Inclusive Dig ital F inancial Services for Persons with Disabilities: Impact on Economic Empowerment and
Financial Inclusion
Bagus Santoso, Universitas Gadjah Mada, Indonesia
Corresponding author:
Bagus Santoso,
bagussantoso@ugm.ac.id Article history:
Received: March 31, 2023 Revised: June 22, 2023 Accepted: July 4, 2023 Published online at ijds.ub.ac.id
Copyright © 2023 PSLD UB Publishing. All Rights Reserved
Abstract
Financial inclusion has emerged as a policy concern in many countries, leading to various initiatives to promote financial inclusion for marginalised populations, including persons with disabilities (PwD). This research examines the usage of financial services by PwD in developed and developing countries through a systematic literature review (SLR) and relevant descriptive statistics. The findings shed light on significant barriers hindering PwD to financial services, such as information asymmetry, complex banking procedures, insufficient sensitivity towards disabilities that result in less accommodating financial services, and limited innovation in banking services. The findings suggest that improving financial literacy and adopting inclusive digital financial services are keys to improving financial inclusion for PwD.
Keywords: Financial Inclusion, Digital Financial Services, Disability, Accessibility, Economic Empowerment
1. Introduction
Since the 2008 crisis, financial inclusion has remained a critical subject of interest for scholars and professionals worldwide. It gained official recognition at G20 Summit in Pittsburgh in 2009, where its members committed to enhancing access to financial services for marginalised communities, which led to the establishment of the nine Principles of Innovative Financial Inclusion. Researchers, policies, and programs have since dedicated themselves to improving financial inclusion by bringing more unbanked people, including those with disabilities, into the formal financial system (Hannig &
Jansen, 2020).
According to the World Health Organization (WHO), in 2021, persons with disabilities (PwD) constitute approximately 16% or 1.3 billion of the global population (estimated to be around 8 billion people). These figures illustrate a significant presence of PwD globally. Persons with disabilities are those with long-term physical, intellectual, mental, and sensory limitations. They may encounter barriers and challenges when interacting with their surroundings, limiting their ability to participate fully and effectively in the community on equal support with other citizens (Indonesian Law No.8/2016 regarding Persons with Disabilities).
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Beresford (2010) pointed out that PwD is more likely to live in poverty. The finding is consistent with a poverty indicator survey conducted between 2011 to 2016 in six countries, i.e., Macao China, the United States, South Korea, Indonesia, Georgia, and Mongolia. The survey indicated that the percentage of PwD living below the poverty line is higher than that of those without disabilities, with a ratio of 24% to 13% (United Nations, 2018). In Indonesia, the number of persons with disabilities reaches 10%, or around 29.97 million of the total population of Indonesia, which is approximately 240 million people. According to the Indonesia Socioeconomic Survey or SUSENAS (2020), 11.42% of individuals with disabilities live below the poverty line, whereas only 9.63% of non-disabled individuals live in poverty.
Ensuring the well-being of PwD is crucial to achieving Sustainable Development Goals (SDGs) (WHO, 2019). Several countries, including Indonesia, have implemented significant policies to increase financial inclusion for PwD. The Government of Indonesia (GoI) has taken a bold step by issuing Presidential Regulation No 114/2020 regarding the National Strategy for Financial Inclusion (SNKI) as a progressive strategy to expedite financial access for all, with PwD as one of the priority groups. This regulation is expected to address challenges facing PwD in accessing financial services, including the lack of disability-friendly facilities and infrastructure, low levels of financial literacy, fear of rejection when accessing financial services, and inadequate communication skills with financial institution staff, as reported by various studies (Beisland & Mersland, 2012;
Lee, 2012; Adeyanju & David, 2015; Sarker, 2015; Raja, 2016; Thohari & Rizky, 2021).
Implementing innovative financial services, including digital financial services, can help overcome some of the obstacles faced by the PwD in accessing financial services.
Some examples of these innovations include SMS banking, audio guide instructions, braille, and headphones installed at bank ATMs (Singh, 2017). Several start-up companies (FinTech) have also established online platforms in the financial sector.
