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Gender

Closing the gender finance gap: Three steps firms can take

Heather Kipnis's picture
Despite eye-opening market potential — women control a total of $20 trillion in consumer spending —  they have somehow escaped the notice of the private sector as an engine for economic growth.  Women are 20 percent less likely than men to have an account at a formal financial institution. Yet a bank account is the first step toward financial inclusion.

Why is it important for the private sector to help with this first step?
 
In increasingly competitive global markets, companies are searching for ways to differentiate themselves, to deepen their reach in existing markets and to expand to new markets. Greater financial access for women would yield a growing market opportunity with phenomenal profit potential for companies. The size of the women’s market, and the resulting business opportunity, is striking:
 
  • Business credit: There is a $300 billion gap in lending capital for formal, women-owned small businesses. Of the 8 to 10 million such businesses in 140 countries, more than 70 percent receive few or no financial services.
  • Insurance Products: The Female Economy, a study in the Harvard Business Review, reported that the women’s market for insurance is calculated to be worth trillions of dollars.
  • Digital payments: Women’s lack of cellphone ownership and use means that millions cannot access digital-payment systems. Closing the gap in access to this technology over the next five years could open a $170 billion market to the mobile industry alone.
 

Greater financial access for women would yield a growing market opportunity with phenomenal profit potential for companies.


For the past several years at IFC, I’ve been working with the private sector, namely financial institutions, to address the supply-and-demand constraints that women face when trying to access the formal financial system. IFC tackles these constraints in three ways:
 
  • Defining the size of the women’s market, female-owned and  -led SMEs, and as individual consumers of financial services
  • Showing financial institutions how to tap into the women’s market opportunity by developing offerings that combine financial products, such as credit, savings and insurance, with non-financial services such as training in business skills
  • Increasing women’s access through convenient delivery channels, such as online, mobile and branchless banking

At the current rate, female participation in India’s labor force is unlikely to increase

Janneke Pieters's picture
Despite rising economic growth, fertility decline, and rising wages and education levels, married women’s labor force participation in urban India has stagnated around 18% since the mid-1980s. In a recent paper, we investigate what can explain this stagnation of female labor force participation (FLFP).

A world we want in 2030: Clean energy and gender equality are key

Caren Grown's picture
NEW YORK—Imagine the world as you’d like to see it in 2030. What does it look like? My fellow panelists and I were asked this question as part of a discussion of access to energy as a driver of gender equality during UN Commission on the Status of Women (CSW) consultations last week.

Women, work, and equity: social insurance reform in Jordan

Stefanie Brodmann's picture


Imagine you are a young woman in Jordan, deciding how to balance your work and family life, and thinking about the immediate present and longer-term future. You learn the government has introduced a law addressing a number of employment issues. A friend has told you about it, but you need to understand it better to decide how you and your family could benefit from it.

World Water Day: We want to hear from you





​Each year on March 22 we mark World Water Day. It is an opportunity to keep the urgent water issues – from lack of sanitation to transboundary water to climate change -- top of my mind for practitioners, decision makers and the global public. In the coming days we will post here updates and stories from the field, as well as links to some of our partners’ content. But, more importantly, this is an opportunity to hear from you, too.
 

#MyDressMyChoice: Tackling gender discrimination and violence in Kenya one tweet at a time

Indhira Santos's picture

On September 19, 2014, a Kenyan middle-aged woman was waiting for a bus at a stop in Nairobi.  When the bus stopped, a group of men surrounded her, and started to strip and assault her for wearing a miniskirt in public. She screamed and cried out for help, but only a couple of brave people reached out and gave her clothes to cover herself. 
 
This kind of sexual violence against women is not unprecedented in Kenya, but this time was different. The brutality of the violence was caught on camera and went viral online.  On November 2014 alone, at least four such attacks were recorded across Kenya. The numbers for violence against women are disturbing: according to the Gallup World Poll conducted in 2010 in Kenya, 48.2 percent of women feared that a household member could be sexually harassed. 
 


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