Operationalising the Universal Trusted Credentials
This report draws insights from a recent roundtable discussion held during the Point Zero Forum 2024.
September 2024
Universal Trusted Credentials (UTC) present significant growth potential for MSMEs, particularly in emerging economies, where financing gaps due to collateral issues and high interest rates are prevalent. Already, the initiative has facilitated loan disbursements and training for thousands of MSMEs in target countries, and broader collaboration with more banks complementing national governments leadership can enhance its impact.
This insight was highlighted by participants at a recent roundtable held during the Point Zero Forum 2024, organised by the United Nations Development Programme (UNDP) and the Monetary Authority of Singapore (MAS). The roundtable gathered diverse stakeholders to explore potential roll-out of the initiative across various regions together with the related benefits and challenges, after a year of implementation experience.
The discussion underscored the economic benefits of the UTC, particularly in enhancing financial inclusion and supporting MSMEs' growth and formalisation. Challenges such as informality among businesses and the difficulty of uncollateralised loans were noted, with UTC seen as a solution to discover businesses, leverage financial inclusion tools, and create efficiencies through connectivity.
Discussants identified having the trust of banks as a crucial factor of success, alongside the need for a ready infrastructure and ecosystem with clear utility value for all stakeholders. The integration of fintech in cross-border trade and the need for scaling the initiative were considered essential for broader impact. The need for a tamper-proof, resilient, and decentralised system to ensure security and international success was stressed, along with the necessity of addressing both economic and technological challenges through public-private partnerships. Lastly, effective governance and international recognition were identified as key to expanding the geographical scope and attracting international banks.
Overall, the roundtable highlighted the importance of leadership, trust, collaboration, technological integration, and security in the successful implementation and expansion of the UTC initiative. Continued dialogue and cooperation among all stakeholders will be essential to realise the full potential of Universal Trusted Credentials on a global scale.
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