Financially including people with disabilities is possible – here’s how

Efforts to financially include people with disabilities are bearing fruit around the world, says AFI Policy Specialist, Vidhya Raman.

According to the World Health Organization, 1.3 billion people experience significant disability – one in six of us. The United Nations definition of disability encompasses a range of physical, mental, intellectual, and/or sensory impairments. Most disabilities are non-visible, making them harder to detect, which combined with the scarcity of data, underdiagnosis, and cultural stigma, suggests that the one in six figure – while staggering – is likely an understatement.

Disability can affect anyone, at any stage of life, regardless of socioeconomic status. My 90 year-old grandfather, previously able-bodied, is partially blind in both eyes, has difficulty hearing, and is wheelchair-bound. He is lucky in that he comes from a middle-class family and can afford assistance, yet the obstacles and limitations he encounters impact him profoundly. It is hard to imagine the challenges that PWDs living in poverty face.

As illustrated in AFI’s Special Report on Financial Inclusion for Persons with Disabilities, disabilities are both a cause and an effect of poverty – research shows that 20% of the world’s poorest have some type of disability.

The barriers which PWDs face in accessing employment and financial services, often discriminatory by nature, violate their human rights and hold them back from fulfilling their potential. They also prevent society from capitalizing on that potential.

First, know your customer

To financially include PWDs, we must first understand the barriers they face. This begins with addressing the stigma, negative connotations, and exclusionary practices associated with disability.

At AFI’s 2024 Global Policy Forum, Paul Surreaux, co-founder of the Barrier Free Finance Initiative (BFFI), described how some cultures perceive disability as a form of ‘punishment’ for past-life actions, illustrating how deeply ingrained disability is within cultural beliefs and misconceptions.

The impact of stigma is evident in high unemployment rates among PWDs, which can reach as high as 80%. Yet, evidence suggests that failure to address disability inclusion barriers may cost some economies up to 7% of GDP in terms of lost workforce potential.

The stigma surrounding PWDs also leads banks to perceive them as less valuable clients. Without accessible financial products and services, PWDs often must rely on alternative services, such as predatory lenders offering quick loans with exorbitant interest rates. PWDs also face difficulty joining savings or loan groups due to perceived creditworthiness issues.

These attitudes mean customers often fail to disclose their disability for fear of discrimination.  Stigma perpetuates exclusion.

Disability is a multifaceted issue that affects various groups differently. Age, sex, gender identity and socio-economic issues all impact an individual’s health condition and needs, and can either mitigate or worsen their exclusion. A nuanced understanding of these factors is crucial.

While many countries have incorporated financial inclusion for PWDs into their National Financial Inclusion Strategies (NFIS), a lack of robust legal protection against discriminatory practices towards PWDs is hindering progress. Policymakers should encourage or require banks to adapt their products to better meet the needs of PWDs, thereby supporting their financial health and savings potential.

Innovative solutions are emerging across the AFI network

While there is no one-size-fits all approach to financially including PWDs, we see examples of AFI members developing and implementing innovative solutions with the potential to be replicated.

In Fiji, the Government has highlighted the importance of fostering positive attitudes towards PWDs, who are identified as a priority group in the Fijian NFIS (2022 – 2030). In Bangladesh, a Community-Based Rehabilitation (CBR) training approach targeting individuals with disabilities as well as their families has expanded PWD access to banking services. In Egypt, the Central Bank is developing policies and regulations to encourage and empower the banking sector to serve the PWD market.

In Nigeria, the Central Bank has prioritized working with key stakeholders to develop tailored financial products and accessible services for PWDs. In Kenya, the Central Bank has tailored mobile money services towards PWDs, exemplified by platforms like M-Pesa. Kenya’s Deaf eLimu Banking App is a sign language self-training tool, while banknotes now include braille features to make them more accessible to the visually impaired.

Beyond the AFI network, Brazil’s Parabank is the world’s first digital bank focusing on supporting PWDs in obtaining loans to obtain medical necessities.

Where do we go from here?

For too long, financial exclusion of PWDs has punished individuals, families and communities. Encouragingly, AFI members now tell us that advancing inclusion for PWDs is at the top of their agenda. In our 2023 Member Needs Assessment survey, 36% of members indicated it was a priority topic – in 2024, that figure jumped to 45%.

Reflecting this interest, AFI recently published a Special Report and organized a Virtual Webinar and Peer-to-Peer Learning, and we plan much more. Any members interested in collaborating on PWD financial inclusion initiatives are encouraged to contact myself (vidhya.raman@afi-global.org) or Robin Newnham (robin.newnham@afi-global.org).

As our collective knowledge grows about what policies work best, AFI will make that insight widely available. Bringing people with disabilities into the financial system is not just a good thing to do – it’s the right thing to do.