also biometric data and data pertaining to “personal habits” that could come from things like mobile phone usage patterns, still requires written consent. Since Peru’s data protection law was passed in 2011, it would not have been able to fully anticipate the ways in which people’s lives have been digitized and the new types of data that would emerge, so it’s not surprising that it was reported last June that the National Authority for the Protection of Personal Data in Peru had issued <a href="https://elcomercio.pe/economia/negocios/tres-anos-han-puesto-1-246-sanciones-faltas-proteger-datos-noticia-646513-noticia/">1,246 sanctions within three years</a> (across all sectors).  A scan of the sanctions imposed by the data protection authority also reveals that a significant share of these violations resulted from failures to properly obtain consent.

Whether these cases amount to violations is often a matter of interpretation. Mariano Fuentes of ASBANC underscored this by pointing out that five member banks are currently appealing their penalties because they disagree with the arguments made by the data protection authority. “The complete idea of consent is not represented by any technology, which is damaging in today’s times and is used against us to levy sanctions,” he added. Despite these challenges, Peru consistently ranks as one of the top country-wide regulatory environments for financial inclusion in the Economist Intelligence Unit’s <a href="https://www.centerforfinancialinclusion.org/global-microscope-2019">Global Microscope</a> assessment. In the 2019 version, it came in second partly because it “showed the greatest improvement in the consumer protection domain—specifically, for its data protection framework for financial customers.”
<h2>So How Are Consumers Supposed to Understand?</h2>
Given all the shortcomings with current consent practices around the world, it’s simply unfair to expect consumers to be able to fully understand what can and cannot happen with their data right at the point when they are about to access a new service or download an app. But at the same time, placing the burden on providers, especially those that are on the frontlines of underserved areas, to understand and apply high standards of consent is also proving to be a challenge. The reality is that this is a burden that both consumers and providers need to share, but not on their own. They need the right mix of policy and technology to help them get there. There are some emerging regulatory technology – or “regtech” – solutions providers in developed markets (like <a href="https://www.trunomi.com/">Trunomi</a>) that enable consent-based data sharing, for example.
<blockquote>This is a burden that both consumers and providers need to share, but not on their own.</blockquote>
As these solutions continue to advance, perhaps governments in developing countries could seek to attract such providers to adapt these solutions for their markets. It’s this type of innovation and collaboration that is needed to make consent work. The burden should be broadly shared.

Data Consent: Let’s Share the Burden for Effective Consumer Protection

A new CFI Blog series delves into the complicated world of enacting and enforcing data protection regulations and legislation that protects consumers. 

In response to the seemingly <a href="https://www.centerforfinancialinclusion.org/infographic-75-records-compromised-every-second">endless flow</a> of data breaches and misuses of personal data, governments are increasingly responding with <a href="https://www.ironmountain.com/resources/general-articles/t/the-legal-ramifications-of-a-data-breach">penalties</a>, hearings and new laws and regulations. Perhaps the most widely known is the European Union’s General Data Protection Regulation (GDPR), which <a href="https://www.wired.co.uk/article/what-is-gdpr-uk-eu-legislation-compliance-summary-fines-2018">went into effect</a> in May 2018 and has quickly become a global benchmark, as many of the data protection regimes emerging around the world appear to embrace the same <a href="https://gdpr-info.eu/art-5-gdpr/">basic principles</a> that are at the core of GDPR.

As the growth of the digital economy continues to fuel the expansion of consumers’ data footprints, we’re also hearing calls for new approaches to data protection that advances in digital technologies should be making increasingly possible, at least in theory. But in the recent research and interviews we conducted on the current state of data protection in India, Ghana and Peru (thanks to a collaboration made possible through the <a href="https://www.credit-suisse.com/careers/en/articles/careers/sharing-expertise-201712.html">Credit Suisse Global Citizens</a> volunteer program), we encountered a divide between governments and providers that surfaces when you get beyond principles and into the specifics of their application.

As usual, the devil is in the details.

