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Redefining Financial Inclusion for a Digital Age: Implications for a Central Bank Digital Currency

Author

Listed:
  • Alexandra Sutton-Lalani
  • Sebastian Hernandez
  • John Miedema
  • Jiamin Dai
  • Badr Omrane
Abstract
Digitalization—the use of data, digital platforms and advanced analytics—has quickly become widespread in today’s society. This has introduced new opportunities, but it has also created new barriers and exacerbated existing inequities. This is likewise true in the realm of payments, where issues around financial inclusion, digital inclusion and accessibility compound the challenges for users. Our work expands on that of Henry et al. (2023). We base our research on two key premises. First, we apply the social model of disability to the Canadian payments landscape to identify opportunities to remove barriers that marginalize or hinder people. Second, we investigate beyond the standard economic measures and aggregate statistics related to these topics to build a nuanced understanding of the challenges inherent in the current system. Our findings highlight important areas of research and design consideration for new digital payment products and services, specifically for central banks contemplating the introduction of a central bank digital currency. We identify barriers that rural populations, Indigenous communities, Canadians with low incomes and persons with disabilities face in using financial products. We also note a deficiency in the current research and payment offerings for those with cognitive accessibility challenges. With these findings, we aim to build awareness of the inequities and challenges present in the current payments system and motivate existing financial technology providers to move toward offering more-inclusive products and services.

Suggested Citation

  • Alexandra Sutton-Lalani & Sebastian Hernandez & John Miedema & Jiamin Dai & Badr Omrane, 2023. "Redefining Financial Inclusion for a Digital Age: Implications for a Central Bank Digital Currency," Discussion Papers 2023-22, Bank of Canada.
    • Handle: RePEc:bca:bocadp:23-22
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    References listed on IDEAS

    as
    1. Anabel Quan‐Haase & Dennis Ho, 2020. "Online privacy concerns and privacy protection strategies among older adults in East York, Canada," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 71(9), pages 1089-1102, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bank notes; Central bank research; Digital currencies and fintech; Digitalization; Financial services;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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