Based on data collected from projects in India, Ghana and Pakistan that aim to improve financial inclusion for rural women, the authors examine the interplay between gender dynamics and the employment of women as agents supplying in cash-in and cash-out (CICO) services. This includes the impact these agents can have on communities, the challenges faced by women in becoming and succeeding as agents, and possible solutions to these challenges.
While training to become CICO agents, women acquire skills such as using electronic devices and delivering customer service. During training and after they start offering agent services, women often gain a better understanding of loans, insurance, pensions, e-transfers, investments and risk, all of which can lead to a rise in personal income and improvements in feelings of “self-worth and confidence.” Meanwhile, other women and girls in the community look at agents as role models, which can contribute to decreasing the gender inequalities over time.
In comparing male and female agents, the authors found that women were more likely to commit to provide services for a longer period of time and to serve marginalized groups such as women, elderly people and people with disabilities, including via “out-of-hours and doorstep services.” The study results indicate that women were easier to converse with as they were perceived to be more approachable and patient. Women customers, in particular, were more comfortable speaking with women agents rather than male agents. These aspects of employing women can benefit financial services providers with an expansion of their market to marginalized groups and higher customer satisfaction in general.
Among the challenges of recruiting and training women agents is that some women lack skills associated with confidence and leadership, often as a result of cultural gender gaps in opportunities and experiences. This inequality may also: (1) reduce the availability of the initial capital that women need to launch a CICO business; and (2) result in lack of cooperation from male agents and service providers.
Once a woman has started a CICO business, she sometimes struggles with balancing cultural expectations regarding housework. This can lead to losses of revenue when she closes her shop at certain hours or asks someone else to run the agency while she attends to childcare or other responsibilities.
In response to the barriers created by gender inequality, the authors suggest public institutions and financial services providers operate and participate in awareness programs regarding the benefits of women working as agents and the importance of family support with household responsibilities. Simultaneously, institutions can reduce financial barriers to women becoming agents by expanding credit accessibility and liquidity management services.
This is a summary of a working paper by Emilio Hernandez, Rebecca Calder, Divya Hariharan, and Cristina Martinez; published by CGAP (Consultative Group to Assist the Poor); October 2023; 38 pages; available at https://www.cgap.org/sites/default/files/publications/WorkingPaper_Women%20Agents_Final.pdf.
By Hawra Moochhala, Research Associate
Additional Resources
“Women Agents for Financial Inclusion” working paper
https://www.cgap.org/sites/default/files/publications/WorkingPaper_Women%20Agents_Final.pdf
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