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Ladies and gentlemen, a very good morning.
And I would like to thank Petra for the invitation to join today's event.
And I want to pay tribute to Petra's work, alongside José Manuel and Verena, and all of the staff at the European Supervisory Authorities.
This conference is to showcase your work to help consumers within the financial system.
And this is not an easy time for consumers.
Growth rates are being revised downwards, while inflation rates are higher than they have been for over 20 years.
So consumers are facing higher energy bills.
Their weekly food shop is more expensive.
And maybe they are spending less, putting off big purchases, or indeed saving less.
The effects of global instability are showing up in people's pockets.
So it is more important than ever for us to work together so that consumers in this changing financial system are protected – but also empowered and confident.
We can steer a new path for today and tomorrow's financial system: a path that is open to all, that is clearly signposted, and that allows the consumer themselves decide which route to take.
So in that context, today I want to talk about:
- Financial inclusion, so that consumers can access the financial system;
- Sustainable finance, so that they are informed about where their money goes;
- And open finance, so that consumers are in charge of how their financial data is used.
So the very first thing that our path needs to do is to open access to the financial system to all consumers.
If that gate is locked, then our consumer can travel no further on this new path.
We need to unlock that for each and every consumer.
And we have a few keys at our disposal.
The first key is the Payment Accounts Directive.
This gives residents in the EU, including people with no fixed address and asylum seekers, the right to access a basic bank account.
With a basic account, you can withdraw cash, make payments, or set up a direct debit – all for a reasonable fee, or even free of charge.
The latest figures from the World Bank show the share of citizens in the EU with at least one bank account is quite high and has risen in recent years.
But we also see almost universal account ownership in some Member States, but only around three-quarters of adults in others.
Meaning a quarter of the adult population in some countries cannot properly access the financial system.
Now we are currently assessing how well the Payment Accounts Directive has worked, and we intend to publish a report on it soon.
The second key we have to open up in relation to financial inclusion is access to cash.
Physical cash is often particularly important for more vulnerable groups, or those without an alternative way of accessing the financial system.
But the number of bank branches and ATMs has been declining – which can make it harder to access cash.
So we will reflect on ways to make sure that cash remains widely available and widely accepted.
The third key to open the financial system to consumers is financial literacy.
It's important that consumers have the skills and the knowledge to make the most out of their money.
A more informed consumer is also a more resilient consumer – I want to help consumers become more resilient by increasing the levels of financial literacy.
In the Commission, with the OECD, we have developed a financial competence framework for adults.
That lays out the skills, knowledge and attitudes that an adult should have to be considered financially literacy.
We are also working on a financial competence framework for young people, that should be completed by the end of next year.
And I know financial literacy is a topic that the European Supervisory Authorities have highlighted, particularly an important event earlier this year.
Also coming next year is a new EU Retail Investment Strategy – where I again want to thank the European Supervisory Authorities for all their input.
This strategy will include financial literacy within the wider context of our work to help citizens participate in European capital markets in an informed and confident way.
That context includes the accessibility of disclosures, also in a digital environment; the quality of advice; and the suitability of products.
Now once we have opened that gate, our consumer can now choose to take different routes along the path.
So we want to make sure there are clear, accurate and reliable signposts that indicate what lies ahead.
So in other words, we want consumers to get the right information about their money and their investments.
If we look at the area of sustainable finance, this is about the role of finance in the transition to climate neutrality.
And there are ever more personal finance products that promise that they are delivering and contributing to sustainability.
But that also brings the risk of greenwashing – companies or financial institutions making false or exaggerated promises about the sustainability of their products.
We want consumers to know about the sustainability of any investment they make – and to be protected against green-washing.
This work is more important than ever, as we step up our efforts to end our dependence on fossil fuels, especially from Russia.
The EU Taxonomy is the cornerstone of our work on sustainable finance.
It provides a guide to economic activities and which ones can be considered sustainable.
So it includes things like solar panels, renovating buildings for energy efficiency, insurance against climate-related risks.
If you want to learn more, I encourage you to look at our Taxonomy Compass – an online guide to help navigate the Taxonomy.
And then there is also the Corporate Sustainability Reporting Directive which will put sustainability reporting by companies on the same footing as their financial reporting.
It's important for investors, but also for civil society and consumers, so that they can all know more about what a company is doing when it comes to sustainability.
Things like a company's business strategy on sustainability, or any sustainability targets and the progress made towards them.
Now that the European Parliament and the Council have reached agreement, this directive will come into force in 2024.
And finally, I want to mention the Sustainable Finance Disclosure Regulation, and that has applied since March last year.
It gives consumers information about their financial products, like investment funds or pension funds, and how their money is being invested in terms of sustainability impact and risks.
So this sustainable finance agenda helps consumers see what lies on the road ahead, with clear signposting.
Now finally, consumers should lead the way along this new path.
They should keep control over their money and their data.
So I want to talk about open finance – which is part of the digital revolution transforming today and tomorrow's financial system.
Open finance – as the name suggests – opens up access to financial data to more players in the financial system.
So there is a lot more potential for innovative and personalised products and services.
One example, a consumer might allow access to their credit history to a bank – and get an immediate decision on a loan they're applying for.
Or a fintech could develop a new platform for consumers to compare offers for insurance based on their claims history.
But – crucially – that openness on data is based on keeping the customer in charge of their own information.
Of course, that needs consumer protection safeguards to build trust – including data protection, and measures against fraud and financial crime.
In developing our approach to open finance, we are taking the time to listen to all sides with an inclusive, bottom-up approach.
We have run several consultations, and a group of experts is advising us on specific use cases that would benefit both consumers and financial institutions.
And we expect the expert group's final report to come later this year.
We will take lessons from our experience with the Payment Services Directive.
I would like to thank the European Supervisory Authorities for their work on open finance and its implications.
Once we have taken stock of the evidence we have gathered, we will decide on the best way forward.
And so, in closing, this new path for consumers is about opening the gate for everyone, signposting the different routes ahead, and making sure that the consumer is in charge of their own decisions about where to go.
We will need to work together – regulators, supervisors, the financial industry – to chart this new path, and to make sure that finance truly is open and inclusive for everyone.
And we should always be sure that consumers are at the heart of our work in this fast-changing financial system.
Thank you, and I wish you the best for your discussions.
