Central Bank of the Future Conference

Having a central bank wasn’t always the most politically popular idea. But now, most countries have central banks to conduct monetary policy to regulate payment systems and with other regulators to oversee that country’s private financial institutions. Central banks should look at the big picture to make sure that the economy is working nationwide for everyone. But we know that many people - especially low-income people, women, immigrants - are being left out. This isn’t just a social issue. It’s an economic one. For a country to stay financially healthy, it needs widespread participation across all sectors. Central banks are well-positioned to advance financial inclusion to help ensure a robust economy. Some banks, in fact, have already begun to take on this role. For example, the Reserve Bank of India has combined regulation and financial technology to promote financial inclusion. With their Aadhaar system, citizens can open an account with just a fingerprint. From there, biometric identification can be used as identification for state-provided services and financial transactions. Or look at Mexico, which is using FinTech to move towards a more secure and accessible cash-free national payment system. And in Ghana, the central bank there has prioritized mobile banking as a way to reach populations without access to physical bank branches. As more and more countries work to improve financial inclusion, it becomes more important to understand what financial inclusion really means and why people can’t get access to the services they need. 

Join us for a series of conversations around the future of central banking with the IMF, the World Bank, CGAP, the Financial Health Network, and central bankers from around the world, hosted by the University of Michigan Center on Finance, Law, and Policy on Wednesday, October 2nd and Thursday, October 3rd. For more information and updates, go to our website. I hope to see you there.