The United Nations Environment Programme Finance Initiative (UNEP FI) has unveiled its latest initiative aimed at advancing the Principles for Responsible Banking (PRB). The new guidance titled, “Driving Impact on Financial Health and Inclusion of Individuals and Businesses: From Setting Targets to Implementation” is set to support financial institutions advance the financial well-being of their customers, both individuals and businesses. Developed alongside 27 signatory banks worldwide and leading experts in financial well-being, this guidance seeks to establish a common understanding of Financial Health and Inclusion that is actionable for financial institutions.

Financial institutions play a crucial role in promoting Financial Health and Inclusion of the individuals, businesses, and communities they serve. By prioritising financial well-being, these institutions not only benefit from increased customer loyalty and product uptake but also contribute to poverty alleviation and the creation of healthier and more inclusive economies.

The guidance provides a comprehensive framework for financial institutions to build robust strategies, set impactful targets, and implement informed actions to drive impact in the realm of financial well-being and inclusion. It encompasses both target setting and implementation, offering a unified pathway to deliver a shared vision and common metrics to assess success.

The initiative was developed with the support of a diverse range of organisations and experts, including the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA), United Nations Capital Development Fund (UNCDF), International Sustainability Standards Board (ISSB), Development Bank of Latin America and the Caribbean (CAF), Financial Health Network, Financial Resilience Institute, IDB Invest, Unltd, and Money Advice Trust. The collective expertise of these stakeholders ensures that the guidance is practical and aligned with the goal of driving positive impact in the area of financial well-being.

Financial institutions are encouraged to align their actions with the guidance, addressing existing gaps in key components of financial health and working towards increasing financial resilience, confidence, and skills for individuals and businesses. By doing so, they can play a pivotal role in driving sustained impact on customer well-being and reducing inequalities.

The launch of the PRB Guidance on Financial Health and Inclusion is a significant milestone, marking an industry-first publication that covers both target setting and implementation, supporting the financial sector in building a common understanding of Financial Health and Inclusion and providing a roadmap for financial institutions to champion financial well-being and inclusion.

The introduction of the Principles for Responsible Banking Guidance on Financial Health and Inclusion signifies a step forward in the global effort to promote financial well-being and inclusion. Financial institutions, in collaboration with various stakeholders, are poised to make a tangible difference in the lives of individuals and businesses by prioritising and implementing actions to drive impact in this critical area.

Download the full guidance, “Driving Impact on Financial Health and Inclusion of Individuals and Businesses: From Setting Targets to Implementation”, here.