Policy and strategy

MSC has played a critical role in supporting Pradhan Mantri Jan Dhan Yojana (PMJDY)—India’s national financial inclusion strategy. We helped the Indian government implement and then reshape the program. MSC reviewed the performance of Bank Mitrs (bank agents) and examined users’ perceptions and experience of the services delivered by agents. Based on the success of the program, MSC was tasked to help develop the second phase of PMJDY. We prepared the reports for each of the committees and developed a summary report. PMJDY 2.0 was announced in 2018, with a potential impact on over 800 million people.

MSC has worked extensively with central banks of countries across Africa and Asia across a wide range of assignments. We have worked with central banks, such as the Bank of Papua New Guinea (BPNG) in Papua New Guinea, State Bank of Vietnam in Vietnam, Bangko Sentral ng Pilipinas (BSP) in the Philippines, Bank Indonesia and Otoritas Jasa Keuangan (OJK) in Indonesia, as well as Bank of Uganda, Nepal Rastra Bank, Bank of Zambia, among others.

MSC conducted a scoping mission for UNDP and UNCDF across Pacific Island Countries (PICs) and designed the 2014-2018 phase II of the Pacific Financial Inclusion Programme (PFIP). The project covered five Pacific island countries—Papua New Guinea, Fiji, Solomon Islands, Samoa, and Vanuatu. Our engagement allowed UNCDF and UNDP to secure an initial round of funding worth over USD 21 million for the program, while interventions under PFIP phase II have already benefited more than 500,000 Pacific islanders.

MSC assessed the regulatory framework for digital and mobile financial services in Bangladesh under the UNCDF-led ‘Shaping Inclusive Finance Transformations’ (SHIFT) SAARC project. Based on the assessment and subsequent policy brief, MSC created a number of recommendations. These included, among others, tiered Know Your Customer (KYC) regulations and the introduction of a regulatory sandbox. The review resulted in SHIFT and a2i working to introduce eKYC, updated mobile money and agent banking guidelines, discussions on the regulatory sandbox, and greater coordination of digital finance policy and regulation within the Bangladesh Bank.

MSC worked with Qatar Central Bank to develop the national financial inclusion and literacy strategy. We assessed the level of financial inclusion and literacy in the country, analyzed the supply and demand factors associated with these gaps, and created an enabling framework that supports banks and financial institutions. Based on this work, MSC drafted the national strategy and an implementation program in coordination with the Financial Inclusion Committee of the Qatar Central Bank. The national policy will have a positive impact on about 2.26 million adults in the country.

MSC developed and implemented agent banking strategies for three leading banks in Uganda—Stanbic Bank, Centenary Bank, and DFCU. MSC’s intervention increased the financial services outreach of the banks to the untapped remote areas of Uganda. Our support helped these institutions process a cumulative 2.9 million transactions with a value of UGX 1.4 trillion (USD 400 million). More than 2,600 agents had registered on the agent channel, serving thousands of customers as at the end of 2018.