Fintech
How can DEI in Fintech help address broader social inequality?
This June at Fintech Times we will focus on diversity, equity and inclusion (DEI). No longer just a trending topic, but an essential consideration not only for your business operations but also for your offering, this topic seems more relevant now than ever.
The fintech sector is known for its reputation for innovation and flexibility, but it still faces a significant diversity problem that risks stunting its growth and preventing innovation from moving forward.
When we think about DEI, it’s not just about having diverse teams within an organization, but also about ensuring that our products and services are accessible to as many people as possible.
Financial technology has the opportunity to make the world a better and more accommodating place for many when it comes to finance. We spoke to industry insiders to find out how.
Control of finances
David Daiches, co-founder and chief operating officer, of the motor insurance company, INSHUR, She said:
“Having control of your finances is a fundamental human need in our society, and fintech fills this need.
“That’s why INSHUR has developed insurance products embedded into our partner platforms to eliminate friction when onboarding new drivers on demand and provide them with fair and adequate coverage. Many of these drivers come from underrepresented backgrounds and are taking control of their income and work patterns to build a better life for themselves and their families.”
From paycheck to paycheck
Ram Palaniappanfounder and CEO of Earn money, an earned wage access provider, said:
“Today’s traditional 2- to 4-week pay cycle can worsen social inequality by increasing costs for those living paycheck to paycheck. Invoices are rarely paid on payday, and the rigid fixed pay cycle can lead to debilitating late and overdraft fees.
“There are now financial solutions that break this cycle – including access to earned wages – that allow people to access their wages while they work, meaning they have access to their money when they need it most.”
Inclusive economic growth
Angy Watson, chief of staff and transformation manager at the card issuer and processing platform, PaymentologyShe said:
“Social progress depends on inclusive economic growth that delivers for all, including the United States 1.3 billion people with disabilities in the world, can move forward in life and prosper. Fintech is central to this progress, playing a crucial role in addressing broader social challenges for those who struggle to access traditional financial services.
“For example, by leveraging the best digital innovations, financial technology can improve accessibility by incorporating features such as voice commands, screen readers and simplified interfaces, allowing people with visual, hearing and cognitive disabilities to manage their finances independently. Through digital banking and mobile payments, financial technology offers convenience, enabling transactions without visiting a branch, which is particularly beneficial for those with mobility issues. Financial technologies are also good at providing tailored solutions such as micro-loans and plans of savings, responding to the unique needs of people with disabilities and ensuring they have the support they need to achieve financial independence”.
Hyperpersonalization
Nitika VyasCFA and co-founder, Aila Money, a digital financial assistant app, said:
“At Aila Money, our mission is to reduce wealth inequality across genders and socioeconomic backgrounds. As a personal finance coaching app, our mission is to ensure that everyone has access to the information and tools to feel confident and comfortable with their finances to achieve their life goals. Recognizing that people absorb information differently, we personalize financial insights, coaching, and action through tips that also help empower users and give them access to human expertise when needed. We partner with behavioral scientists from LSE AND University of the city to ensure our messages empower and engage users. We appreciate the personalized approach; Financial advice and accountability messages can be especially helpful for neurodiverse individuals.
“While the above highlights our company’s initiative in this regard, there are so many ways in which Ffintech has the potential to significantly address broader social inequality by leveraging technology to create more inclusive financial services. For people with disabilities, fintech can offer tailored solutions that meet different needs and preferences. Fintech can make a difference through accessibility, personalization, education and community. Exciting things to come!”
Social prejudice
Beautiful Renney, Product Director at Embedded Financial Platform, Free She said:
“The most rapid impact comes from evolving hiring practices. We need to remove barriers to STEM roles, such as data science or engineering, and significantly expand the talent pipeline. We should no longer treat “computer science degree” as a must in job descriptions.
“Fintechs can work with coding boot camps to hire career changers in tech. They could also partner with local universities to host midterms or summer breaks to establish pathways into fintech for school leavers with paid internships or apprenticeships. These diversify and broaden the talent pipeline.”
“Our business provides greater access to capital across the spectrum. We use AI and ML for decision modeling, which means we have far fewer social biases in terms of access to capital. The companies are all evaluated based on the same criteria and it is a true meritocracy, which often sees companies managed by women surpass the others”.
Double the diversity
Lynda Clarke, Chief Operations Officer, Tribe Paymentspayment technology providers for banks and fintechs, said:
“Amid an uncertain economic outlook, fintechs must face some uncomfortable truths and redouble their diversity efforts if they want to attract talent to continue innovating.
“Since I entered the industry, I have definitely seen dramatic improvements in diversity. However, there is still much work to be done, especially to support women to reach senior positions. The statistics prove it, with only 5% of CEO positions in our industry held by women. We also need to address the dominance of men at networking events – making sure women have the confidence to be in the room will help break this down. This won’t change overnight, so it’s important that women feel comfortable and that men recognize that it’s also their responsibility to make sure everyone feels included.
“To create big change, think small. It may sound strange, but I like the idea that if everyone did something positive every week to improve just 1% (whether it’s for their own personal growth, career development, or the improvement of others), it could have a huge impact over time. . Think about how you can help do those 1% things to move things forward every day. For example, if there are only one or two women at the table in a room full of men, they may not feel 100% comfortable. How can you help me with that?”
