While most countries have leveraged on the existing legal or regulatory frameworks developed for consumer protection in general, there is a need to recognise the limitations of such general frameworks in addressing consumer protection in the context of promoting a more inclusive financial system. A consumer protection regime that relies on full disclosures may mean very little to consumers that have neither the capacity to understand the disclosures, nor the ability to exercise the appropriate choice between the products being offered. Existing consumer protection frameworks may need to be adapted to address the specific needs of the more vulnerable groups. Finally, the development of a financial education programme is vital to enhance financial capability for consumers to participate effectively in the financial system that is dynamic and fast evolving. We are now in an environment that is seeing the proliferation of financial products and services and the emergence of electronic finance. Greater financial literacy will also ensure that the financial industry will be responsive to the more discerning demands. Being ill equipped or having a lack of understanding of the nature of the products could increase vulnerability to misselling by financial institutions or to fraud and scams. Proficiency in financial knowledge will contribute towards greater empowerment and competent financial decisions. Studies have shown that financial education that is made available at an early age, in the school education system, will strengthen this potential and enhance the greater financial inclusion.
Let me conclude. Policymakers have a critical role and a distinct opportunity in these present times to effect significant and positive change in the development of more inclusive financial systems. This change will not only catalyze progress for the poorest and marginalized segments of society, but also uplift those groups that are already in the financial mainstream but are highly challenged by the environment. This will ultimately serve to achieve truly inclusive growth and development. This is an important agenda, and our efforts must be trained on interventions that will encourage competition, provide the right incentives to both financial service providers and individuals, and help overcome access barriers in ways that will contribute to growth and stability. While the challenges are significant, the prospects for improved living standards and hopes for the millions of people in poverty and the struggle for survival should encourage us to persevere and advance forward with greater focus and purpose. Before I end my remarks, allow me to express my appreciation to our key partners in making this forum a reality. I wish to record my appreciation to Her Royal Highness Princess Maxima for her support to this Forum in her capacity as United Nations Special Advocate for Inclusive Finance for Development. The Alliance for Financial Inclusion, the Consultative Group to Assist the Poor and the OECD’s International Network on Financial Education have become important collaborators in our aspirations to promote more inclusive financial systems.