Designing payment solutions for women

Proposal submission date
Start date: September 7, 2020 End date: September 20, 2020

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Problem Statement Information

Category
Payment

Problem statement tags
women finance accesstofinance business womeninbusiness womenfounders SMEs womenSMEs accesstocredit B2B B2C Banking fintech technology Insurance payment wealth Financialinclusion FemaleEconomy Hackathon 2020AllianceHack

Detailed Description

Women businesses in emerging markets have very limited access to digital infrastructure to transact and make/receive payments, especially in remote areas. The current solutions through money operators and FSPs is both expensive as well as cumbersome for them to access.

Create a cost-effective digital payment solution requiring basic infrastructure setup granting women-owned VSEs and SMEs, especially in remote areas, payment solutions to build their financial capabilities.

Subcategory 1: The gender gap in account ownership extends to digital payments, as well

According to the World Bank’s Global Findex, there is a 9 percentage point gap in debit card ownership between men and women globally. In developing countries, only 35% of women own a debit card. Many women VSEs and SMEs in remote areas do not have access to basic infrastructure, including electricity, mobile networks, and basic banking infrastructure. Often, women must travel long distances to access formal banking services, which can present a major obstacle considering time constraints from unpaid labor at home. Transacting in cash can also pose additional risks, including theft and personal security. In some markets, women do not have control over their income due to cultural or societal barriers. Further, many female entrepreneurs transact with their suppliers in cash, making accounting and cash management excessively burdensome. Although mobile solutions are becoming increasingly widespread, many do not cater to women's needs and behaviors. The Global Findex data shows a 7-percentage point gap between men and women in digital payments for the past year.

Subcategory 2: Women want strong advisory relationships and technologies – instead, they’ve gotten pink cards

Women control 85% of daily spend globally. Oliver Wyman estimates that financial service providers could earn more than $700 billion in additional annual revenue by better serving women consumers. Yet in general, payment solutions have not been designed with women in mind. Many FSPs that have attempted to capitalize on the women’s market opportunity have done so by creating “pink cards” (or feminine-branded payment products) that don't provide added value to female customers. Research shows that women can be just as confident as men in making financial decisions--but they need additional information, support, and tools from financial providers. Women value a relationship over a transaction and seek institutions they can trust and respect. They also tend to adopt new financial technologies more selectively.

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