The Role of Digital Public Infrastructure in Driving Financial Innovation for the Future
2024 Theme
Small and medium enterprises (SMEs) are the backbone of economies worldwide, accounting for over two-thirds of global employment and playing a critical role in job creation and economic resilience. However, persistent financing gaps limit their potential to drive inclusive growth and recovery from economic shocks.
The G20 Global Partnership for Financial Inclusion (GPFI) MSME Action Plan provides a timely framework to address these challenges, fostering resilience and innovation among SMEs while aligning with sustainable development goals (SDGs). The Global SME Finance Forum, an official side event of the G20 South African Presidency, will present GPFI’s comprehensive roadmap to address the systemic barriers hindering SMEs’ access to finance.
G20 MSME Action Plan: Financing and Policy Enablers
Resilient Value Chains: Strengthen sustainable sourcing, fair labour practices, and circular economy models to future-proof SMEs against disruptions.
Tailored Financial Solutions: Provide customised financial tools to promote the financial health and stability of micro and small enterprises.
Scaling Success Stories: Highlight examples of SMEs achieving growth through innovative financing models and sustainable business frameworks.
Digital Innovation: Powering SME Growth and Global Competitiveness
Value Chain Integration: Highlight success stories of SMEs scaling through digital integration, such as streamlined supply chains or cross-border e-commerce platforms.
Global Reach: Equip SMEs with technology to compete internationally, from cloud based accounting systems to AI-driven market analytics.
Empowering SMEs in Sustainability, Resilience and Growth
Policy Reforms: Promoting policies that facilitate working capital, trade finance, and digital payments while supporting financial technologies that simplify SME operations.
Public-Private Partnerships: Encouraging collaboration between governments, financial institutions, and private sector stakeholders to mobilize resources, mitigate risks, and scale impactful solutions
Synopsis:
Digital Public Infrastructure (DPI) represents the foundational digital rails—encompassing digital identity, interoperable payment systems, and secure data exchange platforms—that are revolutionizing how the world's 400 million SMEs access financial services. While SMEs represent 90% of global businesses and employ over 2 billion people, they have historically been excluded from formal financial systems due to high transaction costs and complex requirements that traditional banking infrastructure wasn't designed to serve profitably.
The panel examined successful DPI implementations that reduced SME barriers to formal financial services, exploring design principles that served micro-enterprises alongside large corporations. Discussions covered how open frameworks and APIs enabled fintech innovation while maintaining stability, governance models for cross-border DPI interoperability, and the integration of emerging technologies like AI and blockchain. The session addressed the role of development finance institutions in ensuring DPI adoption benefited underserved SME segments in emerging markets.
Speakers:
Clare Rowley, Head of Business Operations, Global Legal Entity Identifier Foundation
Philip Sigwart, Group Chief Executive Officer, Baobab SAS
Satu Kahkonen, Country Director, World Bank
Victor Malu, Senior Business Development Lead, Mojaloop Foundation
Moderator:
Matteo Rizzi, Senior Advisor, Global Finance & Technology Network