Implementing impactful change through data-based decision-making

By Selim Ergoz , Global Lead, Public Sector Strategy and Sales Enablement, Mastercard

From national to local governments, the public sector is increasingly challenged to innovate and introduce new ideas to deliver on strategic goals. Governments are being asked to do more, with less.?Often, finance ministries and departments are at the frontline of these innovations, improving policies, financial management, and service delivery.

As our economies increasingly digitalize, the opportunity to harness data to inform and shape policymaking continues to grow. Every year, Mastercard handles over 125 billion transactions in the blink of an eye, generating highly anonymized and aggregated transaction spending data. Every time people swipe, tap or dip their Mastercard, it’s because they trust that their information is safe with us. That trust comes from decades of day-to-day commitment to data responsibility and data privacy.

From finance to welfare ministries, destination management organizations to transportation authorities, Mastercard for Government is partnering with the public sector to drive more effective policy and deliver better outcomes for citizens. Digital payments provide us with the opportunities to jointly generate insights to help policymakers and agencies navigate shifts in citizen behavior and economic volatility.

Earlier this month, I had the privilege to participate in Global Government Forum ’s Finance Summit in Rabat. Alongside government officials from 15 countries, we addressed financial and regulatory challenges and opportunities for finance ministries and treasuries around the globe. Some common themes emerged, most notably the vital importance technology, data, and cybersecurity must play in shaping our future economies.

Here are my 3 key takeaways:

1) Through the rapid digitization of government programs, from social welfare to government receivables, we’ve witnessed first-hand how powerful digitization can be in generating rich data insights. Our partnerships across 200+ programs across 55 countries during the pandemic illustrated the importance of digitization in improving public service delivery.

2)?Digitization is not simply an endpoint ?–? we must go beyond and measure the impact. Effective policymaking can and should be driven through a practical, surgical application of data. This can be realized through a sectoral and/or geographical basis, measuring controlled changes. This approach can help us answer questions about the impact of legislative programs or interventions across tax incentives, aid disbursements, or road safety, for example.

3) Public-private sector partnerships are vital to ensuring trust. The private sector has an important role to play in providing investment, fostering innovation, and building security and infrastructure, as we jointly seek to develop more inclusive, resilient, and sustainable economies.

There are many challenges for finance leaders and governments ahead but also tremendous opportunities. I was left feeling optimistic that both the public and private sectors share a common view: harnessing the power of digitization and data can deliver better outcomes for governments and the citizens they serve.