The world has made remarkable progress in advancing financial inclusion. In the decade beginning in 2011, the share of adults with access to financial services rose 50 percent to more than three-quarters, but we still have a long way to go in creating a truly inclusive financial system. Beyond expanding access to financial products and services, we must ensure that these products and services work for all people, including the 1.2 billion people worldwide with disabilities.
The first generation of financial technology disrupted traditional banking by facilitating access for the underbanked (think mobile money and micro loans). The next wave of innovation must go further, embracing “universal inclusion” as a basic design principle. Universal inclusion captures the idea that everyone deserves access to financial tools that genuinely meet their needs and improve their well-being.
We already have examples of what this might look like. Consider tap-to-phone technology, which enables merchants to accept payments using smartphones — no payment terminal needed. This functionality has obvious benefits for all buyers and sellers, from convenience to safety, but it also enables blind individuals, who might struggle to count cash, to participate more fully in the digital economy. People with conditions affecting their mobility — such as arthritis, multiple sclerosis, Parkinson’s disease and cerebral palsy — might also rely on tap-to-phone technology.
The same goes for voice-activated payments — they are convenient for all, but crucial for blind individuals, and those with limited mobility or literacy challenges. This is universally inclusive design at its best — so practical that everyone, disabled or not, uses it. The widespread adoption of such technologies makes them even easier for those with disabilities to use. Since 62 percent of disabilities are invisible, asking for accommodations can be very difficult, but nobody would bat an eyelid about an “accessible” tool if they are already using it.
However, despite some successes, the prevailing approach to the development of financial products does not put nearly enough emphasis on inclusivity. This represents not only a moral failure, but also a missed economic opportunity. People with disabilities, together with their friends and families, represent a staggering US$13 trillion of disposable income. As lifespans increase, this group’s numbers — and spending power — are set to rise.
Beyond the direct returns of tapping this large and underserved market, financial services companies pursuing universal inclusion would become more attractive to other customers, especially the younger generation. A 2018 study showed that 91 percent of millennials (born between 1980 and 1994) would replace a product they normally buy with an alternative from a “purpose-driven” company. Gen Z (born between the mid-1990s and the early-2010s) is also strongly inclined toward brands that emphasize social values.
To make the most of universal inclusion, financial institutions should embrace a new innovation framework built on three pillars.
The first is a universally inclusive design approach, in which accessibility considerations shape solutions from the start. This would represent a significant shift from today’s compliance-based approach, in which adjustments are often made after the fact to meet minimum accessibility standards. Its success would depend significantly on ensuring that people with disabilities participate in every phase of the design process.
The second pillar of a new financial technology framework is data. Measuring our progress on overall financial inclusion is important, but so is collecting detailed data that differentiate among groups or segments. Such data should go beyond access to cover the quality of services and changes in financial well-being that result from the industry’s products.
Third, clear accountability and reporting standards are essential. Regulatory frameworks must include incentives for financial services institutions to disclose their progress on universal inclusion metrics, making these results as fundamental to their reporting as traditional financial indicators.
The benefits of universal inclusion extend beyond profit. The economy becomes more resilient and dynamic when all people can participate in it fully, and efforts to meet the needs of one underserved group can lead to innovations that benefit all — a phenomenon known as the “curb-cut effect,” a reference to the sidewalk ramps that were designed for wheelchair users, but improved the lives of many others, from parents with strollers to delivery workers.
Rather than viewing accessibility as a barrier to overcome, we must recognize its potential as a catalyst for innovation and growth. Universal inclusion in financial services is not just about doing good, it is about doing good business.
Carl Manlan is vice president of inclusive impact and sustainability at Visa CEMEA. Adanna Chukwuma, an Aspen first mover fellow, is senior director of global impact measurement at Visa.
Copyright: Project Syndicate
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