• by Leslie Pascaud , Teiko Uyekawa , January 11, 2018

From a global perspective, it appears that we have never had it so good.

The world is becoming more affluent; in two to three years we will reach a remarkable tipping point where the majority of its 7 billion inhabitants will live in “middle class” or “rich” households.

So far, so rosy, and yet a closer look reveals a different picture: Just as we see emerging markets rise out of poverty, we are also witnessing a more complex phenomenon in the United States and large parts of Europe, where the middle class has actually been dwindling.

2015 was the first year on record where Americans in the middle-income bracket didn’t make up the majority of the United States. The difference between the average income of the richest and the poorest 10% has increased significantly over the past 25 years. And while some people are doing better, many others are faring less well.A similar phenomenon exists in Spain and Italy and in the UK, where the middle class remains one of the smallest and poorest in Europe.

The political implications of this shift have been discussed ad nauseam; less so the implications for brands and businesses. But a growing number of pioneering initiatives are seeking to bridge the socio-economic divide across four core pillars of access, helping the middle classes, in both developed and new markets, move up the ladder and improve their quality of life.  

1. Technology

Access to technology has become the gateway to opportunity. Without it, populations can easily be left behind as they struggle to stay up to date and connect. LinkNYC helps fill this gap by installing super fast, free Wi-Fi, device charging and phone call portals throughout New York City. Gone are people camped out in old-style telephone booths; replaced by people plugged into, searching or calling friends from these sleek new stations.

2. Education

Education has always been the stepping stone to progress, and the digital revolution has only reinforced its importance. GE and Microsoft have just announced their commitment to support Massachusetts-based not-for-profit edX, a collaboration between MIT and Harvard that provides global access to quality education by connecting learners to the world’s best universities and institutions, with pricing based on income to ensure their programs are accessible to all.

3. Finance

There is a lack of financial literacy and proper access to credit in both emerging and developed countries. Vodafone has been tackling this issue in the global south with M-Pesa, offering financing services with more competitive loan rates and a phone-based money transfer service. 

Financial start-up So-Fi was launched recently to help U.S. students who often graduate college with significant debt and consequently struggle to get loans. So-Fi bases its loans on education, employment trajectory, and spending habits and history, affording well-deserving young professionals the chance to receive loans where they otherwise would have been denied. 

4. Health

Providing affordable access to health care services has always been challenging; yet new waves of innovation are beginning to find solutions.Shift Labs recently secured FDA approval for its DripAssist Infusion Rate Monitor, an AA battery-powered portable device that radically reduces the cost and complexity of correctly administering IV infusions.  

The newly launched Nurx app gives American women free or affordable and stigma-free birth control, with or without insurance, delivered straight to their door without a visit to the doctor. 

As the gap between the rich and the poor continues to widen, the most ingenious brands have an ever-increasing role to play in making the complex more accessible and the costly  affordable. In so doing, they can carve out an important place in the market while improving the day-to-day reality and quality of people’s lives.