Financial and Digital Inclusion Equality and Education are Keys to Inclusion In order for a society to be open and inclusive, respondents across agree that fundamental access to education (91%) and equal opportunities irrespective of gender (88%) are the most important aspects, with having the freedom to travel where you want (84%) and choose the career you want (79%) following. However, there is a clear gap between the importance placed on these aspects and the performance of countries in satisfactorily achieving them: only 78% would agree that they are sufficiently able to access education in their country with the percentage of those who are able to access equal opportunities regardless of gender dropping to 66%. The gap between importance and performance is lowest for technology and finance: over two-thirds believe that they are able to utilize the latest technology (68%), 1 point higher than those who consider it important to society (67%). When it comes to being able to use financial products and services, 65% consider it important, and 64% believe that they are currently able to use these services in their society. Perhaps unsurprisingly, women were more likely than men to rank equal opportunities for both genders as important, with 90% agreeing versus 85% of men. The only other 5 point discrepancy between answers on importance from the genders can be seen in the 69% of men who agree that utilizing the latest technology is important to society (only 64% of women said the same). But who has the higher degree of inclusion when it comes to finance and technology in society? Both genders agreed within 5 points of each other that men were more included financially (85% of men agreed, and 80% of women). Women fared slightly better when it came to digital inclusion, with just under a third (28%) believing their gender to have the higher degree of digital inclusion. Overall, the split between gender for digital inclusion among all surveyed resulted in one in four ans (25%) feeling that women enjoy better digital inclusion than men, while three in four (75%) feel men enjoy better digital inclusion than women. Although the majority of those in (75%) consider financial and digital inclusion to be equally important, this serves to highlight the gender disparity between men and women s perceived access and ability level for both. Access to education 91% 78% More Important for Society Equal opportunities irrespective of gender Travelling where you want 66% 88% 70% 84% 13% Having the career you want 79% 58% 12% Investing your money where you want Having access to the latest technology Having access to financial products and services 77% 65% 75% 73% 70% 66% 75% Utilising the latest technology 67% 68% Financial inclusion Utilising financial products and services 65% 64% Digital inclusion High Importance High Ability Both equally important On a scale of 1-5, how important are each of the following components in order to be considered an open and inclusive society? On a scale of 1 to 5, where 1 is not at all able and 5 is completely able, how would you rate your ability to do the following in your market? Which is more important for society?
Financial Inclusion Three quarters of those in (74%) consider financial inclusion important, but only 49% believe that there is a high or somewhat high level of inclusion in their country. Among those who believe financial exclusion exists in their market, the most frequently cited reasons are income equality (44%) and distrust of banks (40%). Turkey (58%) and Portugal (57%) are the most likely to cite income inequality as a barrier to inclusion. Of those who consider financial inclusion to be a problem in their market, responsibility for improving it is predominantly placed on national government (67%) and banks (60%) over the individual themselves (37%). One in four (24%) believe that credit card companies could do more. Despite this emphasis on the state and institutions, the most chosen solution across to improve financial inclusion is education classes (42%). ans believe that men have a higher degree of financial inclusion than women. (83% agreed with this statement). This is true across all markets, but is particularly high in Poland and Germany, where 80% believe men enjoy a higher degree of financial inclusion (vs. 75% overall). 45% 22% Financial Inclusion: Key Figures Less than half agree men and women enjoy equal access to financial services in their country. Less than one in four consider to be the most financially inclusive region in the world. 67% Two out of three expect national government to take responsibility for improving financial inclusion. What do you think are the benefits of financial inclusion? Do you think men or women have a higher degree of financial inclusion? 47% 44% 42% 41% 40% 17% 83% Financial security Easier to pay bills Flexibility in paying for things Growth of my country s economy Ability to save money Men Women Interesting Finding The majority of those in Germany (79%), Sweden (71%) and France (69%) think that most of their fellow citizens have a bank account. Only 22% of those in Turkey and 26% in Romania agree. On a scale of 1 to 5, where 1 is not at all important and 5 is extremely important, how important is financial inclusion? Based on the description of financial inclusion in the previous question, which of the following best describes the level of financial inclusion for people in your country? What percentage of people in your country do you think? What do you think are the main reasons behind financial exclusion in your country? What can be done to improve financial inclusion in your country? Who do you think is responsible for instituting these improvements in your country? Page 2 What do you think are the benefits of financial inclusion?
