The financial gender gap in developing countries is estimated at $300 billion. This figure is based on a recent report by the World Bank Group. It found that 70 percent of women-owned small businesses lack access to basic financial services. Further, compared to men, women have less access to mobile technology and economic geography.
To close the gender gap in finance, companies and government should increase the percentage of women in leadership positions. These women should be more often found in decision-making positions and on boards. Fintechs should take the lead in this goal. They have a great opportunity to break the financial gender gap. The following are some ways that financial sector companies can support female entrepreneurs.
Women typically play the defensive role in the household, backstopping men when they fall behind in finances. Men, on the other hand, are encouraged to play the offense and focus on growth-oriented investments. In addition to this, women offer more flexible financing and better tools for managing day-to-day transactions. However, their networks are more horizontal, so they are less monetizable. Men, on the other hand, are more likely to cultivate relationships with people in positions of greater status.
To close the financial gender gap, governments and financial institutions should partner with fintechs to develop payment solutions that are tailored to women’s needs. In addition, creating a financial environment that empowers women and improves their skills and attitudes is a prerequisite to bridging the financial gender gap. As long as these efforts are made, women can become their own financial agents and expand their entrepreneurship. As a result, they can contribute to global economic growth.
Women have made progress on closing the gender gap in emerging economies, but the financial gender gap is still a major problem. It has been estimated that women’s access to financial services is only eight percent equal to men’s and fourteen percent lower. Closing this gender gap could unlock $40 billion in savings. However, despite these improvements, there are still some women whose income is over INR 167 per day.
The financial gender gap affects more than one billion women worldwide. Many of these women lack access to financial services, which can make it difficult for them to pursue their dreams. By closing the financial gender gap, governments and the private sector can access a profitable market and better serve their constituents. The event will examine new financial technologies and cross-sector collaborations to help women access financial services.
While representation of women in the financial industry is increasing, the percentage of women in senior positions is still far below the level of representation that they would otherwise achieve. While women still make up 52 percent of the industry’s workforce, women lose a significant percentage of their positions at each step of the corporate pipeline. And the gap is especially wide for women of color, with a staggering 80 percent drop in representation from entry-level to C-level.