International Day of Banks: Financial Services for Everyone

December 4 is the International Day of Banks, an annual event established by the United Nations General Assembly in 2019. This event recognizes the crucial role of banks in driving economic growth and improving living standards globally.

Moreover, it highlights global cooperation, multilateralism, and the pursuit of the UN's Sustainable Development Goals (SDGs) to protect the planet and ensure prosperity for all.

It also focuses on making financial services accessible to all, including the unbanked and underbanked, through integrated national financing frameworks. Read on to learn more.

Quick links: International Day of Banks

Why International Day of Banks Matters

The global banking industry is the backbone of the global financial system. It involves managing money and acting as secure vaults for the wealth of individuals and corporations.

Banks strategically lend these funds and international resources to earn profits and facilitate money transfers from depositors to borrowers.

With the rise of online transactions, the banking sector has adapted to evolving needs and technologies while preserving its core purpose of safekeeping and productive allocation of funds.

The International Day of Banks recognizes the institution’s significant role in worldwide economic growth and poverty eradication.

Access to banking services is limited in many remote areas, posing a barrier to economic development for marginalized populations. Today, the focus is on encouraging banks to expand their reach, provide financial services to those needing it, and create a global financial safety net.

Many individuals also lack the necessary skills to make sound financial decisions, leaving them susceptible to costly mistakes and fraud.

The annual observance aims to empower individuals and promote the inclusion of everyone into the international financial system.

Multilateral and national development banks can also help many countries develop financing options for investing toward the Sustainable Development Goals.

Let’s celebrate this day to shed more light on what banks can do to help us.

Data and Statistics

The global number of adults without access to a bank account is estimated to be around 1.4 billion, commonly referred to as the 'unbanked.' The common causes for not opening accounts are lack of money, distance from the nearest financial institution, and insufficient documentation.

In the USA alone, the total assets of banks are around $24 trillion. However, not everyone can access these banking services despite this massive wealth.

The Federal Deposit Insurance Corporation says about 4.5% of households in the United States were 'unbanked' in 2019, translating to approximately 5.9 million households.

Small and medium-sized enterprises (SMEs), crucial to the global economy, face an annual financing gap of $5.7 trillion.

How to Start Your Financial Literacy Journey

• Learn the fundamental concepts of personal finance, including budgeting, saving, debt, investing, and understanding interest rates. Books, online courses, and financial websites are great resources for this.
• Use financial tools like budgeting apps, financial calculators, and investment tracking software to gain practical experience and understanding of financial management.
• Attend financial workshops or seminars to learn about retirement planning, tax strategies, and investment opportunities. Understand finance and gain local market knowledge. As a starting point, here’s a short read on living well on a budget.
• Seek professional advice from financial advisors or credit counselors who can provide personalized guidance based on specific financial situations and goals.
• Apply the financial concepts learned in real-life situations. Start a savings account (consider ethical and green banks), invest in stocks, or create a personal budget.

Brief Timeline of International Day of Banks

Theme and Hashtags

The theme for International Day of Banks 2023 was “Achieve Sustainable Development Goals and Improve the Global Financial Architecture.”

• #InternationalDayOfBanks
• #BankingAwareness
• #SustainableBanking
• #FinancialInclusion
• #BankingInnovation

Conclusion

The International Day of Banks acknowledges the crucial role of the banking sector in the socio-economic landscape. It encourages a focus on sustainable practices and financial inclusivity while highlighting the banking sector's significant influence and the need for responsible decision-making.

And if you don't have any bank accounts yet, take this day as an opportunity to open one.

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FAQs (Frequently Asked Questions)