In today's digital age, financial services have become increasingly accessible to people. But for women, especially in developing countries, the use of these financial and digital services is fraught with obstacles like mobility, literacy, reduced decision-making in the household, etc. Addressing the gender gap is an essential step towards ensuring that in this digital age, no one is left behind.
Digital financial services include a wide array of tools, like mobile banking, digital payments and mobile wallets. They make transactions easier, faster and more cost-effective. Therefore, these digital financial services provide an opportunity for women to become more empowered and take finances in their own hands.
Pakistan, a country deeply rooted in gender inequality, shows some hope of bridging the gendered financial gap. According to Global Findex, mobile banking has started to close this gap in far flung areas – through services like EasyPaisa and JazzCash – where traditional banking has failed to penetrate. However, the issue is not the unavailability of such services. In Pakistan, many obstacles, broadly categorised into socio-cultural, technological and educational barriers, can affect financial inclusion of women.
One of the most significant hurdles to women's financial participation is their socio-cultural surroundings. How can women access these services when there is stigma attached to them working, earning and taking control of their finances? As a result, many women do not get the opportunity to open their bank account or utilise these services since they have no money to put in their banks. Only 39% of all women in Pakistan have a bank account.
Furthermore, societal conventions frequently dictate that women should not leave their houses, making it difficult for them to visit banks or interact with financial organisations. Therefore, many women don't even own a CNIC, a basic requirement for opening a bank account or using online services.
Access to the technology required for digital financial services is another major hurdle. Women are less likely than men to own smartphones or have access to the internet, limiting their ability to engage with mobile banking platforms. According to a Gallup report, only 20% of women in Pakistan own a smartphone. In rural areas, this issue is particularly pronounced.
Financial Literacy is another key factor. Research shows that women are familiar with only a few basic financial terms.
Therefore, it is not a matter of merely creating more online services. There is a need to ease access to these services to ensure inclusion of all groups. There can be several strategies to go about it, like low-cost savings accounts, microcredit loans with flexible terms, and easy-to-use mobile apps for financial management. Combining this with a conditional cash transfer (such as BISP) that is sent to a woman's own bank account can go a long way in increasing women's empowerment, and access to financial services.
Improving internet infrastructure in rural regions is crucial to increasing financial inclusion. This includes expanding mobile network coverage, guaranteeing dependable internet access and creating agent banking systems that allow financial services to be accessible locally via trustworthy intermediaries.
In the long term, financial literacy programmes for women, tailored to their unique requirements and offered in culturally appropriate formats, may provide them with the tools they need to effectively navigate digital financial platforms. These programmes should teach fundamental financial principles such as budgeting, saving and borrowing, as well as practical applications of digital banking technologies.
The future of financial inclusion is dependent on our capacity to design inclusive systems that meet the requirements of all users, particularly those who have historically been disenfranchised. For women, digital finance is more than simply a means of managing money; it is a pathway to economic independence, empowerment and equality.
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