Relevance of gender to financial inclusion and digital economy

Relevance of gender to financial inclusion and digital economy

Fin inclusion

 

Analysis of Asian Development Bank’s report on “Closing the Gender Gap in Financial Inclusion through Fintech,” reveals glaring data on the lack of financial inclusion of women in the economy.  

 

Women that form a sizeable proportion in the demographics of each Asian country do not own bank accounts due to insufficient funds, lack of documentation, religious reasons and lack of trust. Philippines, Pakistan and Cambodia show highest proportions of women lacking a basic account in a financial institution.

 

ADB financial inclusion women

 

Since the transition of Asian countries to digital economy, the issue of financial inclusion seems to have closed the gap in the past few years, especially in Sri Lanka, Nepal, Malaysia, the People Republic of China and Afghanistan while India, Bangladesh, Tajikistan and Pakistan still give a stark depiction of gender gap.

 

ADB Women share

The factors affecting the degree and type of access to financial institution can be: 

  • Economic  (lack of funds),

  • Cultural  (lack of participation of women in decision-making, or prioritization of boys’ needs in the family at the expense of girls),

  • Lack of public spaces where women can safely use Information Communication Technologies 

  • Time constraints due to their caring duties and

  • Techno-phobia.

 

By fixing the digital divide the gender gap of financial inclusion can be bridged according to World Economic Forum, by introducing women to technology allowing them to contribute to creative economy, correcting bias and enabling tech literacy.

 

Financial education of women can help in closing the gap in under-served communities. Women lack the basic knowledge of saving and investment that translates in poor economic status of women in Asian countries.

 

Fintech and digital payments can reduce the gap but real development will only be possible if the evolution of digital economy helps poor farming communities especially women by allowing the to bring crops to the markets, small business women to grow their business and allow young female entrepreneurs to turn their ideas into profitable ventures.

 

Fintech can help alleviate the issue by allowing proper policies designed at government level that include not only women focused programs but all programs must be assessed on the measure that include the prosperity of women at its core to be successful. Enabling regulation and coordination of financial institutions and ministries can ensure that women get their fair share in the economy.

 

Queen Maxima of the Netherlands, the UN Secretary-General’s Special Advocate for Inclusive Finance for Development, in her speech at the Singapore Fintech Festival 2017, said:

 

“Having access to basic financial services can reduce hunger, increase education and generally improve the quality of life.”

 

The United Nation’s Sustainable Development Goal (SDG) of which Goal 5 refers to gender equality and empowerment of women and involves the use of ‘enabling technologies’ that includes fintech can help in ensuring that countries fulfill their obligations by ensuring financial inclusion of women in the transition to digital economy. 

 

Lets work towards a solution to bring more equity.

 

We at Polyown Think Tank value your opinion. Let us know, what you think is the cause of the lack financial inclusion of women and how closing the gender gap in the digital economy can bring socioeconomic success to developing countries?

 

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