How to be disability inclusive and age friendly

Lucía Urtecho Calderón, client of Financiera FAMA, sells candy and candied fruits in Mercado Carlos Roberto Huembes, Nicaragua on December 13, 2012

Lucía Urtecho Calderón, client of Financiera FAMA, sells candy and candied fruits in Mercado Carlos Roberto Huembes, Nicaragua on December 13, 2012. Photo credit: Center for Financial Inclusion at Accion

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>>Authored by Sonja E. Kelly and Misha Dave, Center for Financial Inclusion at Accion

Almost a year ago now, the Center for Financial Inclusion at Accion launched two Campaign Commitments for further research and action on the inclusion of persons with disabilities and older people in financial services. If there is one lesson we have learned from following through on these Commitments, it is that including these populations in financial services is in some ways easier than practitioners expect it to be but, in other ways, harder than it looks.

In our research on aging and financial inclusion, one of the key insights was that financial service providers of all sizes often apply age caps on credit products. However, many institutions we talked with did not know exactly where these standards came from. Some attributed them to concerns about life expectancy of older clients, some to institutional history (“that’s just the way we do it”), some to the increase of credit portfolio insurance it would incur, and some to a perception of older people as economically dormant.

Many of these concerns can be mitigated by better research and dispelling myths about the creditworthiness of older people. Easy, right? In fact, there are some institutions that apply creative ideas to providing credit to older people. Group guarantees and automatic withdrawal payments on loans from publicly administered pensions through government partnerships are both examples of this.

However, such institutions providing credit to older people seem to be the exception rather than the rule. Worse, convincing institutions to care about this population is not easy. One institution we spoke with in India was baffled by the idea of providing credit to people over the age of 55. “But they [the older people] could die and wouldn’t pay the loan,” the product developers insisted. Doing the research and articulating the issue was the easy part — now the hard work begins of advocating on behalf of older people.

Similar attitudinal barriers exist in financial institutions for serving persons with disabilities. Let’s take stock: over one billion people around the world — 1 in 7 of us — have a disability and four-fifths live in developing countries like India. Despite this and the fact that many microfinance institutions (MFIs) claim to be dedicated to “serving the world’s financially excluded people,” less than 1 percent of their clients are persons with disabilities.

In India, disabled persons have limited or no access to formal credit and other financial products for education, housing, skills development, business, and such. In addition, insurance companies in India do not cover assistive technology like wheel chairs and hearing aids that disabled persons need to be mobile, avoid further injury to themselves, and work and live full lives. The gap between demand and supply is enormous, and this creates a dangerous hotbed for informal credit and loan sharks to exploit an already vulnerable and marginalized population, dragging them further into poverty.

Disabled persons and older people have similar physical challenges (mobility, visual, and hearing impairment) and misperceptions about their capabilities to work and run businesses. Therefore, helping to financially include one group will serve to make positive changes for the other. Whether it be through changing attitudes and perceptions or implementing universal design principles in their operations, financial institutions can better serve all clients with physical challenges by becoming disability inclusive and friendly.


Dhanalakshmi was not born blind. She was badly burnt and lost her vision 23 years ago when her husband poured acid over her, her two sisters, and mother. Dhanalakshmi’s loan group has fully included her by using very simple accommodation measures like reciting the MFI pledge aloud and taking turns to assist her to attend the meeting.

Through financial inclusion of disabled persons, we see a compelling story of social inclusion can be seen at the community level. Leveraging the group-based model in microfinance, disabled persons, mostly women, receive community support and social acceptance from other group members. Dhanalakshmi, an Equitas client, exemplifies this.

Dhanalakshmi was not born blind. She was badly burnt and lost her vision 23 years ago when her husband poured acid over her, her two sisters, and mother. While her sisters recovered with minor injuries, got married, and have families of their own, Dhanalakshmi lost her vision and sustained major burns on the right-hand side. Constrained by her disability, she confined herself to her home for many years.

Four years ago, Dhanalakshmi joined Equitas as a member. She took out a small loan and started her garments business, buying clothes from the wholesaler and selling them door-to-door. Dhanalakshmi’s group has fully included her by using very simple accommodation measures like reciting the MFI pledge aloud and taking turns to assist her to attend the meeting. This has given her the confidence and the ability to support herself and her mother financially. Along with economic independence, she has also been socially accepted by people around her.

Group members often help support disabled persons in their businesses, as well. For example, they may purchase raw materials, sell/distribute products, collect and repay loans on behalf of the disabled client. This inclusion is creating role models by empowering disabled persons to be economically self-sufficient while also empowering communities to break down social stigma and attitudinal barriers on what a disabled person can and cannot do.

To help further financial inclusion for persons with disabilities, CFI at Accion’s Disability Financial Inclusion Program in India has provided trainings and resources to sensitize and equip microfinance institutions to serve this marginalized and underserved population, recognizing that globally less than 1 percent of persons with disabilities are served by microfinance. The program provides disability awareness and sensitization trainings, inclusion assessments, and recommendations to make operations and processes more disability inclusive and friendly.

