Universal financial inclusion: Empowering individuals with disabilities

The increasing push towards universal financial inclusion is reshaping global financial systems, with a particular emphasis on addressing the needs of individuals with disabilities. According to a report by The Korea JoongAng Daily, access to financial services for adults worldwide saw a remarkable rise of 50 percent since 2011, bringing the total to over three-quarters of the adult population. However, this growth has not yet culminated in a financial ecosystem that is genuinely inclusive.

A significant focus is now being directed towards ensuring that financial products and services are designed to accommodate everyone, particularly the 1.2 billion individuals around the globe living with disabilities. The evolution of financial technology (fintech) has disrupted conventional banking systems by providing increased access to the underbanked, particularly through innovations such as mobile money and microloans. Nonetheless, the next phase of these advancements is perceived as an opportunity to embrace “universal inclusion” as a foundational design principle.

Examples of forward-thinking technological applications illustrate how inclusive design can manifest in practical terms. Tap-to-phone technology, for instance, allows merchants to process payments using smartphones, which eliminates the need for traditional payment terminals. This innovation not only enhances convenience and security but is particularly beneficial for individuals who are blind or visually impaired, who may struggle with handling and counting cash. Similar advancements can be seen with voice-activated payment systems that cater not only to the general public but also particularly aid those with mobility challenges or literacy difficulties.

Despite the progress noted, there remains a distinct lack of emphasis on inclusivity in the development of financial products. This gap is viewed not merely as a societal shortcoming but as a substantial missed economic opportunity, particularly considering that individuals with disabilities and their networks command a staggering $13 trillion in disposable income. As demographics shift and life expectancies rise, the potential market of people with disabilities—and the associated spending power—is expected to expand.

The emergence of purpose-driven businesses is also evident in the preferences of younger generations. A 2018 study revealed that 91 percent of millennials would switch to purchasing products from companies that uphold strong social values. Similarly, Gen Z displays an inclination towards brands that prioritise social responsibility.

Financial institutions aiming to harness the benefits of universal inclusion are being encouraged to adopt a new innovation framework, constructed upon three key pillars. The first involves instilling a universally inclusive design approach from the outset—a shift from the current compliance-based strategies where modifications are often made retrospectively to meet minimum accessibility requirements. The success of such an approach relies heavily on the active involvement of individuals with disabilities in every phase of the design process.

The second pillar emphasises the critical role of data collection, which should be detailed and segmented to measure not only access to financial services but also the quality of these services and their impact on the financial well-being of users.

Lastly, establishing clear accountability and transparent reporting standards is deemed essential. Regulatory frameworks should incentivise financial services institutions to publicly disclose their progress towards universal inclusion metrics, making these results as crucial to corporate reporting as conventional financial indicators.

The implications of universal inclusion extend beyond mere profits; a more inclusive economy fosters resilience and dynamism, allowing all individuals to engage fully in economic activities. Moreover, by addressing the needs of one underserved group, financial companies often unearth innovations with the potential to benefit a broader audience, exemplified by the “curb-cut effect”. This term relates to the impact of wheelchair-accessible sidewalk ramps, which not only assist wheelchair users but also serve parents with strollers and delivery personnel.

Overall, the narrative surrounding universal inclusion pivots from viewing accessibility as a hurdle to recognising it as a catalyst for business innovation and growth, emphasising that inclusivity in financial services is intertwined with sound business practices.

Source: Noah Wire Services