Gates Foundation backs new fintech regulation programme in Indonesia
A new programme funded by the Bill & Melinda Gates Foundation aims to improve fintech regulation and financial inclusion in Indonesia.
The programme is being launched by the Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge Judge Business School, and has been supported by a grant from the Gates Foundation.
It follows a series of reports authored by the CCAF into fintech regulation in Asia, Africa and the Middle East.
The CCAF said that the new programme will help to “identify capacity building opportunities and knowledge requirements to aid the effective regulation of digital financial services, assist in facilitating regulatory innovation initiatives, and help create a more enabling regulatory environment for fintech and the advancement of financial inclusion.”
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CCAF research found that 98 per cent of all businesses in Indonesia are micro-enterprises with assets below $3,500 (£2,675.28). Most households operate almost entirely on cash and save based on physical assets such as jewellery or livestock.
The CCAF noted that developing and expanding the availability of fintech services could help lead to better financial inclusion in the country.
“We will be working closely with the regulatory institutions in Indonesia to identify the priorities that will evolve fintech regulation across the world’s largest island country,” said Hunter Sims, director of operations of the CCAF.
“This programme combines our capabilities in capacity building, bespoke regulatory education, country-level research, digital fintech tools and technical assistance to identify a regulatory approach that accelerates access to affordable financial products and services for millions of consumers and [micro-enterprises].”
“The Bill and Melinda Gates Foundation is excited to deepen our engagement within Indonesia to support advancements in financial inclusion through this important initiative,” added Brooke Patterson, programme officer of the Gates Foundation.
“Supporting the development of fit for purpose regulation and supervision is an essential condition to the sustainable development of digital financial services.”
Through the programme, the CCAF is hoping to forge closer working relationships with Indonesian regulators with a view towards building capacity, education and knowledge among the consumer and business community.
“A regulatory environment which facilitates financial innovation can play an important role in encouraging new products and services that improve the experiences of consumers,” said Nick Clark, lead in regulation at the CCAF and the project manager of the programme in Indonesia.
“This initiative will look to address the most pressing, addressable priorities of Indonesian regulators to support the effective regulation of fintech in Indonesia, and to widen financial inclusion for millions of consumers in the world’s fourth most populous country.”
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