Technology's role in financial inclusion: A deeper look

Why financial inclusion and why now? 

Financial inclusion is the cornerstone of economic empowerment, yet a significant portion of the global population remains excluded from essential financial services. This isn't merely a statistic; it's a profound barrier to economic development and a driver of inequality. 

While traditional financial institutions have struggled to reach vulnerable communities, technology now offers a transformative path forward. The question isn't whether technology can help, but how we can use it to build a truly inclusive financial ecosystem that addresses a lack of infrastructure, low financial literacy and limited accessibility. 

At Thoughtworks, we believe understanding the nuances of this challenge is the first step toward creating solutions that are not only innovative but also equitable.

The double-edged sword of technology in financial inclusion

Technology holds immense promise, but it's not a silver bullet. While it can dismantle traditional barriers, it can also create new ones. 

For instance, a complex, poorly designed app, or one that requires constant connectivity, can inadvertently exclude those it aims to serve. On the other hand, well-designed technology can be a powerful democratizing force, providing access to millions who were previously unbanked.

Rethinking four strategies: A deeper dive

The path to financial inclusion requires more than just a checklist of features. It demands a thoughtful, user-centric approach that acknowledges the real-world challenges people face.

Beyond a simple interface: Designing for true usability 

A simple and functional interface is rarely a bad idea, but what does it actually mean in practice? At a fundamental level, it’s about building something that doesn’t require deep expertise to use. The page should be well structured, for example, and buttons and other parts of the navigation journey should be obvious and easy to understand.

African FinTech platform M-Pesa's success in Kenya is a masterclass in this philosophy. Instead of building a sophisticated smartphone app, it utilized simple text-based menus on basic phones. This minimalist approach ensured millions of people without prior technological experience could access financial services; it proved the most effective design is often the one that meets users where they are, not where we think they should be.

Localized content: Speaking the user's language

Financial concepts can be intimidating and this challenge is compounded when content isn't culturally or linguistically relevant. True localization goes beyond simple translation; it's about making financial information feel familiar and trustworthy.

Digital marketing translation specialists Novalo's partnership with Spanish bank Unicaja Banco shows the power of this approach. By localizing their communications, Unicaja Banco didn't just translate words; they optimized their message to resonate with English and Catalan-speaking audiences, building trust and ensuring a fluid user experience. 

This also highlights a crucial point: regulatory compliance is often tied to clear, localized communication, making it not just a "nice-to-have" but a necessity.

Offline functionality: A true test of inclusion 

The promise of offline functionality can be misleading. While features that don't require constant internet access are vital, we must ask ourselves: what constitutes "offline"? Is it truly inclusive if a user still needs a device or an email account?

Latin American payments company Kushki's multi-channel approach in Ecuador, which allows payments using email, SMS and a payment app, is a step in the right direction. It acknowledges internet access is often inconsistent for many people and provides alternatives. 

However, a deeper conversation is needed to address communities with no access to any device, exploring solutions that leverage community-based agents or other non-digital channels.

The human element of accessibility

Accessibility is often treated as a compliance checkbox, but at its core it's about dignity and autonomy. True accessibility considers a range of disabilities and moves beyond basic screen reader compatibility.

The collaboration between Grupo Social ONCE and CaixaBank in Spain is a powerful example of this. They went beyond a simple accessible app, implementing a "Modo Accessible" on their point-of-sale terminals that reads transaction amounts aloud. They also offer Braille cards and codes for visually impaired customers, recognizing that accessibility must extend to physical and digital touchpoints to promote true independence and inclusion.

A crucial aspect of accessibility that is often overlooked is the human element of aging. As people get older, they may face physical and psychological impairments like decreased vision, limited mobility, or a lack of comfort with new technologies. These challenges can severely limit their access to essential banking services. 

In response, organizations like the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) in US created the Money Smart for Older Adults program to provide education and digital resources to protect older adults from financial exploitation and help them make informed financial decisions, this type of initiatives contribute to the elder people to continue being part of the financial system.

A call to action for technologists

The story of financial inclusion is also a story of technology's potential to empower. It's about recognizing that a one-size-fits-all approach doesn't work. We must move beyond surface-level solutions and delve into the specific needs of communities. 

By designing with empathy, adapting to local contexts and prioritizing genuine accessibility and offline functionality, we can build a more equitable future where financial services are truly for everyone. This is not just a technological challenge — it's a human one.