Despite the rapid growth in finance worldwide over the past quarter century now interrupted by the global financial crisis—many low-income households and small firms remain excluded from access to many financial services, especially in developing countries. While traditionally seen by many financial service providers (FSPs) as less attractive customers, a growing number of mainstream FSPs have joined microfinance firms in extending the range of their service provision, and important advances have been made in expanding access. At a time of increased focus on financial-sector policy and of regulatory tightening, it is important not to lose sight of the goal of increasing access to appropriate financial services essential to the escape from poverty and the achievement of firm growth. It is in this spirit that we propose 10 principles for financial-sector policymakers including national authorities, donors, private-sector participants, international financial institutions, and others on the facilitation, regulation, and direct provision of financial services.

The policy should encourage the competitive provision of financial services to customers such as low- and middle-income households and small firms. The policy should favor the entry of qualified suppliers that are likely to improve the quality and price of services to such customers (in a manner consistent with financial stability and consumer protection) . Competition policy should empower the active investigation of anticompetitive behavior. Policymakers should work with market participants to eliminate barriers and identify gaps in the institutional infrastructure relevant to small-scale supply. This includes ensuring that payments and collateral systems and hard infrastructure elements for retail transactions are available and have a low unit cost. In particular, collateral and information infrastructures need modern supportive legislation and regulations. The state has a central role in ensuring the availability and maintenance of much of this infrastructure.