Fintech firms could do more to intentionally target
women customers in emerging markets. According to a new
IFC
report released today, by using business strategies informed by analyzing
sex-disaggregated data, fintech firms could capitalize on the women's market
while contributing to greater financial inclusion for women.
Fintech and digital financial services have been considered a game-changer for
women's financial inclusion and economic empowerment. Until now, there has been
limited research that quantifies the degree to which fintech firms are actively
addressing women's financial inclusion and the specific strategies that are
showing success.
To fill this gap, IFC conducted a survey of
114 fintech firms
in
emerging markets around the globe. The report, "
Her
Fintech Edge: Market Insights for Inclusive Growth", provides
insights from fintech firms about their own perceptions and practices to deliver
services to women's customer segments. "
What is clear from this study is
that strong behavioral gender differences, as well as barriers, call for fintech
firms to offer differentiated solutions for women", said
Emmanuel
Nyirinkindi, Vice President of Cross-Cutting Solutions, IFC. "
In
doing so, fintech firms can unlock the full potential of the women's market – a
valuable customer segment that exhibits greater loyalty, lower default rates,
and strong revenue generation".
The survey findings show that women still make up a minority of fintech
portfolios, with
63% of the lending-focused fintech firms
reporting that women-owned small and medium sized enterprises (SMEs) make up
less than a quarter of their portfolio. Nevertheless, the report highlights that
there is a strong business case for fintech firms to serve women customers. The
majority of fintech firms consider women to be more loyal, less risky, and more
or equally valuable customers than men. The survey found that
69%
of lending focused fintech firms believe women's loyalty is greater than or
equal to that of men.
The presence of leaders who have internalized the social or commercial value of
serving women is the strongest internal driver for firms intentionally targeting
women. The survey found that
58% of firms attribute their
strategic focus on women to leaders' belief in the importance of women's
financial inclusion. To target women intentionally, the report explains that
fintech firms need knowledge, research, financial support, and technical
assistance to fully capture the women's market.
