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Barriers to financial inclusion: Factors affecting the independent use of banking services for blind and partially sighted people

Evidence and Service Impact

Royal National Institute of Blind People (RNIB)

Author: Angela Edwards,

March 2011

"This research was supported by The Royal Bank of Scotland Group"

Acknowledgements

RNIB would like to thank those who were pivotal in enabling this study to take place, especially the 551 blind and partially sighted people who gave us their time and provided information on their personal financial circumstances and The Royal Bank of Scotland Group for funding the research without any conditions. The responsiveness of the telemarketing team headed by Sharon Cobley and Julie Smith as well as David Brown working in Information and Knowledge Systems is greatly appreciated. In addition, thanks must be given to colleagues in RNIB Campaigns, Fundraising and Innovation and Development teams for working so collaboratively.

Contents

1. Executive Summary

1.1 Introduction to study

1.2 Methodology

1.2.1 Aims

1.2.2 Sampling frame

1.2.4 Questionnaire

1.2.5 Fieldwork

1.2.6 Analysis......

1.2.7 Limitations

1.3 Results

1.3.1 Banking and building societies used

1.3.2 The main reasons for choosing a bank

1.3.3 The provision of accessible formats

1.3.4 Telephone banking

1.3.5 Internet banking

1.3.6 Cash Machines

1.3.7 Preferred banking service

1.3.8 Obtaining cash

1.3.9 Identifying notes and coins

1.3.10 Improvements to services......

1.4 Conclusion and recommendations

1.4.1 Perceived autonomy

1.4.2 Access to Information

1.4.3 Preferred ways of banking

1.4.4 Telephone and Internet banking

1.4.5 Cash Machines

1.4.6 Personal Security

1.4.7 Further research

2. Introduction......

2.1 Background to the study

2.2 Methodology

2.2.1 Aims

2.3 Sampling frame

2.4 Questionnaire

2.5 Fieldwork

2.6 Analysis

2.7 Limitations

3. Sample profile and similarities with the 2004 survey

3.1 Age

3.2 Registration status

3.3 Length of time with sight loss

3.4 Accessing printed materials

3.5 Income

3.6 Preferred format

3.7 Perception of financial autonomy

4. Use of banks and building societies

4.1 Banking and building societies used

4.2 Reasons for choosing a main bank

4.3 The provision of accessible formats

5. Types of banking services used

5.1 Primary and second accounts

5.2 Telephone banking

5.3 Internet banking

5.4 Cash Machines

5.5 Assistance with cash machines

5.6 Preferred banking service

6. Obtaining cash

6.1 Frequency of obtaining cash

6.2 Average amount obtained

6.3 Identifying notes and coins

7. Contactless payment

8. Improvements to services

9. Conclusion and recommendations

9.1 Perceived autonomy

9.2 Access to Information

9.3 Preferred ways of banking

9.4 Telephone and Internet banking

9.5 Cash Machines

9.6 Personal Security

9.7 Further research

10. References

1. Executive Summary

1.1 Introduction to study

This report presents data collected through interviews with 500 blind and partially sighted people on their experiences of usingeveryday banking services. The research was carried out by RNIB and funded by The Royal Bank of Scotland Group (RBS).

1.2 Methodology

1.2.1 Aims

The aim of the survey was to investigate the areas in which blind and partially sighted people face barriers to the independent use of the financial services provided by their banks and building societies. Wherever possible and relevant the results were compared with the results of the 2004 survey which also investigated barriers faced by blind and partially sighted people in relation to using bank services.

1.2.2 Sampling frame

The sample was drawn from RNIB's Customer Information System (CIS) which includes the details of over 531,000 contacts who had used RNIB's core services and of whom over 274,000 are recorded as being blind or partially sighted. There are around 2 million people who are living in the UK with a level of sight that significantly impacts on their everyday lives (Access Economics, 2009). As such, RNIB's CIS includes a considerable proportion of this group of people.

The results of this survey are representative of the blind and partially sighted people to whom RNIB currently provide services i.e. over 274,000 people. As with the use of organisational lists there are limitations as to how far the findings can be applied outside that organisation's customer group (Gold and others, 2010).

1.2.4 Questionnaire

The questionnaire used in the current survey was based on the 2004 study and used many of the same questions. Additional questions were added to obtain information on areas that were not covered in the previous study but have been subsequently raised by blind and partially sighted people themselves as problematic areas such as identifying cash and use of non cash payment systems (Appendix 1)

1.2.5 Fieldwork

Throughout October 2010, telephone interviews were conducted by RNIB's telemarketing team of trained interviewers. Interviews were undertaken during the evenings and weekends as well as during weekdays in an effort to obtain the responses of a wide range of people.

In total 551 blind and partially sighted people were contacted before 500 interviews with people who used bank or building societies were achieved.

