Market Insights for Inclusive Growth
Unlocking the potential of digital financial services (DFS) is crucial for women's financial inclusion and empowerment. While barriers to access persist, fintech companies have emerged as key players in bridging this gap. However, limited research exists on how fintech companies are delivering on their promise and what practices lead to success. This study addresses these gaps, drawing on a survey of 114 fintech companies across 17 countries as well as interviews with 25 industry leaders.
The study explores the representation of women within fintech portfolios and the factors influencing it. It investigates whether fintech firms actively target women customers and the strategies they employ. Additionally, it examines the performance of women customers compared to overall portfolios, considering loyalty, customer lifetime value, and default rates.
The findings reveal promising evidence that fintech companies can intentionally target women customers by leveraging analysis of sex-disaggregated data (SDD) and tailoring products and services that address the needs and behaviors of women clients. By embracing these practices, fintech companies can capitalize on the under-tapped women's market, boost their bottom lines, and contribute to greater financial inclusion. The study also highlights the needs of fintech companies, presenting an opportunity for investors, development actors, industry bodies, and incubators to support and accelerate this process.
