A   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
G20 POLICY RECOMMENDATIONS FOR
ADVANCING FINANCIAL INCLUSION

AND PRODUCTIVITY GAINS
THROUGH DIGITAL PUBLIC
INFRASTRUCTURE
Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized

G20 POLICY RECOMMENDATIONS FOR
ADVANCING FINANCIAL INCLUSION

AND PRODUCTIVITY GAINS
THROUGH DIGITAL PUBLIC
INFRASTRUCTURE

Global Partnership for Financial Inclusion
2023

ABBREVIATIONS
AE advanced economies
ACH automated clearing house
AML/CFT anti-money-laundering/countering the financing of terrorism
API application programming interface
BIS Bank for International Settlements
BSP Bangko Sentral ng Pilipinas (Central Bank of Philippines)
CDD customer due diligence
CPMI Committee on Payments and Market Infrastructures
DEWG Digital Economy Working Group
DFE digital financial ecosystem
DFS digital financial services
DPI Digital Public Infrastructure
EMDEs emerging markets and developing economies
FIAP financial inclusion action plan
FPS fast payment systems
FSP financial service provider
G20 Group of twenty countries
G2P government to person
GPFI Global Partnership for Financial Inclusion
GSMA Global system for mobile communications association
HLPs G20 High-Level Principles for Digital Financial Inclusion
ICT information and communication technology
ITU International Telecommunication Union
KYC know your customer
MSME micro, small, and medium-sized enterprise
OECD Organization for Economic Co-operation and Development
P2P person to person
POS point of sale
RTGS real-time gross settlement
SDG United Nations sustainable development goals
SME small and medium-sized enterprise
WEF World Economic Forum
All dollar amounts are US dollars unless otherwise indicated.
ii

CONTENTS
Abbreviations ii
Acknowledgments v
Foreword vii
Executive Summary 1
1. Introduction and Background 5
2. DPIs and their role in the financial sector 9
3. How DPIs Can Effectively Advance Financial Inclusion and Productivity Gains 16
3.1 The Role of DPIs in Advancing Financial Inclusion 16
3.2 The Role of DPIs in Enabling
3.3 DPI Use Cases 23
3.3.1 Account Opening 23
3.3.2 Government-to-Person Payments 25
3.3.3 Remittances 28
3.3.4 MSME Finance 29
4. An Enabling Ecosystem to Foster the Impact of DPIs on Financial Inclusion and
Productivity Gains 32
4.1  Digital Financial Ecosystem Enablers That Support Financial Inclusion and Productivity
Gains through DPIs 32
4.2 Risks and Challenges for DPIs in Achieving Financial Inclusion and Productivity Gains 35
5. Policy Recommendations 38
6. Potential Areas for Further Exploration 41
7. Country Case Studies 44
7.1  Digital ID, Digital Payments, and Data Exchange Infrastructure in Action: Country
Case Studies 44
7.1.1 Argentina 44
7.1.2 Bangladesh 44
7.1.3 Colombia 46
7.1.4 Ghana 47
7.1.5 Indonesia 48
7.1.6 Philippines 49
iii

iv   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
7.1.7 Rwanda 50
7.1.8 Saudi Arabia 51
7.2  Case Studies on Programs/Initiatives to Advance Financial Inclusion 52
7.2.1 Jan Dhan for Advancing Financial Inclusion: India 52
7.2.2 Designing Digital Remittance Solutions for Domestic Workers in Indonesia

53
7.2.3 Improving Digital Literacy in the United Arab Emirates

54
Annex A: Work Developed by the GPFI to Support Financial Inclusion 56
G20 Financial Inclusion Action Plan 2020 56
Applicable G20 Principles and Work Done under Previous Presidencies 56
Annex B: Interlinkages between DPIs and Implementation of the HLPs on Digital
Financial Inclusion 59
Annex C: Additional Explanations for Voluntary and Nonbinding Policy Recommendations 61
Public and Private Collaboration 61
Regulation, Supervision, and Oversight 61
Building Inclusive Products and Services 62
Protection of Vulnerable and Formerly Excluded Users 62
References 64

ACKNOWLEDGMENTS
This G20 Global Partnership for Financial Inclusion (GPFI) document has been prepared by the World Bank* as
an implementing partner of GPFI with the guidance of and inputs from the G20 India Presidency represented by
the Ministry of Finance (MoF) of the Government of India and the Reserve Bank of India (RBI). The team of MoF,
Government of India, was led by Chanchal C. Sarkar, Adviser, and that of RBI was led by Ms. Sonali Sengupta, CGM.
The Presidency would like to express its sincere gratitude to the G20 Troika and all the GPFI member coun-
tries for their support and contributions, the GPFI Honorary Patron (UN Secretary General’s Special Advocate for
Inclusive Finance for Development) for her valuable guidance, GPFI Implementing and Affiliated Partners and GPFI
Co-Chair Magda Bianco for their active contributions and constructive feedback which have enriched the docu-
ment significantly.
The World Bank drafting team comprised of Oya Ardic, Guillermo Galicia Rabadan, Georgina Marin, Harish
Natarajan, Thomas Piveteau, Nilima Ramteke and Arpita Sarkar with inputs from Vyjayanti Desai and Jonathan
Marskell; Julia Clark (World Bank), Stefan Staschen (CGAP), Ghada Teima (IFC), and Alan Gelb (Center for Global
Development) provided valuable comments and inputs; Jean Pesme (Global Director, Finance, Competitiveness
and Innovation Global Practice, World Bank) and Christine Zhenwei Qiang (Director, Digital Development Global
Practice, World Bank) provided overall guidance; Charles Hagner provided editorial assistance and Naylor Design
Inc. designed the report. The Better Than Cash Alliance and Women’s World Banking drafted several case studies
in the report.
*The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the
part of The World Bank concerning the legal status of any country, territory, city or area or of its authorities or concerning the delimitation of
its frontiers or boundaries. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The
World Bank, its Board of Executive Directors, or the governments they represent.
The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume
responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the informa-
tion, methods, processes, or conclusions set forth. Nothing herein shall constitute or be construed or considered to be a limitation upon or
waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.
v

vi   ADVANCING FINANCIAL INCLUSION and PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURES
Financial Inclusion and Productivity Gains
through Digital Public Infrastructures

FOREWORD
G20 Global Partnership for Financial Inclusion
Policy Recommendations for Advancing Financial Inclusion and Productivity
Gains through Digital Public Infrastructures
Her Majesty Queen Máxima of the Netherlands, United Nations Secretary-General’s Special
Advocate for Inclusive Finance for Development (UNSGSA) and Honorary Patron of the G20 GPFI
T
he G20 Global Partnership for Financial Inclusion’s (GPFI)
policy recommendations on digital public infrastructure
(DPI) highlight a promising approach to fostering inclu-
sive economies and empowering vulnerable individuals for a
better future.
DPI, as interoperable, open, and inclusive systems supported
by technology, serves to provide essential public and private
services for the common good. As the UN Secretary-General’s
Special Advocate for nearly 15 years, I have witnessed firsthand
the transformative potential of inclusive DPI, even for the most
economically challenged households and enterprises.
Safe, transparent, and interoperable systems for payments,
identity, and data sharing have empowered millions of small
merchants, enabling them to easily manage transactions
through their mobile phones. Inclusive DPI can spark digital
contracts and e-commerce, fostering efficient markets and
opening doors for previously marginalized individuals.
The impact of DPI goes beyond inclusive finance—it can
support health, education, and sustainability. Amid the COVID-
19 pandemic, DPI enabled emergency support to be directly
delivered to the digital wallets of those in need as well as helped
facilitate swift vaccine distribution.
The India Stack exemplifies this approach, combining dig-
ital ID, interoperable payments, a digital credentials ledger,
and account aggregation. In just six years, it has achieved a
remarkable 80% financial inclusion rate—a feat that would
have taken nearly five decades without a DPI approach. Other
nations, including Brazil, Estonia, Peru, and Singapore, have
similarly embraced DPI models, yielding tangible results that
underscore the efficacy of this approach.
While DPI will vary by country, successful cases share key
principles reflected in these recommendations: inclusivity,
openness, interoperability, and support for essential public and
private services. These DPIs should ensure that they prioritize
safety, trust, and robust data protection. So, let’s continue shar-
ing experiences and learning from the best examples to extend
these benefits.
As Honorary Patron of the G20 GPFI, I am delighted with
the DPI policy recommendations crafted under the Indian G20
Presidency. This report is essential reading for those embracing
digital transformation.
Uniting the public and private sectors through truly
inclusive DPI can drive progress toward the UN Sustainable
Development Goals and bolster resilience for people and busi-
nesses. I anticipate the GPFI’s ongoing dedication to this topic
and look forward to celebrating our achievements in the com-
ing years.
vii

Digital public infrastructure has the potential to
help countries leapfrog their digital transformation.

Increasingly, households and businesses can digitally access the
services and products they need.

EXECUTIVE SUMMARY
This report was developed by the Global Partnership for
Financial Inclusion (GPFI) under the G20 India Presidency.
The G20 India Presidency is anchored in the overarching theme
of “Vasudhaiva Kutumbakam” or “One Earth, One Family, One
Future,” which underlines the message of equitable growth
and a shared future for all. Guided by this vision, the GPFI has
focused on leveraging Digital Public Infrastructure (DPI) in
advancing financial inclusion and productivity gains. The objec-
tive of this report is to analyze and present the role of DPI in
advancing financial inclusion and productivity gains and formu-
late policy recommendations for how countries can best har-
ness this potential. Each country will face different challenges
and opportunities, given its specific context. However, the anal-
ysis and policy recommendations in this report aim to provide
general guidance that can help authorities in promoting the
development, ongoing functioning, and evolution of DPIs in a
way that contributes to advancing financial inclusion and pro-
ductivity gains rapidly.
Powered by digital financial services (DFS), there has
been progress globally on financial inclusion, but several
challenges remain. About 1.4 billion adults remain financially
excluded, over 50 percent of which are in seven emerging mar-
kets and developing economies (EMDEs). Globally, pockets of
exclusion and limited usage of financial services (for example,
payments, savings, credit, pensions, insurance) persist. More-
over, there is a large and increasing financing gap for micro,
small, and medium-sized enterprises (MSMEs), with 40 percent
of formal MSMEs in EMDEs having unmet financing needs and
women-owned MSMEs accounting for 34 percent of the gap
($1.9 trillion). It should also be noted that this financing gap is
much wider when informal MSMEs are accounted for. Overall,
the unmet MSME financing needs are 1.5 times the existing
supply of financing to MSMEs.
In the rapidly evolving DFS
1
landscape and against the
backdrop of widespread digital transformation across
sectors, DPI has the potential to help countries leapfrog
their digital transformation. Increasingly, households and
businesses can digitally access the services and products they
need. Financial lives and interactions with the government
have also become progressively more automated and digitally
enhanced. Leveraging DPI for financial inclusion not only can
contribute to closing these aforementioned gaps but also can
help countries leapfrog in their DFS journey, therefore rapidly
advancing financial inclusion.
DPI, generally understood as interoperable, open, and
inclusive systems supported by technology to provide
essential, society-wide, public and private services, can
play a critical role in accelerating this digital transforma-
tion in an inclusive way. In this context, “system” should be
interpreted broadly to include protocols, frameworks, and gov-
ernance arrangements that market players rely on and use to
provide products and services to their customers. Conceptu-
ally, DPIs could be seen as a core set of foundational systems
that enable intensive use and provision of digital services across
a range of economic and social interactions and actors. What
constitutes a DPI could vary by country context, but, in general,
includes digital ID, digital payments, and data exchange in the
financial sector. Examples of DPIs, all of which play a leading
role in the advancement of financial inclusion in many coun-
tries, are (i) digital ID systems, such as India’s Aadhaar, Singa-
pore’s Singpass, the Philippines’ PhilSys, and the United Arab
Emirates’ UAE-Pass; (ii) digital payment systems, especially
1. Digital financial services are financial services that rely on digital technologies
for their delivery and use by consumers. See World Bank (2020c).
1

2   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
fast payment systems, such as Brazil’s Pix, India’s UPI, Türkiye’s
FAST, the European Union’s TIPS, and Thailand’s PromptPay;
and (iii) data-exchange platforms, in particular those incorpo-
rating trust and consent, such as India’s Digilocker and Account
Aggregator, Estonia’s X-Road, Singapore’s MyInfo, Australia’s
Customer Data Right, and the United Kingdom’s Open Banking.
DPIs can have a multiplier effect on the gains achiev-
able through DFS by accelerating financial inclusion and
closing the existing gaps. DPIs, if well managed, can lower
transaction costs, catalyze innovation, foster competition
and interoperability, enhance individual user experiences
and choice, and, through their design, provide new avenues
to address many of the risks inherent to DFS. These effects
may translate into faster progress in financial inclusion and
enhance productivity over and above that which can be
achieved by DFS provided by financial service providers oper-
ating without such shared infrastructure. In this report, four
use cases of financial inclusion are studied to illustrate the
role of DPIs and the critical considerations that determine
their effective use: account opening, government-to-person
payments, international remittances, and MSME finance. The
policy recommendations in this report are derived from this
analysis, keeping in mind the overarching G20 High-Level
Principles for Digital Financial Inclusion (HLPs).
DPIs are similar to other digital and financial infrastruc-
tures but, depending on country context, could differ on
account of DPIs being foundational and cross-cutting
while also having an emphasis on serving key public policy
objectives. They are called public because of equal, fair, and
transparent access to all relevant users in accordance with the
rules of governance. Even though DPIs in practice can be devel-
oped by the public or private sector, the “public” in DPI refers to
their focus on advancing public policy objectives, such as eco-
nomic welfare and financial inclusion. Depending on the coun-
try, DPIs could differ from traditional financial infrastructures,
such as automated clearing houses (ACH), and credit reporting
systems, in terms of the following: a cross-sectoral nature and
use across a wide range of economic and social interactions,
having been designed for the digital context, being more widely
accessible, and an emphasis on serving public policy objectives.
DPIs can be combined to unlock even more innovation
and extend further benefits to users and the market. For
example, in Singapore, a person can use a digital ID to exercise
consent over the sharing of personal data from official sources
to apply for a loan, thanks to the three current DPIs coming
together—digital ID, digital payments, and data exchange.
DPIs can also allow countries to leapfrog traditional develop-
ment time scales. For example, in India, the implementation
of DPIs such as Aadhaar (a foundational digital ID system),
along with the Jan Dhan bank accounts and mobile phones,
is considered to have played a critical role in moving owner-
ship of transaction accounts from approximately one-fourth
of adults in 2008 to over 80 percent now—a journey that it
is estimated could have taken up to 47 years without DPIs.
2

While DPIs’ role in this leapfrogging is undoubtable, other eco-
system variables and policies that build on the availability of
DPIs were critical. These included interventions to create a
more enabling legal and regulatory framework, national poli-
cies to expand account ownership, and leveraging Aadhaar for
identity verification.
However, DPIs may also introduce new risks or exacerbate
existing risks. These include (i) operational risks, which can
be amplified in the context of DPIs, given that they are deeply
interlinked among themselves and with other infrastructures in
the financial system; (ii) legal and regulatory risks, which are
challenging to address in a multisectoral structure such as DPIs
(there may be legal uncertainty and loopholes, which can be
exacerbated when DPIs interlink, and new technologies adopted
by DPIs may also make existing legal frameworks obsolete); (iii)
insolvency risks, which can endanger the ecosystem at large if
some of its critical components, including entities that manage
DPIs, were to become financially unsustainable; (iv) exclusion
risk, which can be reinforced if DPIs are not designed follow-
ing good principles and global standards; and (v) financial
consumer protection risks, which can be heightened by the
misuse of DPIs and if exploitative practices are adopted by its
operators or by financial service providers that distribute their
services using DPIs. Moreover, if data governance is not well
managed, financial consumer protection risks may instead be
amplified due to the use of DPIs for the provision of DFS. At the
same time, while DPIs enhance competition at the DFS service
provider level, if not well governed, competition in the provision
of DPIs could be affected, and this lack of competitive pressure
could lead to lack of continuous innovation. However, this may
not necessarily be a disadvantage for DPIs due to minimalism
and the culture of innovation embedded in DPIs. As DPIs are
designed with a minimal core function, enabling services and
functionalities to be layered on top in addition to the premise on
innovation, lack of competitive pressure would not inhibit inno-
vation or render a DPI obsolete, provided that the DPIs are well
governed and adequately regulated.
The policy recommendations proposed in this report are
indicative, voluntary, and nonbinding and seek to com-
2. D’Silva et al., 2019

3   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX 1
Indicative, Voluntary, and Nonbinding Policy Recommendations for
Advancing Financial Inclusion and Productivity Gains through the
Use of DPIs in the Financial Sector
The policy recommendations for advancing financial inclusion and productivity gains through DPIs are intended for
use by public authorities but could have relevance for other stakeholders, as the recommendations seek to advance
financial inclusion and productivity gains through DPIs rapidly. The policy recommendations reflect good practices and
should be read in conjunction with the G20 High-Level Principles for Digital Financial Inclusion, as well as with estab-
lished standards and good practices for the individual DPIs as established by the relevant standard-setting bodies.
POLICY RECOMMENDATION 1: Enable and foster the use of DPIs to accelerate financial inclusion and productivity gains.
POLICY RECOMMENDATION 2: Develop well-designed DPIs and the broader enabling environment through a widely
accepted set of good practices.
POLICY RECOMMENDATION 3: Encourage appropriate risk-based regulation, supervision, and oversight arrangements
for financial-sector use of DPIs.
POLICY RECOMMENDATION 4: Promote sound internal governance arrangements.
POLICY RECOMMENDATION 5: Enable DPIs to offer products and services in a way that no one is left behind and the
interests of the consumer are safeguarded.
plement the existing guidance. The G20 HLPs for Digital
Financial Inclusion advocate for a holistic approach to finan-
cial inclusion, and as such, they remain relevant, as do the
standards and guidance from various bodies covering indi-
vidual DPI components. To realize the full effects of DPIs, sev-
eral of the enablers identified in the HLPs for Digital Financial
Inclusion and other standards and guidance (for example,
the Principles on ID for Sustainable Development, the CPMI-
IOSCO Principles for Financial Market Infrastructures, and
the General Principles for Credit Reporting Systems) need
to be in place. The policy recommendations are intended to
help authorities support the development, functioning, and
evolution of DPIs according to their jurisdictions and country
circumstances in a way that maximizes the potential of DPIs
to advance financial inclusion and productivity gains. The pol-
icy recommendations have been drafted keeping in mind the
three current examples of DPIs—digital payments, digital ID,
and data-exchange DPIs—but are framed broadly enough to
be applicable to other types of DPIs.
The policy recommendations (box 1) are grouped around
five key dimensions that collectively seek to ensure that
DPIs adhere to a basic set of principles for achieving the
following: (i) enabling and fostering the use of DPIs in accel-
erating financial inclusion; (ii) fostering well-designed DPIs
and the enabling environment; (iii) implementing appropriate
regulation, supervision, and oversight; (iv) ensuring sound and
effective institutional and governance arrangements by DPIs;
and (v) protecting customers and leaving no one behind. The
policy recommendations are aimed to encourage policy mak-
ers, which could comprise different arms of the government,
sectoral regulators, and/or other relevant agencies, to lever-
age DPIs to implement specific financial inclusion use cases,
depending on the country context.

4  •   DIGITAL PUBLIC INFRASTRUCTURE
Financial lives are becoming increasingly automated
and integrated
—from individuals opening an account with-
out leaving home, to emergency social assistance that transfers
into an account shortly after an account holder applies through
an SMS text, to individuals transferring funds by a simple click
on their phone, to micro, small, and medium-sized enterprises
accessing credit using their transaction history data as proof
of creditworthiness.

BACKGROUND AND INTRODUCTION
Digital transformation is changing the way the world
interacts and transacts. Financial lives are becoming increas-
ingly automated and integrated—from individuals opening
an account without leaving home, to emergency social assis-
tance that beneficiaries receive by a transfer into their account
shortly after applying through an SMS text, to individuals trans-
ferring funds to relatives with a simple click on their phone, to
micro, small, and medium-sized enterprises (MSMEs) access-
ing credit using their transaction history data as proof of cred-
itworthiness.
Digital transformation has also brought Digital Public
Infrastructure (DPI) to the forefront as an enabler that
can facilitate foundational functions at a societal scale,
for better and more inclusive service delivery and innova-
tion across sectors. From individuals accessing and sharing
their health records across providers to businesses applying
remotely for licenses, countries are embracing this digital
transformation, shifting toward efficient, paperless, and remote
interactions that increasingly leverage technology. As in the
past, when the original protocols underpinning the internet
(TCP-IP, SMTP for interoperable email, HTTP, and so forth), as
well as the open standards behind globally interoperable mobile
networks (GSM, LTE, and the like), provided the foundations to
drive transformative innovation, the use of DPIs can help accel-
erate digital innovation. They have the potential to enable cost
reductions, promote innovation, and create opportunities to
improve services for wide segments of the population.
DPI, generally understood as interoperable, open, and
inclusive systems supported by technology to provide
essential, society-wide, public and private services, can
play a critical role in accelerating this transformation in
an inclusive way. In this context, “system” should be inter -
preted broadly to include protocols, frameworks, and gover-
nance arrangements that market players rely on and use to
provide products and services to their customers. Conceptu-
ally, DPIs could be seen as a core set of foundational systems
that enable the intensive use and provision of digital services
across a range of economic and social interactions and actors.
What constitutes a DPI could vary by country but, in general,
includes digital ID, digital payments, and data exchange. Exam-
ples of DPIs, all of which play leading roles in the advance-
ment of financial inclusion in many countries, are (i) digital ID
systems, such as India’s Aadhaar, Singapore’s Singpass, the
Philippines’ PhilSys, and the United Arab Emirates’ UAE-Pass;
(ii) digital payment systems, especially fast payment systems
(FPS), such as Brazil’s Pix, India’s UPI, the European Union’s
TIPS, and Thailand’s PromptPay; and (iii) data-exchange plat-
forms, in particular those incorporating trust and consent, such
as India’s Digilocker and Account Aggregator, Estonia’s X-Road,
Singapore’s MyInfo, Australia’s Customer Data Right, and the
United Kingdom’s Open Banking.
In the financial sector, DPIs have the potential to create new
opportunities to advance financial inclusion and enable
productivity gains. DPIs such as interoperable FPS can have
a truly transformational impact on financial inclusion outcomes.
Digital financial services (DFS) models, such as mobile money
and platform ecosystems, have already been contributing to a
significant advancement in financial inclusion across developing
countries. However, there are still gaps, especially when trying
to reach MSMEs and underserved populations. DPIs have the
potential to help bring DFS to the next stage by promoting com-
petition, unlocking barriers to financial inclusion, and catalyzing
further innovations in the DFS space that respond to the needs
of currently un(der)served populations. In doing so, DPIs can
help individuals and businesses participating in a DFS ecosys-
1
5

6   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
tem to tap economic efficiencies, leading to productivity gains. In
adopting DPIs to further enhance financial inclusion, countries
may follow the guiding principles laid down under the High-Level
Principles (HLPs) for Digital Financial Inclusion. (See box 2.)
DPIs can, individually, have a significant impact on finan-
cial inclusion, but when collectively integrated into a dig-
ital financial ecosystem (DFE)
3
and jointly leveraged, they
can generate powerful multiplier effects. The three cur -
rent examples of DPIs—digital payments, digital ID, and data
exchange—have two roles in the provision of financial services:
as self-standing infrastructures whose core services can be lev-
eraged for a specific process within the provision of a financial
product, and as components of broader financial and nonfinan-
cial digital infrastructures, working together to reduce frictions
for users and automate the processes carried out by financial
service providers (FSPs).
Further, when well-designed DPIs are leveraged as part of
the foundations of a DFE, they can contribute to creating
a level playing field and promote market innovation, entre-
preneurship, and increased customer adoption. They can
encourage fair competition and propel market participants to
continuously develop customer-centric innovations that assure
customers of a better user experience. This not only leads to
better and more innovative solutions but also improves the
long-term sustainability of the ecosystem.
The report builds on the work done on digital financial
inclusion by the GPFI and its implementing and affiliated
partners under previous G20 Presidencies. It seeks to pro-
vide guidance on how DPIs can be harnessed to advance finan-
cial inclusion and increase productivity gains by building on the
solid foundations of the G20 Financial Inclusion Action Plans
(FIAPs) and the HLPs for Digital Financial Inclusion (annex A
and annex B).
4,5
This report also complements the work done by the
Digital Economy Working Group (DEWG) under the G20
India Presidency. One of the priority areas for the DEWG
this year is to develop a suggestive framework and descrip-
tion for DPI that outlines core principles. This framework has
informed, and is complemented by, the financial sector focus
in this report.
4.  The HLPs articulate the need for a holistic approach to financial inclusion. Nota-
bly, they call for the implementation and expansion of infrastructures, such as
payment infrastructures and digital ID systems, which can be considered foun-
dational DPIs. The HLPs also call for a strong public- and private-sector com-
mitment; a conducive legal, regulatory, supervisory, and oversight framework;
and active engagement by a range of stakeholders. All of these are also relevant
for DPIs to be effective. Annex B provides a summary of the key interlinkages
between DPIs and the implementation of the HLPs (GPFI, 2016).
5. The GPFI has placed special emphasis on women, youth, and small and
medium enterprises (SMEs) as groups requiring targeted policy interventions.
3. For the purposes of this note, the definition of a digital financial ecosystem
will be consistent with the definition of a DFS ecosystem provided by the
ITU (2016). The definition of a DFS ecosystem has been adapted as follows:
The DFS ecosystem consists of users (consumers, businesses, and govern-
ment agencies) who have needs for digital and interoperable financial prod-
ucts and services; the providers (banks and nonbanks) that supply those
products and services through digital means; the financial, technical, and
other infrastructures that make them possible; and the governmental poli-
cies, laws, and regulations that enable them to be delivered in an accessible,
affordable, and safe manner.

