This paper addresses methods for increasing women’s “ability to access, manage, understand, integrate, evaluate and use financial services offered through digital technologies.” The digitalization of financial services and products is becoming increasingly prevalent, including in parts of the world that are underserved by traditional banks. Investing in building women’s digital financial capability can play a significant role in closing the gender gap in the ownership of financial accounts.
The authors argue that financial services providers (FSPs) and other organizations seeking to support women in this sphere must first analyze their potential market. By interviewing women in the targeted communities, FSPs can learn the extent of women’s digital and financial literacy while identifying needs and challenges. This allows FSPs to customize their programming to the specific community they are serving. In all communities, the authors argue that programs must be designed to accommodate the different learning speeds of different women. Additionally, women often face constraints on their time, therefore programs should offer content on-demand, such as via pre-recorded videos and SMS (text messaging).
Showcasing women in the community as role models can give other women the confidence and tools they need to learn. For example, the Boma Project, a rural livelihood program in Kenya, found that participants were confused by telephone touchpads. Boma introduced interactive voice recordings spoken by mentors from the community, resulting in better uptake of the new technologies.
Delivering content to women in creative and efficient ways is important in increasing engagement. By sending nudges through SMS or Whatsapp, program providers can keep saving and learning at the “top of the mind” of clients. For example, a digital savings app may use SMS reminders to give clients weekly information on savings goals, loan repayments or budgeting.
In order to measure the effects of digital financial capability programs, the authors present sample indicators for measuring knowledge, skills, attitudes and behaviors. These indicators cover a variety of potential changes in a community, such as the percent of those who: (1) understand how to identify financial products that suit their needs; (2) know who to ask in their community when they have questions; (3) understand the benefits of long-term savings goals; and (4) actually save money toward their stated goals.
This is a summary of a paper published by the Center for Financial Inclusion at Accion, November 2021, 8 pages, available at https://www.findevgateway.org/paper/2021/12/better-practice-guidance-womens-digital-financial-capability
By Zachary DeLuca, Research Associate
Additional Resources
Accion homepage
https://www.accion.org/
Boma Project homepage
https://bomaproject.org/
Center for Financial Inclusion homepage
https://www.centerforfinancialinclusion.org/
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