Since 2011, more than 1.2 billion adults globally have obtained a bank or transaction account — up to 69% from 51% in the past decade. Yet, gains in “access” miss the more important goal: whether financial access translates into better financial health for the people who need it. The stress brought by the pandemic on financial systems, combined with a heightened awareness of our interconnectedness, has convinced many leaders that now is the time to re-design financial systems to create equitable, long-term financial security for people and small businesses.
This paper by the Aspen Institute highlights four key principles required to achieve these aims:
- Prioritizing historically excluded and underserved populations;
- Measuring success by outcomes;
- Establishing and enforcing strong regulatory regimes; and
- Promoting growth and integrity.