"No one left behind: a holistic approach to
financial inclusion"
Speech Nicole Stolk at the Seminar Financial Inclusion
integrates the World
4 October 2019
Twenty-two central banks and other financial supervisors discussed the need for a holistic approach to
financial inclusion at the 'Financial Inclusion Integrates the World' conference in Amsterdam. On the
second day of the programme, DNB Governing Board member Nicole Stolk delivered a speech in which
she argued that wide access, good understanding and financial resilience are the basis for turning
knowledge into smart behaviour and responsible use of financial products and services. In particular,
consumers must be able to cope in an increasingly digital world. While digitisation is an excellent way
to connect people, there is always the danger that people with low digital literacy cannot keep up.
SDGs: guiding principles for financial inclusion
Today is already the last day of our seminar on financial inclusion. So now I want to share some
observations with you about the progress we have made on this subject. I would like to discuss this
from an international perspective. But also with a focus on the Netherlands.
Imagine it's the year 2030: the seventeen UN Sustainable Development Goals have been achieved. All
seventeen of them. Imagine how our world would be then. No poverty. Zero hunger. All people equal.
No more climate crisis. And the 1.7 billion adults, who in 2017 had no access to financial services.
They now all enjoy the benefits of a bank account. They can get microcredit for their businesses. They
have peace of mind with insurance. It is a better world for everyone. And a much better world for
central banks and other financial authorities. Because supervision and macroeconomic stability should
not be our only focus.
We also need to turn our attention to the other major challenges of the day: the digital revolution,
safeguarding data privacy, the changing climate. Everything we can do to help make our world a more
sustainable place. For central bankers - but for everyone else here too - the SDGs are an excellent
blueprint for achieving this sustainable world.
Financial inclusion is featured as a target of eight of the seventeen sustainable development goals. For
example, quality education, robust infrastructure and decent work for everyone. Financial inclusion has
a big role to play in achieving the SDGs. It helps the poorest of the poor. For example, digital financial
inclusion has given many women in remote rural Indian communities access to a bank account and
microcredit. It unlocks new sources of income for them. Enabling them to lift themselves and their
children out of poverty. I am convinced that over the next decade, we can together take substantial
steps towards making these sustainable development goals a reality.
Financial authorities contribute to financial inclusion
Every single organization, whether in the public sector, or the private sector, should look at how it can
contribute to these SDGs with their own activities. This is also what central banks do. It is the mission
of De Nederlandsche Bank to safeguard a stable financial system, solid financial institutions and
smoothly functioning payments. As a result of our mission, we contribute to SDGs such as decent
work, economic growth and good infrastructure.
Earlier this year we reviewed our strategy and priorities. We have now set out the way forward for the
next five years. I'm sure you do the same at your organisation too. Our new strategy is called
DNB2025. In it, we set out how we will fully integrate corporate social responsibility, or CSR, in all
areas of our work. And today's subject, financial inclusion, is of course a big part of CSR. Our new
strategy means we will systematically consider the CSR impact of all our activities from now on.
A holistic approach is needed to effectively stimulate financial inclusion
We all know how financial inclusion can empower people so they can play a fuller role in society. When
we talk about financial inclusion, we apply a broad and internationally-accepted definition. Financial
inclusion is not just about having good access to the financial system, it is also about having
knowledge of financial products, and improving financial resilience of people and businesses.
We need all three of these dimensions to make the most of financial products and services. Only then
can we - can you - make a fairer and more inclusive world. Which also strengthens financial stability
on the macroeconomic level. This holistic approach is not one-size-fits-all. It varies depending on the
country, culture, regions and target groups. But again, it can only be effective when all three
dimensions are covered.
To stress this, I'd like to quote the wise words of two pioneers of financial inclusion:
To begin with, Sri Mulyani Indrawati, Indonesia's Minister of Finance and former head of the World
Bank Group:
"Financial inclusion matters not only because it promotes growth. But also because it helps
ensure prosperity is widely-shared. Access to financial services plays a critical role in lifting
people out of poverty. In empowering women. In helping governments deliver services to their
people."
To help ensure prosperity! Isn't that exactly what central banks do?
Now I'd like to read the words of Vince Shorb, CEO of the National Financial Educators Council of the
United States. He stresses the importance of deploying knowledge to learn skills, and to bring about
changes in behaviour:
"It takes more than financial literacy to truly help people work towards a stronger financial
situation. Attention must also focus on their behaviors, self-efficacy and help them develop
systems to truly make a positive impact."
Again, this is clearly one of the jobs of central banks and other financial authorities!
Financial and digital inclusion initiatives in the Netherlands
Now I want to consider some of the practical implications. I'd like to take a couple of minutes to show
you how we promote financial and digital inclusion here in the Netherlands. In the hope that you, the
bright minds gathered here, get some ideas to inspire you in your own good work.
Anyone with access to payment services. Anyone with a bank account. Anyone with access to mobile
banking. The way is also open to them to take advantage of other financial products. For example,
savings, loans or even more complex products like a mortgage or pension. That is why everyone
should be able to open a payment account, preferably at a bank. Nearly all adults in a rich country like
the Netherlands have a bank account. But even here it is not a given that everyone knows how to use
this account properly. Or that they will be able to keep using it. That is largely down to the speed with
which payment methods and other financial services go digital.
