Banks have an obligation to contribute to more inclusive and sustainable economic growth that offers equal opportunities and respects the environment. Banks must do this—it is their challenge, one of the most important ones—because they are the financial engine of investment and entrepreneurship and provide essential financial services.
First, to achieve this objective, it is necessary to extend the provision of financial services to the entire population; it is necessary to advance what is known as financial inclusion. The World Bank defines it as access to a variety of useful and affordable products and services that meet needs (payments, transfers, savings, insurance, and credit) and that are provided in a responsible and sustainable manner. In Spain, financial inclusion stands at 98%, one of the highest rates in Europe.
Access to financial services makes people’s lives easier and is essential for business development, as it enables planning for the future, realizing projects, and addressing unexpected needs. Financial penetration is key to achieving the ultimate goal of a fairer society.
In Spain, more than 92% of the population lives in municipalities with at least two bank branches. Although this is a significant percentage, it is not sufficient for Spanish banks, which aspire to serve the entire population with the best possible services. Unfortunately, the geographical distribution of the population in Spain, with small and dispersed municipalities, does not make this easy. This explains why Spanish banks are redoubling their efforts in the digitalization of their products and services and in providing service through mobile branches and agents. These are solutions that could be complemented by cooperation initiatives in very specific cases. This proposal from the AEB has been relatively successful in other countries.
Digitalization has thus become a priority for our institutions. It is a demand from an increasing number of customers, many of them digital natives, who request higher-value services that are more transparent, immediate, and easily accessible. But it is also a way to integrate those who are at risk of being excluded for reasons of geographical distribution. All of society must be involved in this effort. Authorities must recognize that internet connectivity must be extended throughout Spain to guarantee access to financial services for all citizens.
Financial education is another key tool for banks to contribute to more inclusive economic growth. It can be defined as the set of skills and knowledge that enable consumers to make informed decisions about their personal finances, and it is closely linked to financial inclusion and consumer protection. Spanish banks make significant efforts to improve society’s financial education, both for young people navigating between the digital revolution and risk aversion following the financial crisis, and for older people who have difficulty benefiting from the advantages of digitalization. In the latter case, beyond the geographical digital divide, it is important that unstoppable digitalization does not leave behind a segment of the population that feels everything is moving too fast. Banks are aware of this and are fully committed to preventing it. But for banks’ efforts to be fully successful, collaboration from the rest of society is needed—from authorities, the academic world, and families.
It is essential that the benefits of economic growth reach everyone. And it is also important that no one is left out of the advantages of digitalization. Spanish banks are clear on this. They adapt their structures to an increasingly digital environment without forgetting analog customers, and they dedicate significant resources to promoting financial education. All their efforts seek to contribute to society’s progress.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