7   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX 2
G20 High-Level Principles for Digital Financial Inclusion, 2016
PRINCIPLE 1: Promote a Digital Approach to Financial Inclusion. Promote DFS as a priority to drive the develop-
ment of inclusive financial systems, including through coordinated, monitored, and evaluated national strategies and
action plans.
PRINCIPLE 2: Balance Innovation and Risk to Achieve Digital Financial Inclusion. Balance promoting innovation
to achieve digital financial inclusion with identifying, assessing, monitoring, and managing new risks.
PRINCIPLE 3: Provide an Enabling and Proportionate Legal and Regulatory Framework for Digital Financial
Inclusion. Provide an enabling and proportionate legal and regulatory framework for digital financial inclusion, taking
into account relevant standards and guidance from the G20 and international standard-setting bodies.
PRINCIPLE 4: Expand the Digital Financial Services Infrastructure Ecosystem. Expand the DFS ecosystem—
including financial and information and communications technology (ICT) infrastructure—for the safe, reliable, and
low-cost provision of DFS to all relevant geographical areas, especially underserved rural areas.
PRINCIPLE 5: Establish Responsible Digital Financial Practices to Protect Consumers. Establish a comprehen-
sive approach to consumer and data protection that focuses on issues of specific relevance to DFS.
PRINCIPLE 6: Strengthen Digital and Financial Literacy and Awareness. Support and evaluate programs that
enhance digital and financial literacy in light of the unique characteristics, advantages, and risks of DFS and channels.
PRINCIPLE 7: Facilitate Customer Identification for Digital Financial Services. Facilitate access to digital financial
services by developing, or encouraging the development of, customer identity systems, products, and services that
are accessible, affordable, and verifiable and accommodate multiple needs and risk levels for a risk-based approach
to customer due diligence.
PRINCIPLE 8: Track Digital Financial Inclusion Progress. Track progress on digital financial inclusion through a
comprehensive and robust data measurement and evaluation system. This system should leverage new sources of
digital data and enable stakeholders to analyze and monitor the supply of—and demand for—digital financial services,
as well as assess the impact of key programs and reforms.

Data exchange DPIs can enable fast and
seamless sharing of information bringing in efficiency
and reduction in cost of services.

DPIs AND THEIR ROLE IN THE FINANCIAL SECTOR
DPIs are generally understood as interoperable, open,
and accessible infrastructure supported by technology
to provide essential, society-wide, public and private ser-
vices digitally such as identification, payments, and data
exchange.
6
When used responsibly, DPIs help address tra-
ditional challenges of financial inclusion, promote public and
private innovation responsibly, and lead to productivity gains.
Below are three current examples of DPIs:
yDigital ID: Digital systems and ecosystems that generate,
store, and enable individuals and entities to obtain a digital
ID and have it securely verified. These identity systems and
ecosystems are often augmented by complementary ser-
vices, such as electronic signatures, digital authentication,
and verifiable credentials. These different use cases can
integrate into multiple workflows and facilitate access to and
usage of financial services, notably for account-opening and
authentication purposes, therefore contributing to financial
inclusion. Digital ID systems can be centralized (for exam-
ple, Japan’s MyNumber and India’s Aadhaar) or based on
federations of public- and/or private-sector ID providers (for
example, the Pan-Canadian Trust Framework and France-
Connect), if not even completely decentralized (for example,
the European Union’s proposed model based on verifiable
credentials).
yDigital payments: Digital systems that enable individ-
uals, businesses, and governments to transfer money
between one another easily and securely. Different types
of payment systems could be operating as DPIs—that is,
they are accessible and support interoperability across
all types and segments of payment service providers, and
they are reasonably priced and offer open interfaces for
market innovations of various payment methods. FPS in
particular operate as DPIs, with easy access and inherent
interoperability features. For example, Brazil’s Pix, India’s
UPI, the European Union’s TIPS, Türkiye’s FAST, and Mexi-
co’s SPEI allow individuals, businesses, and public author-
ities to collect and deliver payments around-the-clock and
with immediate availability of funds to the beneficiaries.
These features spur wide participation, competition, and
innovation in the market, enable novel transaction-initia-
tion approaches, remove frictions, and result in enhanced
services and experiences delivered to end users at lower
costs, thus fostering financial inclusion.
2
6. Not all data exchanges would necessarily have all these characteristics and
therefore qualify as a data exchange.
9

10   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX 3
Fast Payment Systems
FPS are characterized by 24/7/365 transfer services and
the immediate availability of funds for the payee. They
generally support a wide diversity of use cases, from
cross-border remittances to the distribution of social
assistance to vulnerable populations during emergencies
and crises. Data indicates that fast payments are being
embraced by various countries and regions across the
globe, from different geographies and income statuses.
Currently, more than 100 jurisdictions have implemented
FPS, and several others have announced plans to go live in
the next few years.
7
In some countries, such as Brazil and
India, adoption has been particularly quick and transfor-
mative. Nonetheless, it should be noted that in most juris-
dictions, FPS are still in the early stage of their evolution.
Brazil
Brazil’s fast payment system Pix was launched by the
Central Bank of Brazil in November 2020. It allows fund
transfers between all types of transaction accounts in the
Brazilian market, creating a payment service ecosystem
with low acceptance costs and high levels of usability. Pix
aliases, which inform the account data to start a transac-
tion, are as simple as an e-mail address or a mobile phone
number. The platform also actively uses QR codes as the
access channel. Since its launch, Pix has grown rapidly:
By December 2021, approximately 109 million consum-
ers and 7.6 million businesses, mostly MSMEs, were active
users of the platform. That includes about 45 million cit-
izens who previously did not have access to DFS. Some
of the main drivers behind the adoption rates have been
the single name and brand, building recognition and trust
in the system; the mandatory participation of big banks,
creating network externalities and scale; low transaction
costs, compared to other retail payment instruments
(transactions are free for end users); an improved and
standardized customer experience; and a multiplicity of
use cases, including P2P transfers, tax and bill payments,
online, and card-present purchases.
European Union
The TARGET Instant Payment Settlement (TIPS) is a fast
payment system introduced by the Eurosystem in Novem-
ber 2018. It enables customers of financial institutions to
carry out instant credit transfers (SCT Inst) at any time and
at a low cost—TIPS operates on a full cost-recovery and
not-for-profit basis. TIPS was developed as an extension of
TARGET2, the real-time gross settlement (RTGS) system,
and ensures the settlement of transactions in euros in less
than 10 seconds, using central bank money. Other non-
euro jurisdictions in the region also expressed interest in
participating in the TIPS framework, such as Sweden, Den-
mark, and Norway, and discussions are ongoing to allow
TIPS to settle fast payments in other currencies, such as
Swedish krona. Depending on the solutions they use, Euro-
pean citizens can make and receive instant credit transfers
via the internet, mobile banking, or using other initiation
methods, such as QR codes. The uptake of instant credit
transfers has been growing slowly in the past few years,
with significant differences between countries. In October
2022, the European Commission adopted a legislative pro-
posal on instant payments composed of several measures
to harmonize and accelerate the rollout of this service.
India
India’s Unified Payments Interface (UPI) is an instant,
real-time fast payment network in India that can map
payment accounts to a single payment identifier, which
can be a virtual payment address (VPA) or as simple as
one’s mobile number. UPI started with bank accounts, but
now payment can be made from wallets and even credit
cards. The UPI payment system is built as an interopera-
ble protocol. This allows anyone to build an app providing
payments as a service to all customers of participating
banks. It supports various payment methods, such as QR
code–based payments, UPI Lite, UPI123Pay, UPI credit,
and so forth. It facilitates seamless real-time fund routing
and merchant payments, and it offers a convenient way
to schedule and pay P2P collect payment requests. UPI
has been widely adopted, benefitting from a user-friendly
interface, open banking features, and private sector par-
ticipation. The UPI platform has gained significant popu-
larity in India; more than 9.41 billion transactions valuing
about Rs 14.89 trillion were transacted in May 2023 alone.
For the fiscal year 2022–23, the total value of UPI transac-
tion was nearly 50 percent of India’s nominal GDP.
7 World Bank, “Project FASTT,” https://fastpayments.worldbank.org/.

11   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
yData exchange: Digital systems that enable the seamless
and secure sharing of data based on consent, as required,
between entities—for example, businesses or govern-
ments—and across systems.
8
For example, data-exchange
DPIs can enable providers to obtain more easily the informa-
tion they need to provide financial products and services or
also to fulfill regulatory requests, such as risk management
BOX 3, continued
Indonesia
BI Fast is a fast payment infrastructure that refers to a
method of transferring funds or making payments that is
characterized by its speed and efficiency, 24/7, 365 days
for bank and nonbank customers by direct and indirect
membership model. It is built by Bank Indonesia (BI) to
facilitate near-instantaneous transactions, allowing indi-
viduals or businesses to send and receive money quickly.
BI Fast methods can include instant bank transfers,
mobile payment apps and digital wallets. These systems
aim to provide convenient and swift financial transac-
tions, enhancing the speed and convenience of everyday
commerce. Since its launch on 21 December 2021, the
total number of BI-FAST participants has reached 122
participants as of March 2023, representing 94% of the
share of national retail payment system.
Thailand
PromptPay is a fast payment service with real-time clear-
ing and settlement combined with a proxy look-up service
that securely maps a national ID number, corporate tax
ID, or phone number to a bank account. PromptPay was
launched in January 2017 and by mid-2019 had enrolled
70 percent of the population. Banks charge no fees for
using the service, and they have deployed an interopera-
ble QR code system that has resulted in a shift from cash
transactions to digital. By mid-2019, more than 3.7 million
merchants were accepting PromptPay QR payments,
compared to 140,000 merchants accepting cards with
480,000 traditional point-of-sale (POS) devices.
Türkiye
The Instant and Continuous Transfer of Funds System
(FAST), developed in-house and operated by the Central
Bank of the Republic of Türkiye (CBRT), was launched in
January 2021. Originating from a demand from end users
and banks, this new infrastructure paves the way for the
reduction of cash usage and significant improvements in
the payment ecosystem in the country. FAST offers con-
tinuous availability, enhanced speed, and a diversity of use
cases and access channels. In addition, a range of overlay
services, such as QR codes and aliases (a service called
Easy Addressing), aim to enrich the user experience. There
are plans to complement these features in the near future
with other functionalities, such as request to pay. These
overlay services are created and operated by the Interbank
Card Center (BKM), which is jointly owned by the CBRT
and major commercial banks and has proven experience
in the development of customer-facing solutions. Nonbank
payment service providers are eligible to become direct
participants in the system, even though none is participat-
ing for the time being. Since its launch, FAST has seen a
rapid uptake, reaching an average of 8.8 million daily trans-
actions in June 2023.
Source: This box includes contributions by India, Indonesia, and Türkiye.
processes. When this data exchange involves personal data,
DPIs can help enable the securing of the consent of the per-
son to whom that data pertains, in addition to establishing
other data protection and trusted data sharing safeguards.
Examples of data exchange DPIs include India’s Data
Empowerment and Protection Architecture (DEPA) and
Account Aggregators, Estonia’s X-Road, and Singapore’s
MyInfo and APEX. In the financial sector, open finance ini-
tiatives that build on previous open banking efforts are now
motivating discussions on open data—which is another
framing for data exchange. The open banking regime pur-
suant to the European Union’s revised Payment Services
Directive (PSD2) is an example of an efficient and secure
data exchange framework that does not involve centralized
infrastructure.
8.  Consent is typically required only for the disclosure of personally identifi-
able data to third parties. There are instances where obtaining user consent
for data sharing would not be appropriate or necessary. For example, in
cases where the data being shared does not include personal data (such as
when the data is anonymized), then consent is not necessary. Furthermore,
obtaining consent would not be appropriate when sharing data with author-
ities for the purposes of monitoring AML/CFT or fraudulent behavior (often
required by law) or when using public datasets to assess social assistance
eligibility.

12   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
Brazil
The Open Finance framework in Brazil allows the follow-
ing products and services to be offered: (i) data on prod-
ucts and services, such as branch location, access points
that customers can use, terms and conditions, and fees;
(ii) customer data, including information about deposit
accounts and credit; and (iii) payment services, such as
payment initiation and payment for products and ser-
vices.
The Brazilian open finance ecosystem is coordinated by
the private sector in compliance with rules established by
the central bank and is supported by a centralized plat-
form that covers several functions. These include a ser-
vice desk through which technical support is provided to
participants, a compliance test suite where participant
compliance with functional and security requirements
can be tested, an intelligence threat platform, where infor-
mation related to cybersecurity incidents is shared, and
a dispute-resolution module, where end users can raise
disputes and follow up on such disputes.
Hong Kong, SAR China
In 2018, the Hong Kong Monetary Authority (HKMA)
launched the Open API Framework for the Hong Kong
banking sector. The framework is to be implemented in a
phased approach consisting of the following four stages:
(i) product information (deposit rates, credit card offer-
ings, service charges, and other public information), (ii)
customer acquisition (new applications for credit cards,
loans, and other products), (iii) account information
(account balance, credit card outstanding balance, trans-
action records, credit limit change, and others), and (iv)
transactions (payment and transfers).
The HKMA leaves the strategy of adoption of Open API
to banks but mandates that those that chose to move
forward should ensure that a commensurate level of
protections and suitable governance arrangements for
third-party providers are in place, with appropriate, clear
contracts to define responsibility, liability, control, and
customer protection.
India
India’s Account Aggregator (AA) Framework aims to
strengthen India’s data infrastructure, enabling con-
sumers and enterprises to share their data only with
their consent through an electronic consent framework.
Acting as consent managers for the consumers, AAs
enable the sharing of digital financial data from the exist-
ing financial institutions of the consumers where they
already have an account to prospective financial institu-
tions where they have applied for a new financial product.
This ecosystem, regulated by the Reserve Bank of India
(RBI), involves four key participants: the AAs, the finan-
cial information provider (FIP), the financial information
user (FIU), and the citizens. The AA network ensures
the security of data and grants customers complete
control over their information. It allows the consumers
to link their multiple financial accounts to the Account
Aggregator handle and give their consent to share their
data simultaneously from the multiple linked accounts,
either for their own use or with prospective financial
institutions for availing a loan, insurance, pension, or a
wealth management service. By acting as a consented,
digital, single channel access for all financial account
statements of a consumer, it allows an aggregated pic-
ture of the consumer’s finances to be presented, mak-
ing it particularly beneficial for those seeking loans, as it
facilitates access to authentic data and provides a com-
prehensive profile for loan providers to be able to sanc-
tion a loan. Currently, a total of 1.13 billion cumulative
accounts are enabled for data sharing through Account
Aggregators with customer consent. The cumulative
number of consents raised through Account Aggrega-
tors has reached 13.46 million in June 2023, registering
a monthly growth rate of 28 percent. The number of new
consents successfully fulfilled in June was 2.9 million,
which translates into 97,000 consents per day. As of
June 30, 2023, the total number of entities that were live
on AA was 248, with 75 FIPs, 231 FIUs, and 11 AAs with
NBFC-AA licenses from RBI.
BOX 4
Open Finance and Open Banking Arrangements

13   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
Philippines
In 2021, the Central Bank of Philippines, Bangko Sentral
ng Pilipinas (BSP), published its strategy to develop an
open finance framework. For such purposes, BSP estab-
lished a roadmap to deploy the framework.
The deployment strategy includes a pilot, to be con-
ducted in the second half of 2023, in which financial
institutions can participate on a voluntary basis. Selec-
tion of use cases to be tested during the pilot will be done
before the start of the pilot and can cover the following
categories or tiers: public information, subscription and
account opening, account information, payment initia-
tion services, and others.
United Arab Emirates (UAE)
The UAE’s “DIFC Open Finance Lab Initiative” which pro-
vides opportunities to demonstrate the positive impact
of open finance on businesses, customers, and the econ-
omy. It allows for collaboration among banks, fintech
companies, regulators, and the industry to explore new
data-driven innovations and business models.
The lab also provides avenues for knowledge sharing,
technical guidance, and engagement through workshops,
forums, and events such as Open Finance Week, to sup-
port banks, regulators, and industry and further public
policy objectives, including financial inclusion and eco-
nomic opportunities (DIFC 2022).
BOX 4, continued
Source: This box includes contributions from India and UAE.
DPIs are similar to other digital and financial infrastruc-
ture, but depending on country context, differences could
arise on account of DPIs being foundational and cross-cut-
ting, and modular, and oriented towards achieving key
public policy objectives, and them supporting various dig-
ital services. Below are some of their features:
9,10
yFoundational and cross-cutting: DPIs can provide essen-
tial services that often have applicability across multiple
sectors at society scale. For example, identity verification
and payments are at the core of different types of transac-
tions across many sectors. DPIs, being foundational infra-
structure, allow multiple sectors and applications to reuse
them, thus avoiding each sector from having to reinvent the
wheel. This is an important distinction between financial
infrastructures that support only transactions within the
financial sector and DPIs. 
yModular: DPIs are designed to be interoperable, allowing
them to be integrated into workflows so that customizable
new offerings can be rapidly deployed. Market participants
can leverage these DPI features to streamline operations
and encourage innovation while fostering a competitive
market. For example, in Singapore, citizens can use their dig-
ital ID to consent to the sharing of their personal data from
official and private-sector sources to apply for loan, freeing
the FSPs from having to develop digital authentication ser-
vices separately.
yPublic benefit: DPIs are labeled “public,” as they have
been designed to allow equal, nondiscriminatory access in
accordance with specified governance rules. The “public”
in DPI also indicates their focus in advancing public policy
objectives, such as economic welfare, financial inclusion,
enhanced competition, and innovation.
yDigital services: DPIs support the adoption and usage of dig -
ital services and help advance the digitalization of the econ-
omy. DPIs services are designed to be provided to end users
through digital access channels, such as mobile devices. Fur-
thermore, DPIs’ services can be used in access channels that
provide non-digitalized financial services. For example, agent
networks that provide cash-in and cash-out transactions can
also leverage DPIs to offer instant payments.
DPIs have the potential to advance financial inclusion by
building on existing relevant financial infrastructures.
Where DPIs are built in a manner that is compatible with a
jurisdiction’s existing financial system, they can help integrate
existing financial infrastructure into seamless digital work-
flows. For instance, centralized and federated open banking
9. Desai et al. (2023)
10. Natarajan (2023) defines financial infrastructures as the institutions, infor-
mation, technologies, rules, and standards that provide the underlying foun-
dation for the financial system and enable financial intermediation.

14   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
and open finance platforms enable the execution of processes
from third-party payment initiation to authentication of end
users to the access or validation of data. The data sources that
can be accessed include financial infrastructures (such as
collateral and credit registries); government and private data-
bases, such as authentication, know-your-customer (KYC), or
anti-money-laundering/countering the financing of terrorism
(AML/CFT) databases or even databases of utility service pro-
viders; data held with other FSPs; and fraud and cybersecurity
information-exchange arrangements with authorities.
However, DPIs are not without their risks and challenges.
For instance, building an effective DPI is not always easy or fea-
sible to achieve. Additionally, country contexts may differ a lot;
therefore, a given DPI model might not be replicable in a differ-
ent context. DPIs may also introduce new risks or new manifes-
tations of existing risks in the financial system. These include
operational, legal and regulatory, insolvency, and exclusion
risks, as well as new manifestations of consumer risks (includ-
ing data risks) and risks for competition and obsolescence,
which are discussed in section 4.2 of this report.

Use of DPIs for productivity gains, taking
everyone along.

