Digital Financial Inclusion Through FinTech

1. Introduction

The sustainable development of a nation requires a robust financial ecosystem. Despite this fact it has been observed for ages that it is not inclusive and there is a big financial gender gap in almost all economies. The situation is more critical for women in developing and underdeveloped nations due to the patriarchal mind of the society. A “potent formula” for generating socioeconomic profits, transforming societies, and enhancing the growth rate of developing economies is closing this gender gap in digital financial inclusion. (Women’s World Banking. 2016). Although women make up 40% of the world’s workforce, they are less likely to have access to formal financial services (World Bank, 2013). Recent studies (Demirgüç-Kunt, et al., 2018) indicate that this gap has not changed over the years despite various financial innovative policies. In low-income communities, it is the women who manage all the scarce resources and are burdened with much of the care work which is generally unpaid. This lowers their labor force participation rate in the market which restricts their ability to save or manage risks and they are forced to use informal financial instruments often of unreliable nature. Fewer savings also restricts the ability to start their own business which is not only hampering the economic growth of women but also impacts the financial statistics of a country (Demirgüç-Kunt, et al., 2017). They save from their meager household incomes and in the future invest money in the education and health of their children. Therefore, to transform the lives of women and families it is imperative to innovate new financial tools which will manage their money better and save their time. The proliferation of mobile banking and other financial sector innovations has accelerated the pace of financial inclusion worldwide.