Shifting financial systems
Access to credit is significantly more difficult for women in developing countries. Global Findex shows that worldwide, 42 percent of women are ‘unbanked’ (without access to a bank or financial services organisation) compared to 35 percent of men. Fintech solutions, such as mobile money and blockchain, have the potential to securely expand the reach of traditional financial institutions, making it easier for financial services to be provided to the underserved.
- Opportunity
- medium
Financial institutions can reach underserved customers (predominantly women).
- Risk
- medium
Risk of women being excluded from access to finance by new fintech technologies (given women’s existing lower levels of financial and technological literacy).
- Opportunity
- high
- Risk
- medium
Access to credit is more difficult for women in developing countries. Global Findex shows that worldwide, 42 percent of women are ‘unbanked’ (without access to a bank or financial services organisation) compared with 35 percent of men.
Fintech solutions, such as mobile money and blockchain, have the potential to securely expand the reach of traditional financial institutions, making it easier to provide financial services to those who are currently underserved (predominantly women). Nevertheless, it should also be noted that fintech solutions have the potential to prevent women from obtaining access to finance, creating another layer of complexity (and often one that is in a black box and/or managed by a third-party).
To maximise the potential of shifting financial systems to increase financial inclusion, gender-smart investors could support investees to:
- Improve consumer and government awareness and trust in mobile fintech solutions (e.g. mobile money, alternative credit scoring, weather index-based insurance).
- Adopt innovative mobile credit scoring solutions.
- Ensure that the specific needs of women are taken into account when designing new products and delivery channels.
- Work with regulators and industry stakeholders to increase credit scoring transparency.
- Opportunity
- medium
- Risk
- medium
Access to credit is more difficult for women in developing countries (see FI note). Improving access to finance from formal institutions could improve women’s ability to maintain the liquidity necessary to send their children to school.
To maximise the potential of shifting financial systems to increase financial inclusion, gender-smart investors could support investees to:
- Improve consumer and government awareness and trust in mobile fintech solutions (e.g. mobile money, alternative credit scoring, weather index-based insurance).
- Adopt innovative mobile credit scoring solutions.
- Ensure that the specific needs of women are taken into account when designing new products and delivery channels.
- Work with regulators and industry stakeholders to increase credit scoring transparency.
- Opportunity
- medium
- Risk
- low
Access to credit is more difficult for women in developing countries (see FI note).
Improvements in access to finance from formal institutions could improve women’s ability to maintain the liquidity necessary to cover emergency medical expenses and thus increase women’s treatment-seeking behaviour: “in developing countries, men seek treatment more frequently at formal health service whereas women are more likely to self-treat or use alternative therapies”.
To maximise the potential of shifting financial systems to increase financial inclusion, gender-smart investors could support investees to:
- Improve consumer and government awareness and trust in mobile fintech solutions (e.g. mobile money, alternative credit scoring, weather index-based insurance).
- Adopt innovative mobile credit scoring solutions.
- Ensure that the specific needs of women are taken into account when designing new products and delivery channels.
- Work with regulators and industry stakeholders to increase credit scoring transparency.
Source: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3013263/
- Opportunity
- medium
- Risk
- low
OGS products are often purchased on credit. Access to credit is more difficult for women in developing countries (see FI note).
Fintech solutions, such as mobile money and blockchain, have the potential to securely expand the reach of traditional financial institutions, making it easier for financial services to be provided to those currently underserved (predominantly women).
To maximise the potential of shifting financial systems to increase financial inclusion, gender-smart investors could support investees to:
- Improve consumer and government awareness and trust in mobile fintech solutions (e.g. mobile money, alternative credit scoring, weather index-based insurance).
- Adopt innovative mobile credit scoring solutions.
- Ensure that the specific needs of women are taken into account when designing new products and delivery channels.
- Work with regulators and industry stakeholders to increase credit scoring transparency.
- Opportunity
- medium
- Risk
- medium
Inputs (e.g. pesticides, fertilisers, or seeds) are often purchased on credit by smallholder farmers. Women make up 45-80 percent of the food-producing workforce in developing countries and find accessing credit more difficult than men (see FI note).
Fintech solutions, such as mobile money, blockchain, and alternative data collection and credit scoring have the potential to securely expand the reach of traditional financial institutions. Fintech can also enable new types of non-bank lenders to expand, increasing the ease with which input credit, agricultural asset finance, and agricultural insurance can be provided to the underserved (predominantly women).
To maximise the potential of shifting financial systems to increase financial inclusion, gender-smart investors could support investees to:
- Improve consumer and government awareness and trust in mobile fintech solutions (e.g. mobile money, alternative credit scoring, weather index-based insurance).
- Adopt innovative mobile credit scoring solutions.
- Ensure that the specific needs of women are taken into account when designing new products and delivery channels.
- Work with regulators and industry stakeholders to increase credit scoring transparency.