HOW DPIs CAN EFFECTIVELY ADVANCE FINANCIAL
INCLUSION AND PRODUCTIVITY GAINS
3.1 The Role of DPIs in Advancing Financial
Inclusion
Global progress toward financial inclusion has been sig-
nificant. In 2021, 71 percent of adults in developing economies
had a bank account, up from only 56 percent a decade earlier.
The pandemic, coupled with the increased availability of digi-
tal solutions, served as a catalyst for an increase in digital pay-
ments worldwide. (Fifty-seven percent of adults in developing
economies used them.) And for the first time in a decade, the
gender gap in financial inclusion declined.
Despite this progress, challenges persist to the contin-
ued advancement of financial inclusion. Although there has
been promising growth in account ownership, 1.4 billion adults,
most of them women, are still financially excluded, and there
are significant gaps in usage. The lack of financial resilience—
which may be attributed to the slower pace of usage of finan-
cial services despite account ownership—is also a concern. For
example, only about 55 percent of adults in developing coun-
tries were able to access emergency money without difficulty
within 30 days of being faced with an unexpected expense.
Borrowing has increased but at a pace that remains uneven
between high-income and developing economies. MSMEs,
especially in developing countries, face significant challenges
in accessing credit, with a financing gap of $5 trillion.
11
This gap
has increased over the years, highlighting the need for targeted
interventions to support MSMEs—with the COVID-19 pandemic
having further increased their vulnerabilities.
12
In 2021, 53 per-
cent of adults worldwide reported having borrowed money
from regulated financial institutions in the previous 12 months,
including by using a credit card. However, this varied greatly
between high-income economies (56 percent) and developing
economies (23 percent).
The lack of financial and digital literacy also exacerbates
vulnerabilities among underserved groups. For instance,
64 percent of unbanked adults in developing economies
declared being insecure about managing an account without
help in 2021. Women are five percentage points more likely
than men to need help using their mobile money account.
This lack of digital and financial literacy may exacerbate vul-
nerabilities among underserved groups and new users of
financial services.
A combination of demand- and supply-side constraints
perpetuates the existing gaps.
13
The following barriers exist
in varying degrees across countries:
yDemand-side constraints, such as volatile and small
incomes, geographical barriers, a lack of digital and financial
literacy, and a lack of trust in the financial sector, as well as
informality and lack of documentation
ySupply-side constraints include high operating costs and
legacy business models, as well as limited competition and
innovation
DFS models, such as mobile money, already solve, to some
extent, most of these constraints. Many models introduce
a different pricing model that allows operating costs to drop;
they leverage agents as a new business model that does not
3
11. IFC (2017).
12. IFC (Forthcoming).
13.  World Bank. (2020c) discusses these constraints in detail, as well as how DFS
can address them.
16

17   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
rely on brick-and-mortar access points
14
and thus allows for
greater geographical reach; and they create a new type of pro-
vider, thus introducing competition to the market. In addition,
DFS also offer digital solutions for simplified customer due dil-
igence (CDD), user authentication, and transaction initiation.
Finally, the platform ecosystem DFS model—that is, bigtech
platforms—has also been leveraging digital transaction data
and alternative sources in several countries to compensate
for information asymmetries to expand access to credit,
insurance, and savings, albeit with challenges, such as vendor
lock-in and limited competition. However, the lack of digital
and financial literacy, coupled with a lack of trust in the finan-
cial system, can continue to be barriers to greater adoption
of DFS.
However, in some jurisdictions, these models alone may
not be enough to bring DFS to the next stage of usage,
and DPIs can play an important role in reducing persistent
constraints and positively disrupting the DFS market. DPIs,
under the right conditions, not only can expand the potential
offerings that mobile money operators provide but also can
improve existing services by introducing more competition and
bolstering usage. DPIs, such as data exchange platforms and
FPS, support the interoperability of mobile money solutions.
This interoperability allows new entrants to calibrate invest-
ments in agent models, as their clients would have the ability to
use agent and merchant networks of other providers as well.
15

This lower investment has the potential to foster a higher and
faster rate of new entrants to the market, effectively promoting
competition. It also allows new entrants to focus on developing
innovative products and services that better cater to the unmet
market needs, thus creating new value propositions for the
excluded.
DPIs can promote the availability of consumer data, allow-
ing multiple FSPs to offer personalized and innovative
financial products, thereby increasing competition. The
availability of such data relevant for determining consumer
creditworthiness can enable alternative credit scoring and
empower individuals to access tailored credit products. For
example, India’s DEPA empowers individuals by giving them
ownership over their data (rather than being controlled by the
service providers who collect this data) and allowing them to
share it across providers to enable access to tailored products
and services. This means that new entrants do not need a high
initial investment—in this case, in the form of pre-existing client
relationships—to be able to compete for and offer innovative
products. DPIs can level the playing field and, in doing so, sig-
nificantly reduce incumbent advantages, pushing all providers
to offer better services to retain customer loyalty.
One aspect that makes DPIs unique, and that can further
reduce existing constraints, is their ability to complement
each other or be integrated in end-to-end workflows. Sys -
tems using application programming interfaces (APIs) can be
configured with appropriate channels and products to reach
the poor when the APIs are underpinned by a digital ID system
and facilitate interactions between governments, businesses,
and citizens. One such service that is enabled by the interac-
tion of open APIs and digital ID systems is the e-KYC or remote
authentication services. For example, in India, the Aadhaar
biometric identification system, which covers over one billion
people and supports APIs, enables remote identification and
authentication. FSPs can thus authenticate an individual’s iden-
tity remotely, even by using selfie-based mechanisms to substi-
tute for in-person CDD verification requirements.
3.2 The Role of DPIs in Enabling
Productivity Gains
Digitalization in the financial sector brings in many advan-
tages in the form of productivity gains and economic
growth. To quantify these, the McKinsey Global Institute (2016)
estimated that delivering financial services via mobile phones
could benefit billions of people by spurring inclusive growth
that adds $3.6 trillion to the GDPs of EMDEs within a decade.
16

The GPFI adopted the HLPs in 2016, recognizing the poten-
tial of digital technologies, and especially DFS, in accelerating
financial inclusion.
However, DFS could also introduce several disadvantages,
specifically in the form of augmenting inequalities for
those who have been unable to participate in the digital
economy due to demand-side barriers. For example, pro-
moting DFS without dealing with persistent gaps in digital and
financial literacy could become counterproductive. Well-de-
signed DPIs strengthened by a calibrated policy framework
can effectively address these inequalities and accelerate and
deepen the adoption of DFS in accordance with the HLPs, espe-
cially HLP 4. Box 5 provides examples of how DPIs can add
value to the private sector.
14.  Physical locations may still be considered relevant and important in many
cases, including for customer relationship management and building greater
trust in the financial system through direct, in-person customer interface.
15.  For example, the Aadhaar Enabled Payment System allows individuals to use
Aadhaar as their identity to access a bank account and perform such trans-
actions as deposits and fund transfers through an agent.
16. McKinsey Global Institute (2016).

18   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
DPIs can enable productivity gains for furthering financial
inclusion. This report defines productivity gains as increases
in output that result from a more efficient use of inputs and
technology to deliver, access, and use financial services.
21

Financial inclusion itself, in turn, facilitates further productivity
gains. Figure 1 illustrates the two transmission mechanisms for
this purpose.
First, the integration of one or more DPIs with the finan-
cial ecosystem can enable seamless end-to-end digital
processes, thereby reducing frictions and inefficiencies
in the provision of financial services. This goes beyond the
mere automation of existing processes to a complete recon-
figuration of the process workflows, improving the reliability of
information, lowering costs, and increasing the speed of trans-
actions. DPIs address the supply-side barriers (as identified
in annex 3) of high operating costs, legacy business models,
and limited competition and innovation. By making it easy for
BOX 5
DPIs’ Potential Added Value for the Private Sector
Private-sector entities, including FSPs and MSMEs,
could benefit from DPIs through (i) increased opportu-
nities for innovation, (ii) higher efficiencies and produc-
tivity gains, (iii) improved access to credit, and (iv) better
access to markets for existing and new products, where
the extent of these benefits would depend on country-
specific conditions.
1. OPPORTUNITIES FOR INNOVATION: The use of DPIs in
the financial sector can enable emerging technology
and other digital tools to be harnessed effectively to
create inclusive and innovative financial solutions.
For instance, the Singapore Financial Data Exchange
(SGFinDex) has enabled a multinational bank, DBS, to
build the AI-powered DBS NAV Planner, which offers
financial and retirement planning solutions to all Sin-
gaporean residents, including low-income segments.
2. HIGHER EFFICIENCY: DPIs can enhance efficiency for
private organizations through reductions in the com-
plexity, cost, and time spent on business operations.
For some nonbank financial companies (NBFCs) in
India, the AA ecosystem enabled an 8 percent higher
conversion rate in SME lending, a 65 percent savings in
depreciation costs, and a 66 percent reduction in costs
related to fraud detection.
17
According to industry esti-
mates, banks’ costs of onboarding customers in India
decreased from $23 to $0.1 with the use of DPI.
18

3. ACCESS TO NEW MARKETS: Cross-border interopera-
bility of payment DPIs can open international markets
for ecosystem participants. For instance, Thailand’s
PromptPay has established cross-border payments
with six countries—Cambodia, Indonesia, Japan,
Malaysia, Singapore, and Vietnam. The platform is lev-
eraged to develop a digital trade platform for exporters
and importers to send and receive electronic docu-
ments for international trade.
19
4. ENABLING ACCESS TO CREDIT: DPIs can help address
the credit gap faced by MSMEs and enable access
to loans by individuals. Acquisition costs for lenders
are reduced through the seamless sharing of finan-
cial and nonfinancial data. For instance, through
open APIs, India’s Open Credit Enablement Network
(OCEN) enables MSMEs participating in digital mar-
kets to secure credit by using information about their
business history, rather than pledging physical assets
as collateral.
20
Fintech and e-commerce providers
developed a methodology for determining the credit
risk of a consumer by using multiple consumer data
inputs related to creditworthiness, shared by consent
of the consumer, and accordingly provide a small
short-term loan to enable online purchases on credit
for the first time.
Source: This box was contributed by India.
17. Sahamati (2022, November). Expected Evolution of Account Aggre-
gator Ecosystem 2023-2027(based on Industry stakeholder inter-
view). Retrieved February 10, 2024 from https://sahamati.org.in/
expected-evolution-of-account-aggregator-ecosystem-2023-2027/
18. Alonso et al. (2023)
19. Ping (2023). https://www.theasianbanker.com/updates-and-articles/
thailands-national-itmx-promptpay-could-have-the-most-real-time-
cross-border-linkages-in-the-world
20. Kotak (2022). https://www.kotaksecurities.com/pdf/indiadaily/india
daily06062022hl.pdf
21. Digitalization of the economy also creates productivity gains, but its impact
has proved to be uneven. See OECD (2019) and Anderton, Botelho, and
Reimers (2023) for further details on this issue.

19   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
FIGURE 1: DPIs Can Enable Productivity Gains for and through Financial Inclusion
Source: Authors’ own elaborations.
Productivity gains: those increases in output whic h result from a more efcient use of inputs and techno logy
to deliver, access  and use fnancial services 
  Productivity gains 
  for individuals and 
  MSMEs
  Participation in the 
  digital economy
More investments by 
the government for 
further productivity 
gains
Reduced frictions
and inefciencies via 
enabling digital end-
to-end processes
DFS Market
Structure
Citizen
Empowerment
Financial inclusion
Catalyze demand 
for DFS by individuals 
and MSMEs
fi  Access and use 
  transaction accounts/ 
  payments
fi  Access and use other 
  DFS such as savings, 
  credit and insurance  
More competition 
among DFS providers
New business models
to deliver DFS
Increased efciencies 
for fnancial service 
providers
Denotes the path to productivity gains via route 1
Denote potential additional productivity gains via route 1
Increased efciencies
for the government
Improved
reliability of
information
Increased
speed
Lower cost
Productivity gains for
the public and private 
sector
DPIs
1
2
Digital and 
fnancial literacy 
new users to open accounts and use payment services, DPIs
enable access to other financial services, such as savings,
credit, and insurance. These result in productivity gains in the
form of increased efficiencies for the government as well as for
FSPs. For example, research from the Inter-American Develop-
ment Bank shows that digitalization allows speed of delivery
to increase in about 74 percent of public services, and such
services are 95 percent cheaper than equivalents.
22
Of course,
it is also possible to consider additional effects on productiv-
ity down the chain, assuming the government can potentially
use the increased efficiencies to make further investments for
further productivity gains. Another example of increased effi-
ciency due to digitalization is the lower cost of international
remittances when sent digitally. For instance, in Q4 2022, the
global average cost of digital remittances was recorded at 4.71
percent (of the send amount, $200), while the global average
cost of non-digital remittances was 6.91 percent.
23
Thus, send-
ing $200 digitally is $4 cheaper on average. Any reduction in
the cost of sending remittances directly increases disposable
incomes of remittance families, and cost reduction is one of the
UN Sustainable Development Goals (SDG 10.c).
Second, DPIs can create conditions for improved com-
petition and, hence, bring about shifts in the market
structure, providing a level playing field and promoting
innovation.
24
In doing so, they may enable new business
models and encourage providers to continuously innovate and
offer new and better services to their customers, improving
their user experience. By enhancing competition and encour-
aging new and innovative business models, DPIs can improve
productivity gains.
DPIs for consented sharing of data can empower users to
access financial products tailored to their needs. Figure 1
also shows the importance of citizen empowerment through
the use of DPIs that reinforces and amplifies the effect of DPIs
in facilitating the flow of reliable information and driving innova-
tions for financial product development.
These advances can allow financially included individuals
and MSMEs to more easily access the tools they need to
increase their productivity and participate in the digital
economy, bringing additional productivity gains. Various
22. IDB (2022)
23.  World Bank, Remittance Prices Worldwide Database, Quarterly Report, Q2
2022. A digital remittance must be sent via a payment instrument in an online
or self-assisted manner and received into a transaction account—that is, a
bank account, a transaction account maintained at a nonbank deposit-taking
institution (say, a post office), or a mobile money or e-money account.
24. While the narrative in this section and figure 1 focuses on the effects of DPIs
on the DFS market structure, DPIs will also affect the market structure in the
financial services overall.

20   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
studies have shown a positive relationship between digital
financial inclusion and economic growth while also stressing
the importance of individual country circumstances in deter-
mining policy priorities.
25
DPIs lower costs and dependence
on legacy models of suppliers by using generic hardware and
software components to build adaptable digital infrastructure.
On the demand side, this helps remove adoption challenges
to first-time users and increase availability of public knowl-
edge about usage of DFS—for example, by amplifying word-of-
mouth effects.
Recent country experiences in rapidly addressing gaps in
financial inclusion have highlighted the critical role played
by DPIs. Box 6 provides examples of how countries have lever-
aged DPIs to advance financial inclusion and increase produc-
tivity gains.
25. See, for example, Khera et al. (2021); Ozili, Ademiju, and Semia (2022); and
Azimi (2022).
BOX 6
Nusuk Hajj:
26
An Exceptional Example of Application in the Nonfinancial
Sector from Saudi Arabia
In the realm of digital transformation, the Nusuk Hajj plat-
form stands out as an excellent example of how a DPI can
address unique challenges, particularly those associated
with managing large-scale annual events or public ser-
vices. Instituted by the Saudi government, Nusuk Hajj has
redefined the nuances of the Hajj pilgrimage, one of the
world’s largest annual gatherings, during which millions
of Muslims from around the globe are welcomed to the
holy city of Mecca.
Nusuk Hajj’s infrastructure operates with two primary
goals: enhancing the spiritual journey for pilgrims and
ensuring their safety. By leveraging this platform, pilgrims
can invest their time in spiritual pursuits by minimizing
wait times and streamlining the completion of necessary
rituals. The platform’s efficiency contributes significantly
to enriching the overall experience of the pilgrims.
Importantly, the platform also equips authorities with
the capability to monitor the movements of the pilgrims
in real time. This feature helps prevent overcrowding and
ensures the safety and wellness of the pilgrims, demon-
strating the clever application of smart technologies to
manage such a large-scale event.
Introduced as a part of Vision 2030, the Nusuk Hajj plat-
form reflects the Saudi government’s commitment to
fostering digital infrastructure for economic and social
development. The platform effectively eliminates the
need for pilgrims to approach third-party agencies, offer-
ing a unified portal to purchase service packages and
procure visas.
Global pilgrims are provided with an extensive array of
more than 120 services, ranging from flight arrangements
and accommodations in Mecca and Medina to trans-
portation and catering. Additionally, the platform gives
access to tour guides and continuous support through-
out Hajj, peace of mind with secure payment methods,
and assistance in validating documents required for visa
issuance.
In conclusion, the Nusuk Hajj platform is a shining exam-
ple of a DPI that employs technological advancements to
address seemingly insurmountable challenges. It lends a
new dimension to public services management and rein-
forces the potential of digital infrastructure to enhance
not only national but also global social experiences. Not
only does it streamline the organizational aspects of Hajj,
but it also enriches the spiritual journey of millions of
global Muslims, ensuring that they navigate their pilgrim-
age with ease and tranquility.
Source: This box was contributed by Saudi Arabia.
26. Ministry of Hajj and Umrah, “Nusuk Hajj,” https://hajj.nusuk.sa/.

21   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX 7
Examples of DPIs in Singapore and the United Arab Emirates (UAE)
Singapore
The Government of Singapore introduced Singpass in
2003 to enable Singaporeans to access various govern-
ment services online. In 2017, Singpass evolved to be
part of Singapore’s national digital ID service stack built
on public key infrastructure cryptographic security tech-
niques. Services include authentication, digital signing,
and biometric verification. Singaporean residents and
businesses can use Singpass to transact digitally with
both the government and the private sector in a conve-
nient and secure manner.
The Singapore Financial Data Exchange (SGFinDex) is a
DPI that uses Singpass and a centrally managed online
consent system to enable individuals to understand their
overall financial health better and plan their finances holis-
tically. With SGFinDex, individuals can provide consent and
retrieve and view their financial information held across dif-
ferent government agencies and financial institutions (that
is, banks, insurers, central depository) on a single applica-
tion of their choice. The government has also developed a
free digital financial-planning service named MyMoney-
Sense, allowing citizens to improve their understanding
of their finances via SGFinDex and take action to improve
their financial well-being across different life stages.
27
UAE
UAE-PASS was launched in 2018 through a collaboration
between Digital Dubai, the Telecommunications and Dig-
ital Government Regulatory Authority (TDRA), and the
Abu Dhabi Digital Authority as the national digital ID and
signature solution. UAE-PASS enables citizens, residents,
and visitors to create a secure digital ID that provides
seamless access to public and private digital services in
the country. UAE-PASS enhances digital transformation,
eliminates paper transactions, and creates a seamless
and secure digital ID system across government and pri-
vate-sector entities.
The UAE-PASS allows for streamlining of online services
by providing a trusted digital ID through users’ smart-
phones and eliminating the need for multiple usernames
and passwords. It enhances convenience for users and
reduces administrative burdens for service providers.
The integration of UAE-PASS into the private sector
expanded its reach and usability, promoting a unified dig-
ital ecosystem.
28
Source: Contributions from Singapore and UAE
Myinfo
fnancial
data
Encrypted
data package
Financial
planning platform
Financial
data
Access
www.mymoneysense.gov.sg
or any participating bank/
insurance platform to connect
your fnancial institutions to
SGFinDex
You may disconnect any
linked fnancial institutions
at any time
Retrieve your fnancial information from participating fnancial institutions 
and Myinfo securely
Provide consent to retrieve your personal data through SGFinDex
SGFinDex passes encrypted data to the fnancial planning platform, which
decrypts and displays the data for you
SgFinDex
1 2
singpass
user 
consent
27. Government of Singapore, “MyMoneySense,” https://www.mymoney-
sense.gov.sg/.
28  United Arab Emirates, “The UAE Pass App,” https://u.ae/en/about-
the-uae/digital-uae/digital-transformation/platforms-and-apps/the-
uae-pass-app.

22   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
Properly designed and implemented, DPIs can support
countries reach the next stage of DFS usage. The evolution
of DFS in an economy could be stylistically seen as progressing
through four stages (see figure 2), though not necessarily in a
sequence and not necessarily for all individuals and MSMEs.
The binding constraints to transitioning from one stage to
the other are different, and as such, countries can sequence
their reforms accordingly. DPIs can be particularly effective
in moving from stage 1, where there is widespread access to
accounts, to stage 2, where usage of payment services is pick-
ing up, usually on the back of DFS offered by a few innovative
providers. For example, in India, the implementation of various
DPIs is considered to have played a critical role in the increase
in account ownership from just one-fourth of adults in 2008
to almost 80 percent a decade later—a journey that it is esti-
mated would have taken up to 47 years without DPIs.
29
Simi-
larly, in Brazil, the introduction of Pix has accelerated the usage
of digital payments beyond any trends observed earlier. Fifty
million individuals made transfers through Pix when they had
not made any account-to-account transfers in the 12 months
prior to its launch.
30
29. D’Silva et al. (2019) 30. Duarte et al. (2022)
Source: Adapted from World Bank (2020c).
FIGURE 2: Phased Approach to Development of DFS
Stage 1 Stage 2 Stage 3
Stage 4
Basic access to
transaction
accounts
• Foster good
penetration of
mobile phones and
connectivity
• Foster good
penetration of
mobile phones and
connectivity
• Allow non-bank
insurance of
emoney
• Implement simpli-
fied CDD
• Enable develop-
ment of wide-
spread agent
network
• Well functioning
payment systems
and enabling
interoperability
• Enhance financial
management system
to support intensive
shift of G2P pay-
ments to digital
• Adopt payment
systems law
• Enable non-banks
access to payment
systems
• Robust consumer
protection framework
in place
• Develop and imple-
ment competition
policy
• Establish credit
infrastructure and
enhance coverage of
credit relevance data
• Establish and expand
coverage of digital ID
 • Establish compre-
hensive regulatory
framework for DFS
providers
• Adopt comprehensive
legal measure for
data protection and
privacy
• Open APIs/Open
banking
• Support universal broad-
band connectivity
• Foster high penetration
of smartphones
• Enable automated
access to digitized
Government data
platforms
• Adopt legal measures
to enable open finance
Increased penetration of and usage of digital financial services
Increased need to enhance regulatory and supervisory frameworks and capacity
More intensive
usage of transaction
accounts for digital
payments
Moving beyond
payments to other
DFS products (e.g.,
credit, insurance)
Widespread
adoption and usage
of DFS by individuals
and MSMEs
FULLY
CASH
BASED
FULLY
DIGITAL
Enabling
financial
and digital
infrastructures
Ancillary
government
support systems
Conducive legal
and regulatory
frameworks

23   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
However, for DPIs to be effective, individuals and MSMEs
should have sufficient digital and financial literacy. While
DPIs can help expand the offering and reach of innovative DFS
products and services that are better targeted at the currently
financially excluded segments of the population, individuals
and MSMEs must be adequately empowered to take advan-
tage of them. Until potential users feel confident and empow-
ered to use DFS, their interaction with the financial system will
be limited.
3.3 DPI Use Cases
In this section, four financial sector use cases are analyzed
to illustrate how DPIs can play a role in advancing financial
inclusion and productivity gains. Each use case includes a
short description of the service, the processes involved, and
the specific way in which DPIs can be leveraged.
3.3.1 Account Opening
Context
Account opening is a prerequisite to using regulated
financial services; making it easy for citizens to open
new accounts significantly expands financial inclusion.
Hundreds of millions of adults worldwide have opened an
account in the past decade. The global account ownership
rate grew from 51 percent of adults in 2011 to 76 percent in
2021.
31
During account opening, prospective customers are
required to provide credentials to establish their identity, so
that the FSP can carry out KYC procedures.
32
This allows the
provider to use information gathered from other documents
and sources (such as credit bureaus) to validate the creden-
tials provided, and to evaluate the suitability of the applicant
for the product or service. Once complete, the customer is
issued an identifier to access the account, and the credentials
collected can be used for authentication in future transac-
tions or to access other services.
Beyond the objective of identifying and enrolling cus-
tomers, account-opening procedures also originate from
AML/CFT requirements. In some cases, these requirements
are adapted, depending on the risk profiles of end users.
33
The
depth and rigor of the account-opening procedures vary by the
type of features offered; more advanced features (for exam-
ple, higher transaction limits and cross-border transactions)
require additional steps beyond just validating identity—for
example, validating sources of funds and requiring the provi-
sion of additional documents.
Leveraging DPIs
Account opening can be done remotely through digital
means (for example, using a mobile phone) to simplify
access to basic transaction accounts for individuals and
MSMEs and constitute an entry point to DFS at large. In
the last few years, a pivotal aspect of financial inclusion strat-
egies in many jurisdictions has been the introduction of basic
transaction accounts—offered by either banks or nonbanks—
with simplified CDD procedures for account opening (including
simplified ID requirements), coupled with strict limits on the
number and value of transactions. In several countries, these
measures have been underpinned by a digital ID and a data
sharing framework. These DPIs can make in-person account
opening in branches and agents significantly quicker, or they
can even enable a fully remote end-to-end digital account
opening. Bangladesh and India have used digital ID to increase
account ownership rapidly (box 8).
By leveraging digital technologies and the extensive
availability of mobile devices, DPIs can be used to give
end users an easy and integrated way to prove their iden-
tity when opening an account. This can be very beneficial
to migrants, refugees, rural populations, and other vulnerable
groups that have insufficient documentation. This can also
improve the ability of MSMEs to access DFS, by leveraging
identifiers such as business registration numbers and fetch-
ing data available in public registries through the implementa-
tion of e-CDD. Data exchange DPIs make it possible to gather
31. Demirguc-Kunt et al. (2022).
32. GPFI (2018)
33. For regulatory and audit purposes, but also to allow other subsequent
verification use cases, such as multifactor authentication, data collected
throughout the account-opening process, such as credentials and biomet-
rics, is sometimes stored in a—generally centralized—digital ID database (for
example, a KYC registry). Moreover, the information collected during account
opening (for example, address, contact details, and employment status) can
evolve over time and thus occasionally requires revalidation.

