MICROFINANCE PAPER WRAP-UP: “Unlocking the Potential: Women and Mobile Financial Services in Emerging Markets;” published by mWomen Global Development Alliance of the Global System for Mobile Communications Association (GSMA), Visa, Bankable Frontier Associates

Published by Global System for Mobile Communications Association’s mWomen Global Development Alliance, Visa and Bankable Frontier Associates; 2013; 40 pages; available at: http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/02/GSMA-mWomen-Visa_Unlocking-the-Potential_Feb-2013.pdf

This report analyzes connections between mobile financial services and women’s financial inclusion in the developing world. These connections are explored through findings and insights from the experience of women in the following countries, which have been selected because they are at different stages of mobile finance market development; Indonesia, Kenya, Pakistan, Papua New Guinea and Tanzania.

The report notes that women represent an important potential customer base for mobile financial services (MFS) providers in developing markets. This is due to the fact that women often serve as the most active financial managers within households in developing countries. While men bring in a greater share of household income on average, women often bring in supplemental income and are often responsible for paying bills, making purchases, setting aside savings and sending money to distant friends and relatives. These women generally seek convenience, reliability, security and privacy in prospective financial tools and services. The authors argue that MFS providers can achieve greater scale, market penetration and stability if they build and maintain the women’s segment of the MFS market. The report finds, however, that MFS providers are critical of their ability to meet women’s wants and needs.

The report notes that there is a potential “virtuous cycle” among mobile services that can boost business for MFS providers. As the report notes, “of those surveyed, 34 percent of women in Tanzania, 13 percent of women in Kenya and 10 percent of women in Papua New Guinea who say they want to try MFS cite the lack of a phone as the main reason for not having done so. At the same time, prior Global System for Mobile Communications Association (GSMA) mWomen research indicates that lack of perceived value is one barrier to women’s use of mobile.” The report further notes that “if mobile financial services offer a clear, perceived value to women, they are likely to use the service plus become more active subscribers, with greater willingness to try new tools. MFS providers who choose to offer women relevant products will have the opportunity to improve both their core and mobile financial service businesses, as well as to impact women’s lives at scale.”

The report indicates that the following significant yet surmountable barriers prevent wider adoption of MFS products by women: (1) MFS advertising that generally is targeted toward male audiences and focuses on how men would use and benefit from MFS products; (2) low awareness of the availability and value of MFS; (3) women’s lack of confidence in their ability to use MFS products; (4) women’s concerns regarding the reliability and security of the service; (5) perceived or real lack of nearby agents or service centers for assistance; (6) perceived or real challenges related to lack of identification documentation for registration.

To overcome these barriers, the report suggests that MFS providers: (1) invest in research to further develop the understanding of the desires of men and women for new or improved MFS services; (2) develop and implement effective awareness and education programs; (3) encourage and incentivize trial use of products and services by potential customers; (4) extend service coverage to include a wider geographic range; (5) improve brand image and recognition through marketing initiatives; (6) streamline the registration process for MFS products and services; and (7) consistently deliver convenient, reliable, secure and private products and services. The authors argue that meeting these wants and needs will likely “enhance a service provider’s offering for the entire market,” due to the fact that “if service providers are able to tailor their marketing, services, customer care, and agent networks to meet women’s needs for convenience, reliability, security, and privacy, men in these markets also are likely to become more loyal customers. Agents who are welcoming, service-oriented, well-trained, and fully equipped to educate and serve new customers are likely to encourage greater adoption and usage across all segments.”

By Makai McClintock, Research Associate

Sources and Additional Resources

“Unlocking the Potential: Women and Mobile Financial Services in Emerging Markets;” published by Global System for Mobile Communications Association (GSMA)’s mWomen Global Development Alliance, Visa, Bankable Frontier Associates; 2013; http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/02/GSMA-mWomen-Visa_Unlocking-the-Potential_Feb-2013.pdf

MicroCapital.org story: “MICROCAPITAL BRIEF: Inter-American Development Bank (IDB), Multilateral Investment Fund (MIF), Andean Development Corporation (CAF), Global System for Mobile Communications Association (GSMA) Call for Proposals for “Technologies for Financial Inclusion Program”; published August 18th, 2011; https://www.microcapital.org/microcapital-brief-microfinance-centre-mfc-for-central-and-eastern-europe-and-the-new-independent-states%E2%80%99-%E2%80%9Cfinancial-education-program%E2%80%9D-reaches-100000-low-income-households/

MicroCapital.org story: “MICROCAPITAL BRIEF: Anne Hastings of Fonkoze Outlines Framework for National Mobile Money Systems”; published March 5th, 2013; https://www.microcapital.org/microcapital-brief-anne-hastings-of-fonkoze-outlines-framework-for-national-mobile-money-systems/

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