The Importance of Financial Inclusion for People with Disabilities - - PowerPoint PPT Presentation

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The Importance of Financial Inclusion for People with Disabilities - - PowerPoint PPT Presentation

May 27, 2023 33 likes •245 views

The Importance of Financial Inclusion for People with Disabilities Artist: Dadu Shin Michael Morris Executive Director National Disability Institute 1 NDI History In 2000, no disability organization or government agency at any level

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The Importance of Financial Inclusion for People with Disabilities

Artist: Dadu Shin

Michael Morris Executive Director National Disability Institute

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NDI History

  • In 2000, no disability organization or government agency at

any level wanted to talk abut or address the challenges of poverty confronting millions of Americans with disabilities everyday.

  • NDI was incorporated in 2005 as a 501(c)3 nonprofit.
  • The Board of Directors are thought leaders in disability and

financial communities.

  • NDI has 35 staff located in 10 states and is headquartered

in Washington, DC.

  • In 2019, NDI has over 12 public and private funders with

activities touching target audiences in all 50 states.

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NDI Mission

The mission of National Disability Institute (NDI) is to drive social impact to build a better economic future for people with disabilities and their families through pioneering research, advocacy, policy development, public education, and innovative demonstration projects.

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NDI Priorities

  • Improve and nurture relationships between the disability and

financial communities to advance financial inclusion and economic stability for individuals across the spectrum of disabilities.

  • Develop and document pathways to improved economic

self-sufficiency for youths and adults with disabilities.

  • Align public policy to promote work, saving, and asset

accumulation.

  • Improve collaboration across federal agencies to advance

financial capability and a better economic future for individuals with disabilities.

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Financial Inclusion is:

  • Accessible and affordable

financial services

  • Financial education to make

informed financial decisions

  • Economic pathways to

financial stability and security

  • Overcoming barriers to

financial stability with reduced historical dependence on means- tested public benefits

Artist: Patrick Connally, Downtown Berkeley

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For People with Disabilities, Financial Inclusion is:

  • Not a fringe

issue

  • Fundamental to

the definition of community

  • Fundamental to

solving other intractable social issues

Artist: Gen Gaines, A Summer Stroll on RIA

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What is Disability: Changing Conceptualization

  • Medical model
  • Says that a disability is a condition

within a person and that the only way to address that condition is to “fix” the person.

  • Social Model
  • Says that disability is an interaction

between the person and the environment—that people are limited by barriers in society, not solely by their

  • disability. These barriers can be

physical, programmatic or attitudinal.

  • Therefore, our job is to adjust the financial

environment to meet the needs of ALL.

For a good descript ion of t he S

  • cial model see “ The S
  • cial Model of Disabilit y” by Tom S

hakespeare in The Disabilit y S t udies Reader, 2017. ht t ps:/ / books.google.com/ books? hl=en&lr=&id=aiQlDwAAQBAJ&oi=fnd&pg=PA195&dq=t om+shakespeare+social+model&ot s=TAzrb-LDo- &sig=A78t LWkL6FvxX2ZlxeWpkfhBgEc#v=onepage&q=t om% 20shakespeare% 20social% 20model&f=false

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Who Are People with Disabilities?

  • 40-57 million people
  • 13-20% of total

population

  • 26% of households

have a member with a disability

  • Diverse in terms of

type of disability, race, age, age of

  • nset,

socioeconomic situation

Artist: Liam Hassan Beserekumo, untitled

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Intersectionality of Disability and Other Identities

The American Community Survey estimates 14% of African Americans, 14% of Whites and 9% of Latinos have a disability. The prevalence of disability increases with age. Some research suggests the prevalence of disability is higher among LBQT adults compared with their heterosexual counter parts.*

*Karen I. Fredriksen-Goldsen, Hyun-Jun Kim, and Susan E. Barkan (2012) Disability Among Lesbian, Gay, and Bisexual Adults: Disparities in Prevalence and Risk. American Journal of Public

  • Health. 102(1).

Artist: Corbett O’Toole, Disabled Women of Color (Quilt) 9

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The Intersection of Disability, Color and Poverty

Race and disability are not completely separate sources of disadvantage that parallel each

  • ther. Race and disability are
  • verlapping identities that are

both related to systemic inequality. NDI has documented disparities by disability and color in poverty rate, educational attainment, employment status, use of financial services and financial stress.