These innovations can bridge the physical access gap and provide greater access to financial services (Vives, 2017; Romanova & Kudinska, 2016). Digital financial services include all financial products such as savings, credit, payments, transfers/remittances, and other financial services that can be accessed digitally by users via cellular and debit cards and can be connected to the services of the bank and non-bank financial institutions (CGAP, 2015; GPFI, 2016; AFI, 2019; Ozili, 2018; Pazarbasioglu, 2020; Agur et al., 2020; Bill & Melinda Gates, 2021).
Although digital financial services have been beneficial to some PwD, not everyone has been able to benefit equally, as indicated by Watling (2011) and Thompson (2018).
Previous research on financial inclusion for PwD in both developed and developing countries are studied, as summarized in Table 1. However, most of these studies focus on identifying the barriers to accessing financial services. There is a limited understanding of how to overcome the challenges of financial accessibility for PwD, particularly regarding the use of digital financial services.
Author’s Research Title Research subject
Summary
Wann, CR, &
Burke-Smalley, L. (2022).
Differences in financial inclusion by disability type
United States
This study explains the significant differences in barriers between types of persons with disabilities in accessing financial services.
However, this research has not explained in detail what factors can influence differences in financial
inclusion between these types of disabilities.
Singh, C.
(2017).
Financial inclusion of the disabled
India This paper explains the importance of financial inclusion to increase the
economic and social independence of a person with disabilities.
However, this research still does not explain concrete strategies and policies
that can be implemented to achieve broader and more sustainable financial
inclusion for groups of persons with disabilities.
McGarity, S., &
Caplan, MA (2019).
Living outside the financial
mainstream:
Alternative financial service use among people with disabilities
Uganda This paper provides information that
person with disabilities is twice as likely to use alternative financial services, which are more expensive and have high risk than non-disabled person.
However, this research has not yet
discussed how to overcome the
challenges of financial accessibility for persons with disabilities.
Jiya, AN, Opoku, MP, Nketsia, W., Dogbe, JA, &
Adusei, JN (2022).
Achieving financial inclusion for persons with disabilities:
Exploring
preparedness and accessibility of financial services
Malawi The participation of persons with disabilities in using financial services is still meager, and persons with
disabilities do not have adequate tools
or technology to expand the use of
financial services for persons with disabilities.
for persons with disabilities in
Table 1. Summary Literature Study
Author’s Research Title Research subject
Summary
Malawi
Iliya, AA, &
Ononiwu, C.
(2021).
Mechanisms for mobile phone use in empowerment: A critical realist study of people with disabilities in
Nigeria This research shows that mobile phones have an empowering effect and
positive implications in the lives of persons with disabilities.
Nigeria Goundar, S., &
Sathye, M.
(2023).
Exploring Access to Financial Services by Visually
Impaired People
Republic of Fiji (Oceanian Region)
This paper discusses the challenges of
accessibility to financial services for persons with visual disabilities and the digital solutions that can be provided.
Meanwhile, the research gap still needs
to be studied on how technology strategies and financial regulations can
facilitate better accessibility for this group.
Rana, NP, Luthra, S., &
Rao, HR (2020).
Key challenges to digital financial services in
India High costs and low returns are still
driving challenges for digital financial services.
emerging economies: the Indian context Glencross, S.,
Mason, J., Katsikitis, M., &
Greenwood,
Internet use by people with intellectual disabilities:
Multi- Country
This research provides important insights into the problem of digital
inequality, especially for a person with intellectual disabilities.
KM (2021). Exploring digital inequality A systematic review
However, further research is still
needed to deepen our understanding of the factors influencing digital inequality
and ways to overcome the existing digital divide.
Goggin, G., Yu, H., Fisher, K., &
Li, B. (2019).
Disability, technology innovation and social development in China and Australia
China and Australia
This research examines the role of technology in increasing social
inclusion for persons with disabilities in China and Australia. In addition, this
paper shows the importance of the government's role in formulating the implementation of digital economy
Author’s Research Title Research subject
Summary
service policies for persons with disabilities.
