Universal Financial Access 2020 (UFA2020) – CFPA Statement
– A global financial initiative involving China’s CFPA Microfinance, Ant Financial and Baidu Financial
[November 29 – The United States] – Today a global microfinance initiative conference known as Universal Financial Access 2020 (UFA2020) was held in Washington D.C.. Worldwide, 15 new partners joined the UFA initiative and China’s 3 representatives include China Foundation for Poverty Alleviation (CFPA) Microfinance, Ant Financial and Baidu Financial. In 2015, the World Bank Group with various private and public sector partners committed to promote financial inclusion
According to the World Bank’s official website releases, there are currently 2 billion adults worldwide who do not have access to basic financial services. In September 2013, the World Bank Group (WBG) President Jim Yong Kim, delivered an address stating that financial access could be better provided to the financially poor by incorporating new technologies, business models and transformative reform procedures.
In terms of a tangible and measurable goal, the UFA was the World Bank Group’s response to ensure the aforementioned 2 Billion people gains access to a transaction account by 2020. Of this, the International Financial Committee (IFC) committed to enabling 600 million new accountholders, and the World Bank committed to enabling 400 million. In the Executive Vice President and CEO of the IFC Phillipe Le Houérous speech, such a lofty goal, set by the various cooperative partners in UFA, is said necessary to achieve significant global impact for those who do not have access to basic financial services.
In terms of the Chinese financial landscape, CFPA Microfinance, and Baidu Financial pledged additional financial inclusion of 1 million and 10 million new users by 2020 respectively, while Ant Financial plans to leverage technology and offer innovating financial services that reach scale. As a result of 1 million active clients by 2020, in the short-term 4-year future, CFPA will hopefully service a total of 3 million beneficiaries (an aggregate of clients and their benefitting families)!
CFPA has operated in this market for the past 20 years, from the origination of the first credit loans, to the progression towards conducting P2P platform and offering mutual aid insurance. Up to 2016 October 31, CFPA has loaned in accumulation around 17.8 Billion yuan, with an average loan amount of approximately 11,000 yuan, effective loan-customers totaling around 360,000 and total clients numbering approximately one million. Furthermore, out of CFPA’s existing client base, 70% of which had no access to formal financial services.
CFPA CEO Liu Dong Wen expressed that since becoming a partner of UFA, it has given the organization as a whole a set goal, and with that a sense of great excitement. As China’s current biggest Microfinance company, CFPA is honoured to be a part of UFA2020. It expresses its absolute pleasure to be involved in the endeavor, where UFA partners strive to mutually cooperate and collaborate as well as to learn from each other, in order to achieve individual and overarching goals. Just to reiterate, CFPA plans to extend our services to a total of 1 million active clients, which means overall CFPA provides financial services to more than 3 million beneficiaries!
Since 2008, CFPA has grown at a rapid pace as each year the number of company braches has increased by approximately 40% and loan-effective customers have increased in the range of 20 to 30%, while on the other hand, customers whose loan obligations have exceeded 30 days in arrears has not increased by more than 1%. In the future, CFPA would like to keep evolving and not limit itself to conventional practices in the sector. It would like to place emphasis in increasing digitization, risk management and the investment in big data in order to better cater towards the convenience, safety and timing of rural households, in terms of their various financial products.