Weaving Gender Equality into the Fabric of Financial Inclusion

Sesilia Nekwaya, Acting Principal Economist, Financial Sector Development, Bank of Namibia; Co-Chair and Gender Focal Point, AFI Financial Inclusion Data and Impact Working Group

Imagine Maria, who sells vegetables at a local market in Windhoek, Namibia. For years, she works tirelessly to support her family. One day, Maria opens a bank account in hopes of safeguarding her money and accessing financial services. But high fees and the inconvenience of having to find an ATM make the bank account more of a burden than a benefit.

Maria soon stops using her account, preferring to keep her money at home, where it is always available, without fees or delays. When emergencies arise, Maria has to borrow from friends and family because she doesn’t meet the strict requirements for bank loans. The lack of banking products tailored to her needs have discouraged her from engaging with the formal financial system entirely.

Maria’s experience is not unique. Across the world, countless women—especially those in informal sectors—face similar challenges, reinforcing the need for inclusive financial services. Maria’s story highlights how important it is to offer financial solutions that work for people in her position. It’s not just about access to financial services, but about creating products that are affordable, accessible, and convenient.

In Namibia, women, especially those in rural or informal sectors, face a myriad of barriers to accessing financial services, including low literacy levels, cultural restrictions, and a lack of identification documents. Even when these hurdles are overcome, women often find that bank products are not suited to their circumstances.

Data is allowing countries to crafting tailored solutions

One key tool in the fight for gender equality in financial inclusion is sex-disaggregated data, which is data collected separately for males and females. Sex-disaggregated data helps policymakers identify gender unbalances to design initiatives expanding women financial inclusion, and helping financial service providers understand and serve this important market. Globally, however, there are far too many data blind spots. Less than one third of countries report financial inclusion sex-disaggregated data to the IMF Financial Access Survey.

Within AFI’s Financial Inclusion Data and Impact Working Group (FIDIWG), we are spearheading more consistent data collection and usage across our member institutions. We are sharing insight through the Sex-disaggregated Data Toolkit, the Guideline Note on Sex-Disaggregated Data Report Templates, multiple case studies, and in the data component of the Policy Model for Gender Inclusive Finance.

Around the AFI network, countries are expanding and making more effective use of sex-disaggregated data, in order to improve women’s financial inclusion. For example, in the Philippines, regulators streamlined and simplified the loan application process for MSMEs, making it easier for women entrepreneurs to access credit and grow their businesses.

In Rwanda, the National Bank of Rwanda leveraged their Electronic Data Warehouse and data collection systems to develop a map showing the locations of savings and credit groups—small community collectives, generally in rural areas where formal financial access is scarce, in which individuals pool their savings and access loans. Women account for over 70% of members of these groups.

In Mexico, the Comisión Nacional Bancaria y de Valores is disaggregating customer data by gender for both deposits and loans, and using this data to inform the National Financial Inclusion Policy. In 2022, CNBV published a Gender Diversity Diagnostic Report which aims to instil a gender perspective across the financial sector by: promoting the adoption of policies and practices to promote workplace gender equality; measuring the gender gaps in leadership positions; and identifying financial products and services focused on women.

In each of these example, progress has been achieved through multi-stakeholder collaboration: financial regulators, governments, NGOs, and community groups all have a role to play in advancing gender-sensitive policies, products, and services.

Where do we go from here?

As Maria’s story shows, the lack of tailored financial solutions can push women out of the formal financial system, forcing them to rely on informal methods of saving and borrowing. If we are serious about economic growth, poverty reduction, and sustainable development, financial inclusion for women must be a priority.

This will require more effective collection and use of gender-disaggregated data, designing products that meet the needs of informal traders, and ensuring that financial services are accessible, affordable, and convenient.

AFI’s FIDIWG will continue advocating for more inclusive financial systems that leave no one behind. Through initiatives like the Denarau Action Plan, and the recently published Policy Model for Gender Inclusive Finance, we are laying the groundwork for a future where financial systems empower everyone, and where all women can access the financial resources they need to thrive.