Barriers

Barriers How existing barriers are approached in the recommendations
Access to digital financial services: 750 million people lack broadband connectivity, 1 billion lack formal IDs Accelerating citizen-centric inclusive digital foundations that advance connectivity, access to digital IDs, interoperable systems and adequately governed data markets, particularly leveraging COVID-19 stimulus packages, addresses the main barriers to digital financing of the SGDs.

Furthermore, progressing incentives and institutional arrangements in support of digital financing ecosystem development will likely drive market and product innovations that serve citizens’ needs and interests, potentially enhancing citizen participation in digital financing of the SDGs.

Access to data is critical for financial decision-making and digital financing innovation
Siloed and non-interoperable IT systems hinder use of data to price risk, describe impacts and underpin accountability
Access to appropriate digital financial services: lack of affordable, secure, relevant digital financial services
Demand-side inadequate digital and/or financial capabilities, including illiteracy and poverty and social norms, undermine demand and usage Empowering citizens, individually and collectively, in securing rights and capabilities by advancing digital financial literacy programs, access to information, increased transparency, including addressing barriers for specific groups such as women and older people, can drive greater usage of digital finance and citizen involvement in financing decisions.
Supply-side talent shortage hinders digital financing innovation, particularly in less developed countries Regional approaches to the development of digital financing ecosystems combined with robust governance approaches to oversight of global digital financing platform will stimulate regional cooperation and private sector partnerships which facilitate local talent development and knowledge exchange.
Weak regulatory capabilities undermine the establishment of enabling policy and regulatory environment for digital financing innovation International cooperation in governance and policy dialogue, as well as development of domestic regulatory sandboxes and other tools will build regulatory capabilities.
Incumbent resistance to disruption, disintermediation, and digitally-enabled transparency of their activities and rewards Deliberate pursuit of catalytic opportunities will result in increased disruption, disintermediation and transparency as ensuing digital innovations emerge. Strengthened by adequate regulatory approaches, the potential is there to establish new norms and practices that may lead to overcoming incumbent resistance.
Barriers How existing barriers are approached in the recommendations
Access to digital financial services: 750 million people lack broadband connectivity, 1 billion lack formal IDs Accelerating citizen-centric inclusive digital foundations that advance connectivity, access to digital IDs, interoperable systems and adequately governed data markets, particularly leveraging COVID-19 stimulus packages, addresses the main barriers to digital financing of the SGDs.

Furthermore, progressing incentives and institutional arrangements in support of digital financing ecosystem development will likely drive market and product innovations that serve citizens’ needs and interests, potentially enhancing citizen participation in digital financing of the SDGs.

Access to data is critical for financial decision-making and digital financing innovation
Siloed and non-interoperable IT systems hinder use of data to price risk, describe impacts and underpin accountability
Access to appropriate digital financial services: lack of affordable, secure, relevant digital financial services
Demand-side inadequate digital and/or financial capabilities, including illiteracy and poverty and social norms, undermine demand and usage Empowering citizens, individually and collectively, in securing rights and capabilities by advancing digital financial literacy programs, access to information, increased transparency, including addressing barriers for specific groups such as women and older people, can drive greater usage of digital finance and citizen involvement in financing decisions.
Supply-side talent shortage hinders digital financing innovation, particularly in less developed countries Regional approaches to the development of digital financing ecosystems combined with robust governance approaches to oversight of global digital financing platform will stimulate regional cooperation and private sector partnerships which facilitate local talent development and knowledge exchange.
Weak regulatory capabilities undermine the establishment of enabling policy and regulatory environment for digital financing innovation International cooperation in governance and policy dialogue, as well as development of domestic regulatory sandboxes and other tools will build regulatory capabilities.
Incumbent resistance to disruption, disintermediation, and digitally-enabled transparency of their activities and rewards Deliberate pursuit of catalytic opportunities will result in increased disruption, disintermediation and transparency as ensuing digital innovations emerge. Strengthened by adequate regulatory approaches, the potential is there to establish new norms and practices that may lead to overcoming incumbent resistance.