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In an upcoming paper, the World Bank is set to address the gender access gap to digital financial services and propose strategies to overcome existing challenges faced by women.
Research by the World Bank highlights that limited financial literacy, absence of identity documents, and cultural constraints are major hurdles for women seeking access to financial products. Additionally, factors like low digital literacy, limited smartphone access, and lack of internet connectivity further impede women from utilizing the expanding array of digital financial tools.
The absence of supply-side data on gender disparities, coupled with financial products and services not tailored to meet the unique needs of women, acts as a hindrance. Discriminatory laws, regulations, and limited rights exacerbate these challenges, with women globally holding only 77 percent of the legal rights of men on average. Furthermore, reforms towards legal gender equality reached a 20-year low in 2022.
To address these obstacles, the World Bank suggests creating gender-specific regulatory frameworks and policies. Critical steps include implementing tiered customer due diligence regulations for risk assessment, recognizing a broader range of identity documents, and incorporating a vulnerability lens to address negative experiences women face with digital financial services.
Examples of gender-relevant policy approaches include Mexico’s tiered account-opening requirements and Bank Negara Malaysia’s commitment to gathering gender-disaggregated data. These measures inform interventions and educational opportunities to bridge the access gap.
Initiatives such as Indonesia’s women digital ambassadors, providing branch-agnostic financial services mentorship, and Pakistan’s Asaan Mobile Account, featuring a digital wallet, illustrate efforts to overcome internet connectivity challenges.
Lastly, the World Bank emphasizes the need for regulators to establish infrastructure supporting interoperable digital identity systems and simplify the process of obtaining identification for women.
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