Report: Fintech companies ought to focus on female clients in developing economies.

According to a report from the International Finance Corporation (IFC) of the World Bank, fintech companies might take more deliberate steps to target women clients in emerging nations, improving both their own chances and financial inclusion.

Madilyn Swift

March 22, 2024

0

1Min Read

112

Banking

According to the IFC, fintech and digital financial services have the potential to significantly impact women's financial inclusion and economic development. But a survey of 114 fintechs in developing nations highlights what more they are capable of.

According to the majority of respondents, women are more or equally valuable clients than men and are also more dependable and less risky.

In particular, 69% of fintech companies that specialize in lending think that women's loyalty is either higher than or equal to that of men. However, according to 63% of these lenders, fewer than 25% of their portfolio consists of women-owned SMEs.

According to the IFC, fintechs should analyze data that is broken down by gender in order to better understand women's financial prospects and develop their business plans.

"What is evident from this study is that strong behavioral gender differences, as well as barriers, call for fintech firms to offer differentiated solutions for women," states Emmanuel Nyirinkindi, vice president of cross-cutting solutions at IFC.

By doing so, fintech firms can unlock the full potential of the women’s market—a valuable customer segment known for exhibiting greater loyalty, lower default rates, and strong revenue generation.