How to address gender gaps in digital financial inclusion

Over the past few years, there has been a significant increase in the number of individuals joining the global financial system. However, a closer look reveals that this growth has not been evenly distributed, particularly when it comes to gender inclusion. The number of women who own a financial account continues to lag behind, especially in low- and middle-income countries. To delve deeper into the causes and potential solutions for this disparity, CNBC Africa interviewed Bryan Pon, Co-founder of Caribou Data. Pon highlighted the persistent gender gap in financial inclusion, emphasizing that the extent of this divide varies widely across different countries. For instance, countries like Bangladesh exhibit a gap of around 30 percentage points, while nations in Southeast Asia, such as Vietnam and Cambodia, have achieved a more balanced representation. This discrepancy underscores the necessity for tailor-made solutions to address the unique challenges faced by women in accessing financial services. Various factors contribute to the disparity in financial inclusion rates among women. Government policies play a significant role in shaping the landscape for women's access to financial resources. Structural and systemic issues, such as limitations on obtaining identification documents or accessing education and financial literacy programs, can impede women's participation in the formal financial system. Pon also discussed the impact of the COVID-19 pandemic on exacerbating existing gender inequalities. The pandemic has disproportionately affected women, forcing many to bear the brunt of additional responsibilities at home and leading to a higher rate of female workforce dropout. In light of these challenges, innovative payment system designs have emerged as a potential solution to make financial services more affordable and accessible, particularly to women who often face resource constraints and time limitations. By tailoring policies to address the specific needs of women, countries can make significant strides in bridging the gender gap in financial inclusion. The economic implications of narrowing this gap are profound. Women constitute half of the population and their inclusion in the formal financial sector and workforce can drive significant economic growth, especially in low-income countries. By empowering women to access financial services and participate in the formal economy, nations stand to gain not only in terms of GDP growth but also in fostering inclusivity and equal rights for all citizens. This shift towards greater gender equality in finance is not just an economic imperative but also a fundamental human rights issue. Overcoming cultural barriers and implementing policies that enable women to engage in financial activities can unlock the full economic potential of societies and advance towards a more equitable future.