For example, in responding to a question about how data protection laws and regulations in Ghana may be impacting the extent of data sharing among providers seeking to reach underserved segments, Clarissa Kudowor, Deputy Chief Manager of the Payment Systems Department, Bank of Ghana, wrote, “Whatever the arrangements/partnerships, we expect them to apply the universally accepted principles of data protection under Section 17 through to Section 34 of the Data Protection Act, 2012.” But achieving alignment between policymakers and providers on how best to apply these principles may be easier said than done.
<blockquote>Achieving alignment between policymakers and providers may be easier said than done.</blockquote>
For instance, in talking about data protection seminars offered by the Ghanaian government, Elorm Allavi, the CEO of <a href="https://syecomp.com/">SyeComp</a>, a fintech which uses data from smallholder farmers for its mfarmPay credit product, said, “Seminars are for awareness creation, but in terms of the technical side, they’re not there yet. They don’t understand how we use data.” This is but one example of the gap that exists between governments and providers in advancing data protection in their countries. But where there are problems, there are also opportunities.

Recognizing how vast of a topic this is, we have chosen to focus on three key aspects of data protection that surfaced during our research.
<ul>
 	<li>
<h4><strong>Consent</strong></h4>
</li>
 	<li>
<h4><strong>Localization</strong></h4>
</li>
 	<li>
<h4><strong>Regulatory capacity and fragmentation</strong></h4>
</li>
</ul>
We will dedicate one blog post to each of these issues, starting next week with consent. Over the coming weeks, we will explore these topics – plus <strong>alternative data</strong> legislation and vulnerable populations in the U.S. – in a CFI Blog series, “Data Protection and Financial Inclusion: Why It Matters Now.” Join us as we dive in to these issues from a financial inclusion perspective and our unique position as an industry engager.

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Data Protection and Financial Inclusion: Why It Matters (Introduction)

Eleven gender-based indicators were added to the mix, but they aren't one-size-fits-all across geographies.

The Economist Intelligence Unit’s (EIU) <a href="https://www.centerforfinancialinclusion.org/global-microscope-2019">Global Microscope 2019</a> was updated with 11 indicators that shed light on a country’s likelihood to create a more enabling environment for women’s financial inclusion. While the Microscope doesn’t rank the countries on these indicators, the premise is that countries with gender-oriented policies or infrastructure in place are more likely to be enabling for women’s financial inclusion. These indicators can be subcategorized into four buckets: policy,  constraints, discrimination, and infrastructure:

<a href="https://content.centerforfinancialinclusion.org/wp-content/uploads/sites/2/2020/01/Screen-Shot-2020-01-06-at-12.42.42-PM-1.png"><img class="aligncenter size-full wp-image-37569" src="https://content.centerforfinancialinclusion.org/wp-content/uploads/sites/2/2020/01/Screen-Shot-2020-01-06-at-12.42.42-PM-1.png" alt="gender indicators global microscope 2019" width="800" height="574" /></a>

Country-level data reveals that the index doesn’t actually help us get closer to understanding which policies drive financial inclusion for women, however.

Let’s use the Philippines and Bangladesh as examples. Both countries have three of the Microscope indicators in place. Yet the Philippines is one of the few countries in the world where women’s access to financial services exceeds that of men (39 percent for women versus 30 percent for men, according to the <a href="https://globalfindex.worldbank.org/">Global Findex 2017</a>). On the other hand, Bangladesh has one of the largest gender gaps in access in the world at over 28 percent (64 percent for men versus 36 percent for women). The fact that such different outcomes are measured equally using Microscope’s index signals that women’s financial inclusion requires much more than what is captured by these indicators.

The reality is that what may appear to be a barrier in one country for women’s financial inclusion may not be a barrier in another. Let’s look at one of the indicators: diversity programs for non-banking or correspondent agents. This indicator is highly relevant for countries where norms may limit women’s ability to engage with male agents but this issue wouldn’t be a direct barrier in cultures where women have freedom to move and engage with whomever they choose. Thus, its existence or lack thereof may or may not have an affect on women’s financial inclusion in that particular country.
<blockquote>What may appear to be a barrier in one country for women’s financial inclusion may not be a barrier in another.</blockquote>
Conversely, policy enablers that may exist in one country may be missing from another and may not be captured by these 11 indicators. Many countries, for example, have begun to shift G2P payments into women’s accounts (<a href="https://www.centerforfinancialinclusion.org/g2p-in-colombia-where-to-next-for-the-familias-en-accion-program">Colombia</a> is a successful example of this). This approach has created incentives for women to open formal bank accounts and gives them reasons to use them. This specific policy enabler isn’t identified as one of the indicators but clearly its existence in a market would facilitate women’s financial inclusion.

