Report: Obstacles Open Opportunities for FIs to Serve Americans With Disabilities

A new report from the Financial Health Network suggested the financial health obstacles of 40 million Americans with disabilities may open opportunities for financial institutions to serve them.

The 57-page research report from the Chicago-based nonprofit financial services consultancy organization released earlier this month showed only 10% of working-age people with disabilities are financially healthy, compared with 30% of working-age people without disabilities. What’s more, just half (51%) of working-age adults with disabilities said they were able to pay all of their bills on time, while close to half (46%) said they have unmanageable levels of debt. Only one in five (22%) said they were confident they were on track to meet their long-term goals.

Credit score is the top reason people with disabilities borrow from alternative credit providers, according to the report’s survey of 1,663 adults with disabilities. The survey’s margin of error was 2.4%. The research report also conducted in-depth interviews with adults with disabilities.

The survey showed 55% of adults with disabilities did not apply for a loan at a financial institution because their credit score was too low. Also, 20% said they have always borrowed from an alternative credit provider and 14% said they thought a bank loan would be too expensive.

Among banked disabled respondents, very few reported discrimination, lack of accessibility or dissatisfactory experiences related to their disability at financial institutions. When asked about a variety of negative and/or discriminatory experiences at banks – such as being talked down to, ignored or dismissed – 94% reported they experienced none of the above. Additionally, only 3% said they were dissatisfied or very dissatisfied with the accessibility accommodation provided by their bank.

Survey respondents reported the highest level of satisfaction with using debit or credit cards, and similarly high levels of satisfaction with online bill pay and use of an ATM.

But respondents also reported lower levels of satisfaction for speaking with a bank representative via phone and using an app or website to send money.

“In our interviews, several participants noted opportunities for better customer service at financial institutions,” the report said. “One interviewee with autism mentioned that interacting with new people can be a challenge for him, and he would appreciate it if more bank personnel had deeper experience working with customers like him. Another interviewee who used a wheelchair noted that at times she felt ignored or disrespected by people working at the bank.”

Others shared ideas for incremental improvements in accessibility at financial institutions.

“For example, an interviewee with mobility issues suggested more places to rest while waiting in line at banks. Another interviewee recommended improving the ATM experience and making cash easier to differentiate for blind people,” according to the report. “Multiple interviewees who are blind recommended improving online banking platforms by optimizing them for screen readers. Several interviewees suggested including people with disabilities in the design process to ensure that solutions are appropriate and accessible.”

After accounting for differences in age and income, people with disabilities use online banking at rates similar to people without disabilities, the report noted.

“For the most part, interviewees were comfortable navigating their banks online. In conversations with experts for this report, we heard that the prevalence of online banking services has been a major boon to many people with disabilities,” the report concluded. “While room for improvement remains, technology offers significant promise to continue to connect people with disabilities to critical financial services.”

Read the Full Report: The Financial Health of People with Disabilities.