Finding The Gaps In Financial Inclusion

Financial inclusion is a foundational value for the credit union industry, and although the industry (and the United States at large) has made strides in this area, a new report reveals plenty of work remains to be done.

• Women report feeling more financially excluded than men, by a rate of 68% to 80%, according to the 2023 Global Financial Inclusion Index from Principal Financial Group.
• When it comes to feeling like they can easily get an affordable loan or a mortgage, there’s a near 20% difference between the two genders. Women also are less confident they can get a job or access insurance and investment products.
• Part-time workers in the U.S. feel particularly excluded. Fewer than one-third — 29% — are confident they can get a mortgage and barely one-third — 34% — report being confident they can easily get any affordable loan.
• Half or more of all consumers — whether working full-time, part-time, or unemployed — feel they can easily access a bank account.
• Racial disparities remain when it comes to accessing mortgages or other loans. Whereas, on average, 50% of white consumers feel they can get a mortgage or an affordable loan, only 40% of Black and 43% of Hispanic consumers do. For non-mortgage loans, only 36% of Black consumers and 39% of Hispanic consumers are confident they can easily get an affordable loan.
• Globally, the United States ranked fourth for overall financial inclusion, falling from second place just two years ago. Much of that decline was from decreased employer and government support. Singapore maintains the first-place position on the list, followed by Hong Kong and Switzerland.

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