Financial inclusion has been a consistent government policy in the UK since 1997 in response to growing concerns that people lack access to services such as banking, savings, credit, and insurance. Indeed, a dedicated minister for financial inclusion was created in 2017.

The latest UK government report on financial inclusion highlights both the importance of financial inclusion and the various measures being undertaken to try and address the issue.

“Access to cash, banking and bank accounts are the three key pillars of financial inclusion which support people as they go about their day-to-day lives,” the authors explain.

Big tech

One of the more interesting developments in the field has been the emergence of non-traditional financial-service providers, and particularly many of the technology giants, such as Amazon, Apple, Facebook, and Google, who have taken advantage of the rise in new technologies and widespread adoption of smartphones and broadband to provide a wide range of new financial services.

A recent paper explores what role the Big Tech firms have had in improving financial inclusion. It suggests that not only do such firms provide innovative financial services but they can also enhance financial inclusion by making these new services available to those who might otherwise have been excluded from the offerings of banks.

“About one in three adults globally does not have a bank account. This makes them vulnerable, as they have limited possibilities to save during good times and rely on savings or credit during bad times. Although Big Techs have a potential to enhance financial inclusion, it is important that people have the required knowledge and skills to appropriately use their services,” the authors conclude. “At the same time, the financial-inclusion opportunities brought by Big Techs should not introduce risks to financial stability. We therefore provide further insights into the interlinkages between financial education, literacy, inclusion, and stability.”