24   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX 8
Digital ID in India and Bangladesh
India
India’s financial inclusion strategy relies on the JAM trinity
of Jan-Dhan, Aadhaar, and mobile and integrates digital
ID for more efficient account-opening and payment appli-
cations for access to financial services. E-KYC uses Aad-
haar ID system to verify the identity of end users quickly,
allowing FSPs to enroll customers easily and directly acti-
vate new services, such as mobile connections and bank
accounts. E-KYC is paperless, private, and instantaneous,
with reliable data shared in real time. Micro-ATMs use
Aadhaar authentication for branchless banking, reduc-
ing paperwork and enabling electronic record keeping.
Similarly, the India Stack has digitized and simplified KYC
procedures, lowering costs; banks that use e-KYC lowered
their cost of compliance from $0.12 to $0.06. The decrease
in costs made lower-income clients more attractive to ser-
vice and generated profits to develop new products.
34
Bangladesh
In Bangladesh between 2017 and 2019, Bangladesh
Bank carried out a nationwide pilot with 18 banks and
one nonbank financial institution to test e-KYC. This ini-
tiative involved utilizing various technologies (including
biometrics) for customer onboarding and account open-
ing. The National Identification (NID) card issued by the
National Identity Registration Wing (NIDW) of the Elec-
tion Commission (EC) of Bangladesh was used to verify
the identity of end users. The technologies employed in
the project encompassed fingerprint- and facial-match-
ing devices, as well as AI and optical character recogni-
tion in both English and Bangla. In this study, Bangladesh
Bank concluded that e-KYC would reduce the total time
to onboard and open an account for a customer from four
or five days to five minutes.
data from a variety of sources, improving overall reliability and
confidence in e-CDD processes and in turn enabling access
to more advanced services. In addition, payment systems
can be leveraged to validate account ownership and reduce
fraudulent misuse of customer information by sending a
(small) random amount of money as credit and asking the
person to state the amount received. With FPS, this can be
done in a matter of seconds and at a low cost. Electronic shar-
ing of additional data required for account opening through a
data exchange DPI can simplify KYC and CDD processes and
address such barriers to financial inclusion as high costs, dis-
tance, and the time taken to open an account. Data exchange
DPIs can even assist in analyzing trends in fraudulent trans-
actions by collating information about past frauds. Digital
IDs could further financial inclusion, especially in low- and
middle-income countries, where insufficient documentation
is often a barrier to account ownership. In addition, inclusive
access rules by digital ID systems and reasonable costs for
both public and private entities would enable broad adoption
of these solutions by different types of providers.
34. Alonso et al. (2023).

25   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX 9
France’s Approach to Digital ID
In France, the foundational ID system has historically relied
on the civil registry, which identifies people according to
the same characteristics (for example, birth name, first
name, and date and place of birth) and on official identity
documents (for example, the national ID card or pass-
port). FranceConnect was launched in 2016, operating as
a federation of various public and private identity provid-
ers and allowing individuals to use existing credentials to
authenticate their identity securely when accessing online
services. FranceConnect acts as a trusted intermediary
between users and service providers, ensuring the reliabil-
ity and privacy of personal information and promoting the
exchange and transmission of data between administra-
tions that support the OpenID Connect protocol.
Based on single sign-on (SSO) principles, it allows citi-
zens to log in to different online services—mostly public
ones at present—using their existing credentials from
certified identity providers, such as impots.gouv.fr (tax
office services), La Poste (post office services), or AMELI
and MSA (social security). Currently, FranceConnect sup-
ports more than 40 million people and allows access to
over 1,400 services. Two versions of the platform exist,
covering different levels of assurance: FranceConnect+
allows for multifactor authentication to meet more strin-
gent security requirements for more sensitive use cases,
while FranceConnect is compliant with the European
regulation on electronic identification and trust services
for electronic transactions in the internal market (eIDAS
Regulation).
Additionally, in April 2022, the French government
unveiled an ambitious project for digital ID in the coun-
try—the Service de garantie de l’identité numérique
(SGIN), or “Digital Identity Guarantee Service.” Based
on the electronic national ID cards (CNIe) issued since
August 2021, the SGIN will operate in conjunction with
FranceConnect and will be a means of digital identifica-
tion and authentication, achieving a high level of assur-
ance for French citizens. The project has a strong focus
on ensuring user-centricity—for instance, it should not
allow the card holder’s biometrics to be accessed, and its
use will not be compulsory.
Furthermore, French public authorities have a dedi-
cated focus on digital governance, including through the
development of key DPI capabilities required to support
the evolving needs of its digital economy. Among other
measures, the French government adopted an action
plan on free software and digital commons in Novem-
ber 2021. This plan aims to promote the use of free and
open-source software and digital commons in the admin-
istration, to develop and support the release and pub-
lication of its source codes, and to use free software to
strengthen the attractiveness of the state as an employer
of digital talent.
3.3.2 Government-to-Person Payments
Context
Globally, government-to-person (G2P) payments have
increased significantly in scale. In 2021, over a quarter of
adults were receiving payments from the government, an
increase of 400 million individuals from just four years earlier.
35

On average in the past decade, across a sample of 46 developing
countries with available data, 1.5 percent of GDP was allocated
to social assistance payments, 3.6 percent to pensions, and 7.3
percent to public wages.
36
In 2020, in response to the COVID-19
crisis, spending on social-protection programs increased even
further, to at least $80 billion across developing countries.
37
35. According to Global Findex 2021, 28 percent of adults worldwide were receiv-
ing payments from the government. This percentage has likely increased,
since social assistance scaled up in response to the COVID-19 crisis.
36. World Bank (2022c).
37. Gentilini et al. (2020).

26   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
The increasing scale of G2P payment programs offers a
huge opportunity to advance financial inclusion, contrib-
ute to women’s economic empowerment, and promote
the development of the digital ecosystem. Digitalizing G2P
payments—in particular, for social assistance programs that
target base-of-the-pyramid beneficiaries—can be an effective
way to advance financial inclusion. Indeed, according to the
2021 Global Findex, 865 million account owners in developing
economies opened their first financial account for the purpose
of receiving government transfers.
Improved efficiencies in how G2P payments are distrib-
uted can also offer significant benefits to the government
and to the society at large. Many governments have increas-
ingly been transitioning away from cash or other paper-based
payment methods to digital payments, which, under some
conditions, have proven to reduce total overhead costs for gov-
ernments and substantially improve controls. This includes
reducing leakage and eliminating other forms of misbehavior/
corruption. Moreover, when the COVID-19 pandemic left many
seeking help from the government, countries with DPIs were
able to reach the poorest in a faster, more targeted, and trans-
parent manner.
38
Leveraging DPIs
DPIs can enable digitalizing G2P payments in an efficient,
inclusive, and adaptive way in the following key areas: (i)
beneficiary account opening, (ii) account registration with the
government program, (iii) generating payment instruction (for
the executing financial institution or the national treasury), (iv)
transfer of funds to beneficiary accounts, (v) reconciliation,
and (vi) payment cash-out or digital use. Jurisdictions that had
in place DPIs such as digital ID, digital payment systems, and
infrastructure for data sharing were also able to reach more
beneficiaries and generally respond in a faster, more targeted,
and transparent manner during the COVID-19 pandemic.
39
DPIs enable G2P architectures that can operate digitally
from end to end.
40
For this purpose, DPIs need to be interoper-
able and accessible by both public- and private sector entities
through shared rails that can be used by different G2P payment
streams.
41
This not only advances financial inclusion but also
improves productivity gains through cost savings for the gov-
ernment and ultimately increases convenience for beneficia-
ries. At the same time, other enablers, such as effective access
to technology by these beneficiaries and digital and financial
literacy, would still be necessary for the benefits to materialize.
Trusted digital ID systems can facilitate the digitalization
of G2P payments and contribute to their efficiency. To
enable digital G2P payments, it is essential to have trusted ID
systems or ecosystems with wide coverage. Beyond ensuring
that all beneficiaries have a unique and valid form of ID, digital
ID systems in particular can provide an ID verification service
to public and private sector entities that supports efficient and
timely account opening, including remotely.
42
The ID system
also needs to be interoperable with the country’s social reg-
istry and social protection management information system
(MIS). This will help support the identification and onboarding
of potential beneficiaries into social assistance programs and
support the matching of beneficiaries with their correspond-
ing account.
Interoperable payment systems with the broad partici-
pation of payment service providers and a government
payment gateway or interface can support digital G2P
payment delivery. A payment system should be leverag-
ed to deliver G2P payments to beneficiaries’ accounts. For
this, the social protection MIS (where beneficiary lists and
the amounts payable are prepared) should be capable of
interfacing with either (i) a payment service provider that is
connected to
the payment system or (ii) the national trea-
sury, which, in turn, would interface with the payment system
to execute the payment instructions directly.
43
In order for
beneficiaries to be able to use the payment service provider
of their choice, an interoperable retail payment system with
the broad participation of bank and non-bank payment ser-
vice providers is needed. This will increase convenience,
strengthen pathways to financial inclusion, and also contrib-
ute to market development.
Lastly, features such as aliases used in FPS and through
data exchange DPIs recipients are able to switch providers
easily and new programs can be launched faster. A data-
base or platform supporting the matching of beneficiary unique
IDs and their account numbers, sometimes called an account
directory, allows beneficiaries to select and update the account
where they want to receive any government payments without
having to update different programs or agencies.
44

38. Marin and Palacios (2022).
39. Marin and Palacios (2022).
40.  A recent paper on the role of digital during COVID-19 showed that among
85 countries, those that were able to use digital databases and trusted data
sharing reached on average three times more beneficiaries than those that
could not rely on these DPIs and had to collect information practically from
scratch. For additional details, see Marin and Palacios (2022).
41. World Bank (2022c)
42. Several jurisdictions have implemented special regulations to enable individu-
als to open an account with minimal documentation, although these accounts
usually have some balance or transfer limits.
43. As long as the national treasury is a direct participant in this payment system.
44. More broadly, pairing a unique ID system that is integrated across govern-
ment databases and also linked to accounts is an option that countries such
as Chile, India, and Peru have adopted (with varying approaches) to achieve
this mapping.

27   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX 10
G2P Payments: Country Examples
In the last decade, India has built one of the world’s largest
digital G2P architectures leveraging DPI. This approach
has supported transfers amounting to about $361 billion
45

directly to beneficiaries from 53 central government min-
istries through 312 key schemes. As of March 2022, this
had resulted in a total savings of $33 billion,
46
equivalent
to nearly 1.14 percent of GDP.
In Türkiye, the Integrated Social Assistance System (ISAS),
which leverages digital payment and ID systems, has trans-
formed social assistance processes by digitizing applica-
tions, investigations, payments, monitoring, accounting,
and auditing. With integration across 28 public institutions
and the e-Government Gateway, ISAS serves 57.5 million
individuals (17.7 million households). Applicants need only
their national ID for eligibility determination, reducing the
number of documents required from 17 to just one. Appli-
cation time has decreased from days to minutes, while
processing and benefit delivery time has been cut from
months to days.
47

In Peru, the digital ID system proved invaluable during the
COVID-19 social assistance response to identify potential
beneficiaries swiftly. Authorities were able to use the ID
number to cross-check social insurance and other admin-
istrative datasets, ensuring that support reached those
most in need. Peruvians could check eligibility online
using their national ID number and open a bank account
remotely (Cuenta DNI) to receive government transfers.
This system facilitated efficient eligibility verification
and provided convenient access to financial assistance
during the crisis.
48
In Brazil, the government launched Auxilio Emergencial
as a social assistance program in response to COVID-19.
Close to 70 million beneficiaries received aid through the
program, for which the government set up a digital savings
account with digital access channels to use the funds. It
is estimated that 40 percent of beneficiaries did not have
an account before the pandemic.
48
The Caixa TEM app
through which beneficiaries could open and operate their
savings accounts includes functionalities such as digital
cards, QR payments, and payments through Pix, the fast
payment system launched by the Central Bank of Brazil
in November 2020. Pix enables P2P transfers and mer-
chant payments in real time on a 24/7 basis. The intro-
duction of Pix, in addition to incentives by the program
to use funds digitally, likely contributed to the high digital
use of the cash transfers.
50
Of the total funds transferred
by the program, 75 percent was used digitally, and only
25 percent was cashed out.
51

45. Government of India, “Direct Benefit Transfer,” https://dbtbharat.gov.
in/.
46. Government of India, “Estimated Gains,” https://dbtbharat.gov.in/
static-page-content/spagecont?id=18.
47. Ortakaya et al. (2022)
48. World Bank (2020)
49. CAIXA. Relatório da Administração 4T20. https://www.caixa.gov.br/
Downloads/caixa-governanca/Relatorio_da_Administracao_4T20.
pdf
50. There were explicit efforts from the Auxilio Emergencial program to
increase the use of funds digitally, including not allowing beneficiaries
to cash out immediately after the payment; rather, there was a period
of 10 to 53 days in which funds could be used only to make transfers
or digital payments. For more information, see World Bank (2021).
51. World Bank. (2021)

28   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
3.3.3 Remittances
Context
According to the latest World Bank data, remittance flows
to low- and middle-income countries reached $656 bil-
lion in 2022.
52
Digitalization of remittances—that is, sending
remittances between transaction accounts—is an opportunity
to increase access to and usage of these accounts more gen-
erally.
53
Migrants and their families at home are most often
unbanked, and a remittance transaction is usually the first
time they are exposed to the regulated financial sector.
While the costs of remittances have been declining, they
remain high. In Q1 2023, the average cost of sending $200 was
6.25 percent—3.25 ppts above the target of 3 percent estab-
lished in the UN SDG 10.c. However, in Q1 2023, the global aver-
age for digital remittances was recorded at 4.72 percent, while
the global average for non-digital remittances was 6.92 percent
(figure 3).
54

Cash-based remittances remain prevalent around the
world. A 2022 survey of 14,000 users across 10 countries
showed that only 53 percent of remittance users were leverag-
ing digital means to send remittances.
55
According to a study
by the Financial Stability Institute and the World Bank , the
prevalence of cash-based remittances could be due to a variety
of structural factors in the financial system, including:
56
yLack of access to transaction accounts provided by regu-
lated payment service providers
yLack of options for receiving transfers using digital chan-
nels and more generally a lack of innovation and/or of an
enabling ecosystem for digital payments
yLack of financial and digital literacy
yChallenges in complying with extant exchange controls in
certain markets that can push consumers to use unregu-
lated services
52. World Bank (2022d)
53. Ardic et al. (2022b)
54. World Bank, Remittance Prices Worldwide database.
FIGURE 3: Trends in the Global Cost of Sending $200
Source: Remittances Prices Worldwide, Q1 2023, World Bank.
0
2
4
6
8
10
12
14
Cash Digital Global Average
2011–1Q
2011–3Q
2012–1Q
2012–3Q
2013–1Q
2013–2Q
2013–3Q
2013–4Q
2014–1Q
2014–2Q
2014–3Q
2014–4Q
2015–1Q
2015–2Q
2015–3Q
2015–4Q
2016–1Q
2016–2Q
2016–3Q
2016–4Q
2017–1Q
2017–2Q
2017–3Q
2017–4Q
2018–1Q
2018–2Q
2018–3Q
2018–4Q
2019–1Q
2019–2Q
2019–3Q
2019–4Q
2020–1Q
2020–2Q
2020–3Q
2020–4Q
2021–1Q
2021–2Q
2021–3Q
2021–4Q
2022–1Q
2022–2Q
2022–3Q
2022–4Q
2023–1Q
55. Visa (2023)
56. Ardic et al. (2022a)

29   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
57. World Bank (2022b)
Leveraging DPIs
DPIs can support the digitalization of remittances and
reduce associated transaction costs.
57
As described ear-
lier, digital ID systems can facilitate the remote onboard-
ing of excluded users, diminishing costs related to account
opening. Moreover, in account-to-account remittances,
digital ID secures the accuracy and reliability of the identi-
ty-verification process during onboarding, reducing the cost
of duly observing AML/CFT requirements. When it comes to
payment systems, validations can be implemented in these
before the execution of transactions to ascertain the integ-
rity of the transaction and the counterparts involved, which
also facilitates compliance with AML/CFT procedures. In
addition, interlinking of payment systems through cross-bor-
der arrangements can reduce the number of intermediaries
required, potentially increasing speed and reducing the cost
of remittances. In the case of remittances, these infrastruc-
tures can extract, exchange, and aggregate data from other
BOX 11
How DPIs Can Support Remittances in Practice
The UPI-PayNow interlinking was operationalized in Feb-
ruary 2023. This is a fast payment system interlinking
between India and Singapore to facilitate cross-border
payments and remittances. The UPI-PayNow linkage
is the product of extensive collaboration between the
Reserve Bank of India (RBI), Monetary Authority of Sin-
gapore (MAS), and payment system operators of both
countries—that is, NPCI International Payments Lim-
ited (NIPL) and Banking Computer Services Pte Ltd.
(BCS), and participating banks/nonbank financial insti-
tutions. This interlinking aligns with the G20’s financial
inclusion priorities of driving faster, cheaper, and more
transparent cross-border payments and will be a signif-
icant milestone in the development of infrastructure for
cross-border payments between India and Singapore.
The UPI-PayNow linkage enables users of the two FPS
in either country to make convenient, safe, instant, and
cost-effective cross-border transfers of funds using their
mobile apps. Funds held in bank accounts or e-wallets
can be transferred to/from India using just the UPI-ID,
mobile number, or virtual payment address (VPA). When
making a transaction, the system dynamically calcu-
lates and displays the amount in both currencies for the
convenience of the user.
Beyond bilateral interlinking, the Bank for International
Settlement’s (BIS) Project Nexus aims to establish stan-
dardized multilateral interoperability between existing
FPS for cross-border payments. The rationale is to allow
payment system operators to implement a single con-
nection to the Nexus platform, which acts as a technical
hub, rather than going through the lengthy and costly
process of building numerous bilateral linkages between
existing infrastructures. In March 2023, the BIS Innova-
tion Hub Singapore Centre announced the successful
connection of the test versions of three established FPS
in the Eurosystem (TIPS), Malaysia (RPP), and Singapore
(FAST). This experiment paves the way for additional
work on the practical applications of a distributed mul-
tilateral network to interlink existing domestic payment
infrastructures.
DPIs and other financial infrastructures and make it available
(aggregated and duly organized) to end users for improved
decision-making on price, speed, and other features.
3.3.4 MSME Finance
Context
MSMEs are a critical component of most economies,
accounting for a significant portion of employment and
economic activity. However, MSMEs often face challenges in
accessing finance, particularly in developing countries, where
financial systems may be less developed. About half of formal
MSMEs do not have access to formal credit and instead rely
on internal funds or cash from friends and family to launch
and initially run their business. In emerging markets, approx-
imately 41 percent of formal MSMEs have unmet financing
needs.
58 
The finance gap for formal MSMEs in developing
economies is estimated at $5 trillion.
59
Women-owned busi-
58. IFC (2017 and forthcoming).
59. Ibid.

30   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
nesses comprise 23 percent of MSMEs and account for 32
percent of the MSME finance gap.
60
DPIs can help to address
some of these challenges by providing SMEs with access to
financial services and information through digital channels.
Leveraging DPIs
Digital payment systems allow MSMEs to accept pay -
ments from customers electronically, reducing the need
for cash transactions and making it easier for SMEs to
track their revenue and expenses. Digital payment sys-
tems can also help SMEs to build a credit history, which can
be important for accessing formal sources of finance, such as
bank loans. Digital payment solutions for commerce generate
rich data on cash flows and business performance of active
MSMEs, which can then be used by credit providers to assess
the relative creditworthiness. An example of such an initiative
is Kopo Kopo, a fintech firm that offers digital payment access
to merchants in Kenya through Safaricom’s M-PESA. Kopo
Kopo analyzes merchant payment transaction data to offer
SMEs a range of value-added services, such as unsecured
short-term loans.
61
Data exchange DPIs can enable fast and seamless sharing
of information from traditional sources as credit infra-
structure. Credit reporting systems allow lenders to access
information about a borrower’s credit history, making it easier
for MSMEs to demonstrate their creditworthiness and access
formal sources of finance. Digital credit reporting systems can
be particularly useful for MSMEs in developing countries, where
traditional credit reporting systems may be less developed. For
example, the Kenyan government has developed a digital credit
infrastructure that enables SMEs to access credit through
mobile phones. This infrastructure includes credit scoring algo-
rithms that use alternative data sources, such as mobile phone
usage patterns, to assess creditworthiness. Additionally, the
digitization of collateral registries and other credit infrastruc-
ture will increase the efficiencies of the security interest regis-
tration process. It will also lead to efficiency gains by increasing
the ease of access and reducing information asymmetries.
Data exchange can also facilitate the use of alternative
data sources and big-data analytics to provide additional
information sources to the credit risk-assessment pro-
cess for MSMEs. Data exchange can also leverage alternative
sources of data, such as mobile phone call records, utility and
bill payments, digital payment transactions, social media, and
industry data, for this purpose. Some examples of the use of
alternative data include: (i) LenddoEFL, a Singapore-based fin-
tech company, uses psychometric tests as part of the credit-
scoring model in EMDEs, using more than 10,000 different data
points of new customers; (ii) MYBank in China uses an AI-pow-
ered risk-management system, comprising over 100 predictive
models, 3,000 risk profiles, and more than 100,000 metrics,
to calculate a line of credit for MSMEs; and (iii) Become—a
US-based online platform for small businesses—uses big data
analytics to help small businesses by matching them with lend-
ers. The risks associated with use of alternative data and big
data analytics—for example, data protection and privacy, and
perpetuation of biases—need to be effectively addressed.
Data exchange and digital payments, when used together,
can also provide alternate sources of collateral for MSMEs.
For instance, they can facilitate merchant receivables financ-
ing by using the digital record of an MSME retailer’s payment
receipts as collateral. For example, Banco Davivienda in Colom-
bia has provided loans to MSMEs by taking security interests in
the credit card receivables generated by their own point-of-sale
systems to finance small restaurants and retail enterprises.
Additionally, reverse factoring platforms, including the Nacio-
nal Financiera (NAFIN) system in Mexico and the Trade Receiv-
ables Discounting System (TReDS) in India, allow FSPs other
than the buyer’s bank to discount the buyer’s receivables.
And finally, DPIs can also support MSME access to finance
by providing information and education about financial
products and services. For example, digital platforms can be
used to provide SMEs with information about different types of
loans, interest rates, and repayment terms. Digital platforms
can also be used to provide training and education on financial
management, improving MSMEs’ understanding of their finan-
cial needs and helping them make informed decisions about
borrowing.
60. Ibid.
61. GPFI (2020a).

The existence of enabling institutional and
market conditions,
including appropriate coordination
mechanisms and a dynamic business environment, is key to
kick-starting cross-sectoral endeavors such as DPIs and is
crucial for their success.