1.2.6 Analysis

There was a deliberate over sampling of working age blind and partially sighted people in order to ensure that their views were included. To compensate for this age related oversampling weights previously calculated for the registered blind and partially sighted population were applied (Douglas and others, 2006)

1.2.6 The quantitative results were analysed using the statistical software package SPSS and the responses to the open ended questions were coded and grouped into themes.

1.2.7 Limitations

It was not possible to include a sighted control group in the survey. However where available external data was used to compare the results of blind and partially sighted people with trends in the general population.

1.3Results

1.3.1 Banking and building societies used

The current survey indicates that there has been little change since 2004 in the banks people report using. As with the last survey, Lloyds TSB, Barclays and NatWest remain the three banks that most people use to conduct their banking services. The vast majority (90%) of blind and partially sighted people reported that they had banked with their provider for over 10 years and reflects the tendency of people in the general population to remain with their banking provider for long periods of time (Clancy, 2011)

1.3.2 The main reasons for choosing a bank

Respondents were asked why they chose their main provider. Locality or convenience of the bank or building society was the main reason blind and partially sighted people chose their bank followed by 13% who said their wife or husband already had used the bank.

The availability of full banking services which included telephone and online banking were also reasons some people had chosen their current bank.

1.3.3 The provision of accessible formats

More than half (63%) of blind and partially sighted people receive information in their preferred formats and can be compared to 56% in 2004.

Bank statements were most commonly received in an accessible format. Other types of information received in a preferred format included letters and named correspondence, cheque books, general information, marketing leaflets and terms and conditions leaflets.

1.3.4 Telephone banking

National data on patterns of banking indicates that amongst the British public there has been a decline in telephone banking believed to be the result of the growth in the use of internet banking(Keynote, 2011). This decline is also reflected when comparing the 2004 and 2010 survey data on blind and partially sighted people. Telephone banking amongst blind and partially sighted people has fallen from over a third (38%) in 2004 to just over a quarter (26%) in 2010.

Blind and partially sighted people of working age are more likely to report using telephone banking than people who were retired.

Main reasons for not using telephone banking were problems with accessing the service and concerns about providing personal details over the phone.

1.3.5 Internet banking

10% (52 people) of blind and partially sighted respondents used internet banking. In the 2004 survey 10% (15 people) also reported use of internet banking. The small numbers in the 2004 survey who had used this facility limits the ability to draw any firm conclusions about the similarity in the results. However,the current survey findingssuggest that the overall proportion of people using internet banking is low. Online banking for blind and partially sighted people does not appear to have increased as it has in the general population (Clancy, 2011; Payments Council, 2010).

Almost three times as many people of working age people (22%) report using internet banking compared to people of retirement age (8%).

Barriers to accessing internet banking services independently included inaccessible websites and difficulties accessing the personal security codes that enable customers to access their accounts online. Not having a computer or the access technology which is required to facilitate access to internet resources was also mentioned by blind and partially sighted people.

Wheninternet banking could be accessed, most blind and partially sighted people who used this facility (55%) felt it at least fairly easy to use compared to 30% of respondents who felt it fairly or very difficult. The remaining 14% felt it neither difficult nor easy to use.

Age was not a significant factor in relation to how easy or difficult people it to use.

1.3.6 Cash Machines

Just 11% (55 people) of blind and partially sighted people reported using cash machines on their own, without the assistance of other people.

People who are registered partially sighted and those who are able to access print are more likely to reportusing cash machines independently, suggesting that the service is less accessible to people with more severe levels of sight loss.

Not being able to read the information on the screen, the variations in layouts of the menu options and card and cash slots across banks combined with fears about personal safety were key barriers greater take up of cash machines.

1.3.7 Preferred banking service

Blind and partially sighted people reported a range of preferred banking methods although banking 'over the counter' was most frequently reported (44%).

1.3.8 Obtaining cash

Respondents were asked about the frequency with which they obtained cash. Exactly half (50 per cent) obtained cash once a week and a further 23% every two weeks.20% obtain cash once a month and 7% report obtaining cash several times a week.

Around a third of respondents reported obtaining between £50 and £100 and a further 34% between £20 and £50.

1.3.9 Identifying notes and coins

Forty five per cent of the blind and partially sighted people in the sample reported experienced difficulties with distinguishing between bank notes and coins.

Gadgets were used by some people to assist them with identifying notes and coins. To identify bank notes these included the use of magnifiers, width guides and note counters which measure the width of notes, some providing an audible beep according to the size of the note. For coins respondents used methods such as a pound coin holder or coin purses or wallets with compartments for the various types of coins.

1.3.10Improvements to services

Respondents were asked for their thoughts on how banks and building societies could improve their services for people with sight loss. Respondents commented on many aspects of the service although making cash machines more accessible and safer to use featured highly in the recommendations of blind and partially sighted people.

