Powering financial inclusion with card processing technology

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 fulfilling that important obligation.

Customers are banking on innovation

For consumers, technology has long been a key driver of financial inclusion, especially among unbanked populations.

As far back as 2013, cellphones far outnumbered bank accounts in developing countries and mobile money services were already being used to move billions of dollars every month.[1]

The rise of mobile devices has of course continued ever since. Smartphones are ubiquitous, owned by 54% of the global population,[2] and there are more cellphone subscriptions in the world than there are people.[3]

The impact of innovative technology on financial inclusion also persists, with iris and fingerprint biometrics making it even easier to open, access and protect accounts. By 2022, 76% of adults in the world 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 harness technology to break down its own barriers to inclusion?

The key is to consider the new needs of modern customers and make sure you’re doing all you can to remove roadblocks and provide a frictionless experience to all potential account holders and cardholders.

For example, members of the LGBTQIA+ community can experience roadblocks and discrimination in financial transactions when their chosen name differs from their birth name.

Changing a birth name and gender on official documents is a costly, 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 bit to foster inclusion.

One way to do this is through a payment processing technology platform that incorporates the True Name® initiative from Mastercard. True Name accommodates cardholders across all customer service points, including in- person, online, in-app and over the phone.

As well as providing a more consistent customer experience, True Name will support your bank’s effort to facilitate diversity, equity and inclusion and connect with more members of its community.

Digital experiences are for all

More broadly, have you thought about your institution’s ability to bring younger generations into its customer base and make them feel included?

Again, card payment processing technology can help.

As the first digital natives, Gen Z consumers in particular have high expectations of the banking experience. By providing digital-first card capabilities with a flexible end-to-end platform, you could exceed these standards, boost your appeal to the next generation of customers and help them feel at home.

Gen Zers are also low users of credit, with many simply not qualifying for credit solutions. The debit card is therefore the go-to payment method for your youngest customers – and needs to be processed with their needs in mind.

That means allowing debit cardholders to make payments with their smartphones, for convenient, immediate and secure transactions – and providing a seamless service across all digital apps 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 clearly, with older generations also going digital in droves, tech-driven omnichannel services won’t just appeal to Gen Z.

In fact, whatever the age or demographic 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: There are more mobile phones than people in the world, April 2023

[4] World Economic Forum, 4 things to know about financial inclusion around the world right now, July 2022