AN ENABLING ECOSYSTEM TO FOSTER THE
IMPACT OF DPIs ON FINANCIAL INCLUSION
AND PRODUCTIVITY GAINS
4.1 Digital Financial Ecosystem Enablers
That Support Financial Inclusion and
Productivity Gains through DPIs
When DPIs are used for the provision of financial products
and services, they will be directly interacting with vari-
ous elements of a jurisdiction’s DFE. These can be grouped
under the following three categories:
yStrong and sustained governance and coordination arrange-
ments
yRobust and widespread ancillary services and digital infra-
structure
ySound and enforceable regulatory frameworks
Each of these aspects directly affect features of DPIs and the
policies and regulations that apply to them.
This section focuses on those DFE enablers that are exter-
nal to DPIs and can affect their ability to advance financial
inclusion and productivity gains successfully. While these
DFE foundations, together with the indicative, voluntary, and
nonbinding policy recommendations in this report, can enable
DPIs to facilitate financial inclusion and productivity gains,
additional catalyzers in a DFE, beyond the use of DPIs, may
be required in order to achieve the ultimate objectives. These
DFE catalyzers include digital and financial literacy, inclusive
financial products, and a network of widely available access
points. Resilient, open, and efficient DPIs, as enablers them-
selves, would contribute to these DFE catalyzers by providing
an accessible digital ID mechanism, safe and efficient data
exchange, and enablement of end-to-end workflows. DPIs can
lower transaction costs, catalyze innovation, foster competition
and interoperability, enhance individual user experiences and
choice, and, through their design, can provide new avenues
to address many of the risks inherent to DFS. These effects
translate into faster progress in financial inclusion and enhance
productivity gains over and above that which can be achieved
by DFS provided by FSPs operating without such shared infra-
structure. This is illustrated in figure 4.
4
32

33   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
FIGURE 4: The Role of DPI in the Digital Financial Ecosystem
Widespread digital and fnancial literacy
Inclusive fnancial services and access points
Enablers
Catalyzers
Value—
add of DPIs
Objective
Advancement of fnanci al inclusion and increased productivity gains
Lower cost and
accessible
identifcation
mechanisms
Strong and sustained
governance and
coordination
arrangements 
Robust and 
widespread ancillary
services and
infrastructure
Sound and
enforceable
regulatory
frameworks
Enablement of end-to-end workfows
Digital Public Infrastructure: Digital ID, Digital Payments, Data Exchange
Lower cost 
and accessible
payment solutions
Safe, efcient
and empowering
data exchange 
Source: Authors’ elaboration
62. Note that some financial services can be delivered on basic mobile phones
that are not smartphones.
63. Affordable access to mobile phones and data is an important consideration
for digitalization in general and for penetration and uptake of DFS in partic-
ular. For example, see Ndulu, Joseph, and Tryphone (2021) on the effects of
taxation on digital transformation in Africa.
64. GSMA (2023)
The existence of enabling institutional and market condi-
tions, including appropriate coordination mechanisms and
a dynamic business environment, is key to kick-starting
cross-sectoral endeavors such as DPIs and crucial for their
success. Having a stable institutional landscape with a clear
allocation of responsibilities between different public-sector
bodies and agencies and a mechanism by which their design
and operations can be coordinated is fundamental to the suc-
cessful development of DPIs. The establishment of public-pri-
vate sectoral cooperation fora in the financial sector (such as a
national payment council (NPC)) or a coordination committee
for financial inclusion (commonly established in the context of
national financial inclusion strategies) can play the role of a cat-
alyst in developing and implementing long-term policies relat-
ing to DPIs. Furthermore, a dynamic business environment,
adequate investment in the development of digital capabilities
by FSPs, as well as competitive and innovative market condi-
tions can support the development of user-friendly financial
products and services leveraging DPIs. From this perspective,
the availability of a national talent pool in the field of digital tech-
nologies and the ability to attract them should be considered as
a key factor.
The availability and penetration of ancillary services and
infrastructures—such as connectivity, mobile phone own-
ership, and supporting financial market infrastructures—
will determine the nature of the potential offerings and the
adoption of DPI-enabled services and products. Inclusive
access to electricity, mobile network coverage, and medium-
to high-speed internet are critical for DFS penetration and to
ensure that DPI-enabled services are accessible society-wide.
Several financial services and products also require affordable
access to mobile phones—ideally smartphones
62
with internet
access.
63
Globally, while mobile phone access has been steadily
increasing across developing countries, 32 percent of the pop-
ulation still does not have access to a mobile phone.
64
In addi-
tion, the availability of other financial infrastructures that can
feed into or play an important role in the processes supported
by DPIs can impact their efficiency and effectiveness. For exam-

34   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX 12
Examples of Digitalization Incentives: Italy and UAE
Italy
In the wake of the COVID-19 pandemic, Italy introduced
a series of digitalization incentives for both citizens and
businesses. The following are planned for 2023:
yVoucher Internet, aimed at enabling MSMEs to
subscribe to an ultra-fast internet network with an
operator
yPiano Transizione 4.0, consisting of a series of facilities,
in the form of tax credits, to support Italian companies
in investments in capital goods, research and develop-
ment, technological innovation, design and aesthetic
conceptualization, and 4.0 training
yBonus Export Digitale for manufacturing SMEs, a
nonrepayable grant of €4,000 for the purchase of at
least €5,000 in digital solutions useful for internation-
alization
yBonus Internet, directed to families in financial diffi-
culty, so that they can benefit from an internet con-
nection at a subsidized rate; includes the purchase of a
laptop at a discounted price and in installments
UAE
Public-private partnerships can play a key role in building
infrastructure to improve financial inclusion. The UAE’s
Smart Dubai initiative
66
was launched in 2017 with the
aim of transforming Dubai into a Smart City by focusing
on four pillars: seamless services, efficient resource utili-
zation, safety and security, and personalized experiences,
by enabling full ICT integration of critical infrastructure.
The objective of the initiative was to increase customer
happiness for residents and visitors, enhance efficiency
through optimized resource utilization, and improve resil-
ience of resources and infrastructure for a sustainable
city. Smart Dubai also aimed to leverage technology and
innovation to create a more efficient and sustainable city
while promoting economic growth and enhancing the
quality of life for residents and visitors.
Sources: Contributions from Italy and the UAE
66. United Arab Emirates, “Smart Dubai 2021 Strategy,” https://u.ae/
en/about-the-uae/strategies-initiatives-and-awards/strate-
gies-plans-and-visions/strategies-plans-and-visions-untill-2021/
smart-dubai-2021-strategy.
ple, most FPS around the world settle directly in the national
or regional real-time gross settlement (RTGS) systems, and
credit reporting systems and collateral registries are essential
for credit decisions.
65
These financial infrastructures clearly
require efficient and resilient IT and telecommunications infra-
structures. Financial sector players will also need to implement
certain technical prerequisites, such as robust and efficient
core banking systems.
Sound and enforceable legal and regulatory frame-
works (or policies) that enable widespread use of DPIs
to increase financial inclusion and productivity gains
65. For instance, this is the case in Thailand, where PromptPay—one of the most
successful FPS to date in terms of adoption per capita—settles twice a day in
BAHTNET, the RTGS system operated by Bank of Thailand.
include those relating to access to financial infra-
structure, regulation of nonbank service providers,
and data protection, among others. Laws and regula-
tions that are not directly applicable to the design or oper-
ation of DPIs can still affect how DPIs interact with the
DFE and facilitate financial inclusion. These can be spe-
cific to the financial sector—for example, granting licenses
to nonbank providers or rules relating to access payment
systems—or more general, such as national cybersecurity
and data-protection regulations, or policies on the inclu-
sion of disadvantaged populations, such as the disabled and
elderly.
67
67. Specific laws and regulations on the role of ICT providers and the authority
of telecom regulators are usually also relevant for the provision of financial
services in most jurisdictions.

35   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
4.2 Risks and Challenges for DPIs in
Achieving Financial Inclusion and
Productivity Gains
Even when DPIs are leveraged in the provision of DFS, some
challenges and risks to the provision of DFS remain. Well-
designed DPIs can help mitigate the risks of, and address many
of the supply-side challenges to, DFS provision and usage.
68

While overcoming or reducing demand-side challenges by lever-
aging DPIs is possible to a certain extent—for example, a lack of
documentation or the distance to access points as a challenge
can be eliminated—overcoming other barriers, such as the lack
of trust in financial institutions or the lack of digital literacy and
financial capability, may take longer and will require more than
just leveraging DPIs for financial inclusion.
69

However, well-designed DPIs can help minimize some of
the following risks associated with DFS:
yExclusion risks: DPIs can help reduce DFS exclusion risks,
provided that there is a basic level of digital readiness and
willingness to adopt DFS among the general population. By
offering functions and solutions that are channel-agnostic
and that can be built upon, DPIs have the potential to sup-
port the development of DFS to reach segments of the pop-
ulation that are traditionally excluded or underserved. DPIs
need to be inclusive by design, which would also imply that
all relevant providers can leverage DPIs. While DPIs do not
necessarily vitiate the need for brick-and-mortar or physical
establishments, they can greatly reduce the reliance on such
physical establishments for the regular and continued use of
financial services.
yAnticompetitive practices: DPIs can mitigate anticompeti-
tive practices in the DFE by providing access to foundational
services for a wide range of FSPs at a low and proportionate
cost, enabling productivity gains. This has several positive
impacts: first, it can shift resources to investments in new
technologies, innovative business models, and product and
service enhancements that in turn can spur an increasingly
competitive environment. It can also allow smaller finan-
cial-sector players to reach profitability and sustainability,
which also creates positive competitive pressure.
yFinancial-integrity risks: DPIs can help reduce financial-in-
tegrity risks, such as money laundering and the financing
of terrorism. Digital ID systems, by having an open archi-
tecture and allowing open access to FSPs and other DPIs,
can improve compliance mechanisms. Moreover, trusted
data-exchange DPIs may allow data to be cross-referenced,
further contributing to the effectiveness of these mech-
anisms. However, the security of a DPI is key to ensuring
financial integrity.
yMacro-financial risks: DPIs can help overcome the accumu-
lation of financial risks that could become a threat to macro
financial stability. DPIs can support the collection, analysis,
and use of data that can help regulators understand the
causes of overindebtedness among individuals and MSMEs
and adopt suitable measures to prevent it. Open architec-
ture and open access to DPIs encourage broad participation
by FSPs, which in turn enhances the amount and quality of
information available across DPIs to evaluate the creditwor-
thiness of individuals and MSMEs.
yFinancial consumer protection risks: DPIs have the poten-
tial to improve transparency and therefore mitigate several
financial consumer protection risks. For instance, when
coupled with sound data-governance practices, DPIs can
empower individuals and entities to have greater control
over their own data. Data owners can then decide how their
data can be used and by whom, preventing unauthorized
profiling for marketing financial products. However, if data
governance is not well managed, financial consumer protec-
tion risks may instead be amplified due to the use of DPIs for
the provision of DFS. Lastly, it is possible to leverage DPIs to
improve market-conduct supervision through tailored supt-
ech solutions, institute more effective and efficient redres-
sal mechanisms, ensure certain standards in the provision
of DFS, and so on. Mitigating financial consumer protection
risks can also increase overall trust in financial institutions
and lead to greater financial inclusion.
Some DFS risks could be exacerbated, or new manifesta-
tions of existing risks could be introduced, if they are not
considered in the design of DPIs or if proper safeguards
are not put in place. Some examples of these risks, including
how DPIs can minimize them, are outlined below:
yOperational risks: Given the intensive dependence of DPIs
on technological and operational components, operational
risks of digitalization need to be addressed. These include
anything that disrupts the technological and operational
infrastructure, such as operational disruptions, fraud, cyber-
security risks, and risks on account of connected third par-
ties. These risks can be amplified in the context of DPIs, given
68. Governance arrangements for a DPI support the management of its day-to-
day operations as well as future planning. They are essential to support the
safety, efficiency, reliability, and sustainability of a DPI. They include a clear
definition of the mission of the DPI and rules for stakeholders’ access to and
representation in the governance structure. All these arrangements are crit-
ical to support the long-term priorities of a DPI, including that it continues to
serve the public interest on an ongoing basis.
69. In the context of digital ID, for example, Gelb and Diofasi Metz (2018) provide
a perspective on the benefits and risks.

36   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
that they are deeply interlinked among themselves and with
other infrastructures in the financial system. Since DPIs are
foundational in nature, any disruption in their operations
could have spillover effects on the financial sector and the
other sectors of the economy. For example, disruptions in
DPI operations could cause delays or, in extreme cases, loss
of data or funds. Therefore, DPIs need to have a highly reli-
able and effective operational risk management framework
that can then cascade across the DFE and enforce robust
risk management practices across the whole ecosystem.
yLegal and regulatory risks: Legal and regulatory risks are
challenging to address in multi-sectoral structures like DPIs.
Coordinated efforts must be made to prevent regulatory
gaps or arbitrage. Regulators for each DPI may be different,
and in some cases, especially for data exchange infrastruc-
tures, there may be no single regulatory agency. This may
create legal uncertainty and loopholes, which can be exac-
erbated when DPIs interlink. Furthermore, new products
and services enabled by DPIs, as well as new technologies
adopted by DPIs, may also make existing legal frameworks
obsolete.
yInsolvency risk: The DFE at large can be endangered if
some of its critical components, including entities that man-
age DPIs, were to become financially unsustainable. DPIs
can have various operating models, and this risk is height-
ened where a DPI is managed by one or few central entities.
Insolvency risks are particularly relevant in models where
such entities have limited access to funds to maintain their
operations or need to generate revenue and/or profits to
achieve sustainability. Therefore, the financial solvency of
entities managing DPIs needs to be ensured. DPIs require
up-front investments and incur continuous maintenance
costs to update infrastructures and technologies to keep
up with market developments. Moreover, DPIs need to be
well resourced and able to upgrade their technological and
operational capacity constantly, particularly as population
and digitalization continues to grow and markets expand.
Hence, a financially sustainable business model for DPIs
would be key.
yExclusion risk: If DPIs are not designed following good prin-
ciples and global standards, it can lead to risks of exclusion.
For example, there might be segments of the population
for which biometric information may be difficult or impos-
sible to collect; digital ID systems that use this technology
must therefore adopt relevant exception measures to avoid
excluding people as a result.
70
In the case of MSMEs’ access
to credit, insufficient information gathered or provided
through a data exchange DPI can lead to algorithmic bias
and discrimination, which tend to exclude especially those
owned by vulnerable segments, such as women. Further-
more, building and operating each DPI with high-quality
standards will ensure that the services they provide are reli-
able. For example, if the quality of the credentials offered by
a digital ID are low (for instance, poor screening), then this
could compromise not only individual account-opening pro-
cesses but the integrity of the whole DFE.
yFinancial consumer protection risks: Consumer risks can
be heightened by the misuse of DPIs or by the adoption of
exploitative and unscrupulous practices by DPI operators or
by FSPs that build or distribute their services using DPIs. One
of the major risks is unauthorized retention, use, or sharing
of personal data obtained or shared using DPIs (such as
digital ID or data exchange). Even in cases where consumer
consent might have been taken, such consent might not be
informed consent and present additional risks to vulnerable
populations. These risks are heightened among populations
with lower digital and financial literacy. Additionally, the use
of digital technologies, especially by vulnerable populations,
can increase the risk of cyberattacks, phishing, and other
forms of data breaches. FSPs might also misuse informa-
tion obtained through DPIs to exploit customers’ behavioral
biases to provide financial products that are unsuitable or
inappropriate for these population segments, leading to
greater consumer risks. One such risk is the risk of over
indebtedness among populations that are not prepared to
handle credit products. Furthermore, where there is a lack
of appropriate data-governance measures, consumer risks
may be amplified due to the use of DPIs.
In addition to the risks above, it is important to note that
DPIs, like other infrastructures, may create a natural
monopoly or lead to monopolistic or oligopolistic struc-
tures, due to efficiency considerations.
71
The resulting lack
of competitive pressure may not necessarily be a disadvantage
in the case of DPIs, due to the minimalism and the culture of
innovation embedded in DPIs. As DPIs are designed with a min-
imal core function, enabling services and functionalities to be
layered on top in addition to the premise of innovation, a lack
of competitive pressure would not inhibit innovation or render
a DPI obsolete, provided that the DPIs are well-governed and
adequately regulated.
70. Such difficulty, for example, can be linked to skin or eye diseases, can be moti-
vated by religious reasons, or can be due to the refusal of a certain population
to provide biometric data (for example, undocumented migrants, populations
with unclear migration status, or people who distrust the storage of personal
information in centralized registries). For additional details, see GPFI (2018).
71. In the financial sector, for examples on discussion on competition at the level
of infrastructure, see Bergman (2003) and Feyen et al. (2021) for payment
infrastructure, Herkenhoff and Raveendranathan (2021) in the case of credit
card industry.

Balancing risks and creating conducive
environment
for furthering financial inclusion.

POLICY RECOMMENDATIONS
The policy recommendations in this section are indic-
ative, voluntary, and nonbinding and directed to public
authorities
72
and could have relevance for other relevant
stakeholders, as they seek to advance financial inclusion
and productivity gains through DPIs rapidly. For furthering
financial inclusion and productivity gains, how to develop an
ecosystem for leveraging DPIs is the central theme of the pol-
icy recommendations.
73
The following five points describe the
scope and intent of these indicative, voluntary, and nonbinding
policy recommendations:
yThey reflect good practices from different countries, and in
line with G20 practices, their adoption is voluntary and non-
binding. They should be read in conjunction with the G20
HLPs for Digital Financial Inclusion, which call for a holistic
approach to foster digital financial inclusion, as well as with
the established standards and good practices for the indi-
vidual DPI types as established by standard-setting bodies
(SSBs). They are intended to complement, and not replace,
existing standards issued by SSBs and other international
bodies.
yTheir focus is on leveraging DPIs in the context of advanc-
ing financial inclusion and productivity gains while keeping
in mind their usage across other sectors. However, some
aspects of these might have relevance for other sectoral
applications of DPIs as well.
yThey have been drafted based on the three current exam-
ples of DPIs—digital payments, digital ID, and data-exchange
DPIs—which apply to each separately and in combination.
yThey apply to private as well as publicly owned/operated
DPIs. The allocation of responsibilities and powers across
different public authorities could vary by jurisdiction and
by DPI.
yThe development of financial infrastructures and overall dig-
italization in the financial sector remain relevant for effective
use of DPIs. However, as these are covered in existing guid-
ance, they are not expressly included here.
POLICY RECOMMENDATION 1: Enable and foster the respon-
sible use of DPIs to accelerate financial inclusion and
productivity gains. Public authorities could leverage DPIs
across public sector programs and national strategies, as
well as harness private sector capabilities through collabora-
tive approaches, for rapidly advancing financial inclusion–led
growth.
yKey consideration 1.1. Public authorities could consider
developing and harnessing DPIs in their national strategies
and roadmaps on financial inclusion, digital economy, and
related areas.
yKey consideration 1.2. Public authorities may lead by
example through fostering use of DPIs in public programs,
such as benefit transfers, social protection programs, and
development finance programs, as well as in their internal
operations and processes, including in interactions between
individuals and businesses and the government.
yKey consideration 1.3. Public and private sector coordina-
tion and collaboration can be helpful for the effective devel-
5
72. Public authorities include all relevant arms of the government, regulatory
agencies—including but not limited to financial-sector authorities, such as
central banks/monetary authorities—and other bodies whose powers and
actions may affect the role of DPIs when used in the financial sector. The pol-
icy recommendations refer to public authorities as a group and not individual
institutions or entities.
73. While the high-level policy recommendations and key considerations are
included in this chapter, further explanation related to policy recommenda-
tions are provided in annex C.
38

39   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
opment and operation of DPIs, and could be considered
actively promoted across the DPI lifecycle.
yKey consideration 1.4. Encourage the private sector to lever -
age DPIs to innovate across the whole DFE to foster compe-
tition and scale up the use of DPIs to drive financial inclusion.
yKey consideration 1.5. Encourage public authorities
to collaborate with private institutions to support the
skill development of relevant stakeholders and to ensure
the continuous development and improvement of DPIs
toward advancing financial inclusion and increasing pro-
ductivity gains.
POLICY RECOMMENDATION 2. Develop well-designed DPIs
and the broader enabling environment through a widely
accepted set of good practices. While leveraging DPIs for
advancing financial inclusion and productivity gains public
authorities should consider a set of design and operational
principles to ensure efficiency, inclusivity, resiliency, privacy,
and security.
yKey consideration 2.1. Interoperability: All systems and
processes (including sub-systems, modules, and compo-
nents) should be capable of interoperating, both with each
other, as well as with the systems of private and public
entities that are connected to it through open and publicly
accessible application programming interfaces to promote
more inclusive use of DPIs.
yKey consideration 2.2. Minimalism: The technological and
operational design should build a minimal core function.
Ecosystem participants can layer other services and func-
tionalities on top of the core function. This would allow for
the flexibility of deployment of DPIs across different con-
texts.
yKey consideration 2.3. Adaptability: The technological and
operational design of DPIs should be adaptable and extensi-
ble to serve multiple use cases under different contexts and
meet the evolving needs of the ecosystem they are intended
to support.
yKey consideration 2.4. Enable diverse innovation: Sup-
port public or private institutions to easily build diverse
solutions and services using the digital infrastructure, such
as by reducing transaction costs for ecosystem players,
offering open APIs, and making available high trust data in
machine-readable and digitally signed forms.
yKey consideration 2.5. Privacy, security, and resilience:
The overall system (as well as each sub-system, module,
and component) should consider appropriate individual pri-
vacy enhancing technologies and be secure from intrusion
and resilient against attack or system failure.
yKey consideration 2.6. Risk management framework:
Implementing a robust risk management framework and
sound risk management practices for DPIs is important to
maintaining trust in the DPI ecosystem.
yKey consideration 2.7. Continuity of operations: Have
arrangements in place to maintain continuity of operations
of the DPI ecosystem.
yKey consideration 2.8. Culture of innovation: Promote
a culture of innovation through DPIs, both internally and
across the whole DFE.
yKey consideration 2.9. Financial Sustainability: Inte-
grate a viable business and financing plan at the design
phase to sustain ongoing operations and future develop-
ment plans.
74

POLICY RECOMMENDATION 3: Encourage appropriate risk-
based regulation, supervision, and oversight arrangements
for financial sector use of DPIs. The regulation, supervision,
and oversight of DPIs should consider effective regulation,
supervision, and oversight by relevant public authorities. Where
needed, authorities should consider adapting the regulatory
framework to enable the use of DPIs by the financial sector
and apply an appropriate regulatory, supervisory, and oversight
framework to new entrants and business models in the finan-
cial sector that DPIs will bring about.
yKey consideration 3.1. Establish appropriate regulatory,
supervisory, and oversight frameworks for DPIs to be princi-
ples-based, flexible, and proportionate to the coverage of the
DPIs and the risks posed by them.
yKey consideration 3.2. Through enabling regulation and
supervision, facilitate the appropriate use of DPI services
and capabilities by financial sector players, and foster the
entry of new players and intermediaries.
yKey consideration 3.3. Promote and facilitate cooperation
among various financial sector authorities as well as with
other relevant authorities to support the seamless use and
integration of DPI services into the DFS ecosystem.
POLICY RECOMMENDATION 4: Promote sound internal gov-
ernance arrangements. Such internal governance arrange-
ments could include an objective to act in the public interest,
rules for the access and representation of stakeholders in,
the governance structure, risk management framework, and
arrangements to preserve its ability to function.
74. Regarding key considerations 2.7 and 2.9, active monitoring of DPIs to con-
tinue operations and services as a going concern is a potential consideration.

