Account ownership can unlock access to financial products. The latest round of the Global Findex finds that across LMICs more women are using accounts to save formally (36% in 2024, up from 22% in 2021) and make or receive digital payments (58% from 50%), including making digital merchant payments (38% from 32%).
But behind these gains lies a persistent challenge: about 700 million women worldwide still do not have a financial account, precluding them from using financial services and harnessing them for greater financial health and resilience. In this blog we look beyond the headline numbers to explore how to reach these remaining women and leverage digital financial services to improve women’s financial lives.
Barriers to women’s account ownership persist…
Understanding barriers to account ownership can help uncover opportunities to reach unbanked women. On average across developing countries, not having enough money to open an account was the most frequently cited barrier among women without an account, followed by the cost of financial service fees and a family member already having an account. Using a family member’s account is particularly prevalent in Latin America and the Caribbean, where account fees are high, making it less affordable to have more than one account per household. Distance to a branch or mobile money agent is another common barrier.
…but phones and mobile money are changing the game
Mobile connectivity and digital accounts can help overcome the barriers of cost and distance. Accounts that can be accessed digitally allow owners to use their financial accounts whenever and wherever they need.
Currently, more than half of women with accounts in LMICs have a digitally enabled account, meaning that they can be accessed via a card or a phone. With about 80% of women in developing economies owning a mobile phone, digitally enabled accounts make it easier and more convenient for them to use their accounts.
Mobile money accounts are one type of digitally enabled account popular in Sub-Saharan Africa and Bangladesh – these accounts can be used with a basic mobile phone and often have lower fees than traditional bank accounts. In Sub-Saharan Africa, women are 12 percentage points less likely than men to have any type of account, yet they are equally likely to exclusively own a mobile money account, suggesting that the technology can offer particular benefits to women.