Card issuers have a critical role to play in the drive to create a more inclusive financial system. And thanks to advances in technology, they are getting better and better at performing this important duty.
Customers rely on innovation
For consumers, technology has long been a key driver of financial inclusion, especially among the unbanked population.
As recently as 2013, mobile phones far outnumbered bank accounts in developing countries, and mobile money services were already used to transfer billions of dollars every month.[1]
The rise of mobile has, of course, continued ever since. Smartphones are ubiquitous, owned by 54% of the world’s population,[2]and there are more cell phone subscriptions in the world than there are people.[3]
The impact of innovative technology on financial inclusion also continues, with iris and fingerprint biometrics making it even easier to open, access and secure accounts. By 2022, 76% of adults worldwide had a bank or mobile account, up from just 51% in 2011.[4]
More inclusion is in the cards
How, then, can your financial institution use technology to break down its own barriers to inclusion?
The key is to consider the new needs of today’s customers and make sure you do everything you can to remove barriers and ensure a seamless experience for all potential account holders and cardholders.
For example, members of the LGBTQIA+ community may experience obstacles and discrimination in financial transactions when their chosen name differs from their birth name.
Changing your birth name and gender on official documents is an expensive, time-consuming and emotionally difficult process. So by providing products and services that support a chosen first name without a legal name change, you can do your part to promote inclusion.
One way to do this is through a payment processing technology platform that includes Mastercard’s True Name® initiative. True Name supports cardholders at all customer service points, including in-person, online, in-app and over the phone.
In addition to providing a more consistent customer experience, True Name will support your bank’s efforts to facilitate diversity, equity and inclusion and connect with more members of its community.
Digital experiences are for everyone
More generally, have you thought about your institution’s ability to attract younger generations to its customer base and make them feel included?
Again, card payment processing technology can help.
As the first digital natives, Gen Z consumers have high expectations for the banking experience. By providing digital card-first capabilities with a flexible end-to-end platform, you can exceed these standards, increase your appeal to the next generation of customers, and help them feel at home.
Gen Z are also few credit users, with many simply not qualifying for credit solutions. Debit card is therefore the primary payment method for your youngest customers – and should be handled with their needs in mind.
This means enabling debit cardholders to make payments with their smartphones for convenient, instant and secure transactions – and providing a seamless service across all digital applications and channels.
In turn, you’ll get all the digital data you need to develop loyalty programs, products and offers that give customers more of what they want.
And obviously, as older generations also go digital in droves, tech-driven omnichannel services won’t just appeal to Gen Z.
In fact, regardless of the age or demographics of your customers, digital card processing capabilities have the power to benefit everyone. Isn’t that what inclusion is all about?
[1]Brookings, Smartphones for the Unbanked, September 2013
[2]GSMA, Smartphone owners are now the global majority, October 2023
[3]World Economic Forum, Charted: The world has more mobile phones than people, April 2023
[4]World Economic Forum, 4 things you need to know about financial inclusion around the world now, July 2022
