Financial inclusion is key for economic development as it offers tools for individuals and communities to save, access capital, invest, and thrive. Despite progress in global financial inclusion, women in low-income countries remain disproportionately excluded from formal financial systems. According to the World Bank’s Global Findex latest report, 74 percent of women globally have access to an account at a financial institution or through mobile money, compared to 78 percent of men. However, in low-income countries, this gap widens to 10 percent, with only 34 percent of women owning an account.

The gender divide persists when looking at the percentage of people who use formal financial products. For instance, only seven percent of women save at financial institutions, while this percentage is 11 percent for men in low-income countries. Similarly, only 31 percent of women make or receive digital payments whereas this percentage is nine percent higher for men in low-income countries.

Data source: Global Findex Database 2021

This gender disparity in accessing and using financial services limits women’s opportunities, hinders broader economic growth, and makes them more vulnerable to shocks and crises, like a severe climate event or the loss of a family member. At Accion, we are committed to closing this gap and creating opportunities for women to achieve financial empowerment. Our work aims to tackle the main barriers to women’s financial inclusion.

The Center for Financial Inclusion (CFI), an independent think tank housed at Accion, conducted research to uncover the compounding challenges that women face in accessing financial services, including:

• Cultural and social norms: Gender norms in many societies restrict women’s economic and financial independence, and mobility.
• Digital divide: Women in low-income countries are 15 percent less likely than men to use mobile internet and are 8 percent less likely to own a mobile phone — key tools for accessing digital financial services.
• Financial literacy: Globally, women have lower literacy rates compared to men (35 percent vs 30 percent), which reduces their confidence in using financial products.
• Consumer protection gaps: Women are particularly vulnerable to fraud, misinformation, and predatory lending, which exacerbates distrust in financial systems and discourages them from using digital financial services.
• Product design: Financial products fail to account for gender differences when training their AI algorithms on historical data, leading to bias in financial models. This results in women being underserved, limiting their economic opportunities and reinforcing gender inequality.

We see financial inclusion as a pathway to empowering women and driving systemic change. Tackling these barriers requires coordinated efforts from financial institutions, governments, and donors. At Accion, we invest in innovative companies and provide targeted advisory solutions to help institutions better serve women and other excluded populations. We work together with all our partners to close the gender gap in financial inclusion. Our approach includes:

1. Developing innovative financial products

Developing women-focused financial products is critical. Flexible savings options, affordable credit, and digital payments tailored to women’s needs and preferences can empower them to invest in their families, businesses, and communities. For example, loans for women-led micro, small, and medium enterprises (MSMEs) can unlock entrepreneurial potential.

2. Leveraging digital financial services

Digital platforms like mobile money and digital wallets offer cost-effective ways to reach unbanked women. These tools also reduce the need for physical infrastructure, making financial services more accessible in remote areas. Ensuring affordable mobile phone access and expanding digital literacy programs can accelerate the adoption of digital financial services.

3. Strengthening consumer protections

Trust is fundamental to financial inclusion. Financial institutions must implement robust consumer protection practices to safeguard women from predatory practices, fraud, and other security concerns. Transparent terms and effective grievance mechanisms build confidence in financial systems.

4. Supporting women-led micro and small businesses

Women-led MSMEs are powerful engines for economic growth, yet they often need more access to formal credit. Blended finance models and innovative partnerships can fill this gap, enabling women entrepreneurs to scale their businesses.

5. Using data to drive change

Gender-disaggregated data is essential for identifying barriers and measuring progress. Financial institutions should prioritize data collection and analysis to design evidence-based solutions and track the impact of initiatives.

6. Building climate resilience

Women in low-income countries are disproportionately affected by climate change, which exacerbates financial vulnerabilities. Financial products like climate microinsurance, emergency savings, and green loans can help women build resilience. Programs integrating financial inclusion with climate-smart practices, such as renewable energy and sustainable agriculture, are particularly impactful.

Women’s financial inclusion catalyzes broader development, enabling them to invest in their families, grow their businesses, and build resilience against climate and economic shocks. By breaking down barriers and fostering inclusion, we can create a world where every woman has the financial tools to succeed — and in doing so, drive sustainable, inclusive growth for all.

At Accion, we are committed to advancing innovative solutions that empower women in low-income countries to participate fully in the financial system. This requires a holistic approach, combining tailored product design, robust consumer protections, and investments in data and technology.

Join us in building inclusive financial systems that empower women and transform lives. Together, we can make equality and opportunity a reality.

Acknowledgments: The author thanks Nataša Goronja, Erika Eurkus, and Elizabeth Winters for their comments and suggestions.