Financial Inclusion The majority of those in have a current account (82%), with Germans the most likely to have one (92%). Those in the UK and Sweden are the most likely to feel frustrated by a lack of access to financial services such as savings accounts (UK 45%; Sweden 37%) and electronic payments (UK 56%; Sweden 52%). The largest gender discrepancy can be seen among those who have a credit card: 52% of men, but only 41% of women. Interesting Finding Italians (25%), Turks (35%), and Romanians (37%) are least likely to have a savings account, whilst those from Sweden (81%), the UK (68%) and France (67%) are the most likely to have one. Which financial services do ans use? Current account 82% Electronic payments 69% Debit card 69% Savings account 53% Credit card 47% 54% have unrestricted access to their money ans who have a current account would predominantly feel frustrated (31%) and disenfranchised (25%) if they no longer had access to one. One in four (28%) of the 48% who could borrow money from a friend/family member if they needed to would feel helpless without access to that source of financial support. Top 3 most agreed upon financial statements Everyone I know has a bank account Men and women enjoy equal access to financial products and services The main reason people don t participate in the financial world is that they re worried about the security of their money 36% 49% 45% Interesting Finding Romanians are the most likely to agree that men and women enjoy equal access to financial products and services (63%). Italians (38%) and Turks (38%) are the least likely to agree. Seven in 10 (68%) Germans agree that everyone they know has a bank account, along with 66% of Swedes. Only 37% of those in Romania, and 39% of those in Italy and Poland agree. Do you personally? Now, imagine you did not have access to each of the items listed below. How would not having access to each of the following make you feel? On a scale of 1 to 5, where 1 is disagree completely and 5 is agree completely, how much do you agree with 3the following statements as they pertain to your country?
Digital Inclusion Three quarters (75%) of those in agree that digital inclusion is important (on par with the level of importance placed on financial inclusion, which is 74%). Only 40% of those surveyed in agree that everyone they know has a computer, laptop or smart phone, and one in four agree that is the most digitally inclusive region in the world (24%). Still, the perceived ownership/access is relatively on par with actual ownership/access. Just over half of ans believe that men and women enjoy equal access to digital products and services (51%). More than half 53% of men agree with this statement, vs. only 48% of women. In addition, 75% of ans believe men enjoy a higher degree of digital inclusion, while 25% believe that women do. Own a mobile phone: 75% Own a computer: 55% What percentage of people in your country do you think... Have access to a computer or smart/mobile phone: 67% Own a laptop: 51% Have home internet: 64% Could borrow tech from family/friends: 48% Own a smart phone or tablet: 61% Have access to technology education: 46% Access the internet outside their home: 57% Purchase items online: 46% Interesting Finding Only 10% of ans believe that digital inclusion is a problem in their country. However, less than half (47%) believe their country enjoys a high or somewhat high level of digital inclusion. Compare this to the % of people who personally 87% 79% 78% 76% 73% 65% 60% 57% 55% 53% Have internet access in their home Have access to a computer, laptop, mobile phone, or smart phone Purchase items online Own a smart phone or tablet Own a laptop Have access Own a mobile to the internet phone elsewhere Own a computer Interesting Finding Only 50% of women own a computer, vs. 64% of men. Have a friend/family member whose technology they could borrow Have access to education around technology On a scale of 1 to 5 how important is digital inclusion? Which of the following best describes the level of digital inclusion for people in your country? What percentage of people in your country do you think? What do you think is the main reason behind digital exclusion in your country? What can be done to improve digital inclusion in your country? Who do you think is responsible for instituting these improvements in your country? What do you think are the benefits of digital inclusion? 4
Digital Inclusion Only 11% consider their country to have a high level of digital inclusion with almost everyone participating and 36% think the level of digital inclusion is somewhat high, with most people being involved. The main barriers to digital inclusion are perceived to be a lack of education/digital skills (52%), income inequality (46%) and lack of access to technology (35%) are the most chosen reasons. Only 8% believe that gender inequality in their country drives digital exclusion. As seen with financial inclusion, the main solution to improving digital inclusion is education classes (43%), which ans believe national governments should undertake to improve. By increasing digital inclusion most believe that the main benefit would be becoming better informed (70%) and connecting to other people (56%). Only 53% of ans say they have access to education around technology (56% of men vs. 50% of women), and 52% believe that a lack of education and digital skills is the main driver of digital exclusion, and education classes are seen as the top thing to be done to improve digital inclusion. 43% What can be done to improve digital inclusion in your country? 38% 34% 23% 23% Education classes Better financial support to those in need Infrastructure to support digital inclusion Shift in perception about its importance Cultural shift Who is responsible for instituting improvements in digital inclusion? National government 65% The person himself/herself 47% Technology software companies Local government Technology hardware companies Other countries governments 8% 33% 32% 32% As with financial inclusion, ans look most to national governments to improve digital inclusion. Interestingly, men (69%) feel more strongly about this than women (60%). Do you personally? Imagine you did not have access to each of the items listed. How would not having access to each of the following make you feel? 5 On a scale of 1-5, how much do you agree with the following statements as they pertain to your country?