40   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
yKey consideration 4.1. Require a clear and robust deci-
sion-making process to ensure that DPIs operate and func-
tion efficiently.
yKey consideration 4.2. Put in place measures to ensure
transparency and accountability in the operation of DPIs, to
ensure that actions that impact the public are taken in a fair,
transparent, and timely manner.
yKey consideration 4.3. Engage DPIs in monitoring, evalu-
ation, and continuous improvement processes to ensure
that they are helping in achieving the public interest con-
siderations and objectives, for example, for monitoring of
progress towards financial inclusion for vulnerable groups,
including women, the elderly, youth, micro and small enter-
prises, and rural populations, and therefore remain relevant
for the society.
POLICY RECOMMENDATION 5: Enable DPIs to offer products
and services using DPIs in a way that no one is left behind
and the interests of the consumer are safeguarded.
75
Given
that DPIs will support the inclusion of individuals that were tra-
ditionally excluded from the financial sector, several risks might
arise and need to be addressed, including exclusion risks, data
governance and data privacy risks, new consumer risks, and
fraud leading to loss of funds. In addition to design features,
DPIs can institute specific services and features that could
be used by the financial sector players to improve customer
redressal, provide tools to customers to protect themselves,
and foster greater financial and digital literacy.
yKey consideration 5.1. Encourage DPIs to implement
features and services that enable FSPs to serve a wide
range of customer segments, including by incorporating a
human-centered design approach to provide suitable and
appropriate financial products and services that are tailored
for the needs of vulnerable groups, such as women, the
elderly, youth, micro and small enterprises, and rural popu-
lations. In doing so, it is necessary to mitigate new consumer
risks and risks to financial well-being, such as the risk of over
indebtedness among vulnerable segments.
yKey consideration 5.2. Support DPIs in introducing fea-
tures and services that enable FSPs to better protect their
customers from a range of risks inherent to DFS and help
increase trust in the financial system.
yKey consideration 5.3. DPIs may be designed to have sound
data governance measures, and also safeguard personal
data and privacy via technical and operational measures to
complement legal measures.
yKey consideration 5.4. Encourage DPIs to support FSPs to
enhance the digital and financial literacy and awareness of
their customers and support their financial well-being.
75. See also OECD (2022) and (2020).

Encouraging and fostering knowledge sharing on the
design, development, and operations of DPIs, and the transformative
impact of DPIs. . . . will help motivate and accelerate the adoption
of DPIs more widely across the world and lead to further
improvement and refinement of DPIs in countries that have
already implemented them.

POTENTIAL AREAS FOR FURTHER EXPLORATION
This document presents a broad overview of the potential
of DPIs and what public authorities can do to successfully
harness their potential to advance financial inclusion and
productivity gains. Future collaboration could be considered
on three fronts to accelerate the adoption of DPIs globally.
First, encouraging and fostering knowledge sharing on
the design, development, and operations of DPIs, and the
transformative impact of DPIs. Such initiatives will help moti-
vate and accelerate the adoption of DPIs more widely across
the world and lead to further improvement and refinement of
DPIs in countries that have already implemented them. More-
over, such knowledge sharing will also demonstrate how coun-
tries with varied contexts and starting points have incorporated
and adapted DPIs into their respective contexts.
Second, capacity building: Successful adoption of DPIs
and their continuous improvement will require developing
expertise on a range of topics in a country across stake-
holders. Some of these are standardized skills, such as proj-
ect management, technology development, and policy making.
Over and beyond this, getting the orientation and mindset right
is important, and this requires specific attention to capacity
building efforts.
Third, cross-border linkage of DPIs: This paper discusses
some of the financial inclusion and productivity gains
that can arise from leveraging cross-border links of
DPIs. There are some early efforts in this area in bilateral and
regional contexts. The learnings and experiences from these
could inform further efforts. SSBs are also considering the
legal, regulatory, technical, and operational factors associated
with interlinking DPIs.
The G20 and, more specifically, the GPFI can play an
important role in advancing on all these three fronts.
6
42

While leveraging DPIs for advancing financial inclusion and
productivity gains, public authorities should consider a set of
design and operational principles to ensure efficiency, inclusivity,
resiliency, privacy, and security.

COUNTRY CASE STUDIES
7.1 Digital ID, Digital Payments, and
Data Exchange Infrastructure in Action:
Country Case Studies
7.1.1 Argentina
76
Payments by Transfer
The Central Bank of Argentina launched the Payments by
Transfer (PCTs) initiative by the end of 2020 to promote open
and universal digital payments and achieve greater inclusion of
those sectors that use no financial services. PCTs is a method
which involves making payments on purchases of goods and
services by way of instant transfers and operates mainly
through (i) bank or payment service provider wallets by reading
a QR code, and (ii) debit and prepaid cards at POS terminals
(fixed and mobile POS solutions). The implementation of the
PCTs scheme was completed in November 2021. This means
that users may make QR code payments from a single (bank
or electronic) wallet at different stores, and merchants can be
paid from different wallets with a single QR code. Both types
of wallets are linked to a bank account or a payment account,
which allows funds to be transferred from users to merchants
immediately and irrevocably. For a merchant, the benefits of
PCTs over other electronic means of payments include instant
crediting of funds for a fee not exceeding 8 per thousand (which
could be over 6 percent outside this scheme). The high rate of
smartphone users, the significant rate of bank and payment
account holding among adults (which mostly involves having
an electronic wallet), and the high penetration rate of QR code
acquiring at a national level have paved the way for the develop-
ment of this type of payment method. In 2022, each adult made
an average of 3.5 monthly payments through PCTs, registering
an increase of 123 percent, compared to the previous year and
representing two of every 10 payments by electronic means.
Digital Identity
On October 30, 2019, the virtual credential of the National
Identity Document for smart mobile devices was introduced in
Argentina by Decree No. 744/2019. It is a centralized platform
controlled by the National Registry of Persons (RENAPER in
Spanish). It is a 360-degree tridimensional representation of the
physical ID card (an exact replica). It is optional and free for all
citizens and permanent residents over the age of 14. To obtain
it, a person must visit one of RENAPER’s offices or the office of
another authorized public entity and identify himself/herself.
He/she will receive a code by e-mail to activate the digital ID in
the Mi Argentina app (“My Argentina” in Spanish, a government
app) on one mobile device. (It cannot be activated on two, or it
will be blocked.) The digital ID will be downloaded on the device
and will be accessible offline. Digital ID is just a part of a broader
government digitalization agenda that seeks that all citizens can
access government services digitally (such as driver’s licenses,
social security numbers, even vaccination certificates) through
this app. Also, this public policy acts as a pillar to promote
access to and use of DFS, such as the remote opening of bank
and nonbank accounts for natural and legal persons.
7.1.2 Bangladesh
77
In 2008, the Government of Bangladesh laid out the Digi-
tal Bangladesh Vision 2021, in line with the nation’s target to
become a middle-income country. As part of this vision, a2i was
established in the Prime Minister’s Office to foster a culture of
innovation within the government, complemented by effective
strategies and operational elements.
7
76. Case study provided by Argentina. 77. Case study provided by the Better Than Cash Alliance with inputs from the
World Bank.
44

45   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
Bangladesh’s DPI strategy is based on a “Citizen’s Choice
Architecture” that enables beneficiary-citizens to choose how
they access public services, including how and where they
receive and make government payments. The main aim of this
approach is to reduce the time and cost of accessing public
services, and lessen the frequency of interactions, for citizens
and businesses. Additionally, it seeks to minimize the time and
expense required to introduce and update services.
With a dedicated focus on promoting open (stacked/layered/
modular) architecture, including implementing open source
when possible, a combination of all three layers of DPI—that
is, ID, payments, and data exchange—is in operation in Bangla-
desh today.
78
yDigital identity: The national ID covers over 95 percent of the
adult population.
79.
Along with birth registration for children,
this means there is a unique ID that can be used by anyone
to access education, health, marriage, agriculture, and all
social protection schemes. The Bangladesh Bank also issued
e-KYC regulations to enable swift account opening.
yDigital payments: Tied to the near-ubiquitous NID infra-
structure Porichoy (meaning “Identity”) and e-KYC regula-
tion, all G2P payments—covering 30 million beneficiaries
80
)
—and a substantial number of P2G payments (integrated
with the one-stop virtual shop “MyGov,” featuring more than
1,600 public services) are facilitated through interconnected
platforms, such as EkPay (“One Pay”) and Binimoy (an
interoperable payment platform), which are connected to all
banks and mobile financial services operators.
yData exchange: Mapping, correlation, and triangulation of
massive amounts of data across various ministries as well
as public and private agencies, including mobile phone data-
bases, government employee databases, pensions data-
bases, and savings certificates databases, among others,
significantly improved targeting by helping weed out individ-
uals undeserving of social safety net payments.
Role and Impact on Financial Inclusion
By 2015, Bangladesh had begun to experiment with digitizing
G2P payments. Several social safety net programs among the
more than 100 in place, accounting for nearly 13 percent of the
annual budget, were experimenting with various digital pay-
ment approaches—often through a customized arrangement
with a single vendor or provider.
a2i saw an opportunity to establish a system-wide approach to
channeling multiple, if not all, government payment flows. a2i
began to articulate the vision for a “Citizen’s Choice Architec-
ture” by emphasizing that citizens could make choices on how
and where to receive payments from, and make payments to,
the government.
81
The vision simultaneously linked to a wider
aspiration for digital finance: that government payments ought
to reinforce wider goals of interoperability, competition among
providers, and more inclusive open systems.
Working closely with the Cabinet Office and the government’s
ICT ministry, a2i brought together various stakeholders, includ-
ing the finance ministry, all line ministries, the central bank, and
other relevant regulators, such as those for telecommunica-
tions, microfinance, insurance, the election commission, state-
owned banks, private sector banks, mobile FSPs, insurance
companies, and development partners, to implement a unified,
system-wide approach to developing a DPI that supports the
nation’s aspiration for greater financial inclusion. This imple-
mentation of DPI, comprising ID, payments, and data-exchange
layers, moving toward the achievement of Digital Bangladesh,
82

was further accelerated by the onset of the COVID-19 pan-
demic.
83
For instance, the deployment of DPIs during the pan-
demic allowed rapid social protection services to be extended
to five million “new poor” households. Similarly, wage payments
were distributed to an additional four million garment workers.
Such DPI-enabled responses not only effectively addressed the
immediate socioeconomic challenges presented by the pan-
demic but also made significant contributions to the broader
financial inclusion efforts of the government.
The Government of Bangladesh’s next steps include plans to
ensure comprehensive access to financial services for every
individual, including through full-service, personalized banking
accounts for all citizens by 2030. The government also seeks
to enhance the effectiveness and efficiency of social safety net
schemes, by leveraging the power of AI to target beneficiaries
and ensure that benefits reach those who need them the most.
Lastly, the government is also focused on improving the pro-
vision of anticipatory financial interventions for emergency
situations.
78. Bangladesh’s DPI is the product of “Digital Bangladesh Vision 2021”—a
clear and unwavering political commitment in line with the 2030 Agenda for
Sustainable Development. It was a strategy that invested in building blocks
of digital and societal innovation that delivered frugal solutions, at scale, to
the masses and help bridge the digital divide. Since 2022, Bangladesh has
renewed this commitment through the proclamation of “Smart Bangladesh
Vision 2041.”
79. Bangladesh Election Commission, National Identity Registration Wing, http://
www.nidw.gov.bd/index.php.
80. World Bank (2019).
81. It is important to note that choice of providers by beneficiaries is not yet
implemented and is currently under discussion.
82. Milestones for Smart Bangladesh 2041: 100 percent cashless economy, per-
sonalized DFS, and products that cater to the needs of specific marginalized
groups (such as the elderly, persons with disabilities, street vendors, indige-
nous populations, and so forth).
83. Hasan (2021).

46   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
Overall, the government has taken a long-term approach to
building DPI, continuously scanning for emerging trends,
adapting global best practices to suit local contexts, and ensur-
ing a forward-thinking and adaptable strategy for achieving
digital equity enabled by DPI at scale.
7.1.3 Colombia
84
Colombia has adopted a comprehensive “whole-of-govern-
ment” digital strategy encompassing components of DPI. The
strategy was developed through coordination among several
agencies: The Ministry of ICT (MinTIC) had primary responsibil-
ity for the formulation of the Gobierno Digital (“Digital Govern-
ment”) policy (2018); the National Registry was responsible for
the development of the digital ID (2020); and the central bank
(Banco de la República) led the development of the upcoming
interoperable faster payments platform, set to be launched in
2024. Details on the development of the components of the
DPI have been included in the National Development Plans,
which coordinate public policies across government.
yDigital ID: The National Registry launched the Cédula Dig -
ital in 2020, enabling residents to create a digital version of
their national ID card on their smartphone by downloading
an app from the National Registry of Civil Status, scanning
a QR code, and authenticating their identity using facial rec-
ognition. By 2022, over half a million digital IDs had been
issued, and citizens possessing the digital ID could use the
document as a passport to travel to several countries in the
Andean region of South America.
yData exchange: The eGovernment Strategy was introduced
to improve procedures and digital public services for both
firms and households. One of the key initiatives under this
strategy includes the Servicios Ciudadanos Digitales (“Dig -
ital Citizen Services”) initiative, which facilitates and simpli-
fies the process of filing and accessing key documents by
citizens, such as birth certificates and medical records. The
reliability and security are ensured by an electronic authen-
tication system, along with the carpeta ciudadana data
exchange, which is an implementation of X-Road. This ini-
tiative seeks to ensure secure and seamless data exchange
between different public entities and to enable the verifica-
tion of citizen information. The eGovernment strategy also
includes the Open Data (Datos Abiertos) initiative, which
makes government data publicly available and encourages
the development of apps that use the data.
yDigital payments: For the design and development of the
interoperable payments layer of DPI that is currently under-
way, the government drew inspiration from Pix from Brazil,
the New Payments Platform (NPP) in Australia, FAST in Sin-
gapore, and UPI in India, among others. Based on recom-
mendations from the 2021 Financial Sector Assessment
Program, the central bank is currently steering the develop-
ment of the faster payment system SPI. The design process
is being carried out in collaboration with the private sector,
emphasizing co-creation and in adherence with the princi-
ples of interoperability, efficiency, and inclusion. To ensure
full interoperability within the ecosystem, the SPI-BR will
also be interconnected with private players, offering the
same use cases, such as P2Band P2B-transactions, already
operating in the digital payment ecosystem.
Additionally, to facilitate discussions among stakeholders
from the wider ecosystem, the central bank also created a
Payment Systems Forum, which invited financial regulators,
such as the Superintendency of Banks and the Financial
Regulation Unit, as well as representatives from the finan-
cial sector: banks, fintech companies, and e-money issuers.
The Better Than Cash Alliance funded the technical assis-
tance to foster discussion among stakeholders participating
in the forum and facilitated knowledge exchanges between
regulators and faster payment operators in Ghana, Jordan,
and the Philippines. The discussions in the forum were orga-
nized into four working groups working on key areas relat-
ing to clearance and settlement mechanisms, the operative
model, and technical requirements.
Based on the forum´s discussions, which spanned from August
to December 2022, participants agreed that driving adoption
of the payment architecture would require a new clearinghouse
that would guarantee universal access, ensure full interopera-
bility, and support multiple use cases. In particular, the SPI will
have a centralized directory and a settlement model that pro-
vides 24/7 gross settlement in real time, administered by the
Banco de la República, to ensure the security and efficiency of
the system’s architecture. Additionally, standard QR codes for
all cases and the adoption of a common brand will be imple-
mented to ensure a seamless user experience. The immediate
payment system will allow the operation of more than 30 mil-
lion digital wallets and purses in Colombia to be interoperable
in real time.
Role and Impact on Financial Inclusion
The Government of Colombia accelerated its digital G2P
payments journey during COVID-19 through their innovative
Ingreso Solidario program. The government leveraged its newly
enacted regulatory modernization, which supported the deliv-
ery of cash transfer payments into bank accounts and mobile
wallets. Through an ambitious partnership with multiple pay-
ment service providers, the program was able to identify and
84. Case study provided by the Better Than Cash Alliance with inputs from the
World Bank.

47   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
deliver payments to over 1.2 million beneficiaries through exist-
ing accounts, and to facilitate the account opening with choice
for the remaining 1.7 million unbanked beneficiaries.
The Government of Colombia anticipates that once the interop-
erable payments layer is fully implemented, over a span of 15
years, which is the typical timeframe for such systems to reach
maturity, use of cash in Colombia will decline. The govern-
ment’s next steps beyond the decision to promote an immedi-
ate payment system will be followed by an analysis to expand
cross-border payment offerings.
Overall, Colombia’s comprehensive and highly consultative
approach towards building and implementing DPI demon-
strates a strong commitment to ensuring that the country’s
digital economy enhances public services and supports its key
development priorities for years to come.
7.1.4 Ghana
85
The Government of Ghana is committed to developing a dig-
ital-based economy to foster efficiency, transparency, and
accountability in the delivery of services to citizens. This com-
mitment includes investing in developing DPI aimed at combat-
ing corruption, bringing more Ghanaians into the formal sector,
and driving domestic revenue mobilization. The government
identified three key foundational elements to address some of
the root causes of exclusion for ordinary citizens: (i) a unique
national ID, (ii) a digital residential and business address, and
(iii) the interoperability of all financial channels.
Digital Identity
Prior to launching the biometric unique national ID in 2017,
there were nine separate identity databases across various
public sector entities.
86
The National Identification Authority
(NIA) was assigned to collect and bear custody of citizens’ bio-
metric traits, replacing the numerous databases that existed
before. The new Ghanaian card was designed with technolo-
gies that enabled universal access for all citizens. The NIA has
also enabled the registration of children from 0 to 5 years old
to rationalize birth registration and ensure social inclusion from
birth.
87
The rollout of the Ghanaian card is currently ongoing;
more than 80 percent of new registrations were issued with
their IDs by March 2023.
88
Interoperable Payments
Ghana is among the first countries to launch an integrated
interoperability system across banks, mobile money wallets,
and other channels through the national switch. The 2016
Ghana diagnostic by the Better Than Cash Alliance recom-
mended accelerating full interoperability for the government
to realize the full benefits of the digitization of payments.
Dubbed the “Financial Inclusion Triangle” by the Ghana Inter-
bank Payment and Settlement Systems (GhIPSS), the interop-
erable system connects three independently interoperable
platforms into a single window. The platform facilitates the
movement of funds to and from e-zwich cards, bank accounts,
and mobile wallets. This effort commenced in 2008 with the
launch of e-zwich cards, facilitating interoperability at bank
branch and retail levels. In 2012, GhIPSS enabled the interop-
erability of bank terminals and in 2018 launched the Mobile
Money Interoperability Platform (MMI). The MMI rides on an
instant inter-network switching and processing system which
interconnects mobile money systems of mobile money oper-
ators. It connects the MMI with the e-zwich System/gh-link
platform, and it also leverages the instant pay service of the
gh-link platform.
89
Role and Impact on Financial Inclusion
The Government of Ghana is also committed to leveraging
its digitalization efforts to increase financial inclusion and
improve payment efficiency while eliminating policy, regula-
tory, and infrastructure barriers impeding the development
of an inclusive DFS ecosystem. The launch of the National
Financial Inclusion and Development Strategy, the Digital
Finance Policy, and the Cashlite Roadmap, launched in 2020
with support from the Better Than Cash Alliance, further
strengthened the government’s commitment to deepen DFS
in the country.
90
For instance, the adoption of the digital ID issued by NIA has
enabled other stakeholders to run their applications, provid-
ing a significant opportunity to drive responsible digital finan-
cial inclusion and eliminate fraudulent transactions that had
previously existed due to the multi-ID system. Similarly, the
adoption of a national switch as the foundation for payment
interoperability eliminated the need for expensive and ineffi-
cient bilateral integrations. As a streamlined approach, it also
simplified scheme management, as all participants align on
various aspects, benefiting consumers who are spared off-
net expenses. Furthermore, new entrants can connect to the
switch effortlessly, offering consumers more options with-
out incurring high or additional costs. In 2022, interoperable
mobile money transactions reached 138 million, valued at
over $2 billion.
91
85. Case study provided by the Better Than Cash Alliance with inputs from the
World Bank.
86. Amoah et al. (2017).
87. Republic of Ghana (2017).
88. NIA (National Identification Authority), “Statistics,” https://nia.gov.gh/statis-
tics/.
89. Hesse (2019).
90. Republic of Ghana (2020).
91. GhIPSS (2022).

48   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
In 2021, the government launched the Ghana.gov platform,
a one-stop shop for accessing and paying for all government
services—building on previously launched platforms and lever-
aging foundational elements of unique IDs, addresses, and
interoperability. The Ghana.gov platform is available to citi-
zens, residents, and foreigners, making it an inclusive platform
for central government and subnational government services.
In the coming years, the government hopes to drive traffic to
the platform through onboarding more government services,
thereby fostering greater transparency and accountability in
service delivery.
Overall, while it is still early to measure the impact of the plat-
form, Ghana seems to have addressed the core fundamentals
required for a successful digital government platform—that
is, a national ID, an interoperable payment platform, and good
network coverage for easy connection to the platform.
7.1.5 Indonesia
92

Over the last decade, the Government of Indonesia has intro-
duced several initiatives aimed at strengthening its digital
economy and ensuring equitable access to its benefits for
all segments of the population. In particular, the government
remains keen on leveraging the improved internet access
among its population to bridge gaps in access to services and
economic opportunities. As per the National Socioeconomic
Survey (Susenas), from 2015 to 2021 the percentage of house-
holds accessing the internet nearly doubled, from 42 percent
to 82 percent.
Moreover, given that Indonesia faces acute climate risks,
including a high exposure to climate-related flooding—the gov-
ernment is also focused on deploying DPI capabilities, such as
for identity verification, e-KYC, and data exchange, to ensure
continuity of services and delivery of assistance during emer-
gency situations. Delays and challenges associated with the
rollout of the Kartu Prakerja cash transfer scheme during the
COVID-19 crisis further strengthened the government’s resolve
to strengthen its DPI capabilities for improving service delivery
and, consequently, citizens’ trust in the digital economy.
Digital Identity
Indonesia has made significant progress in developing its foun-
dational ID systems—that is, its population registration (PR)
and civil registration (CR) systems which are managed by the
General Directorate for Population and Civil Registration (Dit -
jen Dukcapil) in the Ministry of Home Affairs (MoHA). In 2010–
11, Ditjen Dukcapil digitalized the PR/CR systems, replacing
the resident ID card (KTP) with the electronic resident ID card
(e-KTP) and incorporating biometrics for deduplication and
identity verification. In terms of coverage, the 2021 Susenas
survey shows that 97 percent of the population had a national
identity number, and 88.4 percent aged 17 and below had a
birth certificate. The 2021 ID4D-Findex Survey also found that
97 percent of eligible adults possessed an e-KTP or a KTP (pre-
2011 version).
Given significant coverage, the Government of Indonesia is now
committed to improving the utilization and data security of its
ID system, with a concerted focus on building capabilities that
allow for secure, remote, and real-time verification of identity
necessary for access to both public and private services. To this
end, with support from the World Bank Group, the government
has implemented the ID for Inclusive Service Delivery and Dig-
ital Transformation Project for strengthening and increasing
usage of the digital ID systems.
Data Exchange
To support the delivery of targeted social protection assistance,
to discover exclusion errors in government programs, and to
monitor all the benefits being received by a particular house-
hold, the Government of Indonesia is also committed to build-
ing consent-based data sharing capabilities.
Digital Payments
Bank Indonesia has implemented the National Open API Pay -
ment Standard, abbreviated to SNAP, with the objective of fos-
tering a competitive and innovative payment system industry
while promoting integration, interconnectivity, and interop-
erability of the infrastructure. SNAP was developed by Bank
Indonesia in cooperation with payment system industry repre-
sentatives covering both technical and security standards, data
standards, and technical specifications as well as necessary
governance guidelines required for open API payments.
Additionally, to facilitate cashless payments, Bank Indonesia
and the Indonesian Payment System Association also devel-
oped the Quick Response Code Indonesia Standard (QRIS).
Role and Impact on Financial Inclusion
In 2016, the Government of Indonesia announced the National
Strategy for Financial Inclusion 2014–19, including a commit-
ment to digitize social assistance payments from 2017 onward.
Since 2017, cash transfers from the Program Keluarga Harapan
(PKH) have been distributed via state-owned banks, where
beneficiaries have the option to access social protection assis-
tance either by coming to the bank’s branches or bank agents
using their social welfare ID cards (KKS/ATM).
92. Case study prepared by the World Bank.

