Fintech must embrace ‘universal inclusion’

The world has made remarkable progress in advancing financial inclusion in recent years. In the decade beginning in 2011, the share of adults with access to financial services rose a whopping 50%, 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 1.2bn 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 their smartphones – no payment terminal needed. This functionality has obvious benefits for all buyers and sellers, from convenience to safety. But it also enables blind or visually impaired 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 individuals with visual impairments, limited mobility, or literacy challenges. This is universally inclusive design at its best – so practical that everyone, disabled or not, uses it. In fact, the widespread adoption of such technologies makes them even easier for those with disabilities to use. Since 62% of disabilities are invisible, asking for accommodations can be very difficult. But nobody will bat an eye about an “accessible” tool if they are already using it.
Despite some successes, however, the prevailing approach to financial-product development 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 family, represent a staggering $13tn in 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 younger generations. A 2018 study showed that 91% 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 emphasise 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 fintech 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.
Lastly, 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.