A hard-hitting report launched today reveals the true scale of financial exclusion facing the UK’s 1.5 million adults with a learning disability – uncovering a lack of parity, accessibility and increased potential for financial harm.
A staggering 32 per cent of adults with a learning disability do not have their own bank account – with the vast majority (87%) forced into potentially unsafe workarounds or left struggling with a system that they say does not cater for their needs. More than six in ten (61) per cent feel banks don’t always do enough to meet their needs.
Published by Project Nemo - a not-for-profit campaign for disability inclusion in banking and fintech - and sponsored by Nationwide, the report is the most comprehensive study to-date on the issue. It explores everyday banking barriers faced by those with a learning disability and the solutions needed to take a vital step towards an equal footing. It is a call to actions for the banking industry to inform and shape new solutions for those with a learning disability.
The report - The Safe Spending for Adults with a Learning Disability: A Call to Action for Financial Service - reveals:
- 32% don’t have their own bank account, while 72% require help with everyday spending.
- 87% of adults with a learning disability and their supporters turn to informal workarounds to get by financially – significantly raising the risk of financial harm. Workarounds include handing over PIN numbers and full control of finances to others, in addition to allowing family members to impersonate them on the phone.
- 36% struggle with passwords or logins and 34% find it difficult to talk to bank staff.
- 33% find security checks hard to complete.
The report explores factors which have exacerbated financial exclusion. This includes how the shift away from cash - down from 60 per cent of transactions in 2008 to just 12 per cent in 2023* - has left arguably the UK’s most vulnerable community behind.
The recommendations of the report, aimed at both fintech developers and financial services providers, include:
- Banking features should use clear and simple language, and visual explanations where possible, to aid understanding.
- Individual customisation allows users to flex based on their needs.
- Spending insights, settings and the ability to intercept risky purchases provide reassurance for both supporters and users and have potential to increase independence.
- Accessible and specialist support must be available to boost confidence and support longer term independence goals.
- Priority features for products should include savings pots, a calm mode to reduce overwhelm, and wearable alternatives to payment cards.
Kris Foster, Co-Founder, Project Nemo, comments: “Too often, people speak for us, about us or in front of us and it’s never our voice. This project, including this research report, for the first time, has centred on adults with a learning disability and seeks to understand what we want and need from financial services. Now, it’s up to banks to take action. I want to see them break down the existing barriers and ensure that others don’t have to fight the same battles for financial independence that I did.”
Kathryn Townsend, Government Disability & Access Ambassador (banking sector) and Nationwide Head of Customer Vulnerability & Accessibility, adds: “Everyone deserves to manage their money with confidence, dignity and independence. At Nationwide we continuously look to enhance support for those with access needs or in vulnerable circumstances. But there is so much more we can do. It is also why I am calling on all of us in the wider banking sector to not only remove barriers but design services specifically for people with learning disabilities to drive towards true parity, as currently the level of support is inadequate. This is demonstrated through the fact that more than six in ten people with a learning disability don’t feel their financial services provider is doing enough to meet their needs.”
Jon Sparkes, Chief Executive of learning disability charity Mencap, comments: “People with a learning disability tell us that they can struggle to make payments safely because of complex banking systems, inaccessible payment options and a lack of easy read information. Because of these barriers, many worry about being more vulnerable to financial abuse and not being able to spend their money in the way they want to. Project Nemo’s work is a hugely important step towards ensuring the 1.5 million people with a learning disability across the UK can make their financial choices safely and independently.”
