Women Financial Inclusion: IFC Woos Fintech Firms, Digital Services Providers

Women financial inclusion is such a dear issue to the International Financial Corporation (IFC) that it is leaving no stones untoned towards making this a reality.

This accounts to why it is supporting efforts of Fintech firms, and digital services providers that serve women customers generally or work for women financial inclusion.

IFC Vice President for Cross-Cutting Solutions, Emmanuel Nyirinkindi, made these submissions

in his foreword to the publication, Her Fintech Edge Market Insights For Inclusive Growth, a World Bank and partners’ publication

As seeming complex as the issue of women financial inclusion, it could actually be advanced by technology, he said, citing the  .GSM Association’s Mobile Gender Gap Report 2023 to back his argument.

The report asserts that 900 million women are not using mobile internet and are 19% less likely than men to use it.

Additionally, the World Bank Findex Report 2021 found that about 740 million women do not have an account at a financial institution or through a mobile money provider,, Nyirinkindi said.

According to the vice president, current literature highlights that fintech firms hold the key to bridging these gaps and boosting financial inclusion for women.

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However, the research is limited to quantify the degree to which fintech firms are delivering on the promise of women’s financial inclusion, and what specific practices or characteristics lead to success.

“To explore these questions, IFC and Dalberg conducted a survey of 114 fintech firms from 17 countries around the globe to better understand the potential – and shortfalls – of fintech firms to drive financial inclusion for women in emerging markets.

“The survey includes information from fintech firms that provide lending, banking, insurance, and payment services.

“It uses quantitative and qualitative data to identify the drivers, barriers, and opportunities Fntech firms encounter when serving women”, Nyirinkindi said..

According to him, whereas progress has been made in the direction already, significant gaps remain in serving women customers effectively.

To be able to do this, he adds, Fintech firms need to deepen their understanding of women financial preferences and needs, identify and track the performance of women customers,develop market-specific knowledge, and leverage best practices to create value propositions that resonate with women.

“What is clear from this study is that the unique and intertwined barriers that women face – including low digital literacy, social and cultural norms, and access to digital financial services – call for fintech firms to offer differentiated solutions to women.

“In doing so, Fintech firms can unlock the full potential of the women’s market – a valuable customer segment that generates revenue and exhibits both greater loyalty and lower default rates.

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The vice president, expressed the hope that the report would inspire investors, incubators, financial institutions, and the entire ecosystem to support Fintech firms to contribute to women’s financial inclusion.

“At IFC, we will continue to support these efforts by working with Fintech firms and digital financial services providers that serve women customers and demonstrate the clear business case for investing in this important market”, he added.

The Eagle reports that the subject matter of women financial inclusion has, in the recent, remained tops on the agenda of most forums seeking genuine way forward for women in the economic and social development ladder.