With the world continuing to suffer the effects of the
Covid-19 pandemic, light is beginning to dawn with the advent of
clinically proven vaccines, that will enable a return to ‘normality’. However, around the globe, populations and
politicians are questioning the type of ‘normality’ we will
return to. Climate change, the destruction of nature, poverty,
inequality, gender equality and corruption were all on the rise
even before the pandemic struck. And while the all-consuming nature
of Covid-19 temporarily obscured these issues, as the dark clouds
lift, the issue of inequality has been brought to the fore like
never before, ironically due to the very nature of the pandemic and
how it has effected the different strata of society, unequally.
As the global economy is rebuilt, the public and policy makers
alike are demanding a course correction and are looking to the
United Nation’s Sustainable Development Goals (SDGs) as a
template for redevelopment. Resting at the heart of the SDGs, is
the concept of ‘agency’, the ability of all citizens to act
independently, contribute to society and affect their destiny.
However, without financial inclusion, the very concept of agency
may not be achieved.
In a research paper jointly produced by Labuan IBFC and Z/YEN
Group, which will soon be launched, the role that International
Financial Centres (IFCs) can play in the delivery of the SDGs is
explored. These concepts include:
- how IFCs can facilitate financial inclusion using new and
emerging digital technologies; - how IFCs should collectively take the mantle as the crucible
for positive innovation; and - how IFCs should foster collaboration with policy makers and
Governments on how sustainable and equitable
development should be a shared vision.
IFCs, Fintech and the Delivery of the
SDGs
IFCs as wholesale financial intermediation centres, have always
had a pivotal role to play in the global financial “plumbing”, and as such has been the key enabler of
globalisation and economic growth. It only stands to reason that
IFCs, have now to embrace their role in the curation of an
inclusive financial system to support the goals of SDGs. However,
they cannot act in isolation.
Cooperation and partnership, between centres, between centres
and policy makers, and between centres and the enterprises they
host is essential if they are to reach their full potential as
leaders and change agents.
Financial inclusion is the fulcrum of equality and critical to
the delivery of the SDGs. Thus, to ensure this global objective is
met, fresh innovations in financial products and services such as
sustainable and responsible finance and fintech, hold promise
towards the attainment of the SDGs. This is where the role of IFCs
is crucial.
Society has set and tested ways of addressing development
problems – from command-and-control, through policy focus, to
enacting legislation and ensuring a fair as well as equitable
taxation system. However, in order to truly achieve a fair and
inclusive future, a change of mindset is required.
A future where global financial centres cooperate as well as
compete, ‘co-opetition’ is needed to ensure inclusion is
achieved. Afterall, like everything else that holds true, balance
is always achieved in the middle.
Such a proposed collaboration requires policymakers, financial
services providers, and financial centres to discuss and be aware
of future needs of the industry in order to best support inclusive
goals.
Without a doubt, IFCs are key enablers in ensuring the
successful holistic adoption of inclusive finance, and a key
natural facilitator of this enabler is the adoption of digital
technology as well as protocols that reduce the cost of business
generally, but offer transparency via distributed ledger technology
– providing a clear and indisputable ‘audit trail’ in the
roll out of SDG related initiatives.
Labuan IBFC and Z/Yen Group are jointly organising a webinar to
share our research findings from the report “International
Financial Centres: Facilitating Financial Inclusion via
Digitalisation”. This webinar will also share research
findings, discuss opportunities and challenges for IFCs towards
playing its role in creating a financially inclusive global
system.
Register here and join us for this webinar
on Thursday, 15 July at 4.00PM (GMT +8).
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Source : From the Web