However, the gap in this research is
that it is necessary to explain how cultural, policy, and infrastructure factors affect technology
implementation for disabilities in the two countries.
Elena, T., Ekaterine, G., &
Gyuzal, K.
(2018).
Development of Innovative Banking Products and
Technologies for People with Disabilities
Russia This research explains the importance of developing inclusive banking
products and technologies for person
with disabilities to improve financial accessibility.
However, this research still needs to
add aspects of the implementation strategy and evaluation of the
effectiveness of banking products and technologies that have been developed.
The above literature review also shows a high demand for digital financial services among PwD. The use of technology can provide individuals with user-friendly and more convenient access to financial products and services offered by formal financial institutions. While the adoption of digital financial services for PwD is still limited, previous studies have shown that it can significantly improve their access to financial services. For example, cell phones can help persons with disabilities access financial information and services and conduct transactions.
This paper aims to examine the financial inclusivity for PwD and the unique challenges they encounter in accessing financial services. The paper consists of several sections, including an introduction, a methodology section that outlines the research methods used, a research findings and discussion section that presents the key findings, and a conclusions and recommendations section that summarizes the essential aspects of financial inclusion for PwD and provides practical recommendations for policymakers and financial institutions. The research findings presented in this paper will contribute to the existing knowledge on financial inclusion for PwD and provide valuable insights for policymakers and financial institutions to foster more inclusive and accessible financial services. By contributing to the improvement of financial inclusion for PwD, this paper seeks to reduce social and economic disparities and promote equal opportunities for all.
𝒀 = 𝑿 𝒙 𝟏𝟎𝟎%
𝒁
This paper discusses four essential research questions that can help in identifying issues and finding alternative solutions to improve financial access for PwD in Indonesia as follows:
1. What is the level of financial access for PwD to formal financial institutions in Indonesia?
2. To what extent do formal financial services accommodate the financial needs of PwD?
3. What measures have formal financial institutions implemented to ensure financial accessibility for PwD?
4. In what ways can digital financial services contribute to increasing financial access for PwD?
This study employs two research methods to address the research questions regarding financial access for PwD. First, it utilizes descriptive statistics analysis, leveraging the SUSENAS data in 2021 to measure the level of financial access for PwD in Indonesia. Second, a systematic literature review (SLR) is conducted to identify the obstacles and challenges facing PwD when accessing financial services. Additionally, the SLR explores the potential of digital financial services to improve financial inclusion, with a particular focus on the recent developments in digital financial services during the COVID-19 pandemic between 2022-2023.
2. Methodology
2.1 Systematic Literature Review (SLR) as a Method to A ssess the A ccess and Usage of Financial Inclusion for Persons with Disability
In measuring the level of access of PwD to formal financial institutions, this research focuses on Indonesia, drawing upon the data from the SUSENAS survey conducted in 2021. The following is the statistical ratio used in this paper:
Where:
𝑌: The level of access of PwD to formal financial institutions (in percentage
𝑋: Number of PwD of working age (15 years and over) who have a savings account either in their name or jointly at financial institutions (banks, cooperatives) 𝑍: Number of PwD of working age
This study employs the Systematic Review Literature (SRL) method to investigate research questions number 2-4 above. The SRL method aims to evaluate the existing literature on access to finance, including digital financial services available for PwD. The Systematic Literature Review (SLR) originated in the medical field and has become widely utilized across various disciplines. Its development in the late 20th century aimed
to synthesize research evidence consistently and accessibly. The methodology's inspiration can be traced back to Archie Cochrane's book, published in the UK in the early 1970s, where he emphasized the importance of evaluating healthcare interventions based on robust scientific data. As a result of Cochrane's influence, the SLR gained popularity and expanded into fields like psychology, social sciences, education, and environmental sciences. Over time, the methodology has evolved to suit the unique needs of different disciplines, benefitting from technological advancements and the increased efficiency of literature searching and data extraction due to digital databases.