49   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
The Government of Indonesia’s ongoing efforts to expand its
biometric-based e-KYC capabilities as part of its comprehen-
sive financial inclusion strategy holds tremendous promise in
addressing gender and regional disparities in account owner-
ship and is likely to play a key role in realizing a more inclusive
financial landscape.
7.1.6 Philippines
93
The Government of the Philippines has implemented a compre-
hensive digital strategy to support the development of its econ-
omy, including through the establishment of laws and policies
for digital government. In 2016, the Department of Information
and Communication Technologies (DICT) was established as
the Philippines’ first cabinet-level agency dedicated to pro-
moting digitalization. In particular, the government has also
leveraged its national digital ID PhilSys and digital payment
capabilities that constitute its DPI to increase efficiency and
transparency in service delivery.
Digital Identity
The Philippine Statistics Authority (PSA) launched PhilSys
as the country’s foundational digital ID system with the
objectives of transforming how services are delivered and
accessed in the Philippines, to accelerate the transition to
a digital economy by enabling remote and seamless online
identity verification. The core identity system used in the
implementation of PhilSys is the Modular Open-Source
Identification Platform (MOSIP). Modular in architecture
and banks on open source, MOSIP provides flexibility in the
implementation and configuration of systems and helps
avoid vendor lock-in dependence.
Built on privacy-by-design principles, PhilSys adopts PSN toke-
nization
94
to ensure data privacy and protection within the dig-
ital ecosystem and prioritizes citizen ownership and ability to
manage the use of their credentials as key features of the sys-
tem. As of April 21, 2023, more than 78.2 million
95
Filipinos had
successfully registered with PhilSys.
Since its implementation, the Central Bank of Philippines
(Bangko Sentral ng Pilipinas, or BSP), has been one of the
strongest drivers in creating an enabling regulatory environ-
ment for its supervised entities to leverage PhilSys authentica-
tion and verification services.
Digital Payments
PhilPaSS
plus
is the Philippines’ highly automated RTGS system,
which was upgraded in 2020. It is the lone Philippine peso RTGS
system that is owned and operated by the BSP through the BSP
Payments and Settlements Department and serves as a prime
example of DPI. It enables efficient and low-risk settlement of
large-value transfers between financial institutions. Addition-
ally, settling retail payments via PhilPaSS
plus
ensures that indi-
viduals, businesses, and the government can send and receive
money through several channels—check, ATM, InstaPay, and
PESONet—and serves as the foundation for the interoperability
of digital payments in the Philippines.
Role and Impact on Financial Inclusion:
The financial inclusion landscape of the Philippines, measured
by account ownership, has changed drastically due to height-
ened needs for use of accounts for payments. In particular, the
implementation of PhilSys, the national digital ID system, along
with the use of e-KYC (as per guidance
96
issued by the BSP)
in the customer onboarding process for supervised financial
institutions, played a key role in accelerating digital financial
inclusion by overcoming the obstacle of inadequate identity
documentation. A total of 8.4 million PhilSys registrants have
opened a bank account for the first time through the colocation
strategy of the registration centers with the Landbank of the
Philippines.
97
The value proposition of account ownership as a convenient
payment tool has also been bolstered by payment interopera-
bility. This addresses a common barrier, of not having a need
for an account, which has consistently been cited as a top rea-
son for not owning one. The share of accountholders who use
their account for payment-related transactions—such as fund
transfers and bill payments—rose to 78 percent in 2021 from
47 percent in 2019. Overall, account ownership has increased
significantly, to 56 percent in 2021 from 29 percent in 2019.
The National QR Code Standard, dubbed “QR Ph” (BSP Circu-
lar No. 1055), launched in November 2019, which leverages the
efficiency, safety, and affordability of the QR technology using
the InstaPay channel, has also been instrumental in driving the
overall growth of digital payments. In particular, it has enabled
micro and small merchants, many of whom are women, to
accept digital payments. The adoption of faster, more afford-
able, and convenient interoperable payment channels such as
QR Ph, which is essential for driving merchant payments, is a
key use case for the overall growth of digital payments in the
93. Case study provided by the Better Than Cash Alliance with inputs from the
World Bank.
94. PSA (2021).
95. Per the Philippines Statistics Authority.
96. BSP Circular No. 1170, dated March 30, 2023.
97 . PSA (2023). d

50   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
country and aligns with the BSP’s target to digitalize 50 percent
of all retail payments (by volume) by 2023.
The two newest digital payment facilities,—Bills Pay PH and
PESONet Multiple Batch Settlement (MBS), were both priori-
tized as a result of models developed together with the Better
Than Cash Alliance. With Bills Pay Ph, users have expanded
access to billers beyond their own provider, eliminating the
need for multiple accounts just to pay various service provid-
ers. MBS supports P2B payments through faster clearing and
settlement of PESONet transfers, thereby allowing receipt of
funds before the end of the banking day.
Through these investments in DPIs, the Philippines has seen
remarkable growth in retail payments (by volume) digitized,
from 1 percent in 2013 to more than 30 percent in 2021.
98
In the
years to come, the government of the Philippines remains com-
mitted to furthering the DPI approach, to speed up the coun-
try’s digital transformation and enable government services to
become smarter and more citizen-centric.
7.1.7 Rwanda
99
The Government of Rwanda maintains a strong commitment
to establishing a seamless delivery of public services by lever-
aging DPI and has made significant progress on this front. Over
the past 30 years, the government has achieved over 96 per-
cent 4G coverage, an indication of its commitment to realizing
an inclusive and competitive digital economy.
100
Rwanda’s jour-
ney toward digitizing government services has taken place over
three phases: The first (NICI-III, 2005–15) saw the digitization
of an initial set of enabler registries (NIDA, NPPA, RRA, RDB,
Land, MoH, MIFOTRA) to a rate of 15 percent. The second phase
saw the launch of a single portal platform, IremboGov, which
undertook the digitization of highly impactful citizen-centric
services to a rate of about 58 percent. The third phase looks
to digitize the remaining 800 manual and semidigital services
by leveraging the power of private technical companies and the
launch of a “low-code, no-code” platform by 2024.
Irembo
101
is a citizen e-service platform set up through a public-
private partnership (PPP) arrangement between the Govern-
ment of Rwanda and Rwanda-Online in 2014. The platform
facilitates easy access to government services, enabling
applicants to pay digitally for government services. With more
than nine million subscribers accessing the services digitally,
thousands without connection rely on Irembo agents across
the country to access the online services (World Bank 2020b).
As of September 2022, Rwanda offered 300 digital services
and intends to digitize the remaining 600 services within the
next two years.
Rwanda’s flagship Vision 2020 Umurenge Program (VUP),
which provides social assistance payments to nearly two mil-
lion individuals (approximately 500,000 households), is scaling
up efforts to digitize payments to recipients into accounts of
their choice. The underlying infrastructure to support identi-
fication, trusted data exchange, and payment interoperability
will be integral to attaining end-to-end digitization of VUP pay-
ments and more broadly strengthening the ecosystem for digi-
tal payments across the country.
Digital Identity
The Government of Rwanda considers digital identity to be a
foundational requirement, critical for ensuring that citizens are
able to participate productively in regional and global economic
activity. Ninety-nine percent of all eligible citizens have an ID,
making Rwanda’s national ID system one of the strongest in
Africa.
102
The National Identity Agency (NIDA) is entrusted with main-
taining the national population register (NPR), an electronic
database centrally located at the NIDA facility. NIDA is also
responsible for issuing national biometric ID card to persons 16
years of age and older. Additionally, NIDA purports to provide
real-time in-person authentication services,
103
enabling access
to both public and private agencies, which has helped in stream-
lining identity verification for service delivery across various
sectors. In 2014, Rwanda joined Uganda and Kenya to facilitate
cross-border movement using their national ID systems in lieu
of passports, based on a reciprocal agreement under the North-
ern Corridor Integration Projects and East African Community.
Starting in 2023, the government plans to modernize its ID eco-
system by leveraging financing from the World Bank and Asian
Infrastructure Investment Bank. NIDA will be introducing a Sin-
gle Digital ID (SDID) as an inclusive and trusted digital ID and
authentication framework, featuring the development of a new
data and digital authentication layer that leverages the existing
NPR, civil registration and vital statistics, foreigner registration
systems, and other authoritative data sources. These upgrades
are envisioned to bring Rwanda’s ID ecosystem in alignment
with the Principles on Identification for Sustainable Develop-
98. Sivalingam and Bhandari (2023).
99. Case study prepared by the Better Than Cash Alliance and the World Bank.
100. DPGA (2022).
101. Irembo.Gov, https://irembo.gov.rw/home/citizen/all_services.
102. Mukesha (2019).
103. ID4D (2016).

51   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
ment and the new Personal Data Protection and Privacy Law
(2021). Activities financed will include the introduction of new
ID credentials, promotion of emerging approaches to digital ID,
and support for the adoption of new ways to verify identity in
the context of in-person and fully remote service delivery in key
sectors. Digitalization of select civil records will facilitate SDID
preregistration and improve the government’s ability to offer
seamless e-services that require proof of vital events.
Digital Payments
The Government of Rwanda and the National Bank of Rwanda
have emphasized their commitment to encourage the use of
e-payment systems that enable interoperability through the
Rwanda National Payment System Framework and Strategy
2018–24
104
The Rwanda National Digital Payments System
105

business plan approved in 2018 also provides a roadmap to full
interoperability.
RSwitch aims to serve as the national e-payment switch
that facilitates interoperability of transactions across banks,
mobile network operators, and other FSPs. In 2022, RSwitch
launched eKash (Phase I), aimed at interoperability between
the two mobile money providers in Rwanda that are now fully
onboarded. Under this arrangement, users are able to transfer
funds across mobile network operators at no additional cost.
106

Phase II of the project focuses on onboarding banks and other
FSPs, which will be essential to expanding the usage of P2P
transactions and introducing new interoperable use cases,
including G2P, P2G, P2B, B2P, B2B, and cash-in, cash-out—
essentially focusing on establishing a comprehensive interop-
erable ecosystem for payments. The Government of Rwanda
is also working with the digital public good (Mojaloop) for its
ongoing work on enabling interoperable payment systems.
Impact on Financial Inclusion
The Government of Rwanda has set a target of achieving uni-
versal financial inclusion by 2024, recognizing that interopera-
bility of payment systems would be crucial to realizing this goal.
It will also be integral to bridging the gap between having access
to formal financial services and using them, where everyone, for
example, can progress from having access to an account to also
using an account or making digital payments with confidence.
The government’s efforts under VUP to move from cash-based
payments through savings and credit cooperative organizations
(SACCOs) to digital payments into an account of the beneficia-
ry’s choice will be key not only to closing the remaining gaps in
financial inclusion but also contributing to building a stronger
digital payment ecosystem. In 2021, the program piloted digital
payments to VUP recipients using mobile money in six districts.
Under an assessment using focus group discussions and key
informant interviews to understand the pilot’s impact, most
beneficiaries reported that receiving their VUP payments dig-
itally made their lives easier. In particular, beneficiaries noted
that digital payments enhanced decision making and privacy,
reduced travel costs and time, and increased flexibility.
Rwanda has indeed made great strides in advancing financial
inclusion. According to the 2020 FinScope survey, 93 percent of
Rwandans (about seven million adults) are financially included
in terms of accessing and using both formal and informal finan-
cial products. Additionally, approximately 77 percent use formal
financial products offered by banks and formal nonbank finan-
cial institutions, such as telcos, microfinance institutions and
SACCOS, insurance companies, and others. The Government
of Rwanda’s Budget Framework Paper (fiscal years 2021–24),
which now includes policy commitments on digital government
payments at scale, will be critical to sustaining this progress
and ensuring ongoing usage of formal financial services.
7.1.8 Saudi Arabia
107
The Kingdom of Saudi Arabia has implemented its reform plan,
Vision 2030, for sustainable development and growth. Vision
2030 aims to create a vibrant society with a strong foundation
for economic prosperity, a thriving economy providing eco-
nomic opportunities for all, and an ambitious nation with an
effective and transparent government. Saudi Arabia has made
significant investments in its digital infrastructure, including
high-speed broadband, expanding its coverage and capacity
within and around cities, and improving its quality.
DPIs play a transformative role in achieving a sustainable future
in Saudi Arabia, enabling the country to progress toward attain-
ing SDGs.
yDigital identity: Saudi Arabia has created a digital ID man-
agement platform that allows citizens and residents to
obtain and manage their digital identities similarly to their
physical ones. The platform provides centralized access to
all government services in one place; over 6,000 e-govern-
ment services are currently available through the portal.
104. https://www.bnr.rw/payment-systems/policies/?tx_bnrdocument-
manager_frontend%5Bdocument%5D=209&tx_bnrdocumentman-
ager_frontend%5Baction%5D=download&tx_bnrdocumentman-
ager_frontend%5Bcontroller%5D=Document&cHash=99f1bb2e-
46865242a30cbe8df8127020
105. National Bank of Rwanda, “Policies,” https://www.bnr.rw/payment-systems/
policies/.
106. RSwitch, https://rswitch.co.rw/#.
107. Case study provided by Saudi Arabia.

52   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
yDigital payment: Mada is an innovative e-payment network
launched in Saudi Arabia in 2015 to promote growth in ATMs
and POS services.
i. Mada connects all ATMs and POS terminals offered by
local banks in Saudi Arabia to a central payment switch,
enabling the secure and efficient transfer of financial
transactions between a merchant’s bank and the card
issuer bank.
ii. Naqd: This service allows customers to request a cash
amount of up to SRIs 400 right at point-of-sale terminals
compatible with Mada standards. There is no need to visit
the ATM, as the cash amount will be deducted directly
from the customer’s personal bank account along with
the purchase amount. All Mada debit cards support this
feature.
iii. SARIE, the Saudi Arabian Riyal Interbank Express, is a
state-of-the-art payment and settlement system that
operates on the concept of RTGS. It has revolutionized
the electronic banking and commerce industry since its
inception. SARIE IPS offers an efficient platform for finan-
cial transactions between local banks, offering custom-
ers instant money transfers accessible 24/7, regardless
of conventional banking hours and restrictions.
yData exchange: The Saudi National Information Center pro-
vides a secure and reliable infrastructure for government
entities to exchange data and communicate seamlessly.
The center is responsible for developing, hosting, and oper-
ating the National Data Bank, which plays a crucial role in
managing government data and providing access to reliable
information for decision-making purposes.
Role and Impact on Financial Inclusion
Digital ID is a crucial component in establishing an ecosystem
for financial inclusion. It enables individuals to access financial
services and conduct transactions digitally. The establishment
of Nafath, the digital management platform in Saudi Arabia,
has eased the use of digital ID and provides access to financial
services and all government services through a single portal.
The establishment of electronic payment networks such as
Mada, Naqd, and SARIE has fueled financial inclusion and pro-
ductivity in Saudi Arabia. These networks provide seamless
and secure financial transactions across local banks, offering
a range of payment options, including NFC technology and
RTGS. Their implementation not only has contributed signifi-
cantly to the realization of the SDGs in the country but has also
facilitated the development of a robust and inclusive financial
system through the establishment of DPI. By reducing the
cost of financial transactions, these networks have improved
access to financial services for individuals, small businesses,
and government sectors. This has enhanced overall financial
inclusion, contributing to the country’s overall development
and progress. Moreover, these organizations hold the utmost
importance in advancing Saudi Arabia’s digital transforma-
tion agenda. They are a vital component in achieving SDGs. By
leveraging its digital infrastructure ecosystem, the Kingdom
can strengthen its competitiveness, foster the creation of new
job opportunities, and ultimately enhance the quality of life for
its citizens and residents.
7.2 Case Studies on Programs/Initiatives
to Advance Financial Inclusion
7.2.1  Jan Dhan for Advancing Financial Inclusion:
India
108
Jan Dhan
Over the last decade, the Government of India has success-
fully leveraged its robust DPI to support key development
priorities, such as financial inclusion and women’s economic
empowerment.
In particular, the digital ID (Aadhaar)–)-enabled e-KYC process
simplified the opening of accounts under the Pradhan Mantri
Jan Dhan Yojana (PMJDY), or “National Mission for Financial
Inclusion.”
109
This initiative of the Government of India, implemented in 2014
to ensure affordable access to financial services, brought mil-
lions into the formal banking sector. Moreover, the JAM pipeline,
created through the consent-based linking of beneficiaries’ Jan
Dhan bank accounts with their Aadhaar and mobile numbers,
facilitated instant Direct Benefit Transfers (DBT) to those eligi-
ble government welfare schemes. Since its launch, the number
of PMJDY accounts opened tripled from 147.2 million in March
2015 to 462 million by June 2022; women own 56 percent of
these accounts, more than 260 million.
Jan Dhan Plus for Advancing Financial Inclusion of Women
To enhance the adoption and usage of this DPI-enabled ini-
tiative, particularly among low-income rural women, Bank of
Baroda, the third largest public sector bank in India in collab-
oration with Women’s World banking (WWB), launched an
innovative savings solution—the Jan Dhan Plus program—Jan
Dhan Plus rests on the following four design principles:
108. Case study provided by WWB (2022).
109. Government of India, “Pradhan Mantri Jan Dhan Yojana (PMJDY),” https://
pmjdy.gov.in/.

53   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
yEncourage low-income women to start saving amounts as
small as $5 a month.
yMake savings rewarding for women by highlighting how
savings behaviour can lead to opportunities for accessing
microcredit, microinsurance, and pension benefits.
yBuild digital financial capability of business correspondents
or bank agents, making them more gender intentional and
relationship oriented in their approach.
yConduct information education communication campaigns
for the end customers (primarily low-income women),
including through marketing activities. For the same, the
program leveraged community-level business correspon-
dent sakhis
110
(or women bank agents) of the government’s
National Rural Livelihoods Mission (NRLM)
111
program to
reach remote areas in rural India.
The following are some of key insights gathered from the Jan
Dhan Plus intervention so far:
ySavings-driven engagement is highly compelling and relevant
for women. Encouraging small savings and highlighting how
their savings history could lead to micro-credit/overdraft
loan facility, offering simple micro-insurance and pension
products and channel skilling, and leveraging agents’ chan-
nels proved to be the key drivers for encouraging women.
yCommunity camps have proven to be effective outreach
tools for communicating benefits and increasing product
uptake. It was observed that over 52 percent of people who
attended camps were able to recall the scheme even after
a month, indicating the effectiveness of agent-led camps in
fostering community awareness.
yLiaising with public-sector banks is vital for expanding a
customer base and achieving the scale necessary for eval-
uating impact. Facilitating capacity building and mentorship,
for improving the digital financial capability, of bank agents
is essential to make them more relationship oriented and
gender responsive. It was observed that 75 percent of bank
agents can be made productive through differentiated sup-
port and supervision, leading to quality conversations by
agents that deepened customer engagement, particularly
among rural women.
yTraining and mentorship play a key role in accelerating
the capacities of bank/business correspondent sakhis as
agents. It was observed that women who received training or
mentorship were able to outperform other agents, in terms
of their business volumes and incomes.
The pilots on JanDhan Plus were successful with Bank of
Baroda in both urban and rural contexts, leading to its sub-
sequent adoption by two more public-sector banks in India—
Indian Bank and Union Bank of India (UBI). The program has
reached over 12 million women customers so far (as of April
2023). Further, the savings-engaged women customers are
more valuable for the bank, as they reported over a 50 percent
increase in the average balances in just five months, as against
the entire portfolio in the same time period. Additionally, there
was a twofold increase in the number of bank or business cor-
respondent agents cross-selling micro-insurance and pension
schemes, leading to double the enrollments during the five-
month pilot period. The JanDhan Plus program highlights the
importance of savings-led engagement as a powerful tool to
build financial resilience among low-income women and their
households. According to a report by Women’s World Banking
and Bank of Baroda, it is estimated that by engaging 100 million
low-income women in savings activities, public sector banks in
India can attract approximately Rs 25,000 crore ($3.1 billion)
in deposits.
Overall, Jan Dhan Plus was instrumental in identifying challenges
specific to women, thereby creating numerous opportunities for
innovation, and gaining on-ground insights on product perfor-
mance. As a result, there was a deepening focus on designing
a program from a gender perspective, including by building the
digital financial capability of women agents who played a criti-
cal role in bridging the gap between the usage and adoption of
India’s DPI among underserved and financially excluded seg-
ments of the population.
7.2.2 Designing Digital Remittance Solutions for
Domestic Workers in Indonesia
112
Indonesia is among the fastest growing digital economies in
Southeast Asia, with a multistakeholder approach uniting the
government, regulators, associations, the private sector, and
societies in the provision of innovative solutions that support
the country’s development goals.
The Government of Indonesia has implemented concrete initia-
tives equipped with policy frameworks in recent years, stream-
lining service delivery by advancing its DPI agenda, including
110. Business correspondent sakhis are community-based banking agents under
the government’s National Rural Livelihoods Mission. Under this national pro-
gram, states are encouraged to identify one woman per village from existing
self-help groups to become a business correspondent sakhi.
111. Government of India, “National Rural Livelihoods Mission Bank Linkage,”
https://daynrlmbl.aajeevika.gov.in/HomePage.aspx.
112. Case study provided by Ang, Panggabean, and Thao (2022).

54   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
through the provision of identity verification and e-KYC ser-
vices, as well as a data-exchange platform to facilitate the
seamless and secure sharing of information across the govern-
ment. Over the past few years, the government has also been
focused on revamping its G2P architecture for the delivery of
social protection and other government payments, cementing
financial inclusion.
At the household level, remittance transfers play a key role in
furthering financial inclusion. However, many domestic work-
ers who rely on remittance support for their households often
choose informal channels that are typically riskier. Bear in mind
that almost half of the Indonesian adult population remains
unbanked, as reported by the World Bank.
To develop a safe digital remittance solution for domestic
workers to send money to their families and to increase their
engagement with formal financial services, WWB partnered
with DANA
113
Indonesia, one of Indonesia’s largest digital wallet
providers, on a five-month pilot.
As a part of this effort, in-depth qualitative interactions were
conducted to learn about the needs, barriers, and challenges of
domestic workers in using DFS to send money back home. For
the design of a digital remittance solution for the target group,
WWB found that the workers believed an ideal remittance ser-
vice would be fast, easy to use, reliable, and accessible (for
both the sender and the receiver)—features that a digital wallet
service providers like DANA Indonesia provide. However, the
workers also identified barriers to usage and adoption of the
service—namely, a complex sign-up process, low access to the
internet, a complex app interface, a lack of trust in e-money or
digital cash, and fear of making errors due to the workers’ lack
of understanding of DFS.
Based on the above challenges, a five-part solution for e-wal-
let services was designed for DANA Indonesia users to build
their trust and confidence in DANA as a remittance service.
Efforts were made to drive adoption through tutorials to sup-
port workers with limited digital financial literacy and through
(i) program pitch and onboarding, (ii) transaction tutorials, (iii)
key-customer marketing and messaging, (iv) timely notifica-
tions and reminders, and (v) incentives.
The solution was piloted throughout Indonesia for DANA’s
users in three phases lasting one to two months each. The
first and second phases showed positive results in facilitating
access to and use of DANA as a remittance service by domestic
workers. The third phase showed a substantial increase in its
engagement and usage.
The intervention pilot yielded the following key learnings:
yProgram awareness and targeted messaging efforts effec-
tively communicated the benefits and convenience of using
DANA.
yWhile employers offered limited support to facilitate the
signup/onboarding of domestic workers, a segment of tech-
savvy workers sought tutorials and videos independently,
and other workers learned with the support of family mem-
bers and peers.
Overall, DANA was perceived as a fast, easy, and secure method
for transactions, instilling confidence in its use for remittance
transfers. The program was successful, as it taught domestic
workers to use DANA for remittance transfers. Customers who
participated in the program also started using DANA for bill pay-
ments (electricity tokens and water bills), top-ups, and online
shopping. Further, they started using a feature for setting short-
term savings goals called DANA Goals. This is a testament to
how a financial technology can provide a people-centered solu-
tion for helping financial inclusion.
The success of the intervention can be attributed to the design
of the solution, which helped build the digital financial capa-
bilities of workers through a learn-by-doing approach coupled
with technological support of reminders, messages, and built-in
incentives to drive usage. Thus, a simple, innovative interven-
tion that effectively addresses the needs and challenges of
many low-income domestic workers in Indonesia highlights the
critical role that private-sector innovation plays in realizing an
inclusive digital economy.
The success of collaboration was also highlighted at the GPFI
in the margins of Indonesia’s G20 Presidency in October 2022.
With solutions that embedded seamless access to finance and
converted the unbanked to bankable, DANA has proven its
capability to achieve truly inclusive financial services.
7.2.3 Improving Digital Literacy in the United Arab
Emirates
114
The United Arab Emirates places great emphasis on the
empowerment of youth to increase financial inclusion. Consid-
ering the importance of digital literacy for individuals to access
and use DFS confidently and effectively, the country has under-
taken several initiatives.
113. DANA, https://www.dana.id/en.
114. Case study provided by the United Arab Emirates.

