note that gaps in financial inclusion differ across jurisdictions. in some cases, these gaps stem from the limited availability of and individual ability to access the various types of payment and financial services provided in different countries. this varied see michelle w. bowman, “ building a more inclusive financial system through collaboration and action ” ( speech at the aspen institute, washington, d. c., december 5, 2023 ), https : / / www. federalreserve. gov / newsevents / speech / bowman20231205a. htm. - 7access to services may be due in part to unique regulatory environments and consumer and business preferences. thus, policymakers and service providers within each jurisdiction are best suited to tailor solutions within their own domestic context. although each jurisdiction is unique, we as policymakers should be willing to collaborate and assess opportunities for systemic improvements that could provide widespread benefits, including the work of the g20 in support of cross - border payments. minimizing unnecessary frictions is a worthy goal whether the intended beneficiary is an international financial institution, a small business or nonprofit managing cashflow with international customers, or a consumer simply seeking to send and receive payments, needing to do so safely without excessive fees or experiencing extended delays in receiving funds. in the context of cross - border payments, global remittances can also play a significant role in expanding financial inclusion. in some countries, these remittances are an economic driver by serving as a key source of funding for some households, which can provide a path to a more inclusive economy. as a result, it is critical that consumers can send and receive these types of payments safely, efficiently, and affordably. research has shown that the ability to receive remittances increases the probability of having a bank account and contributes to economic engagement. 7 yet, high fee structures for remittance services can have a significant impact on households sending money abroad. recent data show the average cost for sending a $ 200 remittance from the united states was approximately 5. 8 percent of the transaction amount, or about $ 12. 8 the g20 countries have reaffirmed the united nations sustainable development gemechu ayana aga and maria soledad martinez peria, “ international remittances and financial inclusion in sub - saharan africa, ” policy research working paper ( washington : world bank group, development research group, july 2014 ), https : / / openknowledge

for release on delivery 2 : 00 a. m. est ( 9 : 00 a. m. local time ) february 15, 2024 advancing cross - border payments and financial inclusion remarks by michelle w. bowman member board of governors of the federal reserve system at 19th bcbs - fsi high - level meeting for africa cape town, south africa february 15, 2024 introduction thank you to the financial stability institute of the bank for international settlements and especially to its chair, fernando restoy for the invitation to speak about these important topics. 1 i ’ d also like to thank the south african reserve bank for hosting this gathering. it is a pleasure to join you in cape town, and i am delighted to speak with you about advancing crossborder payments and financial inclusion. i find great value in engaging with and learning from our international colleagues on these international and domestic issues. we are all participants in a global and interconnected financial ecosystem, and payments are a vital component of this system. the payments landscape continues to evolve, through infrastructure upgrades, innovation, changing consumer preferences, and advancements in both the public and private sectors. faster, cheaper, more transparent, and more inclusive crossborder payment services offer widespread benefits for citizens and economies around the world, with the potential to support economic growth, international trade, global development, and financial inclusion. this global ecosystem is comprised of individual jurisdictions, each with its own history, public policy objectives, payment infrastructures, and regulatory environments. within these independent economies exist a wide range of businesses and consumers, all with vastly different needs and requirements. as policymakers, we must consider not only how to foster safe, efficient, and accessible payment and settlement infrastructures to support the broader financial system but also how those same systems and infrastructures can support the needs of consumers, businesses, and financial service providers. this includes support for responsible innovation and thank you to priyanka slattery and alex sproveri of the federal reserve board for their assistance in preparing this text. the views expressed here are my own are and not necessarily those of my colleagues on the federal reserve board. - 3enabling providers, such as banks and other nonbank financial service providers, to meet the evolving needs of their customers. in many cases, the policy tradeoffs we face domestically are amplified in the cross - border context. to foster safety and efficiency in the payment system, it is imperative to seek improvements that support an accessible and inclusive system that works for the broad spectrum of