Moreover, advancements in statistical approaches have enhanced the precision and accuracy of quantitative synthesis procedures, such as meta-analysis. The Cochrane Collaboration, founded in 1993 and named after Archie Cochrane, played a crucial role in initiating the widespread use of systematic reviews and meta-analyses in healthcare research and evidence-based medicine (Aertgeerts & Cools, 2007). Therefore, this study adopted the SLR method because it allows for conducting an objective meta-analysis of qualitative data using a systematic and transparent approach. The SRL method is expected to produce more accurate and scientifically justifiable findings, minimize bias, and increase the validity and reliability of research results. According to Creta (2020), the SRL method can improve the literature review quality by adopting a series of clear and practical steps.
The SRL research method comprises eight stages (Xiao & Watson, 2019). First, it focuses on the research question (RQ) described in the explanation above. Second, it entails developing and validating a review protocol to ensure a systematic and thorough literature search. The study timeline will focus on papers published from 2020 to 2023 due to of the increasing trend of digital financial services during the COVID-19 pandemic.
Third, it involves a comprehensive literature search from reputable databases like Science Direct, Springer, Emerald, and Google Scholar. The search will be refined by employing ten carefully selected primary keywords relevant to the research topic. More detailed information can be seen in Table 2.
Table 2. Keyword Search Term and Number of Papers Found Databases
Search Term Science
Direct Springer Emerald Google Scholar
Financial Inclusion for Persons with 3 1 2 7
Disabilities
Financial Access for Persons with 2 0 0 3
Disabilities
Financial Services for Persons with 1 0 1 4
Disabilities
Digital Financial Services for Persons with 5 0 0 7
Disabilities
Digital Banking for Persons with Disabilities
2 0 1 5
Digital-friendly for Disabilities 0 0 0 3
Accessible Banking for Disabilities 6 2 1 5
Universal Design in Providing Financial Services for Disabilities
7 1 1 2
Barriers to Financial Inclusion for Persons with Disabilities
2 2 0 4
Challenge Access to Finance for Persons with Disabilities
0 0 0 3
Results 28 6 6 43
Total Papers 83
Fourth, it then involves thoroughly screening various journals, articles, and reports published by the government or professionals and determining relevant subject areas for the research. These subjects include Economics, Econometrics, Finance, Business and Management, Microeconomics, Social Sciences, and Health. Fifth, it focuses on the quality analysis of selected articles or journals based on their ranking and citation in the academic community. Sixth to conduct data extraction (Lame, 2009). Seventh, data synthesis. Eighth (the final stage) is to fully report the findings. Figure 1 describes the above stages in more detail.
Figure 1. Flowchart of Systematic Literature Review
After conducting a full-text review, 30 articles were eliminated because they did not satisfy the selection criteria, which include having a disability aspect and providing insufficient
information about financial products and services
Following the removal of duplicates, 67 articles were identified through the screening of abstracts based on the study's findings and relevant keywords
The number of articles decreased to 67 after removing duplicates
A total of 83 articles were found through searches conducted on four databases:
ScienceDirect, Emerald, Springer, and Google Scholar
There are 37 articles included in the systematic literature review
2.2 Research Limitations
Financial inclusion encompasses four types of products and services: savings, credit, payments, and insurance. However, the assessment of financial inclusion in this study is limited only to saving accounts due to data limitations. It is also essential to consider the limitations of the SLR method. One significant limitation is the scarcity of articles addressing financial services specifically tailored for PwD. Although the results of the SRL can provide a broader perspective on the utilization of financial services by PwD, it might be confined to certain countries, thereby limiting the applicability of research findings to a broader population.
Despite the considerable efforts made by formal financial institutions to digitize financial services, there remains a significant gap in research concerning the satisfaction levels of PwD towards these digital financial services. This lack of research poses a challenge for researchers to adequately assess whether these services effectively cater to the needs and expectations of PwD. As a result, there is a pressing need for further research to explore the unique experiences and specific requirements of PwD in using digital financial services.