Financial and Digital Inclusion Background: MasterCard commissioned a 10-market survey to understand an consumers perceptions of financial and digital inclusion, through the lens of gender inclusion. Methodology: This report presents the findings of an online survey conducted among 10,021 consumers in 10 markets across. Interviewing for these surveys took place between May 5 and 18, 2016. The margin of error for this study is +/- 1.0 percent at the total level, and +/- 3.1 percent at the market level. The survey was administered by Norstat, a global research and survey company. Germany (n=1002) UK (n=1000) Spain (n=1010) Portugal (n=1001) France (n=1000) Italy (n=1002) Poland (n=1001) Sweden (n=1002) Turkey (n=1001) Romania (n=1002) Summary of results: The majority of respondents feel that financial and digital inclusion are equally important to society. o In fact, three out of four respondents (74%) feel that financial inclusion is important, and three out of four respondents (75%) feel that digital inclusion is important. Although 49% of ans feel there is a somewhat high or high level of financial inclusion in their country, less than one in four (22%) agree that is the most financially inclusive region in the world. o Almost all respondents (98%) have at least one of the financial products/services listed in Q12. o Whilst 82% of women globally have a current account, only 59% of women in Turkey do. Women in Turkey (27%) were also far less likely than the average (51%) to have unrestricted access to their money; 37% of men in Turkey stated the same. In terms of digital inclusion, 47% feel there is a somewhat high or high level of digital inclusion, only about one in four (24%) agree that is the most digitally inclusive region in the world. o Almost all respondents (99%) have at least one of the digital products/services listed in Q12. o 64% of men surveyed own a computer, whereas only 50% of women do. Men are also 6% more likely to have access to education around technology. Men (53%) were 5 points more likely to agree with the statement that men and women enjoy equal access to digital products and services, than women (48%). 6
Financial and Digital Inclusion Summary of results (continued): In general, respondents believe that both men and women share equal access to financial services as well as to technology, and that they both take advantage of this access. o However, less than half (45%) agree with the statement men and women enjoy equal access to financial products and services, and about half (51%) agree that men and women enjoy equal access to digital products and services. o In addition, more than four out of five respondents (83%) believe that men have a higher degree of financial inclusion than women, and three out of four respondents (75%) believe that men have a higher degree of digital inclusion than women. The primary drivers for financial exclusion are perceived to be income inequality (44%), as well as a distrust of banks (40%) and a lack of knowledge about money management (38%). o Respondents believe that education classes are key to improving financial inclusion in their country (42%), followed by infrastructure to support financial inclusion (34%), and they believe that it is the national government (67%) and banks (60%) who are responsible for instituting these improvements in their country. o Men are 9 points more likely (69%) than women (60%) to place responsibility with national governments for instituting change when it comes to improving digital inclusion. The primary drivers for digital exclusion are perceived to be lack of education/digital skills (52%), income inequality (46%), and lack of access to technology (35%). o As with financial inclusion, respondents believe that education classes are key to improving digital inclusion in their country (43%), along with better financial support to those in need (34%), and infrastructure to support digital inclusion. Also as with financial inclusion, they believe that it is the national government (65%) that is responsible for instituting these improvements in their country. Benefits to financial inclusion emphasise financial security (47%) as well as ease of paying bills (44%). For digital inclusion, benefits are focused on becoming better informed (70%) and ability to be connected to others (56%). Frustration is the central emotion that people would feel if they did not have access to the financial products/services and technological products/services they currently have access to. About one in three respondents (35%) agree that access to digital products and services has vastly increased people s ability to access financial products and services, while less than one in three (32%) agree that access to technology is the key to improving access to financial products and services. 7