In a powerful call to action, Angela Teresa Hernandez Cajo, Peru’s Minister of Women and Vulnerable Populations, emphasized the critical need for increased financial inclusion for women. Speaking at a public-private sector dialogue in Arequipa, she highlighted the economic potential that remains untapped when women are excluded from financial systems.
The Gender Gap in Financial Inclusion
Despite global efforts, women continue to face significant financial exclusion and vulnerability. The COVID-19 pandemic has further exacerbated these challenges, threatening to reverse progress made over the past decade. One key area of concern is the gender gap in account ownership, which has remained unchanged at six percentage points in developing economies since 2011.
Beyond Account Ownership: A Holistic Approach
While closing the gender access gap in account ownership is essential, it is not enough. CGAP, a leading organization focused on financial inclusion, advocates for a more comprehensive approach. Their goal is to empower women economically by improving access, usage, and outcomes of financial services. Here are the key areas they address:
1. Generating Income
Financial services should enable women to generate income. This includes supporting women-led businesses, providing access to credit, and facilitating entrepreneurship. Unfortunately, many women still struggle to access capital necessary for business growth.
2. Accessing Essential Services
Women need financial tools that go beyond basic account ownership. These services should help them access essential needs such as healthcare, education, and housing. By addressing these broader requirements, financial inclusion becomes a pathway to overall well-being.
3. Protecting Basic Standards of Living
Financial inclusion should safeguard women’s basic standards of living. This means ensuring that financial services protect against shocks, provide insurance, and allow for savings. Women should have the confidence to make informed financial decisions for themselves and their households.
Technology and Innovation
CGAP also explores the role of technology in advancing women’s financial inclusion. Digital platforms, including social media, can connect women to markets, buyers, and opportunities. By leveraging technology, women—whether in rural or urban settings—can enhance their livelihoods and economic participation.
Championing the Empowered Woman
The empowered woman is not just an individual; she is a force for inclusive economic growth. She votes, supports her community, invests in her family, and contributes to the broader economy. Without her active participation, sustainable development remains elusive. Let us activate an economy that truly works for her, transforming lives, communities, and the world.
