Financial education: A driver of employment, inclusion, and reduced economic inequality

This is the main conclusion of the report Financial wellness: A shared-value approach for the financial sector, produced by the Social Impact Chair at Comillas Pontifical University.

Education has become a fundamental pillar for improving financial inclusion. It enables individuals and households to make more informed decisions, avoid over-indebtedness, and plan their financial future with greater confidence.

Through financial education, consumers are *better informed* and *able to choose products and services that match their risk profile and needs*, thereby promoting greater inclusion and enhancing the stability of the financial system.

Financial wellness is not only a desirable outcome but also a goal in itself within financial inclusion strategies. Strengthening it contributes both to individual wellbeing and to the stability of the financial system as a whole.

In recent years, access to the financial sector has improved significantly, though barriers still prevent many people from achieving better financial wellness: residents of remote regions, migrants or people without housing, older adults lacking digital skills, and others.

Experts recommend focusing on vulnerable groups that have some form of income that can be channeled through the formal financial system; analyzing their specific needs and the most effective ways to meet them; building agile, low-cost models; and establishing strategic partnerships to open new access channels.

Designing new products tailored to these groups is essential. But what exactly do we mean when we talk about inclusive products? Specifically, they should meet five criteria:

• Accessibility: Financial inclusion must ensure that everyone, regardless of geographic location, income level, or social status, can access appropriate and secure financial services.
• Affordability: The cost of financial products and services must be reasonable and transparent, enabling low-income groups to use them without creating an excessive financial burden.
• Flexibility: Financial products should adapt to users’ needs and circumstances, offering personalized options that align with diverse economic and social realities.
• Security: They must ensure user safety, offering reliable ways to safeguard cash and reduce risks of loss or theft. Digital financial products and services, in particular, must include cybersecurity measures to protect transactions and consumers’ personal information.
• Simplicity: Financial solutions should be easy to understand and use, with clear procedures and without complex barriers or bureaucratic hurdles that hinder adoption.

Ongoing guidance and follow-up are essential to identify any difficulties in using the product, provide timely support, and adapt solutions to users’ evolving needs. Ensuring that all information is accessible is also vital. Financial companies have taken note, and in recent years many initiatives have emerged to improve the financial education of customers, employees, and society at large, with information available in various formats. For example, MAPFRE offers a dedicated section on financial education and insurance culture on its website, featuring articles, videos, and podcasts on financial products, investing, insurance, and economics.

One of the products highlighted by the Social Impact Chair in the report is microinsurance. But what exactly does that mean? Microinsurance refers to insurance products specifically designed to meet the needs of low-income populations or people with limited access to financial services. These products are very popular in Latin America.

MAPFRE operates microinsurance initiatives throughout the region, and MAPFRE Na Favela is the perfect example. The insurer partners with local microfinance institutions and retailers. Advisors, often members of the community who know the residents, can enhance microloans with associated or standalone microinsurance, for example when purchasing machinery.

“The key difference with MAPFRE Na Favela has been connecting with the favela ecosystem to understand its local needs, then learning from and integrating those specific demands into the business model. Listening to the customer is one of the essential steps in product development, and that’s exactly what we’ve done,” says Fátima Lima, Sustainability Director at MAPFRE Brazil.

These microinsurance and accessible insurance lines are now expanding to Mexico, Colombia, Peru, and Central America, with the goal of reaching every country in the region. Coverage applies to those unforeseen events that can be especially costly for households that often live day to day—such as robbery, illness, workplace accidents, climate-related events, or the death of a family member.

“One of the most innovative aspects of the project is a pioneering educational tool developed with our technology partner, Empatía: an artificial-intelligence assistant available through WhatsApp that enables advisors to answer any questions, either their own or the customer’s, even in real time, ultimately speeding up the marketing of these products,” explains Gregorio Rodríguez, MAPFRE’s Corporate Director of Special Projects.

These initiatives show how collaborating with local communities, tailoring solutions to specific needs, and using innovative technology can transform access to the financial system, reduce inequalities, and foster sustainability. As these strategies continue to grow stronger, their positive impact will be felt not only in people’s lives but also in the stability and growth of the financial system as a whole.

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