Many other factors that would influence the differences in results between countries such as the Philippines and Bangladesh include women’s labor force participation, women’s level of literacy and women’s roles as migrant workers. All of these factors would increase the demand side reasons for women to engage with the formal financial system. Labor force participation translates into receipt of a salary and often workers need a place to store those salaries and to make payments. The same is true for migrant laborers who often need the means to remit money to their families. Literacy is also associated with higher demand for financial services: the more education one has the more likely one will use formal financial channels. This is borne out in the academic literature; see, for example, this <a href="http://people.bu.edu/kajayi/AjayiRoss_EducationFinancialInclusion.pdf">study</a> and this <a href="https://www.hbs.edu/faculty/Publication Files/cps-smart money 2013 august_d4fb3555-e078-415a-8b20-aa50dc878205.pdf">study</a>. In the case of the Philippines, women’s labor force participation averages around 47 percent, whereas women’s participation in Bangladesh is only 36 percent. In the Philippines, literacy is essentially universal at <a href="https://psa.gov.ph/content/literacy-men-and-women-philippines-results-2008-functional-literacy-education-and-mass-media">96 percent for women and 95 percent for men</a>. In Bangladesh, women’s literacy is 70 percent as compared to 75 percent for men. Finally, in the Philippines, in 2018 there were over <a href="https://psa.gov.ph/content/statistical-tables-overseas-filipino-workers-ofw-2018">1.2 million migrant female workers as compared to 1 million men</a>, while in Bangladesh, women make up a very small share of the migrant labor force at only <a href="https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-dhaka/documents/publication/wcms_310411.pdf">13 percent as of 2013</a>. In light of these very different demand-side issues, it’s striking that financial access for women in Bangladesh is nearly the same as that in the Philippines: 36 percent compared to 39 percent. What’s Bangladesh doing right despite these headwinds, and what can the Philippines do more to encourage usage of the formal financial system by both men and women?
<blockquote>Each country will need to define the conditions that will improve women’s financial inclusion.</blockquote>
Being able to identify a narrow set of policies or access to infrastructure that would promote women’s financial inclusion is appealing, and the EIU should be commended for making the effort to identify a set of potential policies. But the reality is that each country will need to define the conditions that will improve women’s financial inclusion based on barriers and opportunities unique to each country-wide market.

Advancing Women’s Financial Inclusion: What Does the Global Microscope Tell Us?

Five highlights from an eventful year at CFI

It’s the time of year when you take stock of what you’ve done and plan your coming year. And here at the Center for Financial Inclusion at Accion (CFI), we’re doing the same thing: reflecting and planning. Here are five highlights from 2019 as we pursue our mission to engage and challenge the industry to better serve, protect and empower clients. We look forward to engaging our community anew in 2020!

