The Inclusion-Stability, Integrity and Protection (I-SIP) Methodology and the Legal Framework to Promote Financial Inclusion in South Africa

Abstract

Studies have established that promoting financial inclusion in tandem with traditional financial sector policy and regulatory objectives such as financial stability and integrity, and consumer protection requires policymakers and regulators to take into consideration the need to minimise possible trade-offs and to maximise synergies between these objectives. However, current policies on financial inclusion do not provide a specific approach or methodology to assess the impact that these trade-offs and synergies have on new financial inclusion frameworks. This article discusses policies and regulatory frameworks to promote financial inclusion in the last 30 years since the advent of democracy in South Africa and the developing (Inclusion-Stability, Integrity and Protection) methodology to assess the impact that these trade-offs and synergies have on new financial inclusion frameworks. It begins by discussing the financial inclusion framework in the country. It also discusses the financial sector laws that promote financial stability, integrity and consumer protection, and whether these measures include the promotion of financial inclusion. It identifies the need to adopt the evolving I-SIP methodology to ensure that policymakers and regulators balance the importance of promoting financial inclusion against equally important financial sector policy and regulatory objectives, such as financial stability, integrity and consumer protection.