PresentationbyOMAR KHAN

8/16/2019 PresentationbyOMAR KHAN

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OMAR KHAN

1. Introduction

-Madame Chair, Madame International Expert, Distinguished Guests and

Participants

-Thank for the opportunity to attend this important forum and to offer this presentation

-My name is mar !han and I "ork at the #unnymede Trust, a thinktank in

$ondon focusing on race e%uality&

-'e are also one of o(er )** mem+er organsations of the European et"ork

gainst #acism .E#/, and "rote their response to the European

Commission0s Consultation on access to +anking

-My presentation is therefore focused mainly on Europe and financial

inclusion among ethnic minorities in the Glo+al orth, +ut I "ill indicate

"here I think my presentation applies to minorities in the Gl+oal 1outh, for

"hom financial inclusion is e%ually important&

2. Definition

2inancial Inclusion is typically defined as access to and take up of appropriate

financial products and ser(ices& These include

3anking

1a(ings

Credit

Insurance

d(ice

3. Expanded conception4 social inclusion and social 5ustice

-6o"e(er, financial inclusion more than simply ha(ing financial products or a +ank card& #ather, it is important for social inclusion and participation in social

and economic life more generally

-'ithout access to +anking, "e cannot take ad(antage of more secure means of

managing money, and may keep cash in our homes, under the +ed or in a safe

-'ithout access to sa(ing, "e cannot plan for our future or our children0s future,

or +uffer again shocks

-'ithout access to credit, "e cannot +uild up our +usinesses, or e(en out the ups

and do"ns in our incomes

-Ethnic minority "omen may e(en rely on their hus+ands on access to the a+o(e

products and ser(ices, meaning that they are less capa+le of +eing economically

independent

-In sum, financial inclusion is a crucial means of "ider social inclusion and

participation& Those "ho are fully included often feel more confident and

respected, as e(idence in the 7! has sho"n for former prisoners&

4. 'hy this expanded conception8

-2inancial institutions "ork on the +asis that those "ho are more disad(antaged

are more risky customers, and more likely to default& They are there+y denied

access to certain products, or pay more for those products, as is the case for

su+prime lending&

-f "e ha(e too narro" a conception of financial inclusion, or limit our discussionto financial institutions, "e cannot effecti(ely respond to this market reality, a


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point that has already +een raised +y pre(ious speakers& That is, "e must +e

cautious a+out the claim that access to financial products and ser(ices is solely a

financial or market consideration&

-1o "hile "e must "ork "ith markets and accept that sometimes disad(antaged

groups may ha(e higher costs for some institutions, "e should not al"ays accept

that esta+lished practice actually represents effecti(e and competiti(e markets& or indeed "e should accept that policy cannot respond only +y focusing on

existing financial institutions and their regulation

5. Policies4 discuss 9 or :

-3anking4 In Europe, +ank accounts is a necessary product for economic

participation& Those "ithout a +ank account are limited to the cash economy,

"here 5o+s are uncertain, promotion is unlikely, and pay is lo"& Throughout

Europe, ethnic minorities are more likely to "ork in the less secure and profita+le

cash economy&

-Perhaps, then, +anking may +e (ie"ed as a utility, like electricity or "ater& This

has policy implications4 "e might promote a ;right0 to a +ank account or "ork"ith financial pro(iders to design +etter products for lo" income people&

-1a(ings4 In thinking a+out sa(ings policy, "e mo(e into macroeconomic and

taxation policy& This is an area that "e must engage "ith +etter& Currently in

Europe, there are many sa(ings products that ha(e significant tax incenti(es,

including pensions, and most of the +enefits of these tax incenti(es go to the +etter

off& 'e should think a+out ho" policy could +etter distri+ute the lost tax income

that 2inance Ministries recei(e in sa(ings tax incenti(es, in particular ho" they

might +e +etter distri+uted in the +ottom %uintile of earners, "here ethnic

minorities are more likely to +e&

-Disclosure4 This idea, +ased on the


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7. A$B I2 TIME 7ni(ersal (s Targeted policies&

-1o far I ha(e explained ho" and "hy financial inclusion is crucial for securing

economic independence and "ell+eing for ethnic minorities

-I "ould like to conclude on a topic that many distinguished speakers ha(e already

raised, and that relates to the topic of this session .affirmati(e action/ and another

key recommendation, namely data collection&-This is the %uestion of targeted (s& uni(ersal policies to respond to disad(antage&

s else"here, it is sometimes argued in the 7! that the reason "hy ethnic

minorities are disad(antaged is the same as "hy "hite 3ritish people are

disad(antaged, namely on account of their po(erty or poorer educational

attainment or employment prospects& Many therefore recommend uni(ersal

policies to +enefit ethnic minorities and all lo" income people&

-9 responses4 first, is that 5ust +ecause lo"er educational attainment or regional

location correlates "ith economic and social exclusion, "e 6?ET said that

discrimination isn0t a prior cause for that lo"er educational attainment or regional

location in the first place&

-1econd4 "hile in many E7 countries data collection is constitutional unla"ful, inthe 7! "e ha(e collected official data on ethnicity since

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PresentationbyOMAR KHAN