much financial inclusion? is financial inclusion a worthy policy objective to pursue? my response here would have to be – that as in all things, there must be balance. ( like in the fairy tale goldilocks – not too hot, not too cold … not too big, not too small …. but just right! ) to achieve such balance, there should only be financial inclusion, to the extent that there is sufficient quality capacity to supervise. there should only be financial inclusion to the extent that the players can be properly incentivized and are able to process financial information. there should only be financial inclusion to the extent that the regulator is able to provide adequate financial consumer protection. when these conditions are present, we can say we have responsible financial inclusion. clearly, this balance would have to be jurisdiction - specific. but a common framework and a set of working principles for implementation could be derived. the framework and principles could then be the bases for closer dialogue among stakeholders, including central banks, other regulators, the standard setting bodies and the private sector. much has already been done to bring us closer to that common understanding of these things. but much remains. in this dynamic and ever evolving pursuit of financial inclusion, we must continue to strengthen our evidence base to inform our policies, stay abreast with developments and ensure that our actions remain relevant, constantly challenge and question our positions if only to ascertain that they are the right ones. i believe this conference can largely contribute to this important exercise. the work of pushing forward responsible financial inclusion is huge. and it is important that the pursuit of financial inclusion would not be to the detriment of other policy objectives. hopefully, after today, we have more clarity in what we need to do as central bankers. central banks who believe that a strong and stable economy and financial system is only truly relevant if it benefits the majority of our population. on that note, i look forward to our discussions in the next day and a half. thank you for your attention. bis central bankers ’ speeches bis central bankers ’ speeches

output volatility. [ i will leave this for james to further explain during his presentation tomorrow. ] for the second type of change : on ways to design and deliver products to improve access to financial service. financial product providers need to be mindful that, while most of the new entrants ( generally the poor ) have had to be savvy to deal with their unpredictable cashflows to “ survive ”, they are not ( necessarily ) as capable in dealing with a whole array of new financial products. moreover, banks must also be careful to extend certain types of credit to certain clients. this could just expose lenders to higher risks and it can also expose illinformed borrowers to increased risk of debt distress. these concerns related to product development highlight the need for proportionate regulation that adequately balances the need for flexibility and openness to innovation, on one hand, with that of mechanisms to ensure that risks are properly managed, on the other. this will allow market contestability and the development of market - based solutions to serve markets that were traditionally unserved or underserved. we ’ ve already seen innovative market - based approaches to improve credit access for microfinance borrowers. we ’ ve witnessed the move from brick - and - mortar offices to alternative financial service providers such a micro banking offices and e - money issuers. addressing technological innovation : thru financial education, consumer protection and proportionate regulation innovations, particularly through financial technology, can indeed be the catalyst for greater financial inclusion. technological innovation has the potential to reduce costs and accelerate the on - boarding of currently excluded markets into the formal financial system. in addition, technology solutions promise to enhance regulatory capacity and tools to supervise the market, and facilitate regulatory compliance and reporting of financial institutions. some examples of these include : 1. big data analytics and algorithms that can be used to address information assymetry in financial service provision ( e. g., analytics of social media behavior can predict financial behavior of target clients ) ; 2. crowdfunding platforms that may be utilized for generating funds for smes, start - ups and innovators. ( e. g., peer - to - peer lending or equity crowdfunding ) 3. digital currencies. ( when this is safely managed, this may facilitate payments, money transfers and e - commerce. ) 4. regtech or using technology to enhance regulatory capacity and enable regulators to analyze data to ensure timely supervision and intervention. as traditional players (