G20 Radio Bulletin 73 - Financial inclusion needs a process to avoid debt

The head of the Central Bank's Department for the Promotion of Financial Citizenship evaluated the work of the G20 Global Partnership for Financial Inclusion. Listen and find out more!

Reporter: Today 84% of adult Brazilians have a bank account, and 75% of the population has already made a transfer via PIX (electronic payment method). The banking rate in the world is around 76% and in emerging countries 71%. Given these figures, Brasil is a success case in terms of financial inclusion and it wasn't just a public policy that led to such a high figure - a series of initiatives were taken, such as correspondent banking and the digitalization of banks.

Luis Gustavo Mansur, head of the Central Bank's Department for Promoting Financial Citizenship, presented numbers about the Brazilian banking system and spoke to the press at the G20 headquarters in Brasilia about the main issues debated by the members of the Global Partnership for Financial Inclusion.

According to Mansur, the increase in inclusion has also generated a high number of indebtedness due to the inappropriate use of financial products and services. This is why it is important to discuss, within the G20, what can be understood as financial well-being.

Luis Gustavo Mansur: It is important that this inclusion is accompanied by a quality process, that this increase is not accompanied by high levels of indebtedness, of over-indebtedness. The population needs to know how to use credit efficiently, how to save, how to plan the use of their resources.

Reporter: Based on the debate, the group hopes to arrive at a definition of financial well-being and, at the end of the year, propose metrics to measure the population's satisfaction with the inclusion process. The aim is to monitor the quality of people's integration into the formal banking system and to be able to see whether they will actually have a balanced financial life.