Using behavioral data from India, Kenya, and Mexico, the study reveals some of the causes of the persistent gender gap in emerging economies.
Using behavioral data from India, Kenya, and Mexico, the study reveals some of the causes of the persistent gender gap in emerging economies
SOMERVILLE, Mass., (October 5, 2016) – BFA (Bankable Frontiers Associates) today released “A Buck Short: What Financial Diaries Tell Us About Building Financial Services That Matter to Low-Income Women”. The research report, which was sponsored by Omidyar Network, explores why women in emerging economies don’t access and use formal financial services to the same extent as their male counterparts. Through the analysis of behavioral data from deep engagements with low-income, economically active women, the report identifies leveraging women’s social networks, tailoring tools to manage day-to-day transactions, and creating new digital, branchless platforms as some of steps needed to better cater to this segment.
It is estimated that 1.1 billion women around the world are excluded from the formal financial system[1]—55 percent of the global number of unbanked individuals. In developing countries, women lag men by 9 percent when it comes to access to a bank account. In South Asia, the gap in account ownership is the largest of all the world’s regions, cascading 18 percentage points from 55 percent for men to 37 percent for women1.
“Although we have made great strides to expand access to financial services through new technologies and innovative business models, the gender divide stubbornly persists in most emerging markets,” said Tilman Ehrbeck, partner at Omidyar Network. “This report highlights the importance of designing products and services that take into account behavioral insights as a key piece in cracking this issue.”
Following the lauded Financial Diaries methodology, the data analyzed in “A Buck Short” include both rich stories and detailed cash flows over time, offering a more nuanced view of surveyed women’s financial behavior, highlighting key differences from men’s, and uncovering compelling product design recommendations for financial services providers.
“The reality is that traditional bank accounts just aren’t that useful for a lot of women who move in and out of the workforce, earn very little money, and are typically managing day-to-day cash flows rather than big, long-term investments with their savings,” explained Julie Zollmann, senior associate at BFA and co-author of the research. “For financial service providers, this means building even lower cost tools to solve women’s money problems.”
Among the findings and recommendations provided in “A Buck Short” are:
Behavioral Finding |
Product Design Recommendation |
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The full report can be downloaded at: www.omidyar.com/insights/what-financial-diaries-tell-us-about-building-financial-services-matter-low-income-women
Esta notícia está disponible en español aquí.
[1] The World Bank. The Global Findex Database 2014: Measuring Financial Inclusion Around the World. www.worldbank.org/en/programs/globalfindex.