55   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
The UAE’s One Million Arab Coders (OMAC) program,
115
led by
the Dubai Future Foundation, is one such initiative. OMAC was
launched in 2017 with the goal of developing digital literacy
in Arab youth and preparing them for the future by providing
online programming courses. The program ultimately aims to
bridge the digital literacy gap, empower Arab youth with cod-
ing skills, and raise the next generation of technology experts.
OMAC equips Arab youth with digital skills that enhance
their employability in the job market. The initiative provides
online training and certifications and offers scholarships for
advanced sources such as nanotechnology, thereby empow-
ering youth and fostering tech innovation in communities and
tech economies.
The UAE’s Jahiz initiative
116
is another incentive that focuses
on enhancing digital skills. Jahiz was launched in 2022 by the
UAE Government to enhance the digital-skills readiness of the
government workforce. The initiative aims to equip government
employees with 20 major future skills within a year. It does so
through an interactive platform developed in partnership with
15 leading government entities and global companies. The main
objective of Jahiz is to ensure that government talents possess
the necessary skills in an ever-changing world and understand
the emerging trends that will shape the future. The initiative
focuses on four key groups of skills: digital skills, 10X skills, data
and AI skills, and new economy skills. These areas cover a wide
range of topics, including cybersecurity, digital transformation,
blockchain, AI, net-zero and climate change, and the digital
economy, among others.
116. United Arab Emirates, “Jahiz,” https://jahiz.gov.ae/?lang=en.
115. Dubai Future Foundation, “One Million Arab Coders,” https://www.dubaifu-
ture.ae/initiatives/capacity-building/one-million-arab-coders.

117. GPFI (2020b).
118. Specifically, OECD (2022) and (2020).
119. IFC and SME Finance Forum 2021; OECD 2021a; OECD 2021b; World Bank
Group 2021.
120. Brazil, Indonesia, Kenya, Republic of Korea, Mexico, Nigeria, Peru, Philip-
pines, Russia, Türkiye, United Kingdom.
ANNEX A
WORK DEVELOPED BY THE GPFI TO SUPPORT
FINANCIAL INCLUSION
G20 Financial Inclusion Action Plan 2020
The 2020 G20 Financial Inclusion Action Plan (FIAP)
117

came at a time of crisis, as the COVID-19 pandemic rep-
resented an extraordinary global challenge. Following
the leaders’ mandate in the Buenos Aires Declaration for the
GPFI to streamline its work program and structure, the GPFI
decided to prioritize its work under the 2020 G20 FIAP on dig-
ital financial inclusion and SME finance. As a result, the 2020
FIAP covers three components: (i) the GPFI’s overarching
objectives; (ii) action areas under the agreed prioritized top-
ics; and (iii) a set of cross-cutting issues and topics to be con-
sidered across the work of the GPFI.
Applicable G20 Principles and Work Done
under Previous Presidencies
Under the Italian G20 Presidency, the GPFI took stock of
countries’ strategies to tackle the challenges and seize
the opportunities for financial inclusion posed by the pan-
demic. Building upon the far-reaching work done during past
G20 Presidencies,
118
the GPFI implementing partners produced
four reports,
119
which present policy responses and innovative
approaches that have proved effective in mitigating the impact
of the crisis and could guide policy makers in designing the
recovery phase.
The 2010 G20 Principles for Innovative Financial Inclusion
spurred initial efforts and policy actions. The G20 Principles
for Innovative Financial Inclusion consist of nine core principles
for promoting financial inclusion, based on experience and
good practice, that form the basis of the G20’s Financial Inclu-
sion Action Plan. A report published by the Alliance for Financial
Inclusion in its capacity as implementing partner of the GPFI
describes how 11 countries
120
in five continents successfully
applied the principles and the lessons they learned in doing so.
In 2016, the G20 further published the HLPs for Digital
Financial Inclusion to build on that success by providing a
basis for country action plans reflecting country contexts
and national circumstances to leverage the huge potential
offered by digital technologies. These eight HLPs are based
on the rich experience reflected in G20 and non-G20 country
experiences, and on international standard-setting bodies’
standards and guidance.
The G20 HLPs for Digital Financial Inclusion are a cata-
lyst for action for the G20 to drive the adoption of digital
approaches to achieve financial inclusion goals, as well
as the related G20 goals of inclusive growth and increas-
ing women’s economic participation. The HLPs recognize
the urgency of providing the financially excluded and under-
served with high-quality and appropriate financial products
and services. The HLPs also recognize the need to use digi-
56

57   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
tal technologies to achieve this goal, where possible. Under-
served groups—which typically include poor people, women,
youth, and people living in remote rural areas—require special
attention. Vulnerable groups, such as migrants, elderly people,
and people with disabilities, may also need a particular focus.
Moreover, some excluded and vulnerable groups may not have
access to DFS or may be reluctant to adopt them, and this risk
needs to be managed and addressed proactively.
Further work was undertaken under previous G20 Presi-
dencies to facilitate these objectives. For instance, the 2017
G20/GPFI report Digital Financial Inclusion: Emerging Policy
Approaches under the German Presidency discusses emerging
country strategies and policy approaches to increase the use of
DFS, with a focus on the roles of policy makers and regulators
with respect to HLPs 1–4. The 2020 report G20 High-Level Pol-
icy Guidelines on Digital Financial Inclusion for Youth, Women
and SMEs under the Saudi Arabian Presidency further provides
sets of featured policy options targeting financial inclusion
gaps for youth (subject to child-protection frameworks where
relevant), women, and SMEs through DFS to reach conditions in
which all people can live, work, and thrive, as well as utilize and
share the benefits of innovations and digitization.
An effective way to implement the HLPs is through appli-
cable national strategies and related country action plans
or other country-level actions, which consider country
contexts and national circumstances. In 2022, under the
Indonesian Presidency, the GPFI published an implementa-
tion guide for the HLPs. This implementation guide focuses on
HLPs 1–6 and dedicates a chapter to each HLP, emphasizing
practical “how-to” approaches and replicable examples of good
practices. The implementation guide also features country case
studies and examples of good practices followed by G20 and
non-G20 member countries in implementing the HLPs.
In addition, box A.1 details policy options contained in existing
G20/GPFI guidance that are relevant to digitalization.
BOX A.1
Existing G20/GPFI Guidance and Policy Options
1. G20/GPFI: Menu of Policy Options for Digital
Financial Literacy and Financial Consumer and
MSME Protection (2021)
yFavor “protection by design”—that is, the design
of new digital financial products and services that
are oriented more to the needs of the financial con-
sumer, help prevent aggressive and unfair market
practices, and ensure the legitimate use of cus-
tomer data.
yAddress risks of online fraud and scams and mis-
management of personal data.
yStrengthen effective redress mechanisms to pro-
tect consumers.
yDeploy data collection and enhance market moni-
toring to improve financial services.
yUse behavioral insights to improve financial con-
sumer protection and financial education.
2. G20 High-Level Policy Guidelines on Digital
Financial Inclusion for Youth, Women and
SMEs (2020)
yConsider the needs, risks, and vulnerabilities of
women, youth, and SMEs in the digital environment in
the context of (i) the financial consumer (price, terms,
clear language) and (ii) data-protection approaches
(security, privacy and responsible use of alternative
data, and cybersecurity).
ySupport comprehensive consumer protections that
address women’s needs, including requirements to
disclose product prices and terms in clear language,
and appropriate measures to ensure data privacy and
security.
yMinimize the risks associated with the digitization of
SMEs, particularly by ensuring data-protection and
privacy rights and adequately managing cybersecu-
rity risks.
yEnsure the responsible use of alternative data consis-
tent with applicable laws and good practices related to
consumer protection, and remain vigilant to potential
financial stability risks.

58   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
BOX A.1, continued
3. Advancing the Digital Financial Inclusion of
Youth (2020)
yThe document highlights that almost half of the
world’s young people aged 15–24 remain unbanked.
It examines factors contributing to the financial
inclusion of youth and the role of DFS in meeting
their financial needs. Also, it explores opportunities
and challenges related to advancing youth digital
financial inclusion.
yThe document offers policy options to policy
makers, based on data, research, and country
approaches, to ensure the appropriate and safe dig-
ital financial inclusion of young people.
4. Advancing Women’s Digital Financial Inclusion
(2020)
yThe document outlines 10 policy options to enable
G20 members and other governments to work rap-
idly toward digital financial inclusion of all women.
yThese policy options will drive women’s greater
economic participation and speed up economic
recovery.
5. Promoting Digital and Innovative SME
Financing (2020)
yThe document provides an overview of how digital
technologies are helping to address the main bar-
riers/frictions to close the financing gap for SMEs
and takes stock of private, public, and private-pub-
lic partnerships to advance responsible DFS for
SMEs.
yThe solutions come with challenges and risks, and
the document presents regulators and policy mak-
ers with policy options and potential actions for
consideration.
6.  G20 Fukuoka Policy Priorities on Aging and
Financial Inclusion (2019)
y“Protect,” tackle financial abuse and fraud, and
“customize,” address the diverse needs of older
people.
yEncourage stakeholder engagement—a multisec-
toral approach.
7. G20 Policy Guide: Digitisation and Informality
(2018)
yAdapt oversight arrangements and capability for
financial consumer protection, and improve disclo-
sure and transparency.

ANNEX B
INTERLINKAGES BETWEEN DPIS AND
IMPLEMENTATION OF THE HLPS ON DIGITAL
FINANCIAL INCLUSION
59
High-Level Principles for
Digital Financial Inclusion Implications for DPIs
PRINCIPLE 1: Promote a
Digital Approach to
Financial Inclusion
yDigital financial inclusion involves the deployment of the cost-saving digital means to reach populations
that are currently financially excluded and underserved with a range of formal financial services suited
to their needs that are responsibly delivered at a cost affordable to customers and sustainable for
providers. DPIs facilitate digital financial inclusion by easing access to financial services by making
these ubiquitous through digital means.
yDPIs can be inclusive by design, enabling providers to offer digital services and products that cover the
needs of all segments of the population, including those of excluded and underserved citizens.
PRINCIPLE 2: Balance
Innovation and Risk to
Achieve Digital Financial
Inclusion
• DPIs can give rise to new and innovative business models that can help further digital financial
inclusion. However, DPIs and services that leverage these DPIs need to be regulated and overseen by
public authorities to ensure that risks are mitigated and they keep overarching public policy objectives
in mind.
PRINCIPLE 3: Provide an
Enabling and Proportionate
Legal and Regulatory Frame-
work for Digital Financial
Inclusion
• Legal and regulatory frameworks should be predictable, risk based, and fair, and they should not
impose excessive non-risk-based compliance costs. DPIs should be open by design, which entails that
these can be leveraged by different types of entities under competitive conditions.
• Access and participation requirements then need to be proportional to the risk that each participant or
user of the DPI poses to the infrastructure.
• Regulation and oversight of DPIs requires authorities to develop comprehensive and robust regulatory
and supervisory frameworks.
PRINCIPLE 4: Expand the
Digital Financial Services
Infrastructure Ecosystem
• The inclusive characteristics of DPIs and their role in servicing various societal needs ensure that basic
services and use cases that advance digital financial inclusion are provided or enabled by DPIs.
• This means that implementation or the expansion of a DPI becomes a priority for public and private
stakeholders, to provide the core infrastructure required for such purposes.
• Openness in DPIs also promotes that interoperability between different types of DPIs is enabled to
facilitate the provision and execution of end-to-end financial workflows.
• By assuming this role, DPIs enable other infrastructures to be built on top of them or as complement
to their services.

60   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
High-Level Principles for
Digital Financial Inclusion Implications for DPIs
PRINCIPLE 5: Establish
Responsible Digital Financial
Practices to Protect Consumers
• Effective financial consumer protection is essential to support meaningful digital financial inclusion,
particularly given newly emerging risks and the rapid onboarding of previously underserved users.
The use of DPIs can give rise to new risks and new manifestations of consumer risks that need to be
mitigated by financial-sector authorities.
• Effective customer protection tools, alongside effective grievance-redressal and dispute-resolution
mechanisms, are vital to empower customers and to help build trust in the usage of DPIs.
• The inclusiveness and openness of DPIs, as well as their systemic role, requires regulators and
operators to ensure high levels of transparency and the implementation of effective customer
protection mechanisms.
PRINCIPLE 6: Strengthen
Digital and Financial Literacy
and Awareness channels.
• Digital financial literacy is essential in supporting digital financial inclusion. As DFS—enabled by DPI—
are rapidly evolving, and new players and products and services are emerging, individuals need to be
equipped with the necessary skills to be aware of the characteristics, benefits, and risks of DFS, to be
able to use them safely and to know where to obtain information and help in case of need.
• In this respect, not only do consumers need financial literacy and digital skills, but they also need the
skills at the intersection of these elements, on what is referred to as “digital financial literacy”—that is,
a combination of the knowledge, skills, attitudes, and behaviors necessary for individuals to be aware of
and safely use DPIs with a view to contributing to their financial well-being. DPIs need to be responsible
and transparent, given their systemic role in serving societal needs; hence, their implementation and
improvement require that regulators and operators ensure that both providers and end users are able
to leverage their services.
• This requires public awareness campaigns and initiatives to ensure that the population is aware of the
products and services that are being enabled through DPIs.
• Furthermore, coordination between public and private stakeholders is required to ensure that the
products and services enabled by DPIs are deployed through inclusive user experiences and that
knowledge tools are designed and provided to reach different segments of the population.
PRINCIPLE 7: Facilitate
Customer Identification for
Digital Financial Services
• Digital ID infrastructure is a core DPI that helps advance digital financial inclusion, as it plays a significant
role in facilitating effective identification for DFS.
• Digital ID assists customers in accessing and using key financial services required by excluded users,
particularly account opening and access to credit, savings, and insurance products.
PRINCIPLE 8: Track Digital
Financial Inclusion Progress
• Implementation of this HLP should leverage new sources of digital data and enable stakeholders to
analyze and monitor the supply of, and demand for, DFS, as well as assess the impact of key programs
and reforms, including facilitating improved progress monitoring for vulnerable groups, such as women,
the elderly, youth, micro and small enterprises, and rural populations.
• The digital nature of DPIs as well as their potential to be interoperable or interlinked with other DPIs
allows for gathering information around take-up and usage of financial services and products.
• DPIs can facilitate the deployment of monitoring tools that can provide additional insights on the role
that DPIs are playing in advancing digital financial inclusion.

121. This includes, for example, CPMI and IOSCO (2012), which address system-
ically important payment systems, although the same principles or a subset
thereof are also typically applied to FPS and other retail payment systems.
ANNEX C
ADDITIONAL EXPLANATIONS FOR VOLUNTARY AND
NONBINDING POLICY RECOMMENDATIONS
Public and Private Collaboration
Ensuring all relevant stakeholder voices are considered in
the design and ongoing operations of DPIs is critical. Irre-
spective of the operational models, significant public-private
collaboration and coordination is required to develop standards,
protocols, and governance mechanisms. In this regard, public
authorities could (i) encourage and motivate the private sector
to contribute to the development of DPIs; (ii) ensure structured
and continuous coordination and collaboration among public
authorities and private sector stakeholders, regardless of the
ownership and operational model covering DPIs’ architecture,
design, standards, rollout, ongoing operations, and relevant
enablers of the DFE; (iii) ensure coordination between relevant
stakeholders to enable seamless interfaces between different
DPI components, potentially also on a cross-border basis, via
DPIs’ institutional arrangements, such as operational rules
and risk management frameworks; and (iv) ensure that tech-
nical and operational standards for DPIs are developed in close
cooperation and coordination among public and private sector
stakeholders.
In general, DPIs use in the financial sector can be roughly
equated to the role that financial infrastructures play.
Some of the DPIs—notably FPS—are considered as financial
infrastructure. Accordingly, the existing set of guidance and
best practices on regulating, supervising, and overseeing finan-
cial infrastructures could serve as a useful framework.
Regulation, Supervision, and Oversight
Principle-Based and Proportionate Regulatory,
Supervisory, and Oversight Framework
Implementation of a regulatory framework that addresses
all relevant DPIs and monitoring and mitigation of risks
due to the use of DPIs as well as those that the different
categories of participants and users bring to the ecosys-
tem is crucial. Regulation, supervision, and oversight should
be principles based, flexible, and proportionate to the speci-
ficities and risks posed by DPIs. Existing regulatory standards
and other good practices issued by the relevant standard set-
ting bodies already provide guidance on these matters.
121
The
standard best practices of how and when to regulate apply, and
the options range from (a) bringing them into the regulatory
framework to (b) regulating indirectly (for example, through
construct of outsourcing) or (c) leaving them outside but mon-
itoring them. Some might be completely outside regulatory
purview. As indicated earlier, in most jurisdictions, the payment
systems (in this case, the FPS), as per legal framework, needs to
be licensed/approved and would likely fall in category (a). While
digital ID would likely fall outside the direct purview of financial
sector regulators, the use of it in the financial sector might need
to be monitored by them. The modality of regulating could also
change over the lifecycle of a DPI and its intensity of use. The
public authorities could consider clearly defining and publicly
61

62   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
disclosing the criteria used to identify the DPIs under the three
categories—direct, indirect, and monitoring—for regulation/
supervision/oversight, including putting in place sound gover-
nance arrangements and risk management framework by DPIs.
Coordination between Relevant Authorities
Different public authorities could have overlapping pow-
ers with respect to DPIs. As such, financial sector author -
ities should cooperate with one another and with other
public authorities, both domestically and internationally, to
foster efficient communication, consultation, and coordination,
as needed. Such cooperation may need to be flexible for both
normal circumstances as well as in crisis situations.
Building Inclusive Products and Services
The design and implementation of DPIs need to consider
and mitigate the risks of financial exclusion of those with-
out or with limited digital access and skills or who face
other exclusion risks. For example, the gender digital divide in
access to the internet and mobile phones has been found to go
together with the increasing gender gap in account ownership.
In this regard, it is important for the public sector authorities to
consider the following:
yDPIs enable FSPs to offer essential financial products and
services for all sectors and groups of society, including the
most vulnerable.
yAdopt a human-centered design approach to ensure that
such financial products and services are accessible and
suitable to the needs of all groups accessing them, including
women, youth, MSMEs, the disabled, and the elderly.
yFSPs using DPIs may periodically assess if their products
and services are serving the needs of the segments access-
ing them. For instance, the appropriate credit products need
to be made accessible to vulnerable sections to prevent over
indebtedness.
yIn the absence of universal broadband and network connec-
tivity, DPIs may develop and enable offline solutions that can
provide for the underlying lack of connectivity.
yDPI operators may ensure, jointly with other stakeholders
of the DFE, that they do not add new barriers to access to
financial services, especially for vulnerable populations.
122
yDPIs can facilitate the availability of full and transparent
information on the functioning, features, and prices of finan-
cial services, in a form and manner
123
that is accessible by
different types of users.
yDPIs can have requirements to ensure minimum service
quality, especially for data services using data exchange.
Protection of Vulnerable and Formerly
Excluded Users
Financial Consumer Protection Supervision and
Complaint Handling
Financial sector protection supervisors can leverage DPIs
to further enhance supervision and enforcement of finan-
cial consumer protection laws and regulations, and con-
sumer redress mechanisms.
124
Examples include but are not
limited to the following:
yUsing DPIs to provide tools to the industry to support early
detection of misuse and fraud and support the industry in
addressing them
yInstituting programs and systems for reporting and sharing
fraudulent transactions, behaviors, and typologies
yProviding new channels for customers to raise complaints/
inquiries, which are channeled through to the relevant enti-
ties involved in the transaction chain, and then tracking and
enforcing preagreed response times
yProviding tools to FSPs to gather all the information neces-
sary to address customer complaints
Data Privacy
To safeguard personal data and privacy when providing finan-
cial services, public authorities could consider working with the
DPIs to facilitate the following:
yImplementation of rules and procedures to ensure that
financial institutions that access DPIs comply fully with
applicable data protection and privacy legislation
yEstablishment of measures to protect consumers against
data breaches, fraud, and misuse of customer informa-
tion from the use of DPIs and the data/information stored
therein
122. For example, the mandatory use of biometric verification, without alterna-
tives and exception handling, can create new barriers for populations that
have damaged or low-quality biometrics, such as the elderly and manual
laborers, whose fingerprints are significantly less recognizable than the gen-
eral population.
123. Including the use of simple language that is not excessively
124. Financial consumer protection measures adopted by national authorities
should be in accordance with international good practice, including the G20/
OECD HLPs for Financial Consumer Protection.

63   ADVANCING FINANCIAL INCLUSION AND PRODUCTIVITY GAINS THROUGH DIGITAL PUBLIC INFRASTRUCTURE
yDPIs and the FSPs leveraging them employ to the maxi-
mum extent possible the principles of “privacy by design,”
including (but not limited to) data minimization and pro-
portionality
yDPI operators and their agents have different levels of per-
missible access to customers’ data for employees, depend-
ing on the role they play and the need to access such data
Digital and Financial Literacy
Digital and financial literacy is essential in supporting
digital financial inclusion. Improving digital financial skills
can help financial consumers understand better the features
and risks of DFS so they are better able to protect themselves
against attempts of fraud and scams. Digital and financial liter-
acy efforts should consider the specific needs of various pop-
ulation segments based on their demographic characteristics,
educational needs, and cultural and financial contexts.
In addition to their own efforts to improve digital and finan-
cial literacy, as part of HLP 6, public sector authorities
could also consider some of the following measures:
yDPIs introduce features and services that FSPs can use to
enhance their own financial and digital literacy initiatives.
yProducts and services using DPIs consider the existing digi-
tal and financial literacy levels of the population and encour-
age financial and digital literacy campaigns that inform and
educate citizen about the various associated financial con-
sumer risks.
yDPIs work closely with financial sector providers to deploy
digital and financial literacy initiatives and programs to cover
the needs of different segments of society. In addition, it is
also important that implementers assess the impact of such
programs and initiatives and improve them accordingly.

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