Financial Inclusion - Lessons from World Bank Group Experience, Fiscal Years 2014–22 - Report to the Board from the Committee on Development Effectiveness

Jul 19, 2026

Report to the Board from the Committee on Development Effectiveness summarizes the Committee’s review of IEG findings on financial inclusion across World Bank Group experience for Fiscal Years 2014–22. The discussion focuses on expanding account use for underserved groups, improving digital financial services enabling environments, and collecting outcome data on savings, consumption, income generation, jobs, and poverty alleviation. Members request clearer definitions of excluded groups, stronger data generation plans, attention to financial and internet literacy, consumer protection, data privacy, and investment in digital infrastructure, platforms, and skills.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

Meeting Overview

Key Themes and Recommendations

Data, Definitions, and Implementation Focus

Enablers and Future Considerations

Public Disclosure Authorized Public Disclosure Authorized Financial Inclusion Lessons from World Bank Group Experience, Fiscal Years 2014–22 Report to the Board from the Committee on Development Effectiveness 􀀍 Meeting of July 28, 2023 The Committee on Development Effectiveness (CODE) (“the Committee”) met to consider the IEG’s report entitled Financial Inclusion -Lessons from World Bank Group Experience, Fiscal Years 2014–22 (“the Report”) (CODE2023-0028/1) and the World Bank Group Draft Management Response (CODE2023-0035) . The Committee welcomed the timely and relevant report in the context of the Evolution Roadmap discussions on partnerships, Corporate Scorecard and outcome orientation. It highlighted the importance of financial inclusion (FI) for low-income users of financial services opportunity - particularly microenterprises, poor households, women, and other excluded groups (MPWEG) -wanting to expand economic options and opportunities. Members acknowledged that while there has been good progress globally towards achieving universal financial access in the last decade, still about one-quarter of adults do not have an account for financial transactions. They expressed broad support for IEG’s recommendations for the WB and IFC to: (i) further encourage account use by underserved groups and support this more in their strategies and projects; (ii) design and implement more comprehensive approaches that address constraints in the enabling environment for digital financial services (DFS) in favor of underserved and excluded groups; and (iii) collect outcome data across different underserved and excluded groups, initially on a pilot basis to enhance learning on what works to increase the beneficial use of financial services at the MPWEG. Members commended the WBG’s substantial involvement in financial inclusion activities and encouraged Management to expand these to vulnerable groups, including refugees, indigenous peoples, and religious minorities, to promote access to financial services, create significant opportunities for economic growth, and empower individuals and communities to reduce vulnerabilities towards eradication of poverty. They underscored the importance of financial and internet literacy, consumer protection, data privacy, and investments in digital network infrastructures, skills, and platforms among the key enablers. Some noted that despite a number of important FI achievements, information gaps remain regarding whether projects have improved beneficiary outcomes in terms of savings, consumption, income generation, job creation and poverty alleviation. The Committee emphasized the need for a single working definition of“excluded groups” applicable across the institution considering specific contexts and markets. It underscored the importance of generating and collecting outcome data for these groups and inquired about the challenges as well as Management’s plans to improve data generation and collection in the future. Members also underscored the importance of leveraging partnerships and more purposeful collaboration within the WBG and with other global actors; continuing to generate relevant knowledge and investments in public goods; ensuring greater transparency and replicability; as well as building the enabling environment to boost FI. Members also inquired about any potential indications of WBG’s FI interventions helping to formalize the informal sector. They took note of DEC’s and DIME’s empirical work thus far on the informal sector which indicates that access to financial services can motivate formalization of the informal. Cognizant that regulations may disadvantage vulnerable groups, there was a request to have a discussion on the unintended impact of financial regulation. 􀀍 This report is not an approved record.

FAQs

What did the Committee review regarding financial inclusion?

The Committee considered IEG’s report on financial inclusion lessons from World Bank Group experience for Fiscal Years 2014–22 and the World Bank Group draft management response.

What recommendations did members support for the World Bank and IFC?

Members supported encouraging account use by underserved groups, designing more comprehensive approaches for digital financial services enabling environments, and collecting outcome data across excluded groups initially through pilots.

What information gaps and data needs were emphasized?

Members noted gaps on whether projects improved beneficiary outcomes such as savings, consumption, income generation, job creation, and poverty reduction, and requested a single working definition of excluded groups and plans to improve outcome data generation and collection.

Jul 19, 2026

Upload by Olivia Brown