Addressing barriers in financial inclusion for women

Financial inclusion plays a crucial role in driving economic growth and reducing poverty worldwide. However, women continue to face significant barriers when it comes to accessing financial services. CNBC Africa's Fifi Peters recently sat down with Mary Ellen Iskenderian, President and CEO of Women's World Banking, at the World Economic Forum in Davos, Switzerland, to discuss the challenges and solutions surrounding financial inclusion for women. Iskenderian emphasized that financial inclusion goes beyond just having a bank account; it's about providing access to a wide range of financial products and services including savings, payments, insurance, and credit. While Africa has made significant strides in digital financial services, there is still a substantial exclusion problem on the continent. Approximately 45% of African adults remain unbanked, with over 200 million of them being women. Women's World Banking is dedicated to addressing this issue and ensuring the inclusion of women in the financial system. Iskenderian outlined three main barriers that have hindered women's participation in the financial ecosystem: access to technology, lack of recognition by financial service providers, and regulatory constraints. She highlighted the importance of bridging the gender gap in smartphone ownership and empowering women to navigate digital platforms confidently. Additionally, Iskenderian stressed the need for financial institutions to recognize women as a viable market and develop products that cater to their specific needs. Furthermore, she emphasized the role of regulatory bodies in creating an enabling environment for women's financial inclusion. Iskenderian commended the efforts of women regulators in Africa but also called for reforms in collateral requirements to accommodate women who may not own traditional assets like land. The conversation also delved into the biases faced by women in the informal sector, despite their proven track record of strong cash flow. Iskenderian advocated for a collaborative approach between the private and public sectors to address biases and create more inclusive financial systems. She cited a successful partnership with KCB in Kenya, where demonstrating the creditworthiness of women led to a revision of collateral requirements without compromising loan repayment rates. Iskenderian emphasized that financial inclusion is not just a financial issue but also a climate problem. She highlighted the importance of financial resilience in the face of climate emergencies and migration crises, emphasizing the role of digital financial services in mitigating these challenges. In conclusion, Iskenderian emphasized the need for a concerted effort to break down barriers and create a more inclusive financial ecosystem for women worldwide.