Deepening Financial Inclusion for WomenWomen’s World Banking

1. Access to goal-based and low-cost savings

2. Confidentiality and support against gender-based violence

3. Mobile phone banking4. Product diversification through

individual business loans and leasing

5. Financial education and marketing

6. Business development services

Opportunities for Practitioners

1. Support exchange visits2. Support leadership development3. Commission impact assessments

of donor programs

Opportunities for Donors

Financial education around goals

Clients lack a savings culture and clear plans to achieve goals• Financial institutions are emerging with savings and loans but clients are

struggling to connect these services with a clear plan to achieve their goals, be it strengthening a business or saving for an asset

• Particularly common for savings accounts associated with salary payments in natural resource enclave developments in PNG

• Opportunities for financial institutions to help clients create a path using goal-based marketing and financial education

• Classroom trainings are expensive and do not work well for adults; financial education seems to work best when embedded within a comprehensive and interactive marketing, promotions and sales approach

• Strategies can include branch-level educational events, social communications or training for sales staff to use worksheets and other materials to create individualized paths for achieving goals while selling accounts

Violence against women

Exploring the connections between violence against women and financial needs• Violence against women emerged as a strong theme in PNG

• Research revealed that domestic conflicts that result in violence are often struggles over control of money; women’s personal money becomes highly vulnerable

• Inspired WWB to look at ways that we could better understand this and in the future, develop programs around it

• Confidentiality in accounts is crucial and mobile phone banking can be particularly attractive due to the privacy but can backfire

• Launched a RCT to track the incidence of intimate partner violence against the financial behavior of women using savings accounts over an 18-month randomized control trial in Colombia

WWB’s gender performance initiative

Understanding if institutions are meeting women’s financial needs

* Based on 959 MFIs that reported social performance indicators to the MIX in 2011.

A majority of global MFIs are targeting women. How can they measure and understand clients needs and the effect of their

services?

WWB’s gender performance initiative

• New WWB program aimed at using quantitative client data, such as a the data collected on application forms, and financial performance data to measure if institutions are in fact targeting low-income women, if the products and services are meeting client needs and what outcomes women are experiencing as a result of accessing these financial services

• Sample indicators on financial inclusion include:• Outreach: Women’s market share and % women clients by education level• Product Design & Diversity: % women clients accessing 2 or more

voluntary products• Client Protection: % women clients with inquiries/complaints• Social Outcomes: % women clients with school-aged children whose

children are in school and % women clients who utilize loan for their own income generating activity

• Beta sites include institutions in India, Colombia and Uganda

Example: Outreach – Women’s market share

• Low-income women are generally the segment with least access to financial services. Tracking market share data can ensure an institution is reaching a representative portion of women in its market.

Fuente: Mix market, tomando sólo las 9 instituciones más grandes, año 2010

Institución

Número Total de clientes

Participación de mercado sobre el total de clientes

de la MFI Posición

Porcentaje de clientas

mujeres

Número total de clientas mujeres

Participación del mercado de clientas

mujeres - MFI PosiciónBancamia 341,100 16.06% 3 61.34% 209,231 22.58% 2Comultrasan 78,726 3.71% 52.44% 41,284 4.45% 5Confiar 43,773 2.06% 53.20% 23,287 2.51%Contactar 31,840 1.50% 43.92% 13,984 1.51%Crezcamos 25,888 1.22% 60.23% 15,592 1.68%Finamérica 61,880 2.91% 51.42% 31,819 3.43%FMM Bucaramanga 187,636 8.83% 5 67.89% 127,386 13.75% 4FMM Popayán 352,592 16.60% 2 67.43% 237,753 25.66% 1Interactuar 30,180 1.42% 55.75% 16,825 1.82%

2,123,917 100% 43.6% 926,702 100%

Fundacion delamujer had 8.83% market share of the total Colombian microfinance market, compared to 13.75% of the women’s market.

Example: Product Design & Diversity – % women clients accessing 2 or more voluntary products• Women have diverse life-cycle needs; a diversity of products is important to

meet their needs. Breakdown by number of

policies:At Fundacion delamujer,

25% of women clients access 2 or more products

20% of men clients access 2 or more products

However, more products is not necessarily better, but the right combination of products.

Example: Social Performance – % women clients who utilize loan for their own income generating activity• Control of the use of a loan can be used as a proxy for measuring

empowerment and women’s participation in decision-making.

Client usage of loans for income or non-income-generating purposes Daughter Family Self/general Son SpouseNum clients Num clients Num clients Num clients Num clients

Non-income-generating 0.56% 17.54% 3.92% 0.26% 0.09%Income-generating 0.04% 0.05% 74.95% 0.36% 2.24%

75% of Ujjivan clients used loan for own income-generating activity

www.womensworldbanking.org