If you like what you read, consider including the Center for Financial Inclusion at Accion in your <a href="https://give.accion.org/page/contribute/cfi">end-of-year giving</a> plans. Donate between now and December 31st and your contribution will be fully matched up to $250,000.
<h1>1 Made consumer protection in digital finance an imperative</h1>
In a world where face-to-face contact in financial services is on the decline, we took up the “<a href="https://www.centerforfinancialinclusion.org/from-human-conduct-to-protection-by-design-the-smart-campaigns-digital-standards">protection by design</a>” call and created the <a href="http://www.smartcampaign.org/about/smart-microfinance-and-the-client-protection-principles/digital-credit-standards">Digital Credit Standards</a>, which incorporate feedback from consumers, researchers and financial service providers. The <a href="https://www.centerforfinancialinclusion.org/handbook-on-consumer-protection-for-inclusive-finance">Handbook on Consumer Protection for Inclusive Finance</a> was also released, providing a legal and regulatory framework to protect low-income consumers. We heard from hundreds of digital financial service clients in Rwanda in our most recent <a href="https://www.centerforfinancialinclusion.org/client-voices-rwandans-speak-on-digital-financial-services">Client Voices</a> report; and we commissioned a study on the <a href="https://www.centerforfinancialinclusion.org/making-digital-credit-truly-responsible">state of digital credit in Kenya</a>, highlighting challenges and making recommendations on customer centricity.
<h1>2 Continued to shape the next generation of financial inclusion leaders</h1>
We believe strong board leadership is crucial for social enterprises to grow and have impact. In October, following the conclusion of the 5-year <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/africa-board-fellowship-program">Africa Board Fellowship Program</a>, we launched the <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/board-leadership-for-impact-program">Board Leadership for Impact Program</a> for social enterprise leaders to learn and exchange ideas on governance, digitalization and inclusive digital finance. And since 2006, we continue to provide management and leadership training to microfinance leaders via the <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/hbs-accion-program-on-strategic-leadership-in-inclusive-finance">HBS-Accion Program on Strategic Leadership in Inclusive Finance</a>.
<h1>3 Engaged with mainstream banks to reach the underserved</h1>
We also published the final the two reports from our <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/mainstreaming-financial-inclusion-best-practices">Mainstreaming Financial Inclusion: Best Practices</a> project in 2019. These briefs focus on <a href="https://www.centerforfinancialinclusion.org/leveraging-technologies-to-improve-the-quality-and-maximize-the-productivity-of-agent-models">agent models</a> and how technology can boost their quality and effectiveness, and how the <a href="https://www.centerforfinancialinclusion.org/charting-the-customer-journey-in-the-digital-age">customer journey</a> has morphed in the digital era – with unique examples from the industry. These reports facilitate learning and action on six key challenge areas of serving unbanked and underbanked customers.
<h1>4 Transitioned to new leadership</h1>
In September, I <a href="https://www.centerforfinancialinclusion.org/q-a-with-mayada-el-zoghbi-cfis-new-managing-director">took the reins</a> at CFI as Elisabeth Rhyne, our founding Managing Director, retired. With new leadership and a new year will come unique strategic priorities, and in the first months of 2020, we’ll announce our new strategic imperatives for the new year and beyond.
<h1>5 Guided Financial Inclusion Week 2019</h1>
For the fourth annual <a href="https://www.centerforfinancialinclusion.org/financial-inclusion-week-2019">Financial Inclusion Week</a>, we solicited <a href="https://www.centerforfinancialinclusion.org/series/financial-inclusion-week-2019">contributions</a> from members of the financial inclusion community, this year under the theme “<a href="https://www.centerforfinancialinclusion.org/financial-inclusion-for-what">Financial Inclusion: For What?</a>”. And you responded: thousands took part engaging with blog posts, sharing their perspectives and research, and interacting with webinars, podcasts, quizzes and in-person events by dozens of partners worldwide. You gave us your thoughts and votes on which areas – equity, financial health, the bottom line, sustainable development – you believe financial inclusion’s ultimate purpose lies. #FinclusionWeek

Looking Back at 2019: a Transition, a New Initiative, Sharing Insights and Engaging Our Community

Latest Blog Posts

Join social enterprise leaders for a two-day board effectiveness and inclusive finance workshop in Nairobi, Kenya.

Board effectiveness executive education for social enterprise leaders

Event

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<p class="text-block__article sc-kjoXOD hLBZML">The <a href="/about/what-we-do/board-leadership-for-impact-program">Board Leadership for Impact Program</a> (BLI) is dedicated to empowering corporate leaders in the social enterprise sector to <strong>achieve business growth and social impact</strong>. By focusing exclusively on executive leadership and reframing board effectiveness as a strategic imperative, BLI strengthens leadership and management to ensure these companies sustain business growth and drive social impact.</p>