3. Research Findings a nd Discussion
3.1 Level of Financial Inclusion of Persons with Disabilities in Indonesia
Account ownership is an essential indicator for measuring financial inclusion in a country. Despite 76% of people worldwide having an account at a bank or regulated institution such as a credit union, microfinance institution, or mobile money service provider (Demirguc-Kunt et al., 2021), the accessibility of this simple financial product in
the form of savings remains uneven for PwD. For instance, from Indonesia’s experience using SUSENAS data in 2021, it is observed that PwD constitute 8.31% of the total population in Indonesia, while the PwD of working age (aged 15 years and over) account for 11.32%. The percentage of PwD who are of productive age and have saving accounts in formal financial institutions or cooperatives, either on their behalf or jointly, is calculated to be 34.35%. In contrast, the percentage of the productive-age population who have access to savings in the same year is 42.26%. These figures show a significant gap of 7.91% between non-disabled persons and PwD with respect to savings account ownership.
These descriptive statistics show a striking resemblance to another case. For instance, the PwD in Ghana has lower rates of bank account ownership. Only 10.49% of PwD have access to commercial banks, while the number of non-disabled persons with access to commercial banks is around 21.04%. Furthermore, People's Credit Banks in rural areas of Ghana only serve approximately 6% of persons with disabilities (Peprah et al., 2022).
3.2 Barriers to Pe rsons with Disabilities in Accessing Financial Services
The meta-analysis found that various countries, including Indonesia, encounter multiple challenges in improving financial services for persons with disabilities. The first challenge is the information asymmetry faced by PwD, which limits their access and understanding of financial products and services, leading to price discrimination against them. This challenge affects the availability and accessibility of financial services, especially for vulnerable consumer groups such as PwD (de la Cuesta Gonzales, 2021).
The second challenge concerns complicated banking procedures that pose difficulties for PwD. For example, problems related to signatures that are difficult for PwD to produce consistent signatures or coincidently having blank signatures on the identity card, and the less accommodating attitude of staff towards persons with disabilities, can hinder their access to financial services. Several studies have highlighted these challenges faced by persons with disabilities in Indonesia and other countries, including Ghana (Hafni & Rahmawati, 2020; Aziz & Naima, 2021; Afkari & Maulana, 2021; de la Cuesta Gonzales, 2021; Putri & Halim, 2023).
The third challenge faced in improving financial services for PwD pertains to the geographical distribution of formal financial institutions, which are predominantly concentrated in urban communities. This condition poses a significant challenge for PwD living in rural or remote areas, where access to and affordability of financial services becomes more difficult (Peprah et al., 2022; Nkoa & Song, 2020).
The fourth challenge is associated with low levels of financial literacy among PwD.
Educational disparities within the disability community also often lead to a lack of financial education, which can result in adverse financial decision-making, such as inadequate savings planning, low participation in financial markets, and taking out high- interest loans (Nuzzo & Piermattei, 2020; Feghali et al., 2021; Hassouba, 2023).
The fifth obstacle concerns the impact of poverty on financial service providers.
Formal financial institutions often prioritise areas with high-profit potential, leaving underdeveloped or remote areas with less attention and investment in financial service infrastructure. For example, in several developing countries like India, the absence of formal financial service infrastructure, such as ATMs in remote and poor areas, hinders accessibility and participation in financial services, affecting PwD more. This disparity in financial infrastructure in remote and poor areas is prevalent in many developing countries (Gautam et al., 2021; de la Cuesta Gonzales, 2021; Kameswaran & Marathe, 2023).
3.3 Innovative F inancial Services for People with Disabilities
The qualitative analysis indicates that several developed and developing countries are seeking solutions to improve the involvement of PwD in accessing their financial rights. One proposed solution is to improve digital financial services (Hassan et al., 2020;
Gronbach, 2021; Mogaji et al., 2021; van Holstein et al., 2021).