In the past two and half years, the program has helped sensitized three microfinance partners (Equitas, ESAF, and Annapurna Microfinance) in three states (Kerala, Tamil Nadu, and Orissa). These three MFIs have financially included more than 30,000 low-income disabled persons, including over 2000 visually impaired, a severely excluded disability segment. Last year, the program won an award for its innovation in promoting accessibility and universal design to “ensure a life of equality and dignity for disabled persons.”

This year, we are expanding to three more financial partners in four new Indian states (Karnataka, West Bengal, Jharkhand, and Uttar Pradesh). One partner organization has a network of 33 sub partners providing social and as well as financial support, spreading the seed of inclusion across India. We are also developing strategies to expand disability inclusion with our partners and other stakeholders through advocacy and awareness. We are facilitating partnerships between the financial industry and disability organizations in India, many of which provide livelihoods training, skills development, and other social supports to disabled clients. In sum, we are helping provide a strong ecosystem for sustainable financial inclusion for persons with disabilities.

We remain convinced of the value of including persons with disabilities and older people in financial services outreach. Indeed, financial inclusion is a valuable instrument to equip people with the tools they need to manage and grow their income. As we continue to pursue this goal — despite how challenging it can be at times — we eagerly look forward the day when all people who can use financial services have access to a broad range of quality financial tools.

Disability Inclusion, in Ecuador and Around the World: An Interview with Larry Reed


This following article was originally published on the Center for Financial Inclusion blog

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This article was originally published on the CFI blog.

>>Posted by Jeffrey Riecke, Communications Associate, Center for Financial Inclusion

Last month Larry Reed, director of the Microcredit Summit Campaign, attended the International Summit of Productive Inclusion in Guayaquil, a conference focused on financial inclusion for one of the world’s most underserved populations: persons with disabilities. The event was organized by Ecuador’s Office of the Vice President, whose leadership has been seminal in advancing disability inclusion in Ecuador and around the world. I caught up with Larry to learn more about the event and the Microcredit Summit Campaign’s efforts to support persons with disabilities living in extreme poverty.

To watch the session that Larry spoke in, click here and jump to around minute 49 (Larry speaks at minute 51); the session took place in Spanish.

1. The event included diverse stakeholders and topics related to financial inclusion for persons with disabilities. Did anything in particular stand out to you?

The first thing that impressed me was just how big it was. Over 2,000 people attended the event, and it was also live-streamed. The 2,000 people were not only a diverse group in terms of sector, but also in how they related to persons with disabilities. And the interesting thing was that about half the people in the audience were either people with disabilities or caregivers for people with disabilities. The event included a fair where people could buy things made by people with disabilities. Even the food stands for lunches were all run by people with disabilities. It was an event that actually practiced what it preached.

The event aimed to further the work of Ecuador’s previous vice president on inclusion for people with disabilities and extend it into the financial sector. They’ve done a lot of work in Ecuador to get people with disabilities included. For example, there’s a law that says for any company over 25 employees, 4 percent of its employees must be people with disabilities. But, because there are not very many large companies in Ecuador, that law results in employment for only a small portion of the population that has disabilities. The government sees a need for self-employment and small businesses run by people with disabilities. And to advance that they need to have the financial sector providing services that help promote business start-up and growth.

2. You were quite active at the event, delivering several speeches and serving on multiple panels. Could you tell us about these discussions?

My role at the event was mostly to talk about what financial inclusion was doing in other parts of the world. I dealt not specifically with people with disabilities, but with efforts elsewhere that helped include previously excluded people. I tried to show how that would apply to people with disabilities.

We looked at the things the Microcredit Summit Campaign is actively promoting as financial inclusion strategies that reach people in extreme poverty and assist movement out of poverty — things like supporting agricultural value chains, linking government cash transfer programs to microfinance graduation programs or asset-building programs, technology development that reaches to the poorest, linking savings groups with the financial system through mobile payments, and so forth. I promoted activities that could be applied to people with disabilities.

The same things apply in Ecuador as in many countries where many people with disabilities live in rural areas and could earn an income through agricultural work of some type, even though they have a disability. The event featured examples of some of those types of businesses, but the big challenge is how to look at the whole value chain to make sure there’s enough value to be created — that there are markets for what people grow so that those businesses can succeed and thrive.

3. What messages did you take home with you?

The key thing to me in this whole area of including the excluded is a change of mindset. What it does to a country and to a people when they begin to see a broader definition of “we”? The spirit that was tangible at the event was the sense that, “We can do this. We can care for all our people, and we as a society are better off because we include them.” I think that’s the message we have to get out into the whole financial inclusion world. Everyone has abilities, everyone has something to contribute, and we, our economies and our societies are better off if everyone is included.

