Sumita Kale’s Post

Michael S Barr: Financial inclusion - past, present, and hopes for the future Advancing the Goals of Financial Inclusion The goal of financial inclusion is to improve access to affordable financial services that meet the needs of individuals and businesses. Banking the unbanked is part of that, but we also need to make sure that both bank and nonbank products and services are designed to meet the financial service needs of low- and moderate-income households. And we need strong consumer protections to guard against abuse. Banks are playing a pivotal role in innovating to serve low- and moderate-income households, sometimes in partnership with financial technology companies, or fintechs. For example, we have seen a growing number of banks offering small-dollar loans, expanding use of alternative data to underwrite and price their credit products, and investing in tools to help better understand consumers' financial health. When adopted in a responsible and well-managed manner—with systems, processes, and policies in place to monitor and manage related risks—these innovations can broaden access to fair, affordable, and transparent bank-provided credit. This in turn can create financial resilience among small businesses and help individuals and families become homeowners, build wealth, and become financially empowered. #BIS #FinancialInclusion #FederalReserve

🌍💡 Is it Financial Inclusion + Financial Stability? OR, Inclusion vs. Stability? Shoutout to Ivo Jeník at CGAP for a great read on a debate that's been at the heart of financial inclusion discussions for the past two decades: the impact of financial inclusion on financial stability. Does including more people into the financial system, especially first time or previously excluded peoples, strengthen the financial system through diversification of savings and credit, or does it introduce new risks, such as over-indebtedness? 🔍 CGAP's latest analysis provides a compelling answer, suggesting that the benefits of financial inclusion outweigh the potential trade-offs. It's a reassuring read for central bankers and policymakers alike, indicating that widening access to financial services not only empowers individuals but also strengthens the financial ecosystem as a whole. 👉 Read the full post here: https://lnkd.in/em96PpyC #FinancialInclusion #FinancialStability #Banking #Fintech #Innovation

How can data be leveraged to help businesses, governments, and individuals make smarter decisions in credit risk and debt management? In this blog, Registry Trust Chair Mick McAteer explores how adopting innovative #data solutions can provide stakeholders with better transparency and insights. This approach not only drives informed decision-making but also aligns with Registry Trust's core mission of delivering reliable, impartial public data. Read the full blog to discover more: https://bit.ly/3WZIi2f

📢 Exciting news for financial inclusion in the United States! The U.S. Department of the Treasury, along with federal, state, and local government agencies, has launched the National Strategy for Financial Inclusion. This strategy focuses on expanding financial access and resilience for all Americans, emphasizing the critical role of accessible transaction accounts, safe credit, and equitable access to savings and investment opportunities. The fintech landscape in the United States is also rapidly evolving to enhance financial inclusion, especially for underserved communities. Leading companies like SoFi (providing accessible financial benefits through “SoFi at Work”), Propel (assisting low-income Americans through the Providers app), Varo Bank (offering essential banking without fees), and Brigit (supporting financial health with budgeting tools and cash advances) are paving the way. Ellevest focuses on closing the gender wealth gap, while Ally and HighRadius contribute with inclusive, customer-centered services and AI-driven cash flow tools. Together, these innovators are bridging gaps and offering accessible, tech-driven financial solutions. Financial inclusion means opening doors for people to invest, secure against life's uncertainties, and stand resilient in the face of economic, political, or climatic crises. This new strategy, which highlights financial well-being and credit, aims to reduce disparities and empower underserved communities. Congratulations to the Treasury, Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), Consumer Financial Protection Bureau, community-based organizations, and partners in academia for their commitment to advancing equity and creating pathways to financial security for all. Initiatives like the FedNow Service for instant payments, Bank On accounts, and the CDFI Fund’s support for community institutions are great examples of how collaboration can make a meaningful difference. 👏 Congratulations to the United Nations Secretary-General's Special Advocate for Financial Healthfor championing financial health globally, inspiring strategies like this one to drive impactful change. Together, we’re working toward a more inclusive financial landscape that benefits everyone. 🌍 #FinancialInclusion #EconomicEquity #Treasury #Fintech #FedNow #BankOn #CDFIFund #CommunityFinance #UNSGSA

📢 U.S. Treasury releases National Financial Inclusion Strategy! For years, I've been studying, thinking about, even teaching on financial inclusion strategies, and am thrilled to finally see my country adopt its own. On first read, I was happy to see mention of the intersectional issues that drive differences in access to financial services--gender, ethnicity, race, geography, and others all drive gaps in inclusion and therefore gaps on digital financial capability. Have you read it? What do you think? https://lnkd.in/geaKegWv

America’s first national strategy on financial inclusion has arrived. Here are its key objectives and recommendations: #FinancialInclusion #usa -Promote access to transaction accounts that meet consumer needs. -Increase access to safe and affordable credit. -Expand equitable access to savings and investments. -Improve the inclusivity of financial products and services provided or backed by the government. -Foster trust in the financial system by protecting consumers from illegal and predatory practices. https://lnkd.in/gjsYJinP

US Treasury recently released the National Financial Inclusion Strategy, which aims to foster access, resilience, and well-being, for underserved citizens. Direct Express® has role to play in this. #financialinclusion #financialcapability #payments https://lnkd.in/eJfN5Z6Z

The financial inclusion challenge is a complex and fast-evolving issue. While nearly a 1.5billion consumers in emerging economies still lack access to formal financial services, developed countries are grappling with the growing threat of online financial crime and fraud. ⚖️🕵🏽 Our experience has taught us that there is no one-size-fits-all solution to improving access to financial services. Rather, the approach must be tailored to meet regional factors and local needs. Let's continue to work towards creating a more equitable and inclusive financial landscape for everyone. 💰🌐 #FinancialInclusion #AccessToFinance #GlobalFinance #FinancialServices

'25% of the world’s adult population remains unbanked, according to the World Bank. Another 50% are “underbanked”...' Covering: The importance of financial health rather than just access to a bank account. Credit scoring and using open banking data instead. Technical infrastructure to improve financial inclusion. Trust in financial services. Read more in this article:   https://lnkd.in/ey5qVmRs #FinancialInclusion #ResponsibleFinance

17 Years in Financial Stability! Today marks my 17th anniversary in the field of financial stability! Over these years, I’ve had the privilege of contributing to this dynamic and ever-evolving sector. The importance of financial stability has grown significantly these past 17 years, with the global financial crisis of 2007-2008 revealing how quickly risks can spread, leading to the failure of major financial institutions. In response, significant reforms were implemented. Regulatory measures like the Basel III framework enhanced oversight, increased capital requirements for banks, and improved their ability to absorb shocks. Macroprudential policies became essential tools for central banks, focusing on monitoring and mitigating systemic risks across the financial system. Regular stress tests became the norm, and unconventional monetary policies, such as quantitative easing and emergency lending facilities, were introduced to promote financial stability. Additionally, various financial stability bodies were established, making risk monitoring crucial for identifying emerging threats. Since then, the financial sector has faced numerous additional challenges, more recently including the pandemic, energy supply shocks, the invasion of Ukraine, and high inflation—all of which have had significant impacts. The field of financial stability continues to evolve, requiring constant reassessment and adaptation to new challenges. Future risks may stem from digital currencies, digitisation and cyber threats, climate and environmental risks, and geopolitical tensions. Further reforms, particularly in capital markets and banking unions, may play a crucial role in maintaining financial stability. As I look to the future, I wonder: What lies ahead for me? And how will the ever-changing landscape of financial stability continue to evolve?