Or to put it another way, we need to look at not just innovative financial inclusion, but inclusive financial innovation! Identifying and working on our blind spots: driving efficiency gains to promote sustainable financial inclusion The reduction of poverty and greater social empowerment through financial inclusion has been one of most enduring achievements of our era. Building on this momentum, our ambitions to pursue deeper financial inclusion over the next decade must be rooted in a deep understanding of the unique circumstances faced by the 2 billion people who remain excluded from the formal financial sector. This involves increasing the arsenal of financial inclusion tools that can overcome both the geographical and cultural barriers to deliver meaningful financial services to this segment. Ultimately, the provision of financial services to the underserved and unbanked must be economically viable for providers. In this aspect, the smart usage of technology can be a game changer in lowering the cost of financial intermediation. 2  BIS central bankers’ speeches  This in turn will unlock opportunities to progress from the single, narrowly-focused products which are typically offered by traditional financial institutions today, to a broader range of relevant products and services tailored for the underserved segments. The ability to clearly demonstrate and consistently track efficiency gains over time can attract more providers into this space, while driving continuous efficiency improvements in delivering financial services to the underserved. Great strides have been made in developing better measures of financial inclusion.

Globalisation, with increased trade and mobility between different countries, has been one reason why we have had favourable economic development, including low and stable interest rates and low inflation.2 If conflicts in the world were to result in globalisation slowing down, this would probably have negative consequences for both Sweden and the global economy. If trade decreases and the mobility of labour and capital deteriorates, the conditions for economic growth will also deteriorate. Greater protectionism means slower development in, for example, information and communication technology, a sector that has been a strong driving force behind the pressure for change and productivity improvements in various parts of the economy. Several of the factors that have dampened price pressures in recent decades thus risk becoming less important in the future. Risks increasing in the financial system Despite the global financial crisis 2007-2010 and the pandemic 2020-2022, GDP has grown significantly in recent decades. Higher incomes and wealth have also led to the financial sector becoming a larger and more important part of the economy. Furthermore, rapid technological developments combined with globalisation have paved the way for new players and services within the framework of what is commonly referred to as FinTech. While this is essentially positive, it has also exposed the financial system to new risks, while many more traditional risks remain. The bank collapses in the United States and Switzerland are concrete examples of this.