reasons for these impediments to inclusion. when we examine barriers that individual consumers face in becoming financially included, we uncover trustworthiness and reputation. a federal reserve analysis of the most recent survey of consumer finances suggests that the primary reason individuals do not have a transaction account is a simple dislike of dealing with financial institutions. 10 if that dislike emanates from the reputation of the particular bank, or the reputation of the banking industry as a whole, policymakers and financial institutions will not be able to enhance financial inclusion without addressing the reputational context. reputation and innovation i ’ d like to imagine how the public ’ s sense of well - being might be enhanced by their interactions with financial institutions. if we paid attention to the experiences of consumers as they interact with various segments of the financial marketplace, what could we learn? if we see rigidities or imperfections in that interactive experience, what innovation might we imagine that would not only reduce reputational risk but create something new and potentially advantageous? technological innovation was the subject of a recent award ceremony in san francisco. the winners were companies with names like soundcloud, github, makerbot, techmeme, and snapchat, all of which presumably do amazing things, although i don ’ t understand exactly what. 11 but, evidently, the real buzz at the ceremony was over something much more mundane that i for one have no problem understanding. that buzz was around a pedestrian item – a new and improved coffee cup lid. 12 this lid, called foamaroma, reportedly provides exactly the right set of openings to maximize aroma and recyclability, while minimizing the effects of coffee spurting out too fast. the point here is that the innovator noticed something simple that others had not : many coffee shop employees don ’ t drink their coffee from cups with plastic lids like their customers do, so there was a market need that had not been recognized and then addressed. here i am not just talking about the mixed miracle of mobile banking and mobile payments or being able to take a picture of a check with a smart phone and it appearing in my checking account. that ’ s a topic that is amazing in its own right and worthy of a separate speech. i am talking about encouraging banks to pay attention to the banking experiences of their customers and finding process improvements or service elements that may lead to something seemingly mundane but valuable nonetheless. see federal deposit insurance corporation ( 2012 ), 2011 fdic national survey of unbank

non - financial sectors, both inside and outside the euro area. in addition, low capacity utilisation rates are likely to dampen investment, and unemployment in the euro area is expected to increase somewhat further, thereby lowering consumption growth. for these reasons, the euro area economy is expected to grow only at a moderate pace in 2010 and the recovery process could be uneven. the governing council continues to view the risks to this outlook as broadly balanced. on the upside, there may be stronger than anticipated effects stemming from the extensive macroeconomic stimulus being provided and from other policy measures taken. confidence may also improve further, and the global economy as well as foreign trade may recover more strongly than projected. on the downside, concerns remain relating to a stronger or more protracted than expected negative feedback loop between the real economy and the financial sector, renewed increases in oil and other commodity prices, the intensification of protectionist pressures and the possibility of disruptive market movements related to the correction of global imbalances. with regard to price developments, as expected, euro area annual hicp inflation increased further in december 2009 to stand at 0. 9 %, after 0. 5 % in november. the rise mainly reflects upward base effects stemming mostly from the drop in global energy prices a year ago. inflation is expected to remain around 1 % in the near term. looking further ahead, inflation is expected to remain moderate over the policy - relevant horizon, with overall price, cost and wage developments staying subdued in line with a slow recovery in demand in the euro area and elsewhere. in this context, it is important to emphasise, once again, that inflation expectations over the medium to longer term remain firmly anchored in line with the governing council ’ s aim of keeping inflation rates below, but close to, 2 % over the medium term. risks to this outlook remain broadly balanced. they relate, in particular, to the outlook for economic activity and the evolution of commodity prices. furthermore, increases in indirect taxation and administered prices may be stronger than currently expected owing to the need for fiscal consolidation in the coming years. turning to the monetary analysis, both the annual growth rates of m3 and loans to the private sector were negative in november, standing at – 0. 2 % and – 0. 7 % respectively. the concurrent declines to historically low growth rates recorded in these two series over the past months support the assessment of a decelerating underlying pace of monetary expansion and low inflationary pressures over the medium term. looking ahead