Empowering women: the unfinished business of financial inclusion

Roobini Giva, Policy Analyst, Alliance for Financial Inclusion

According to the World Bank, only 76% of women globally had access to a bank account in 2021, compared to 83% of men. Hundreds of millions of women remain excluded from financial systems, limiting their ability to save, invest, improve their lives, and lift families and communities out of poverty.

Studies show that when women have control over their finances, the ripple effects are transformative. So how can we close the financial inclusion gender gap?

A critical starting point is to recognize that financial inclusion is becoming less about access, and more about control. Imagine having a bank account but requiring permission to use it, or being unable to make informed decisions due to a lack of financial literacy. Empowerment only comes when women can wield control over their finances confidently and independently.

Encouragingly, around the world, Alliance for Financial Inclusion members are successfully tackling the gender gap from various angles. Both Bangladesh Bank and the National Bank of Rwanda have mandated the collection and reporting of sex-disaggregated data, enabling the creation of targeted policies that improve women’s access to finance. In Kenya, the Central Bank has facilitated the development of mobile-based credit platforms tailored to WMSMEs, improving their access to working capital. In the Philippines, the Bangko Sentral ng Pilipinas has worked to improve women’s financial literacy through community outreach programs and private-sector partnerships, which in turn promotes the adoption of savings products and credit solutions tailored to women’s specific needs.

AFI’s recently published Policy Model for Gender Inclusive Finance serves to guide regulators and policymakers in fostering greater financial inclusion for women, highlighting successful policies and interventions.

How can we further accelerate progress?

To bridge the financial inclusion gap, targeted and bold actions are essential:

1. Design for Women: Develop financial tools that cater specifically to women’s needs, from flexible credit terms for small businesses to savings products aligned with household financial cycles.
2. Enhance Financial Literacy: Comprehensive programs that go beyond the basics, empowering women to make informed financial decisions and take calculated risks.
3. Increase Women in Leadership: Representation matters. When women occupy leadership roles in financial institutions, policies and products become more inclusive.
4. Challenge Cultural Norms: Social norms that limit women’s financial autonomy must be addressed through community-driven initiatives, education, and advocacy.
5. Measure What Matters: Move beyond measuring access, to focus on outcomes, such as women’s financial confidence and their ability to use financial services effectively.

By committing to policies and practices that prioritize women’s financial empowerment, we can dismantle barriers and create a world where every woman can access, control, and benefit from financial services. This is not just a moral imperative – it’s a key component of sustainable economic and social transformation.