Experts worldwide agree that equality and education are keys to inclusion in the financial sector. However, there is a clear gap between intention and implementation. Patrick Brusnahan looks into MasterCard’s study into this topic, including what needs to be done to improve inclusion across the entire sector
In MasterCard’s Financial and Digital Inclusion report, over 10,000 consumers in 10 markets across Europe were asked about financial inclusion. Respondents agreed that access to education (91%) and equal opportunities irrespective of gender (88%) are the most important aspects of inclusion.
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Following that was the freedom to travel where you want (84%) and choosing the career you want (79%).
On the other hand, there is a distinct gap between the importance placed on these aspects and the performance of countries in satisfactorily achieving them. According to the report, only 78% of respondents would agree that they were able to access education in their country with the percentage of those who are able to access equal opportunities regardless of gender dropping to 66%.
In fact, the gap between importance and performance is lowest for technology and finance. Over two-thirds (68%) believe that they are able to utilise the latest technology while 67% consider it important to society.
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By GlobalDataThe gender divide
Women were more likely than men to rank equal opportunities for both genders as important, with 90% agreeing versus 85% of men. But which gender has the highest degree of inclusion when it comes to finance and technology in society?
Both genders agreed within five points of each that men were more included financially; 85% of men agreed with that statement against 80% of women.
Women fared slightly better when it came to digital inclusion with 28% believing their gender to have the higher degree of digital inclusion.
However, one in four Europeans felt that women enjoyed better digital inclusion than men, while three in four felt that it was men that experience a higher level of digital inclusion.
The report stated: "Although the majority of those in Europe consider financial and digital inclusion to be equally important, this serves to highlight the gender disparity between men and women’s perceived access and ability level for both."
The work ahead
Three quarters (74%) of those in Europe considered financial inclusion important, but only 49% believed that there is a high or somewhat high level of inclusion in their country.
Among those who thought financial exclusion exists in their market, the most frequently cited reasons are income equality (44%) and distrust of banks (40%). Turkey (58%) and Portugal (57%) are the most likely to cite income inequality as a barrier to inclusion.
Respondents mainly thought that improving the situation was the responsibility of the national government (67%) and banks (60%) over themselves (37%). In addition, one in four (24%) respondents believed that credit cards could do more.
The most popular solution was this problem was the installation of education classes (42%).
Digital inclusion
Three quarters of those in Europe (75%) agree that digital inclusion is crucial, even more important than financial inclusion.
However, only 40% of those surveyed in Europe agreed that everyone they know has a computer, laptop or smartphone and one in four (24%) agree that Europe is the most digitally inclusive region in the world.
A mere 11% of respondents considered their country to have a high level of digital inclusion – with almost everyone involved – and 36% thought the level was ‘somewhat high’ with most people involved.
The main barriers to digital inclusion were perceived to be a lack of education or digital skills (52%), income inequality (46%), and lack of access to technology (35%). Only 8% believed that gender inequality in their country drove digital exclusion.
Similar to financial inclusion, the main solution to improving digital inclusion is seen as education classes (43%) which Europeans believe their respective governments should undertake to improve.
By increasing digital inclusion, most believe that the main benefits would be becoming better informed (70%) and connecting to other people (56%).
