Advancing Financial Inclusion Through Inclusive Instant Payment Systems: Insights from the CBJ-AFI Member Training

Summary of the Global Gathering for Financial Inclusion in Amman

Last month, we at JoPACC and the Central Bank of Jordan, in collaboration with the Alliance for Financial Inclusion (AFI), had the pleasure of co-hosting the CBJ-AFI Member Training on the Inclusive Instant Payment Systems to Drive Financial Inclusion in Amman, Jordan, where representatives from 36 countries gathered to take part and share their knowledge and experience. 
Jordan was selected as a host country for this training due to the remarkable success of the Instant Payment System – CliQ and its significant strides in financial inclusion in Jordan, particularly with  its interoperability with JoMoPay (Jordan Mobile Payment Switch), enabling between mobile wallets and bank accounts, which expanded access to digital financial services for many groups that were previously excluded, giving them more access to different fintech tools with fewer requirements. 
In a country that has been hosting refugees for a very long time, the social and humanitarian impact of instant payment systems on the quality of life for all beneficiaries is undeniable. Refugees, women, and youth alike have gained control over their finances through these systems. For instance, instead of standing in long lines to receive their monthly aid, refugees are now receiving it in the comfort of their homes on their mobile wallets. Women in marginal communities can now open their mobile wallets and manage their own personal finances without depending on anyone; it has even empowered them to run businesses and transact easily and seamlessly.

Women in Financial Inclusion: Key Insights from the Panel Discussion

One panel discussion that stood out focused on the importance of designing inclusive payment systems that cater specifically to women. The panelists emphasized the need to understand gender differences in financial behavior, with data being a crucial component in addressing these needs. For example, by looking into this data, stakeholders could conclude that Safety Net products are among the most popular digital financial services, yet the key challenges remain in raising awareness and providing education about these services, particularly in underserved communities:  women in marginalized areas are unaware of the available digital financial services and systems that would make their lives easier, which is where community organizations need to step in and collaborate to provide a proper education at an early age to ensure readiness for a digital future. 
At JoPACC, one of the main departments, Knowledge Management and Business Analytics, serves as a data hub for digital financial services research. We collaborate with key community stakeholders to learn more about the underserved groups, help design programs for them, and then publish reports on these experiments with the objective of better understanding the end users and helping make their lives easier. This is where the role of women in leadership brings valuable insights into how to better serve and empower women in underserved communities.

Building Economic Resilience with Instant Payment Systems

Resilience was also another key topic of discussion, particularly regarding the role of Instant Payment Systems in building economic stability. IPS systems help economies remain agile during both routine and crisis periods, and therefore, developing flexible, responsive systems is crucial. 
Developing instant payment systems that contribute to economic resilience requires a deep understanding of market influences, such as shifts in customer behaviors, regulatory changes, and technological advancement. This understanding is essential for setting desirable outcomes and managing expectations. 
It all starts with identifying and assessing operational and technical risks, in addition to setting clear risk criteria to guide decision-making. All stakeholders should form and establish business-continuity teams to respond swiftly during times of crisis, all under the umbrella of a framework of urgent decision-making enabling rapid redirection of efforts in collaboration with regulatory entities, like the central bank, with the main objective of ensuring that all payment systems remain functional and that operations continue seamlessly. 
Achieving a resilient economy requires collaboration and coordination across various stakeholders, including financial institutions, educational institutions, and businesses. What we find particularly constant, and recurring is the need for education and nonstop awareness to enhance understanding of digital financial services to finally reach the last mile and ensure that even the most remote or underserved populations can access and trust IPS. This approach promotes an economy that can better weather disruptions and continues to grow in the face of adversity.

Leveraging IPS for Future Innovations: Digital Currencies, Loyalty Programs, and Cross-Border Payments

Instant Payment Systems play a crucial role in moving toward many future innovations, particularly in the realm of digital currencies and payments. As seen with the introduction of the Central Bank Digital Currencies (CBDCs) in countries like Ghana, IPS can support both online and offline transactions, making digital payments accessible even in areas with limited internet penetration. 
In Jordan, IPS enabled financial institutions to launch loyalty programs that encourage the use of different digital financial services. These programs offer a seamless customer experience that caters to the market's unique needs. Tightened to local preferences, they foster trust and usage among customers. 
Beyond local markets, IPS has the potential to elevate national economies by facilitating secure, efficient cross-border payments as demonstrated in El Salvador. 
However, as these advancements continue to unfold, it’s vital to enforce robust data protection measures to ensure the security and privacy of all users, highlighting confidence in these emerging systems while safeguarding against potential threats.

IPS: a Necessity, not a Luxury 

In conclusion, achieving financial inclusion is not just a goal but a collective responsibility that requires seamless collaboration and coordination among all stakeholders. It’s a full cycle with each participant, from financial institutions to regulators, to educational institutions to community organizations, contributing to the success of this system. 
The Instant Payment System (IPS) has proven to be a necessity, not a luxury. It has had a significant positive impact on national economies, driving economic growth and financial integration. 
Today, regulators are evolving from traditional oversight roles to becoming transformative systems, promoting innovation while ensuring stability. 
As we look ahead, it’s clear that the future is full of exciting digital financial advancements, and we must be ready to tackle all challenges that come with it, such as interoperability, connectivity, clearing and settlement, and big data management. Working together and embracing these innovations will only achieve a more inclusive, efficient, and resilient financial ecosystem for all.