<h2><a href="https://share.hsforms.com/11LBhbUiDRTu78o7jWigVYA3v9yk">Register Today</a></h2>
<h3 class="text-block__article sc-kjoXOD hLBZML">Join a select group of social enterprise leaders at the BLI Nairobi 2020 Workshop,  February 23-25, 2020, at the Fairview Hotel in Nairobi, Kenya.</h3>
BLI is offered as a two-day interactive workshop where participants gather with faculty and facilitators for role play, simulations, discussions, and more. Workshops are augmented with a robust virtual portal where participants can access resources and videos, participate in discussions, and stay connected with hundreds of leaders in our global network. Attendees will have the opportunity to engage with peers on issues critical to social enterprise growth and impact, including digital strategy and culture, data, partnerships and financial inclusion in the digital age.
<h3><strong>Pricing</strong></h3>
The BLI Nairobi 2020 Workshop tuition is <strong>$2,500 USD</strong>, excluding airfare and lodging. Discounts, group rates and partial scholarships are available:
<ul>
 	<li><strong>Early Bird Rate - $2,250 USD</strong> (10% discount). Available to all registrants through December 31, 2019.</li>
 	<li><strong>Group Registration Rate - $2,250 USD</strong> per person for groups of two or more (10% discount per person).</li>
 	<li><strong>Limited partial scholarships</strong> will be considered on a case-by-case basis. You can request scholarship consideration during the registration process.</li>
</ul>
<h3>Questions</h3>
Learn more about the <a href="/about/what-we-do/board-leadership-for-impact-program">Board Leadership for Impact Program</a> and <a href="mailto:gjaso@accion.org">contact us</a> if you have questions or need more information.

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Board Leadership for Impact Nairobi 2020 Workshop

Join us for a one-week executive education program that connects financial inclusion professionals from around the world with Harvard Business School's foremost thinkers in business strategy and management.

The <a href="/about/what-we-do/hbs-accion-program-on-strategic-leadership-in-inclusive-finance">HBS-Accion Program on Strategic Leadership in Inclusive Finance</a> is the first executive education program of its kind to provide high-level management and leadership training to those shaping the microfinance industry, including CEOs of leading microfinance institutions and executives of mainstream banks entering the microfinance market.
<div class="sc-htpNat hKaJAO"><article class="text-block__article sc-TOsTZ dUoRvJ">We are proud to offer the upcoming HBS-Accion Program on Strategic Leadership in Inclusive Finance on the following schedule:
<h2>Dates</h2>
<strong>Sunday, March 29, 2020 – Friday, April 3, 2020</strong>

Participants should plan to arrive at Harvard Business School on Sunday, March 29, 2020 in time for programmatic activities that will commence at 3:30pm. The program will conclude on Friday, April 3, 2020 at the end of the business day.
<h2>Deadlines</h2>
<a href="/about/what-we-do/hbs-accion-program-on-strategic-leadership-in-inclusive-finance/hbs-accion-program-application">Applications</a> will be accepted on a rolling basis through <strong>Tuesday,  January 21, 2020</strong>. Applicants will be notified of their acceptance in February.
<h2>Fees</h2>
The program costs <strong>$8,850 USD</strong> including tuition, fees, housing and meals. Attendees will need to pay in full to be considered accepted into the program. Airfare is the responsibility of the attendee.
<h2>Scholarships</h2>
The <a href="https://www.citigroup.com/citi/foundation/">Citi Foundation</a> provides a limited number of partial scholarships to participants who otherwise cannot attend because of the cost. Please note that we are unable to offer scholarships to all applicants who apply. If you would like to apply for a scholarship, please indicate so in the application.
<h2>Questions</h2>
For additional questions, contact the Admissions Committee at <a href="mailto:hbsaccion@accion.org">hbsaccion@accion.org</a>.

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HBS-Accion Program on Strategic Leadership in Inclusive Finance 2020

Upcoming Events

A leading Colombian news outlet featured a photo of the CFI Managing Director speaking at FOROMIC, an annual conference on microfinance and entrepreneurship in the Latin American and Caribbean region. The Global Microscope 2019 was formally unveiled at the conference. 

News

The <a href="https://www.elespectador.com/economia/colombia-lidera-entorno-para-la-inclusion-financiera-regional-articulo-888988">article</a> (in Spanish) notes that Colombia -- along with Peru, Uruguay and Mexico -- lead the <a href="https://centerforfinancialinclusion.org/global-microscope-2019/">Global Microscope 2019</a> rankings this year. Supported by CFI and the Bill &amp; Melinda Gates Foundation, an updated Microscope is published every year by the <a href="https://www.eiu.com/n/">Economist Intelligence Unit</a>. It assesses the enabling regulatory environment for financial inclusion in 55 countries worldwide.

