We can steer a new path for today and tomorrow's financial system: a path that is open to all, that is clearly signposted, and that allows the consumer themselves decide which route to take.
This conference is to showcase your work to help consumers within the financial system.
And this is not an easy time for consumers.
Growth rates are being revised downwards, while inflation rates are higher than they have been for over 20 years.
So consumers are facing higher energy bills.
Their weekly food shop is more expensive.
And maybe they are spending less, putting off big purchases, or indeed saving less.
The effects of global instability are showing up in people's pockets.
So it is more important than ever for us to work together so that
consumers in this changing financial system are protected – but also
empowered and confident.
We can steer a new path for today and tomorrow's financial system: a
path that is open to all, that is clearly signposted, and that allows
the consumer themselves decide which route to take.
So in that context, today I want to talk about:
- Financial inclusion, so that consumers can access the financial system;
- Sustainable finance, so that they are informed about where their money goes;
- And open finance, so that consumers are in charge of how their financial data is used.
So the very first thing that our path needs to do is to open access to the financial system to all consumers.
If that gate is locked, then our consumer can travel no further on this new path.
We need to unlock that for each and every consumer.
And we have a few keys at our disposal.
The first key is the Payment Accounts Directive.
This gives residents in the EU, including people with no fixed address and asylum seekers, the right to access a basic bank account.
With a basic account, you can withdraw cash, make payments, or set up
a direct debit – all for a reasonable fee, or even free of charge.
The latest figures from the World Bank show the share of citizens in
the EU with at least one bank account is quite high and has risen in
recent years.
But we also see almost universal account ownership in some Member States, but only around three-quarters of adults in others.
Meaning a quarter of the adult population in some countries cannot properly access the financial system.
Now we are currently assessing how well the Payment Accounts Directive has worked, and we intend to publish a report on it soon.
The second key we have to open up in relation to financial inclusion is access to cash.
Physical cash is often particularly important for more vulnerable
groups, or those without an alternative way of accessing the financial
system.
But the number of bank branches and ATMs has been declining – which can make it harder to access cash.
So we will reflect on ways to make sure that cash remains widely available and widely accepted.
The third key to open the financial system to consumers is financial literacy.
It's important that consumers have the skills and the knowledge to make the most out of their money.
A more informed consumer is also a more resilient consumer – I want
to help consumers become more resilient by increasing the levels of
financial literacy.
In the Commission, with the OECD, we have developed a financial competence framework for adults.
That lays out the skills, knowledge and attitudes that an adult should have to be considered financially literacy.
We are also working on a financial competence framework for young people, that should be completed by the end of next year.
And I know financial literacy is a topic that the European
Supervisory Authorities have highlighted, particularly an important
event earlier this year.
Also coming next year is a new EU Retail Investment Strategy – where I
again want to thank the European Supervisory Authorities for all their
input....
more at
This conference is to showcase your work to help consumers within the financial system.
And this is not an easy time for consumers.
Growth rates are being revised downwards, while inflation rates are higher than they have been for over 20 years.
So consumers are facing higher energy bills.
Their weekly food shop is more expensive.
And maybe they are spending less, putting off big purchases, or indeed saving less.
The effects of global instability are showing up in people's pockets.
So it is more important than ever for us to work together so that
consumers in this changing financial system are protected – but also
empowered and confident.
We can steer a new path for today and tomorrow's financial system: a
path that is open to all, that is clearly signposted, and that allows
the consumer themselves decide which route to take.
So in that context, today I want to talk about:
- Financial inclusion, so that consumers can access the financial system;
- Sustainable finance, so that they are informed about where their money goes;
- And open finance, so that consumers are in charge of how their financial data is used.
So the very first thing that our path needs to do is to open access to the financial system to all consumers.
If that gate is locked, then our consumer can travel no further on this new path.
We need to unlock that for each and every consumer.
And we have a few keys at our disposal.
The first key is the Payment Accounts Directive.
This gives residents in the EU, including people with no fixed address and asylum seekers, the right to access a basic bank account.
With a basic account, you can withdraw cash, make payments, or set up
a direct debit – all for a reasonable fee, or even free of charge.
The latest figures from the World Bank show the share of citizens in
the EU with at least one bank account is quite high and has risen in
recent years.
But we also see almost universal account ownership in some Member States, but only around three-quarters of adults in others.
Meaning a quarter of the adult population in some countries cannot properly access the financial system.
Now we are currently assessing how well the Payment Accounts Directive has worked, and we intend to publish a report on it soon.
The second key we have to open up in relation to financial inclusion is access to cash.
Physical cash is often particularly important for more vulnerable
groups, or those without an alternative way of accessing the financial
system.
But the number of bank branches and ATMs has been declining – which can make it harder to access cash.
So we will reflect on ways to make sure that cash remains widely available and widely accepted.
The third key to open the financial system to consumers is financial literacy.
It's important that consumers have the skills and the knowledge to make the most out of their money.
A more informed consumer is also a more resilient consumer – I want
to help consumers become more resilient by increasing the levels of
financial literacy.
In the Commission, with the OECD, we have developed a financial competence framework for adults.
That lays out the skills, knowledge and attitudes that an adult should have to be considered financially literacy.
We are also working on a financial competence framework for young people, that should be completed by the end of next year.
And I know financial literacy is a topic that the European
Supervisory Authorities have highlighted, particularly an important
event earlier this year.
Also coming next year is a new EU Retail Investment Strategy – where I
again want to thank the European Supervisory Authorities for all their
input...
more at Commission
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