3.3 Innovation and Inclusion
3.3 Innovation and Inclusion
Ireland has a strategic advantage in the innovation space because we are home to a very strong ecosystem of multinational and indigenous technology companies, as well as research and academic institutions focused on digital technologies. The Government’s Ireland for Finance Strategy noted that: in regards ‘financial services Ireland is positioned to be a leader in FinTech, with the combination of its established hub for international financial services and its large global technology sector presenting the ideal conditions for innovation and growth’[1]. While globally consumers are benefitting from this innovation there are obstacles in the Irish system, which deny the ability of Irish consumers and small businesses to benefit fully from the payment options available. These blockages also reduce competition in the market. The NPS is seeking to understand and mitigate these blockages to enable more and better outcomes for consumers and SMEs, for example, better interoperability between payment system participants. The NPS is also seeking to support and spur at a domestic level, the various pan-European initiatives underway currently as well as those that will be developed over the timeframe of the Strategy to ensure Ireland remains a digital front-runner in Europe and contributes to the enhancement of European strategic autonomy within the EU.
It is important that while the Government supports the promotion of the increasing digitalisation of the payment system, it also ensures that participation in that system is not stopped or hindered for those who have difficulty accessing digital technologies. These may include those groups who are older, with lower income levels, limited digital or low literacy skills or those without internet access. The National Digital Strategy further noted that ‘With the spread of digital technology in daily life accelerating at a faster pace than peoples’ skills and ability to use it, some individuals may be at risk of being left behind. Older cohorts and disadvantaged socio-economic groups are especially vulnerable. Without basic digital skills, citizens risk being excluded from our increasingly digitalised society’. It is also worth noting that innovation takes place not only within digital payments, innovation within the cash cycle occurs and can enhance inclusion, for example, cash lodgement machines, mobile ATMs or even cashless ATMs.
In developing the NPS, it will be important to understand and assess the impact of vulnerable groups’ experience with accessing and availing of payment services, and, in particular, their interaction with the Government and essential public services, but also some privately provided, services. While increased digitalisation can be problematic for some, there is a need to strike a balance to ensure that any difficulties can be identify and mitigating actions put in place to permit unhindered ease of use by vulnerable groups. Therefore, there may be potential to reallocate resources, to provide additional support to vulnerable groups, and the National Digital Strategy noted that ‘increased migration to digital services, in a user-centred way, will also facilitate the freeing up of resources to better support those who may struggle with technology, and/or may not be in a position to independently engage online’.
Inclusion within a rapidly changing payment system for vulnerable groups is of vital importance. Vulnerable groups such as older people, lower income groups, migrants, people with intellectual disabilities, those with limited financial literacy or the unbanked must be able to participate fully in the economic life of Irish society. How this is done will be examined in more detail in the Strategy, and this may include, measures in the National Financial Literacy Strategy[2], or wider consumer protection/education activities.