4. Disability inclusion is a severely under-addressed issue globally. How did it come to the fore in Ecuador?

This all started in the previous administration with the previous vice president, Lenin Moreno, who is paraplegic. Moreno is now the Special Envoy on Disability and Accessibility to the United Nations, heading up some of the U.N.’s work in this area, and Ecuador is sought after all over the world for advice on how to do this work.

Former Vice President Lenín Moreno surrounded by supporters and well-wishers (2013). Photo: Fernanda LeMarie - Cancillería del Ecuador.

Former Vice President Lenín Moreno surrounded by supporters and well-wishers (2013). Photo: Fernanda LeMarie – Cancillería del Ecuador.
By Ricardo Patiño [CC BY-SA 2.0 (], via Wikimedia Commons

Moreno had been a business man, and one day he went out to buy a loaf of bread and someone was robbing the store. He got shot and became paralyzed. He almost gave up, and what brought him back to feeling like life was possible for him as a paraplegic was laughter therapy. And so he has published a few books on good jokes. Out of it all he became a well-known motivational speaker, and then he was picked as the vice presidential candidate, and his party won. Moreno then led a movement to include people with physical disabilities, with himself representing the contribution that people with disabilities could make to society.

While I was there I went out for a run and noticed all the bus stops and buses are handicapped accessible. You don’t step up into the bus. They open the door, more like that of a subway, and someone with a wheelchair can roll right on.

In their disaster preparedness work, teams of survey takers went out to the rural areas – villages, everywhere — and identified where every person with a disability lived. Then in the disaster plans they included how they would locate these people and evacuate them if there is a tsunami, tornado, or earthquake.

5. Switching gears slightly, how does providing financial services to persons with disabilities fit with the Microcredit Summit Campaign’s push to ensure that vulnerable populations are not excluded from MFIs?

One of our key goals at the Campaign is to see 100 million of the world’s poorest families move out of extreme poverty as a result of access to appropriate financial services and other help as they may need it. As we become more granular in looking at that goal and how we address it, we find that there’s a need to identify the groups of people that are traditionally excluded or among the poorest in different parts of the world, and ask what strategies help address the needs of those groups. People with disabilities is one of those groups.

Even within microfinance organizations that want to serve the poor, there are often unwitting prejudices about the capabilities of people with disabilities, and they end up excluded. So we think this is one of the areas that we need to highlight for microfinance organizations to make sure that they are being inclusive and that where possible and necessary they are taking steps to ensure people with disabilities can access their services and can use them well. At a couple of our Summits Josh Goldstein [who leads CFI’s disability inclusion work] has participated and presented and made Campaign Commitments. We’ve also had workshops on including people with disabilities for Summit participants.

Use headphones and listen only to the left earpiece to hear the original English.

6. What would you identify as the biggest barriers to advancing financial inclusion for persons with disabilities?

Probably the number one barrier is the range of prejudices or assumptions that people grow up with and maintain throughout life. One way of targeting these is helping people see how people with disabilities can contribute and identifying the types of activities they can be involved in.

Other barriers are found among financial institutions’ policies and physical structures. I once spoke with Josh about this. Often a microfinance institution will have a branch office on the second floor because that’s less expensive. However, this doesn’t mean you can’t serve people outside of the second floor office space. Is there a way of creating a kiosk or holding meetings in other locations that are accessible?

7. Our disability inclusion team has been enthusiastic about its collaboration with the Microcredit Summit Campaign. Is this topic gaining traction with other Campaign members? Is there a movement to advance financial inclusion for persons with disabilities?

I think the message is starting to get through. It’s something we need to continue to work on, but Campaign members are already motivated to help people who are excluded. So in their case, it’s mostly pointing out what exclusion looks like in this area and what the steps they can take to promote inclusion. We’re seeing a number of organizations starting to work through that.

For example, Fundación Paraguaya is actually working with the government of Ecuador to figure out how to do financial inclusion for persons with disabilities in Paraguay. On the flip side of this, I spoke with the Ecuadorian government and suggested that they need to do more analysis on the results of their disability inclusion work, and I suggested using the “Poverty Stoplight” system Fundación Paraguaya created. It’s one of the best systems for tracking movement out of poverty, as well as a source of information that helps clients look at their own situation and see how they might improve their lives. Right away upon hearing this Alex Camacho of the Vice President’s Office sat down with Jimena Vallejos of Fundación Paraguaya and they started planning how to share the information on using the stoplight system.

8. Any closing thoughts you’d like to share?

One lasting image I have from this conference is the delegation from Brazil.It was two people who work in the government on rights for people with disabilities, a blind woman and a paraplegic man. I first noticed them because they were staying in the same hotel. I kept looking for the other people from Brazil who got them there — and there wasn’t anyone. As they went through the venue, it was just the two of them together, the blind woman pushing the wheelchair of the paraplegic man and he providing directions to her. Her legs could propel him, his eyes could guide her. It was such a great image of the theme that everyone has something to contribute. We all have something to give, and if we can work together and provide the necessary means, we then include all those abilities in our society — and we’re all better because of it.