By Anna Roughley
This year’s International Women’s Day (last Saturday, 8 March) is another important reminder to assess how inclusive products and services are, and identify areas where improvements can be made, so that all customers, regardless of their life experiences or circumstances, can have equal access to finance.
The event has been around for over a century, yet gender inequalities are as present as ever and people’s financial experiences can still vary very differently depending on whether they are a man or a woman. Research by RFI Global shows that women are generally more concerned about their current financial situation and are less likely to feel confident managing their finances than men (with 43% of women concerned vs 37% of men), while 42% of women feel in a worse financial position compared to the same time a year ago, vs just 31% of men. And when it comes to making repayments on accessed credit, women are more likely to struggle to meet their repayments, with only 60% easily able to make loan repayments every month, compared to 70% of men. The Surviving Economic Abuse charity also reports that 1 in 6 women in the UK experience financial abuse, and 1 in 8 who have a joint mortgage will have this vehicle used as means to control them.
Firms need to have processes in place to recognise where customers require more tailored support to get the right outcome and it’s important the financial services sector continues to respond to men and women’s different needs.
Last year’s International Women’s Day theme, ‘Inspiring Inclusion’, was one we welcomed with open arms, having spent the last few years researching and reporting barriers to finance for different customer groups.
The reports we produced highlighted the barriers faced for deaf customers and those with hearing loss, disabled business owners and those with other access needs, and Ethnic Minority-Led Businesses (EMBs), and provided financial services firms with practical examples of how to break down those barriers. They have been embraced by firms across the industry, and we’re pleased that progress has been made. For example, following our 2023 Access for d/Deaf Customers in Banking & Credit research, we carried out further research in conjunction with SigningBanks.UK, and found improvements from UK banks and lenders in offering better accessibility support to deaf customers.
Awareness of financial exclusion and how to improve is growing, but awareness alone isn’t enough – we now need action. With ‘Accelerating Action’ the theme of this year’s International Women’s Day, we thought it’d be the perfect opportunity to share our top three thoughts on measures firms can put in place to turn awareness into action and create positive changes for customers.
Consistent Application Makes a Difference
Working in isolation, firms can make improvements for how inclusive they are for their customers and may have some success, but to drive systemic change across the industry, a consistent approach that is overseen is needed. Off the back of our research into the barriers to financial services faced by UK EMBs, we are soon to launch a first-of-its kind Code, which will drive sector-wide progress in this space. Firms that commit and sign up to the Code will not only be leading the way on inclusion and innovation with the independent assurance to evidence their efforts, but they’ll benefit from the sharing of best practice across firms, support from the LSB, and increased trust from their customers for being committed to fostering a more inclusive financial services experience.
Lived Experience Matters
Customer needs are constantly evolving, and we understand that firms can’t be experts in every challenge or circumstance a customer may face; that’s where the power of lived experience can’t be underestimated. When designing and delivering products and services, engaging people with a variety of lived experiences can help to ensure that services that go live are suitable for the people accessing them. The voices of those with lived experience can be sought through panels, representative organisations, or even closer to home with internal employees who are happy to share their experiences.
Collaboration is Key
International Women’s Day is the perfect example of how collaboration works to create positive change; organisations and individuals joining a global movement to fight for equality. Collaborative approaches can be utilised in so many ways to benefit both firms and customers too. Work together with others in the industry to gain valuable insights and understand what works and what doesn’t, listen to lived experience experts to ensure products and services are accessible, and collaborate with third-party organisations to better understand diverse customer groups and create signposting opportunities for when customers need more tailored support.
Implementing simple changes can have a significant impact. While you may not always get it right, making the effort to drive change builds trust and loyalty among customers. That’s why it’s crucial to communicate to your customers the steps you’re taking to become more financially inclusive.
Although International Women’s Day has passed for another year, let the fact it exists be a crucial reminder that there’s still work to be done. We all have a role to play in driving change and accelerating financial inclusion – will you play your part?
