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In the decade to 2021, the proportion of women in sub-Saharan Africa owning a financial account more than doubled to 49%, according to Global Findex data. Since 2017 alone, account ownership among women in the region has increased by 12 percentage points. This is solely due to the increased penetration of mobile Her Money accounts.
Mobile money is a financial service provided by telecommunications or fintech companies that partner with mobile network operators that are independent of traditional banking networks (this is different from traditional banking services that are accessed via mobile phones) ). Mobile money services are usually powered by local mobile agents, allowing women to easily deposit even small amounts of cash to make payments, pay bills, transfer money, or store money outside the home. .
Some countries have seen the replacement of brick-and-mortar bank accounts with mobile money. This suggests that either women who already had bank accounts were leaving their financial institution accounts in exchange for mobile she-money accounts, or that a disproportionately high proportion of adults were adopting mobile she-money. may be. account. Two notable examples are Cameroon, where female account ownership increased from 30% in 2017 to 49% in 2021, including a 26 percent increase in mobile money accounts; Ghana has seen an increase of over 63%. , which includes a 21 percentage point increase in mobile money accounts.
The continued increase in financial access is great news, given the evidence showing how women benefit from having their own financial accounts. These include improved personal safety and reduced risk of theft, more say in how your household goods are used, and the ability to receive money from friends and family in an emergency.
The benefits grow as women gain experience using their accounts more frequently for a variety of purposes, including sending and receiving digital payments, storing money, saving, and borrowing. For example, in 2014, when Global Findex started asking female account holders if they would like to make digital payments from their accounts, most women who received payments to their accounts were asked to cash out at the agency as soon as possible. It seemed like he was pulling out. But now, almost all account holders who receive digital payments do so directly from their accounts. This growing desire to keep money in accounts means more women are shifting their savings habits from informal methods such as rotational savings and credit unions, which are popular in sub-Saharan Africa, to their own accounts. It also serves as an incentive to shift to the use of . In many countries, mobile money operators are offering savings products like ‘e-ROSCA’ that leverage existing social networks, while also allowing people to save more safely and access credit, insurance and other financial services. provides a way to build financial relationships for. This increase in public savings gives women more resources to invest in education and health care and to cope with adverse events. All of these document how women access financial services.
Given the proven benefits of financial inclusion for women in sub-Saharan Africa, it is important that governments and health care providers continue to take steps to ensure access for the 50% of unbanked women. One way is to highlight the barriers to mobile phone ownership that women on the continent still face, and the barriers to accessing mobile she-money. According to the GSM Association, the mobile gender gap is driven by a variety of social, economic and cultural factors, including device affordability, literacy and digital skills.1 Additionally, while just over half of the region’s unbanked adults have a mobile phone, millions of others, including 37% of all women, do not have a mobile phone.2 According to Gallup World Poll and Findex data. Given that 1 in 5 unbanked women report being unable to open an account because they lack an official government-issued ID, this may just be a network access issue. It’s also a document issue. For example, in Niger, only 45% of women have a mobile phone and only 56% of women have an ID. Governments can close the mobile phone gender gap by increasing women’s access to national identity cards, which are typically required to receive both financial and mobile phone services.
Efforts to increase access must also include efforts to manage exposure to financial risk. Women with lower education and less financial experience are more likely to be exploited when accessing financial services. In fact, around 35% of female mobile She Money account holders say they are now more vulnerable because they cannot use their account without the help of a friend or agent. Healthcare providers can reduce this risk by designing products that women can safely and confidently use independently. Effective onboarding also helps, given research shows that with practice, women can get better at using their accounts and avoid additional agent fees. Policymakers also have a role to play in developing and enforcing strong consumer protection programs and policies, including effective redress mechanisms.
Financial accounts, especially digital financial services, are fulfilling their promise as key enablers of women’s economic empowerment. To ensure this momentum continues to grow, regulators, advocates, and financial providers must continue to invest in infrastructure and policies that help expand access.
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