For many people, this is too fast. The Dutch Consumer's Association estimates this is the case for
around a quarter of the people living in the Netherlands. 2 million older people and 2 million disabled
people. You can pay by card or cash, but payments with smart mobile apps are becoming increasingly
popular. Vulnerable groups like the elderly, illiterate people, and people with no internet literacy, run
the risk of being excluded..... also in the Netherlands.
Digitisation is an easy way of connecting people, but it can also obstruct financial inclusion. The
digitisation we see happening around us requires consumers to have knowledge of digital resources.
The Dutch government is also aware of this. That's why it launched a major digital inclusion project at
the end of last year. Over two and half million people in the Netherlands have difficulties using digital
resources. On top of this, of the 17 million people living in the Netherlands, 1.2 million have still never
used the internet. That is why De Nederlandsche Bank also focuses on stimulating digital financial
inclusion.
We need to understand that there are two sides to digitisation. On the one hand it is an excellent way
of connecting people and giving them access to the financial system. Take something like an app on
your mobile that lets you safely and easily transfer money to other countries. But we also have to
make sure we don't exclude people with low digital literacy. Of course, I'm not saying we need to slow
down digitisation. Just that it's very important for us to guide the digital revolution in a smart way.
NFPS is committed to broad financial inclusion
Now I'd like to give you a few examples of what we are doing at De Nederlandsche Bank to improve
digital and financial inclusion. First, We chair the National Forum on the Payment System. This
platform brings together users and providers of payment services and products from across a wide
range of backgrounds. They meet regularly to discuss how to improve accessibility and availability of
these services and products. Because vulnerable groups also need to be able to participate in the
payment system. That way, everyone who wants to or needs to, can continue using analogue banking
services instead of digital services. And to pay in cash.
Second, Last year the Forum approved several measures to maintain access to financial services for
the most vulnerable groups in society. This is particularly important, considering the increasing
digitisation of payments, and the decline in the number of bank branches in the Netherlands. The
elderly and the disabled must be able to continue carrying out basic financial tasks on their own. Banks
have also been asked to put a special accessibility page on their website with an overview of how they
cater to the needs of vulnerable groups. They can also appoint an accessibility coordinator. In all
cases, it pays off if representatives of vulnerable groups are involved from the very start when
designing new financial products and services.
ERPB report to safeguard accessibility to the payment system
Third: Another example of what we are doing is calling for improving access to payment systems at
European level. We know all too well that you can only truly achieve something by working together.
In recent years, in cooperation with the Euro Retail Payments Board, together with Age Europe, we led
an informal working group with stakeholders to improve accessibility. Payment terminals, ATMs,
internet payments, mobile payments and card payments. All these methods of payment have to be
accessible for everyone.
One particularly successful European initiative I'd like to mention is Pay-Able, a platform that strives
for barrier-free access to payment terminals. Inspired by the European Accessibility Act, implemented
in the Spring of 2019, we released a report outlining numerous best practices for accessibility.
Many of these practices are of course focused on digitisation. The report outlines two concrete
solutions: firstly, various banks have included speech technologies in their various payment apps.
Secondly, an increasing number of ATMs and payment terminals use voice assistance and light and
sound signals to help disabled users.
And fourth and finally: I also represent DNB on the Steering Committee of the Money Wise platform.
This platform was set up by the Dutch Minister of Finance and several other public and private sector
organisations. Every year we carry out all sorts of projects to improve Dutch people's knowledge of
financial products. And to encourage financially responsible behaviour. Her Royal Highness Queen
Máxima is honorary patron of the Money Wise platform.
What we have learned is that campaigns for raising public awareness are much more effective when
they fulfil two conditions. First, when stakeholders work together. And secondly if events are repeated,
ideally internationally. You may already be familiar with Money Week. This is a programme of activities
we put on every year to help schoolchildren learn about using cash, making card payments and
encouraging them to use money responsibly.
UNSGSA stimulates global financial inclusion
This is just some of the work that Queen Máxima is involved in. She has also acted as the UN
Secretary-General's Special Advocate for Inclusive Finance for Development for over a decade. She
focusses on two target groups in particular: entrepreneurs in need of microfinancing, and women who
still do not have a payment account or good financial literacy. This is one area where Fintech can play
a powerful role.
Good cooperation is the key to success for financial inclusion
I think I've already said this a couple of times, but it's so important I'll tell you a third time! The key to
success for financial inclusion is good cooperation between all stakeholders. Across the public and
private sector. A sophisticated vision and strategy can help create support and unite stakeholders. We
have learned that the most successful initiatives are closely in tune with the country's culture.
Initiatives need to offer public and private stakeholders the chance to join forces and discuss their
vision, strategy and activities. And we can learn from each other in international fora and at seminars
like this one in Amsterdam.
Conclusion
I've described how digitisation can be an important driver in taking financial inclusion to the next level.
I've said that good access to the payments system and financial services is not something that can be
taken for granted. Not even in a developed economy like the Netherlands. Where almost everyone has
a bank account. The digital revolution will continue to transform our world. We must not let the most
vulnerable groups in our society get left behind. So they can still enjoy access to finance.
I'm sure you'll agree that this is our moral duty. By stimulating good cooperation between all
stakeholders, and by doing all of this we move one step closer to a world in which the SDGs have been
achieved!
Thank you very much for listening.