Many formal financial institutions prioritize improving their Automatic Teller Machine (ATM) facilities, which are still widely used by customers with disabilities for daily banking transactions. Despite not being equipped with the latest technology, ATMs are practical solutions for accessing bank accounts. One notable innovation in ATMs that aims to improve access for PwD is the introduction of the Talking ATM service. This service is designed to meet the needs of visually impaired customers in conducting transactions. The Talking ATM has an audio guide to facilitate account balance checks, cash withdrawals, and ATM card pin changes. This innovative feature has been implemented in several countries, including Australia, Canada, Turkey, the United States, and the United Kingdom. Some banks have developed additional features, such as Bank BNP from Sweden, which allows customers to withdraw funds from an ATM through dialogue. Headphone jacks are also equipped in Talking ATMs for audio guidance (Hassan et al., 2020; Setianti et al., 2020; Subekti et al., 2021; Federal Deposit Insurance Corporation, 2021).
The second strategy for increasing financial inclusion for PwD is providing digital financial services. This shift from traditional financial services to digital models is driven by the widespread use of mobile phones and the convenience and cost-effectiveness of digital transactions. Digital financial services such as SMS banking, mobile banking, internet banking, and digital wallets can help PwD avoid discrimination and rejection during direct interactions (Nkoa & Song, 2020; Barlott et al., 2020). Countries are actively working towards developing digital financial products that are accessible and friendly to PwD. For instance, India is developing the Divya Pay System application that allows PwD to receive cash payments at their residences. In Australia, an electronic payment system called the BPAY System has been developed to enable users to pay bills online or through their cell phones, including people with intellectual disabilities. These digital financial services also provide features such as automatic payment options and bill reminders to help users manage their finances efficiently (van Holstein et al., 2021).
The third approach to promote financial inclusion for PwD involves leveraging digital marketing of banking services. This method has demonstrated positive results in Nigeria and Ghana. Banks in Ghana, for instance, have adopted various measures, including using social media with relevant keywords and hashtags, disabled-friendly websites and mobile apps featuring full accessibility features, and digital platforms to promote their products and services. Furthermore, they have created online communities to facilitate the exchange of information and experiences regarding inclusive digital financial services. These measures have been designed to reach a broader customer base, including individuals with disabilities, thereby enhancing their participation in banking services (Mogaji et al., 2021; Ofori-Okyere et al., 2022).
The fourth approach to increasing financial inclusion for PwD is to enhance financial education and empowerment. In the United States, the National Center on Leadership for the Employment and Economic Advancement of Persons with Disabilities offers an online financial education package, including periodic publications that feature accessibility support for PwD, such as videos that include transcripts for individuals with visual disabilities and captions for those with hearing disabilities. The National Disability Institute also provides financial empowerment programs to enhance the financial stability and welfare of persons with disabilities by helping them make informed financial decisions. In Australia, the National Disability Insurance Agency (NDIA) offers assistance and information to enable PwD to plan their finances effectively.
In New Zealand and Australia, the "Money Minded" program has been launched as part of financial education, including budget management skills and savings skills (Otoritas Jasa Keuangan, 2021).
3.4 Impact o f the U se o f Digital Financial Services on Persons with Disabilities The role of digital financial services in promoting financial inclusion has been critical in many countries. In developed countries such as the United States, digital financial services have effectively reached financially marginalized people (Fernandez- Olit et al., 2020). In addition, internet connections in financial services have facilitated access to credit and deposits and reduced costs in Central and Eastern Europe (Tay et al., 2020; Fernandez-Olit et al., 2020). Optimal usage of digital financial services can alleviate poverty significantly, as evidenced by various studies. The COVID-19 pandemic has revolutionized the money transaction process, and digital financial services like mobile money have been critical in meeting daily payment needs (Ji et al., 2021; Aziz &
Naima, 2021; Banks et al., 2021).
