Enhancing Financial Inclusion: Fintech’s Expanding Reach

In recent years, fintech start-ups have revolutionized the financial services industry, addressing numerous challenges faced by both businesses and consumers, according to Fintech Futures. While many fintech firms have worked towards providing accessibility to basic financial services for the masses, there is a pressing need for greater focus on making financial services more accessible to disabled and vulnerable individuals.

One such initiative is Sibstar, co-founded by Jayne Sibley, inspired by her experience caring for parents with dementia. Witnessing her parents struggle with managing their finances and falling victim to scams due to their condition, Sibley realized the importance of financial independence, even for those with dementia. This led to the creation of Sibstar, a fintech start-up offering a mobile app and debit card designed for individuals with dementia.

Sibstar’s app, developed in partnership with Mastercard and the Alzheimer’s Society, provides caregivers with tools to manage finances effectively. Features include daily and monthly spending limits, instant card freezing and unfreezing, and real-time transaction notifications. Launched in March 2023, Sibstar is actively exploring partnerships with high-street UK banks, a lifestyle brand, and a UK society to expand its reach.

Mastercard has not only supported start-ups like Sibstar but has also taken significant steps to enhance financial inclusion for disabled individuals. One of their notable initiatives is the Touch Card, launched in October 2021, designed specifically for the visually impaired. This innovative card features unique notches for debit, credit, and prepaid cards, making it easier for individuals with visual impairments to identify and use their cards.

Raja Rajamannar, Chief Marketing and Communications Officer at Mastercard, emphasized the importance of creating products that cater to diverse needs and praised the positive response to the Touch Card. The card has been rolled out in the US and is now available through financial institutions worldwide.

In the United States, fintech firms like Purple and True Link are actively working to serve disabled communities. Purple offers «mobile banking for people with disabilities,» including an ABLE account, automated Qualified Disability Expense (QDE) spends, and a flexible debit card. True Link focuses on increasing the independence and well-being of vulnerable populations, offering investment accounts and debit cards.

True Link, founded in 2013, has raised substantial funding and has positively impacted the lives of over 250,000 families, managing more than $1.1 billion in assets.

While these initiatives are commendable, the relatively small number of fintech start-ups addressing the needs of disabled and vulnerable populations highlights the untapped potential in this space. Fintech and financial services as a whole have an opportunity to do more for the most vulnerable members of society. The examples discussed here should serve as inspiration for further innovation and collaboration between fintech, private, and public sectors. As approximately 16% of the world’s population experiences significant disabilities, addressing their unique needs not only promotes inclusivity but also offers a sound business case for the financial industry.