• Wednesday, November 13, 2024
businessday logo

BusinessDay

Technology can accelerate financial inclusion for disabled people — Study

Kaduna State formal financial inclusion rises 57% despite hurdles

A study by Mastercard has revealed that digital inclusion can serve as a pathway to financial inclusion for people with disabilities.

According to the payment company study titled ‘Bridging the Disability Gap: An Opportunity to Make a Positive Impact,’ persons with disabilities are less likely to own a mobile device and significantly less likely to own a smartphone than other populations, making digital financial inclusion tougher. Closing this gap can help provide financial services to them, the study said.

Umar Hashmi, vice president, Global Product and Engineering, Mastercard said data showed that about a billion people, or 15 percent of the global population, experience a form of disability, constituting the largest minority group in the world.

Financial exclusion is a fallout of disability, potentially affecting access to education, healthcare, and employment, and leading to higher poverty rates. Solutions that cater to the needs of this large but marginalised section of the population are needed.

Mastercard’s study showed that among the number of people with disabilities in selected Middle East and Africa (MEA) countries, Nigeria had the highest, with 26.1 million, followed by Kenya with 5.4 million, Pakistan with 3.3 million, Egypt with 2.0 million, and Morocco with 1.9 million.

Others are Iraq (0.8 million), Jordan (0.3 million), Syria (0.3 million), and Tunisia (0.1 million).

Read also: Digital financial inclusion brings new risks for emerging markets – Adelaja

During the COVID-19 pandemic of 2020 and 2021, the digitalisation of financial services and the acceleration of electronic wallets delivered the benefits of financial inclusion by distributing financial support, reducing the cost of transactions, and increasing size limits.

Research in select low-middle-income countries in the Middle East and Africa region showed a large mobile disability gap, widening at each stage of the user’s journey.

“Of these, in Kenya and Nigeria, where mobile money has been an instrument of financial inclusion, 80 percent and 76 percent of adults with disabilities own a mobile phone. In Pakistan, 58 percent of adults with disabilities own a mobile phone,” as stated in the study.

The study also highlighted how governments and banking associations around the world are introducing plans to improve accessible services for persons with disabilities.

For instance, under the Equality Act 2010, banks must provide equal access to all products and services in the United Kingdom. Also, the UAE enforced a federal law concerning the Rights of People with Disabilities, and the State Bank of Pakistan announced a comprehensive policy framework to promote the financial inclusion of persons with disabilities.

“A solution-based approach to financial inclusion of persons with disabilities often relies on government initiatives and mandates. With digitalisation as a strategic imperative across countries, national policy and global standards are aligned to mandate accessibility to financial services,” it added.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp