20 Oct 2022

Financial inclusion is important – here's how to achieve it

With minority groups and women feeling left out of the financial system, employers should provide tools that help people better manage their financial wellbeing

Most of us would acknowledge that money makes the world go round. Yet, access to financial guidance remains restricted for many.

Financial exclusion transcends marginalised groups. There are communities more likely to feel outside of the financial system. In the UK, Travellers (89%) said they felt excluded, mixed race white and black African Caribbeans (71%), Pakistanis (70%) and arabs (78%) have experienced significantly more exclusion than white British (37%).

Financial exclusion is apparent in gender too. Women have been harder hit by the impact of the Covid-19 pandemic, with 39% saying it has made them increasingly uncertain about how best to plan financially, versus 35% of men. 40% of women feel as though they are living month to month since the pandemic, in contrast to 33% of men.

With these figures in mind, it’s clear to see that women are more at risk of being affected by financial exclusion. A way to combat this is through financial education, which in turn, can reduce employee churn. A total of 66% of women agree that financial education would make them more committed to their employer compared with 64% of men.

How to achieve workplace financial inclusion

To address this inequality, financial skills and knowledge need to be available to everyone – regardless of ethnicity, gender, generation, nationality or socioeconomic background.

We can overcome these constraints by understanding our similarities and coming together in our differences. Desire for financial wellbeing is universal, but its interpretation across the globe is starkly different. Using regional, cultural, gender and income data, coupled with personalised financial education, we can foster inclusion and help the 45% of people who feel anxious about their financial situation.

What the employer can do

Employers can become a driving force for financial wellbeing by offering impartial education that demystifies money management and provides the skills to improve financial wellbeing. The result will be a stronger employer-employee connection, ultimately improving retention, productivity and employee happiness for a diverse workforce.

Globally, we are connected by hope: 59% of people globally said ‘I feel hopeful about my current financial situation’. This is most true among men (63%) rather than women (56%) and more so within the young-to-mid age groups 25-34 (62%), 35-44 (62%). It’s perhaps easier to see why high income households are most likely to be hopeful (73%) in comparison to low income households (55%).

Can we connect? nudge’s market-leading global financial wellbeing research aims to help organisations better support their employees' financial wellbeing, building a lasting connection as they support them through key life moments.