Beyond access: Why true financial inclusion demands dignity and control

The prevailing narrative in the financial technology industry has centered around one central concept: access. The promise of fintech “revolutionizing” financial services has led many to celebrate the proliferation of apps and platforms that claim to democratize financial tools.

This move is not unfounded, especially considering companies such as McKinsey & Company define financial inclusion as “when everyone can access financial services that can help them build wealth.” While access is undeniably important, it is just the first step toward financial inclusion. True financial inclusion requires more than just providing access — it demands preserving dignity and ensuring meaningful control over one’s financial life. 

Imagine a woman standing at the checkout counter of a grocery store, cart full of weekly essentials. Her card is declined. Not because of insufficient funds but because an automated system flagged the transaction as “unusual.” As the line grows behind her while she is figuring out how to pay for her food, another layer of dignity is stripped away. This “front-of-line problem” is a far too common problem where traditional financial systems inadvertently create stressful moments that cause public humiliation.

The “front-of-line problem” can often be attributed to limitations imposed by outdated or inaccurate Merchant Category Code (MCC) rules, preventing low-income consumers from using their government benefits or accessing the most affordable options. Too many financial tools are either over or under-restrictive in this way — applying a hammer-like approach to a problem that requires scalpel-like precision. Furthermore, algorithmic biases against budget retailers deepen these disparities, especially when those retailers serve as lifelines for needy families. The compounding effect of these barriers is not just a transactional inconvenience; it erodes trust and self-worth, leaving individuals feeling alienated from the same system designed to help them.

While sophisticated fintech solutions can streamline processes, they often approach social support with rigid, prescriptive frameworks that fundamentally misunderstand the complexity of human need. The tradeoff of simply providing access but with inflexible guardrails means that being given access can be just as stressful as not having had access in the first place. Luckily, many companies and organizations are realizing this and are adopting approaches rooted in a profound understanding of human agency and dignity.

One such example is the city of Philadelphia. Its community development organization is piloting a program for housing vouchers that recognizes that the bureaucratic process and hoop-jumping required to obtain vouchers, compounded with the restrictiveness that comes with limiting vouchers just to mortgage or rent payments, take away some of the humanity of being able to pay for one of the most human things we have: a home.

By substituting housing vouchers with direct cash payments made via prepaid debit cards, the city recognizes that what constitutes money for housing isn’t one-size-fits-all. Instead, it leaves open flexibility for recipients to make choices about whether to purchase internet and from which provider, for example. At the very least, the direct cash option can allow recipients a more positive, less clunky experience of paying their monthly rent. The program has managed to capture the attention of HUD, the federal housing authority, who may adopt the practice nationwide if the city’s results prove compelling enough. 

Another example is Uplift. Uplift challenges traditional aid models by providing immediate, unconditional financial assistance through agile giving — a philosophy recognizing survivors as experts in their own lives. Agile giving is a radical act of trust. Unlike traditional support systems that impose restrictive conditions, micromanage spending, or assume recipients lack the capacity to make sound decisions, Uplift believes in providing direct, unrestricted funds.

By removing bureaucratic barriers and treating recipients with inherent respect, agile giving empowers women to make real-time decisions that address their most urgent challenges. Through agile giving, Uplift has not only increased its ability to support women in crisis — achieving a 34% increase in approved applications and approving 50 percent of assistance requests — but has also demonstrated how financial technology can be a powerful tool for restoring personal agency and dignity.

Even when more flexible technologies or money movement systems are introduced, it’s still only half the picture. Automated solutions such as mobile apps and AI-powered chatbots may be convenient, but they fall short of true financial inclusion. For many individuals, this might be their first experience with a financial product, where even basic concepts like PIN codes can feel overwhelming and unfamiliar, or at least, negative perceptions of predatory financial institutions instill fear and doubt.

Beyond just solving technical issues, cardholder support teams must serve as financial educators who can guide users through the fundamental building blocks of financial services. By training support agents to provide patient, comprehensive financial education, individuals can transition confidently from cash-based transactions, reducing expensive ATM usage and empowering users to navigate their finances with knowledge and agency. This human-centered approach bridges the technology-human divide, transforming financial products from transactional tools to instruments of genuine empowerment.

Furthermore, to truly serve our communities, we must move beyond binary access/no-access models, and flexible, context-aware approval systems are crucial to this evolution. Security and accessibility may seem like opposing forces, but dignity-preserving solutions, like lending circles, demonstrate that it is possible to balance security with accessibility.

Lending circles, which have been around for hundreds of years, involve a group of peers contributing to a shared pool of money and taking turns receiving funds. Lending circles can help individuals who struggle to meet the strict identification requirements of banks by accepting a wider range of IDs. They can also help build credit, provide an interest-free method to borrow money, and are an example of how, when we prioritize the human experience, we can create a system that fosters inclusion.

It’s time for fintech companies to reimagine their technology to prioritize the critical role of human support. Companies must prioritize dignity in areas like user experience design, customer service, and algorithm development. When they do, they not only foster loyalty but also tap into an underserved market eager for fintech solutions that resonate on a human level.

A dignity-first approach to financial inclusion can fundamentally transform financial services by shifting from traditional top-down models to collaborative systems that prioritize individual agency and user empowerment. Policymakers can promote inclusive finance by creating incentives for financial institutions to serve underserved communities while implementing regulations to safeguard against any predatory practices. This vision for a more inclusive fintech industry relies on the collaboration between fintech institutions, consumers, and regulators.

Through years of working closely with underserved communities, I have witnessed firsthand the transformative power of combining financial access with dignity. These communities have taught me that true empowerment means fostering a sense of control and respect in their financial choices.

Therefore, as we look to the future, I urge our industry to embrace a more holistic approach to financial inclusion — one that recognizes that adopting dignity-first approaches that give control back to users is the only way to achieve true financial inclusion.