Gender equality continues to be a critical issue globally, encompassing various facets from ensuring women’s safety to promoting economic participation and financial empowerment. A gender-focused approach to financial services is seen as instrumental in enhancing women's financial inclusion.
According to the Global Findex Database Report, 78% of men have a bank account worldwide, compared to 74% of women. In developing economies, the gap is larger at 6 percentage points: 74% of men have an account, versus 68% of women. In some regions, the gap is as high as 30%. Women enjoy only 77% of the legal rights that men do globally. This disparity is even more pronounced in rural areas where distance, lack of documentation, and societal attitudes further hinder access.
This disparity highlights the need for targeted policies that address barriers women face in accessing financial services, ultimately fostering a more equitable economic environment. These policies often need to confront with cultural biases that don't allow women to have their own money, to be involved in the financial management of the household, or to have a job.
The Role of Mobile Banking
Mobile banking has become a game-changer in reaching remote areas, also for women. Innovative products and services like mobile wallets and online banking have made it easier for women to access financial services without needing to travel long distances.
This is particularly important in developing countries, where traditional banking infrastructure is often lacking.
Case Studies of Successful Mobile Banking Initiatives
Several mobile banking initiatives have successfully empowered women. For example, the Kenyan mobile money system, M-PESA, has significantly improved household financial stability. Women in Kenya have used M-PESA to save money, make transactions, and even start small businesses. These initiatives show that mobile banking can be a powerful tool for economic empowerment if designed with gender inclusivity in mind.
The Limits of Mobile Services
Despite the benefits, there are still challenges in leveraging mobile banking for women's financial empowerment. Limited ownership of smartphones, digital illiteracy, and restricted internet access disproportionately affect women.
However, these challenges also present opportunities for targeted interventions.
Digital Payments as a Tool for Financial Inclusion
Digital payments have emerged as a powerful tool for promoting financial inclusion, especially for women in developing countries. By providing a convenient and secure way to conduct transactions, digital payments can help bridge the financial gap and empower women economically.
The Global Findex Database Report revealed that approximately 420 million women in developing economies opened their first financial account to receive government payments.
For instance, in India, initiatives like SEWA Bank have successfully provided microloans to women entrepreneurs, enabling them to start and expand their businesses. Similarly, in Brazil, companies like Nubank are offering credit cards with no annual fees, making credit accessible to women who previously faced barriers.
Wing Bank's Impact in Cambodia
Wing Bank in Cambodia has significantly increased women's financial inclusion through its mobile financial services. Nearly 79% of adult women in Cambodia have a registered account with Wing, with a substantial portion of factory workers receiving payments through the bank.
With partnerships across various sectors, Wing Bank has facilitated widespread access to financial services, including digital lending initiatives benefiting women.
Empowering Savings in South Africa with Paycode
South African startup, Paycode, has introduced smartcard-based payments aimed at the unbanked population, particularly in rural areas. By providing a biometric smart card that enables various financial transactions offline, including saving, payments, and access to credit, Paycode is empowering women in accessing essential financial services.
Savings and Investments
Fintech companies are reshaping how women save money. These platforms offer tailored savings solutions that cater specifically to women's needs, making it easier for them to set aside money for future use.
For example, some apps allow women to save small amounts regularly, which can accumulate over time into significant savings.
Fintech has opened up new investment opportunities for women. With the help of technology, women can now invest in various financial products without requiring a middleman.
This not only reduces costs but also makes investing more accessible. Women can invest in stocks, bonds, and even real estate through user-friendly apps. These platforms often provide educational resources to help women make informed investment decisions.
Case Studies
There are numerous success stories of women who have benefited from fintech investments. A digital platform in India, LXME, helps women invest in mutual funds, offering them a secure way to grow their wealth.
Women’s World Banking: Pioneering Financial Inclusion
Women’s World Banking is a global non-profit organization dedicated to empowering women through financial inclusion. By providing women with access to financial and technological tools, they help women make informed financial decisions, support their families, and contribute to their communities. Without her, there’s no inclusive economic growth.
Addressing the Gender Gap in Financial Services
In order to close the gender gap, it is crucial to prioritize the gender financial inclusion agenda by identifying gender-based barriers and then developing practical policy and regulatory solutions to address them:
Collecting gender-disaggregated data to better understand the specific needs of women.
Designing financial products that cater specifically to women.
Expanding agent networks to reach remote areas.
Implementing educational programs to improve financial literacy among women.