Other suggestions for improvements were to ensure websites were accessible for people with speech software, ensuring that information is provided in the customers preferred format and better queuing systems banks.

For some people having a third person to assist with their banking requirements was regarded as a solution to improving their current situation.

1.4 Conclusion and recommendations

1.4.1 Perceived autonomy

The current survey has demonstrated that as a whole the vast majority of blind and partially sighted people would prefer to take control of their financial affairs for themselves.

Recommendations:

  • Availability of bank staff who can assist blind and partially sighted people
  • Banks to investigate involvement in buddy schemes which support blind and partially sighted customers

1.4.2Access to Information

Barriers to financial information continue to be more acute for those who are unable to access print. This group appear to be the most disadvantaged and were least likely to report obtaining information in their preferred format and most likely to report dependence on other people to exercise control over their financial affairs.

Recommendations:

  • Banks to ask new customers a standard question to establish their preferred method for receiving information.
  • Existing customers are informed about the availability of accessible information.

1.4.3Preferred ways of banking

The findings suggest that blind and partially sighted people will vary in the ways they prefer to conduct their banking. The findings also indicate that these preferences are not necessarily fixed but are related to how accessible and safe people perceive them to be. This is demonstrated by the people who reported that they would begin to use a service they currently do not if the problems with inaccessibility were resolved.

It is important that blind and partially sighted people have the same ability to choose as others a service based on personal preference rather than being restricted by how inaccessible they are.

Recommendation

  • Individual services should undergo accessibility checks with blind and partially sighted customers to identifythe barriers people encounter along the customer journey.

1.4.4Telephone and Internet banking

Both telephone and internet banking may have a positive impact on the lives of blind and partially people by levelling the disadvantage people face particularly the case for people who were registered blind as they were more likely than those who were partially sighted to find these services easy to use.

Significant problems prevent the wider use of telephone banking by blind and partially sighted people most notably the requirement to convey card and account information.

The relatively low proportion of people who are currently using the internet does not suggest that people do not want to use it. It is difficult to say whether this is due to the inaccessibility of websites, the expense associated with the equipment required to access those sites or other factor

Yet however accessible websites may be, if instructions detailing security numbers are provided in print they are of little use to customers who wish to use the service.

If accessibility issues could be resolved it would appear to be a selling point to those who have the propensity to usethese services. Some people noted that this aspect of a service featured in their decision to bank with their current provider.

Recommendation:

  • Ensure that websites are completely accessible for blind and partially sighted people.
  • Work with blind and partially sighted people in more detail to understand the problems encountered when using telephone banking.

1.4.5Cash Machines

Despite the fact that cash machines provide quick access to available cash, a number of barriers to using this facility were raised in the study. Safety concerns aside, the wide variation in screen layouts card and cash slots, the absence of Braille on keypads, glare from sunlight are just some of the reasons that make cash machines extremely difficult to use for blind and partially sighted people.It is likely that some of the solutions to the inaccessibility of cash machines will benefit all customers, regardless of level of sight levels.

Recommendation:

  • Banks and building societies to come to an agreement on standardised menu and keypad layouts for cash machines.
  • Where possible the consideration of the location of cash machines in areas that are safe and away from the sunlight.

1.4.6Personal Security

The comments of the blind and partially sighted people in the survey indicate that security remains a key concern, not just in relation to the use of telephone and internet banking but also with regards to fears about personal safety whilst using cash machines. The general perception of mistrust of telephone and internet banking amongst some blind and partially is also shared with the general population. However, concerns about fraud are perhaps more pronounced for those who face difficulty accessing timely information and who therefore may experience problems with keeping check of movements on their accounts.

Recommendations

  • Carry out customer journey mapping in order to greater understand the problems faced by blind and partially sighted customers.

1.4.7 Further research

Qualitative research to investigate inaccessibility issues across all aspects of banking services is required. Particular attention should be paid to the barriers related to telephone and internet banking services as well as the use of cash machines.

Customer journey mapping may be a useful method for identifying key areas in which people encounter barriers to using a service.

In addition, some blind and partially sighted people noted that they chose a bank or building society because it was accessible. Research is required to understand how blind and partially sighted people define accessible banking services.

2. Introduction

2.1 Background to the study

In 2004, RBS funded research that was conducted by RNIB in conjunction with Citizens Advice to investigate the experiences of blind and partially sighted people in relation to their use of everyday financial services. The study aimed to identify whether blind and partially sighted people were more disadvantaged in gaining access to financial goods and services than the general population.

The research provided valuable information on the types of services blind and partially sighted people used and the nature of the difficulties they faced when accessing financial services. In 2010, RBS has once again funded a second study to establish the current situation.

This research area fits within RNIB's 5 year business strategy in which creating an inclusive society is a priority. The strategy includes the specific goal of enabling more people to shop independently and have personal control of their money.