25% 39% 32% 22% 28% 10% 22% 20% 12% 13% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% NH White Black Latino Asian All

Poverty Rate Among Working-age Adults with Disabilities

With Disability No Disability

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Unbanked: Disability Gap is Growing

18.9% 18.4% 17.6% 18.1% 7.4% 7.2% 6.5% 5.7%

5.0% 10.0% 15.0% 20.0% 2011 2013 2015 2017

Wit h Disability No Disability

2017: 12.4 percentage point difference 2011: 11.5 percentage point difference

Source: 2011-2017 FDIC Surveys of Unbanked and Underbanked Households

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Use of Accounts by Banked Households

Even among households with bank accounts …

  • Households with a disability

less likely to have both a checking and savings account.

  • Households with a disability

are much less likely to use

  • nline banking (47%

compared with 73%).

  • More likely to use the bank

teller as the primary method to access their accounts.

39% 18% 4% 1% 57% 80%

Source: 2017 FDIC Surveys of Unbanked and Underbanked Households

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Difficulty Covering Expenses and Making Ends Meet

49 26 40 47 9 23

No Disabilit y With Disability Not at all difficult S

  • mewhat difficult

Very difficult

Source: FINRA Investor Education Foundation, National Financial Capability Survey, 2015

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Financial Exclusion Leads to Potentially Expensive Use of Alternative Financial Services

33% 28% 12% 23% 19% 7%

0% 5% 10% 15% 20% 25% 30% 35% Used Any AFS in Last 12 Mont hs Transaction AFS Credit AFS

Use of Alternative Financial Services In Last 12 Months

With Disability No Disability

Source: 2017 FDIC Surveys of Unbanked and Underbanked Households

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People with Disabilities Have a Higher Unmet Need for Credit

2 9 12 19 2 6 7 13

Denied bank credit Discouraged about applying for bank credit Used nonbank credit Unmet need for credit (any of previous t hree indicat ors)

Unmet Need for Credit by Disability S tatus, 2017

With Disabilty No Disability

Source: 2017 FDIC Surveys of Unbanked and Underbanked Households

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The Gap in the Percentage of Households With No Mainstream Credit Products has Increased Over Time

47% 40% 24% 15% 10 20 30 40 50 2015 2017

Percentage of Households with No Mainstream Credit Products

Wit h Disabilt y No Disability

35 percentage point disability gap in 2017 23 percentage point disability gap in 2015

Source: 2017 FDIC Surveys of Unbanked and Underbanked Households

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Impact of Financial Stress

  • Almost ½ skip

medical treatments because of cost

  • ⅓ are late on

mortgage payments

  • ⅓ overdraw

checking accounts

Artist: Sherwin Long, Peace of Mind

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Recommendations

  • Expand Access to ABLE Accounts
  • Provide education about the benefits of ABLE accounts.
  • Create automatic transfer of funds into ABLE accounts.
  • Develop product that allows Credit Unions to open ABLE

accounts for their customers

  • Enhance Trust and Confidence
  • Conduct anti-bias training for credit union staff
  • Increase hiring of people with disabilities as credit union

staff members

  • Establish branches with convenient locations and

expanded hours

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Recommendations (continued)

  • Ensure Accessibility

1. Accept calls from video phones and video relay services 2. Locate ATMs inside rather than outside credit union location 3. Exceed minimal access requirements 4. Ensure that online sites and mobile apps meet accessibility guidelines and are easily usable by all customers

  • Develop Responsive Products and Services
  • Reduce length of delays to access cash from check deposits
  • Allow low minimum savings account requirements and free

checking for low-income consumers

  • Initiate small dollar low-interest loans
  • Improve access to financial education and counseling.

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Recommendations (cont.)

  • Advance Innovative Solutions
  • Consider enhancements to mobile banking and fintech

apps based on input from the disability community

  • Use responsive technology to help customers make

decisions such as automated alerts and nudges to encourage positive financial choices.

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NDI Resources Available at:

https://www.nationaldisabilityinstitute.org/reports/

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