Discrimination against women is prevalent in many societies, making them disproportionately vulnerable as a result. Inequality in gender roles affects the most basic aspects of self-determination, dignity and freedom, which in turn impact financial inclusion. Economic policymakers in developing countries across the world are focusing on expanding financial inclusion. In Pakistan, the majority of its people lack access to formal financial services, savings, credit, insurance or even the knowledge to make intelligent financial decisions.
While economic inclusion can lead to financial inclusion and vice versa, gender dynamics hold women back on both accounts – and this needs to change. There will be an estimated 32% gender gap in access to formal financial services by 2030 in Pakistan, according to the Women’s Financial Inclusion Data Partnership.
Women, all over the world have fewer employment opportunities and are more likely to be exploited at their jobs. Add to it, the arrival of the Corona Virus pandemic hit women the hardest, widening the gender disparity. Even today, women do not enjoy the same status as men when it comes to accessing financial services and it has been noted that 53% of the country’s adult population is financially excluded.
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Over the years a number of policy measures have been designed and implemented to improve the proportion of financially included Pakistanis and expand the uptake of formal financial services. The Government of Pakistan set up a National Financial Inclusion strategy prioritizing the financial inclusion of women as a part of its agenda. To aid this, the State Bank of Pakistan also launched a gender mainstreaming policy titled ‘Banking on Equality: Reducing the Gender Gap in Financial Inclusion’, which aims to reduce the gender gap in financial inclusion and improve women’s access to financial services. The country hopes to enhance the use of digital payments, enhance the deposit base, promote small and medium enterprise (SME) finance, increase agricultural finance and enhance the share of Islamic banking by the end of this year.
Introducing policies or opening bank accounts isn’t enough on its own, financial inclusion begins with financial literacy. This provides basic skills related to earning, spending, budgeting, borrowing, saving, and using other financial services such as insurance and money transfers.
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Staying true to their commitment to leading the way forward and empowering the women of the country, Bank Alfalah, in partnership with not-for-profit Indus Earth Trust (IET) conducted Financial Literacy Training in rural areas mainly for women with the sole purpose of assisting financial inclusion and supplementing economic growth and stability. This training focused on helping them manage household finances, teach them various saving methods, give them investment options, introduce them to micro-finance, and teach them about the importance of having a bank account, and the advantages of different insurance policies. During the course of these training, more than 200 women signed up for wallet accounts as well as Asaan women’s digital accounts which will enable them to get multiple benefits such as easy withdrawal, savings and accessibility to investments.
When it comes to gender equality, the financial services industry can serve as both a catalyst and a barometer. It won’t be long before these interventions yield results and capitalize on the potential of the substantial unmet demand for financial services from households with small businesses of the marginalized populations in rural areas.
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While the immediate focus should be on raising awareness and improving financial literacy amongst the population in rural areas, the longer-term vision should focus on innovating financial solutions and building a reliable infrastructure that drives the economy of the country to great heights.
— The writer is Head of Corporate Communication, Bank Alfalah.
The Nation, 05 Apr, 2023