<a href="https://events.iadb.org/calendar/event/20252?lang=en">FOROMIC</a> is hosted annually by the Inter-American Development Bank (IDB).

In El Espectador: CFI, Mayada El-Zoghbi Mentioned in Microscope Coverage

Eric Noggle

Eric Noggle, Senior Research Director, talks to Good ID about the intersection between good digital ID and broader socio-political change. 

Following the <a href="/id2020-summit-2019">ID2020 Summit</a> in September, Eric Noggle, Senior Research Director, talks to Good ID about the intersection between good digital ID and broader socio-political change. Read more in <a href="https://www.good-id.org/en/articles/everything-connected-making-good-id-matter/">Everything Is Connected: Making Good ID Matter</a>.

Eric Noggle, Senior Research Director, on Making the "Good ID" Movement Matter

Watch

Mayada El-Zoghbi poses the question to Her Majesty from the Netherlands during a UN General Assembly event on financial inclusion in September 2019. 

Mayada El-Zoghbi poses a question to Her Majesty from the Netherlands during a UN General Assembly event on financial inclusion in September 2019. 

The event, “<a href="https://www.unsgsa.org/resources/news/unsgsa-queen-maxima-world-leaders-participate-unga/">Financial Inclusion for Development: Building on 10 Years of Progress</a>,” included the participation of António Guterres, UN Secretary-General; David Malpass, President of the World Bank; Melinda Gates, Co-Chair of the Bill &amp; Melinda Gates Foundation; Dan Schulman, President and CEO of PayPal; and Ajay Banga, President and CEO of Mastercard.

Watch Mayada ask Queen Maxima about measuring financial inclusion's progress within the framework of the SDGs, and how financial inclusion contributes to achieving the SDGs by 2030. Queen Maxima is the <a href="https://www.unsgsa.org/">United Nations Secretary General's Special Advocate for Inclusive Finance for Development</a>.

More video coverage of the event can be found <a href="http://webtv.un.org/search/financial-inclusion-for-development-building-on-10-years-of-progress/6089500721001/?term=finance%20for%20development&amp;lan=english&amp;sort=date">here</a>.

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CFI Managing Director Asks Queen Maxima About Financial Inclusion's Role in the Sustainable Development Goals

Hema Bansal

Consumers are being charged sky-high interest rates on easy credit, leading to desperation—or worse—according to the piece. 

Bansal, the <a href="https://www.centerforfinancialinclusion.org/about/what-we-do/the-smart-campaign">Smart Campaign</a>'s Senior Director in South and Southeast Asia, notes that the problem over-indebtedness is more severe in the island country than elsewhere.

She also points out that the government's decision to write off business loans of up to 100,000 rupees falls short.

"One-off measures will not do, says Ms Bansal: Sri Lanka needs properly enforced rules that prevent over-indebtedness and ensure fair treatment of borrowers."

<strong>Read the <a href="https://www.economist.com/finance-and-economics/2019/08/15/microfinance-is-driving-many-sri-lankan-borrowers-to-despair">full article</a> (soft paywall).</strong>

In The Economist: Hema Bansal on Over-Indebtedness in Sri Lanka

Learn More

Isabelle Barrès

The CFI Vice President notes that Facebook's Libra presents an opportunity to answer key questions about protecting the underserved. 

Barres's questions that Libra's developers should consider when innovating for the new cryptocurrency are:
<ul>
 	<li>What would data privacy agreements look like if we wanted them to be understandable, fair and with an option to opt out?</li>
 	<li>How would algorithms that did not discriminate be set up?</li>
 	<li>How might fully transparent, low-cost and high-quality products and services that truly solve problems be brought to bear?</li>
</ul>
Read the <a href="https://www.euromoney.com/article/b1g0hvpnhqmyg0/cryptocurrency-facebook39s-libra-is-this-how-we-get-to-responsible-fintech">full article in Euromoney</a>.

In Euromoney: Smart Campaign's Isabelle Barres Poses Questions About Libra

CFI in the News

News & Events