Financial health and inclusion are essential building blocks of an economic system that works for both people and planet. When individuals and businesses can manage their finances with confidence, they are better equipped to withstand shocks, plan for the future, and contribute to thriving, inclusive economies.

Yet millions still face barriers to accessing quality financial services, or remain financially vulnerable due to instability, exclusion, or lack of support. These challenges disproportionately affect people already experiencing structural inequalities based on gender, age, ethnicity, health, disability or socioeconomic status.

Financial institutions, including banks, insurers, and investors, hold significant power to catalyze or support change and benefit from this approach. By focusing on the financial well-being of consumers, financial institutions not only build trust and loyalty but also open the door to increased spending and investment by consumers. This can lead to new opportunities for cross-selling and a reduction in credit risks. Financially healthy customers are the bedrock of a stable and flourishing financial system.

What we mean by financial health and inclusion 

  • Financial health refers to the ability of individuals, households, or small businesses to manage day-to-day finances to meet short and long-term goals, absorb financial and non-financial shocks (resilience), plan for and achieve long-term goals (financial planning and execution), and feel secure and in control of their financial situation (confidence and self-efficacy).
  • Financial inclusion is about affordable access and effective use of appropriate financial products and services. These include payments, savings, lending, investment, insurance, as well as financial and non-financial support that enables individuals and businesses to improve and maintain their financial health over time.

Shaping ambition on financial health and inclusion 

Between 2021 and 2024, over 30 financial institutions signed the Principles for Responsible Banking Commitment to Financial Health and Inclusion, a foundational initiative to drive change. This work has helped establish a shared understanding of what financial health and inclusion mean in practice and offers insight into how institutions can lead the way to a more financially healthy and inclusive future.

Resources and opportunities
Driving Impact on Financial Health and Inclusion of Individuals and Businesses: From Setting Targets to Implementation – provides tools to set SMART targets, engage clients, and embed financial health across institutions.

 

For UNEP FI Members 

Join the Healthy and Inclusive Economies Community of Practice, a dedicated space for UNEP FI members to exchange insights, share challenges, and accelerate action on financial health and inclusion. Contact Laura Diaz Zea to join.