Bridging the Digital Financial Gap: Women, Mobile Money, and the Future of Financial Inclusion
Across Africa, mobile money has revolutionized financial inclusion, empowering millions who were previously unbanked. For many, especially those working outside the formal economy, digital wallets and mobile-based financial products have become lifelines—offering new ways to save, invest, and manage earnings.
As we celebrate these remarkable strides, particularly in creating economic opportunities for women, we must also pause and ask: who is being left behind as digital finance continues to accelerate?
Gender comparison in digital savings behavior among daily wage earners and Casual (when-I-find-work) wage earners.
Women, Informal Work, and the Savings Dilemma
Data from our 2024 BOP Consumer Spending Study in Kenya reveals a stark reality—women in informal employment, earning sporadically due to unstable job opportunities, are significantly less likely to save digitally. In contrast, men’s ability to save digitally appears largely unaffected by their income patterns.
This does not imply that women abandon the practice of saving altogether. Instead, it suggests that many turn to informal savings channels, such as community savings groups and rotating credit associations, as their preferred financial safety nets.
Are Digital Financial Products Failing Women in Informal Jobs?
This raises an important question: Are there inherent gaps in the digital financial services ecosystem that fail to meet the needs of low-income women in casual and part-time employment—while still working effectively for men?
Equally worth exploring is how well digital financial solutions are optimized for informal savings aggregators like women’s groups, which play a crucial role in financial resilience across African communities.
Key Considerations for Advancing Financial Inclusion for Women
To ensure that digital finance works for everyone, we must acknowledge the unique employment and financial realities faced by women in the informal sector. Here’s what needs to be addressed:
✅ Income Stability & Savings Ability: Men are more likely to be in wage-earning roles—whether as daily wage earners or in better-paying casual jobs—whereas women have lower participation and earnings in similar employment sectors. A lower income directly translates to reduced savings capacity.
✅ Financial Access & Behavior: Men tend to have higher access to digital savings tools, while women remain underrepresented in formal financial products, including mobile banking and savings platforms. Bridging this access gap is key to digital inclusion.
✅ Savings Behavior & Preferences: Women in informal employment are more inclined to rely on informal savings networks, whereas men are more likely to engage with digital savings options. Recognizing and integrating informal savings mechanisms into digital finance could unlock significant opportunities for women.
What Needs to Change?
To truly close the financial gender gap, digital financial solutions must evolve to be more inclusive. Here are some strategic pathways forward:
💡 Tailor Digital Financial Products for Women’s Groups – Designing mobile savings and credit solutions that align with the behavior of informal savings networks can encourage greater adoption.
💡 Flexible and Low-Barrier Savings Options – Allowing micro-savings with minimal transaction fees and adapting financial products for irregular income earners can ensure that women in casual employment have a sustainable path to financial security.
💡 Financial Literacy & Accessibility Initiatives – Expanding financial education programs, especially those targeting women in informal sectors, can increase confidence and participation in digital savings.
💡 Improved Mobile Banking Integration for Women – Ensuring that mobile banking platforms are easy to use, accessible, and designed with the needs of low-income women in mind can enhance digital financial adoption.