Promoting financial inclusion through technological innovation in the Americas

Speech by Mr Alexandre Tombini, BIS Chief Representative for the Americas at the BIS, at the Federal Reserve Bank of New York (FRBNY) Central Bank Seminar, New York City, 21 October 2024. 

Technology is rapidly changing how the financial system interacts with end users. Internet and smartphone coverage are rising, while physical access points to the financial system (eg bank branches) have declined. In this new environment, a plethora of new options in payments, credit, insurance and wealth management is supporting financial inclusion. Emerging market and developing economies are closing gaps with advanced economies in this regard.

Increasing financial inclusion requires actions by the public and private sector, with central banks being a key player. Some are participating directly in their national financial inclusion strategies. Others are improving their retail payment systems and introducing immediate availability of fund transfers on a 24x7 basis. Experiences in the Americas, eg with Brazil's Pix, show the dramatic potential of fast payment systems to support inclusion.

Going forward, one of the most challenging areas is cross-border payments. Yet the potential for greater integration in the Americas is great. The BIS remains committed to supporting dialogue among central banks and encouraging disruptive innovations in financial and payment systems through its committees, its research and the BIS Innovation Hub. As we look to the future, integration of fast payment systems across the Americas, similar to in the BIS Innovation Hub Project Nexus, could hold significant potential.