Despite the potential benefits of digital financial services, PwD have faced unequal access to these opportunities. As elaborated earlier, various factors hinder PwD from exercising their economic rights. Even in urban areas, some individuals continue to rely on cash because of the limited availability of disability-friendly financial services, such as ATMs. Several studies have highlighted the significance of this issue, including de la Cuesta Gonzales et al. (2021), Aziz & Naima (2021), Gautam et al. (2021), and Ashenafi &
Dong (2022).
In addition, in developing countries, there is an urgent need to enhance digital financial services in formal financial institutions. Achieving this goal requires two steps.
The first step is to improve their banking access before ensuring better usage of digital financial services. The second step is to have a robust technological framework, stricter financial inclusion policies that respond to the demand, and increased data protection to prevent cybercrime if digital financial services to ensure equitable and secure expansion of digital financial services (Tay et al., 2022; Alonso et al., 2022).
Therefore, it is essential that governments and regulators collaborate in providing necessary supports to increase the penetration of digital financial services through holistic policies, regulations, and the development of ICT infrastructure, particularly for PwD. By fostering such cooperation, financial institutions will be better equipped to offer affordable services and extend their outreach to remote locations while protecting customer data. Moreover, digital financial services must be designed with universal design principles to reach all sections of society, including the PwD (Fernandez-Olit et al., 2020; Kharisma, 2020; Cicchiello et al., 2021; Ashenafi & Dong, 2022; Prajapati et al., 2022). Enhancing financial education is also crucial in promoting financial inclusion by improving people's knowledge and skills, particularly in digital financial services, including groups of PwD (Lyons et al., 2020; Ahmad et al., 2021; Cicchiello et al., 2021).
Developing an inclusive and robust digital financial system is crucial for a country's economic progress, as it attracts investments required for growth (Cicchiello et al., 2021). Therefore, addressing the challenges faced by vulnerable groups, including PwD, is essential to improve their living conditions. Financial institutions should proactively engage with marginalized customers. Leveraging technological advancements can help them offer diverse financial products, such as insurance and credit cards, beyond traditional savings accounts. Improving digital financial services can foster entrepreneurship among vulnerable groups, including PwD, and reduce poverty (Mogaji, 2020; Chen et al., 2022). Digital financial services have many benefits, not only for PwD but also for formal financial institutions and countries trying to achieve their sustainable development goals.
4. Conclusions and Recommendations
The level of financial inclusion of PwD remains inadequate, often leading to their exclusion from essential financial services. For instance, in 2021, only 34.35% of PwD in Indonesia had access to savings compared to 42.26% of the general population. This marked a concerning gap of 7.91%, as reported by the SUSENAS 2021 data. Factors contributing to this obstacle include bank pressure, complicated opening bank account procedure, limited financial education, lack of infrastructure for accessing financial services, and limited digital financial service solutions.
The Mobile Disability Gap reported in 2020 that approximately 80% of PwD in Europe and North America have access to cell phones, and many express a strong desire for financial services incorporating technology. Unfortunately, physical limitations
prevent some PwD from accessing traditional financial services. While some countries have taken measures to improve financial inclusion, such as offering talking ATMs, digital payment programs, and collaboration with FinTech companies, poverty continues to pose a significant barrier in some developing countries.
This paper provides policy recommendations for stakeholders derived from extensive research to improve access to financial services for persons with disabilities.
The following recommendations are proposed:
1. Foster an environment that encourages the implementation of supportive policies and regulations to develop innovative financial products and services that meet the needs of persons with disabilities.
2. Incentivize financial institutions to adopt inclusive and disability-friendly practices in serving persons with disabilities through government assistance and other incentives.
3. Empower persons with disability by enhancing their financial education and literacy in order to enable them to make informed financial decisions.
4. Adopt universal design principles in creating inclusive and accessible financial services and actively involve persons with disabilities during the design process.
5. Facilitate collaboration between formal financial institutions and financial technology (FinTech) companies to promote digital financial service products that are accessible to people with disabilities.
Improving financial services, mainly through the development of digital financial services, is expected to bring significant advantages not only for persons with disabilities but also to financial institutions and contribute to economic growth.
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