Financial Inclusion – Lost in Translation?

While it’s estimated that over 1 billion people worldwide remain financially excluded, great strides have been made in financial inclusion in the recent past. In part, this is because many areas of the world are now increasingly digitalized, where connectivity was previously a significant impediment to financial services. As well, expanded use of alternative data for credit risk scoring is increasingly making credit available for “thin file” or “no file” customers with little to no established credit history, often resulting in an un scorable credit report.

In conjunction with these efforts, there has been an emphasis on improving financial literacy – the ability to understand and effectively manage personal finances including budgeting, saving, borrowing, and investing to achieve long-term stability financial wellness. This has been a focus of educators, policymakers, and corporations for many years now. Many U.S. states are now requiring financial literacy courses for high school graduation, and it’s predicted that nearly half (47%) of employers will offer comprehensive financial wellness programs by the end of 2026.

Financial literacy efforts include education around fundamental financial concepts such as understanding interest rates, inflation, managing debt, and retirement planning. This has been essential as financial terminology and constructs – such as interest rates, managing debt, and retirement planning – can be complex and difficult to understand. 

Now imagine trying to navigate that terminology and constructs when they are in a language you don’t understand. 

Language is a significant barrier to financial inclusion – possibly the biggest in an industry where trust and transparency are vital. It’s a barrier that financial institutions must address not only because it’s the right thing to do, but because it’s key to acquiring new customers and unlocking growth.  

For example, per the Claritas 2025 Hispanic Market Report, Hispanics today represent more than 20% of the U.S. population and are expected to drive 80% of population growth through 2031. 

Old National Bank has a well-established financial education initiative and recently expanded its curriculum to include “Dinero Inteligente” – delivering translated content for Spanish-only or primarily Spanish-speaking clients and families.

But translating the words only goes so far – accurate translations alone don’t drive engagement. Customers respond to whether something feels natural, familiar and aligned with their expectations. Cultural nuance, access and resonance with customers are the real constraints to growth – not product or service demand.

This requires going beyond translation to localization. Translation converts text from one language to another while localization adapts the content, culture, and user experience to align to a specific target market.

In the context of financial inclusion, localization opens both new markets and opportunities so that financial services organizations can be both committed to social responsibility and growth. Research shows that companies investing in localization are 1.8x more likely to grow revenue and 1.5x more likely to increase profits.

For banks, credit unions, lenders and creditors, providing clear, easy-to-understand information about financial constructs, products, fees and terms is crucial for building trust and elevating the financial welfare of underserved populations. 

The industry will plateau in its financial inclusion efforts without concerted localization efforts. The time to act is now to localize the language of prosperity.

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