From Financial Inclusion to Financial Health

On 25 September 2024, Her Majesty Queen Máxima of the Netherlands was appointed the United Nations Secretary-General’s Special Advocate for Financial Health by UN Secretary-General António Guterres. This new position is an evolution of her work as the UN Secretary-General’s Special Advocate for Inclusive Finance for Development, a role she held for 15 years.

When Queen Máxima became the UNSGSA in 2009, less than half the world’s adults had access to the formal financial system, as measured by access to a basic financial account. Traditionally underserved groups like women, smallholder farmers, and micro-, small and medium enterprises (MSMEs) had the least access.

As the UNSGSA, Queen Máxima advocated for access to and usage of safe, affordable, and quality financial services, including financial accounts, loans, savings products, and insurance. The UNSGSA travelled to over 48 countries during her 15-year tenure, witnessing first-hand how exclusion from formal financial services hampers people’s ability to earn and protect themselves in times of crisis, while affordable access and usage of quality financial services helps families and small business owners generate income, manage irregular cash flow, invest in development opportunities, and work their way out of poverty. Financial inclusion can empower people and communities to meet basic needs, such as nutritious food, clean water, housing, education, and health care.

Fifteen Years of Progress

Fifteen years later, there has been tremendous progress. Nearly 80% of adults worldwide now have access to at least a financial account (Global Findex 2021). In 2015, financial inclusion was identified as a key enabler of seven of the 17 UN Sustainable Development Goals (SDGs). The gender gap in account ownership between men and women in developing countries has narrowed from nine to six percent, and over 60 countries have implemented a national financial inclusion strategy. Global financial sector standard-setting bodies have included financial inclusion in their work programs and established enhanced coordination arrangements with the financial inclusion community. Central banks, regulatory authorities, and policymakers have made financial inclusion a strategic focus, while financial services providers have prioritized policies and services that promote it.

Financial inclusion goes beyond opening bank accounts or increasing service use––it is about improving lives. With access to financial services significantly expanded and a robust global network of partners supporting financial inclusion, the UNSGSA will now focus on financial health.

“In a world of economic uncertainty, conflict and climate change, financial services are critical to helping people take control of their lives and futures. As a Special Advocate for Financial Health, Her Majesty Queen Máxima builds on her important work to ensure that financial systems can support the dreams, hopes and aspirations of people around the world.” – UN Secretary-General António Guterres

What Is Financial Health?

As the UN Secretary-General’s Special Advocate for Financial Health, Queen Máxima will work to empower people with suitable financial products and tools that enhance their ability to manage their day-to-day finances, build resilience to financial shocks, plan for the future, and feel confident about their financial lives. This is what the UNSGSA calls “financial health”.

A financial health approach focuses on enhancing outcomes by delivering customer-centered solutions, fostering a more inclusive and sustainable financial ecosystem that supports financial stability, resilience, and long-term prosperity for everyone.

The importance of financial health becomes particularly evident during financial and economic shocks like inflation and the COVID-19 pandemic, as well as more frequent climate-related shocks, such as droughts or flooding. These types of events expose the vulnerability of those who are excluded from the financial system. They also highlight the need of those who are included to benefit from a range of financial services that mitigate the effects of those shocks and enable them to seize new economic opportunities.

Thus, Queen Máxima advocates at the global level for the development of financial services, products, and policies that have financial health as the main goal. These services must be in line with what people need, so that they can protect themselves from financial risks and invest in a better future, all within a safe, inclusive, and sustainable financial system.

Through strategic and sustained advocacy, the UNSGSA encourages cooperation and commitment from political leaders, regulators, global standard-setting bodies, civil society, the private sector, and, most importantly, financially underserved groups, to build a more secure and resilient future.

The Road Ahead

Work still needs to be done to reach the 1.5 billion people who remained unbanked with financial services and better opportunities for development. The work of expanding financial access will continue, especially by UNSGSA partners, many of which have contributed to the global Call to Action to reach half of the remaining unbanked by 2030.

As countries continue to expand financial access and service usage, it is essential that the concept of financial health is integrated in efforts to deepen the financial sector. As the Honorary Patron of the G20 GPFI on behalf of the United Nations since 2011, Queen Máxima will continue to encourage G20 Member States to develop new initiatives in financial inclusion with financial health as the desired outcome.

“The road ahead is brimming with promise and potential,” wrote UNSGSA Queen Máxima in her 2024 Annual Report. “Armed with insights and the strong partnerships I have fostered, I aim to advocate for policies and initiatives that put financial health at the center of our economic agendas. The mission continues: to break down enduring barriers, inspire more innovation, and ensure that everyone who participates in the financial system can reap the benefits.”