Informal Sector Women and Financial Inclusion

Indian women have done everything the financial system asked. Opened accounts. Saved diligently. Built credit histories. But. We receive credit equivalent to just 25%+ of the deposits we put into the banking system. Men receive 50%+ of that, double what we get. We are, in effect, subsidising credit for men. The credit system was built to read a specific kind of financial life - formal salary, titled property, guarantors from the right networks. Women’s income is often informal, seasonal and home-based. Our assets are rarely in our names. So, the traditional system writes us off rather than underwrite us. Consider this - Women constitute 20% of India’s MSMEs and hold just 7% of MSME credit. However, we have better data today than we had decades ago. Digital payments history, Aadhaar-linked identities, GST trails and much more. If you are building a lending product, whether you’re a bank or a fintech, the question is whether you’re reading the additional signals, in fact the signals that can make or break women’s credit. 45 crore of us are credit-eligible and waiting. Is the ecosystem ready for us? Source: NITI Aayog-TransUnion CIBIL-MicroSave Consulting 2025, Microsave 2020 #CreditAccess #WomenEntrepeneurs #FinancialInclusion #IndiaFintech

Here's how UPI turned 200 million Indian women into entrepreneurs when banks couldn't!  Before UPI, most women running small businesses worked in cash, with no bank trail, no credit access, and no real way to grow beyond their local circle. Fast forward to 2025, with 536 million women aged 15+ in India and 37% already using mobile internet, the potential market for internet-based UPI solutions is approximately 200 million women. In a country where 65% of women in the workforce are self-employed, digital financial inclusion creates tangible economic empowerment. But UPI is doing more than digitizing payments: ➡️ It builds financial history and business credibility ➡️ Unlocks access to loans, insurance & government schemes ➡️ Helps women manage and grow money independently We're already seeing this in action: — Women dairy farmers in Maharashtra now use UPI to sell directly to cooperatives. — Street vendors in Gujarat track daily income through digital payments. — Self-help groups in Bihar pool savings and access microloans through mobile wallets. Because for many women, the journey to digital confidence starts when someone they trust. These are some schemes that are helping women adopt UPI… 📍 UPI for Her – Tailored digital tools by NPCI & Women’s World Banking for women-led micro-businesses 📍UPSRLM (Uttar Pradesh State Rural Livelihood Mission) – Local women agents trained to onboard others with confidence 📍MAVIM(Mahila Arthik Vikas Mahamandal) – Helping rural women switch from cash to UPI and grow their ventures 📍WEP (Women Entrepreneurship Platform) – A national platform connecting women entrepreneurs with digital and financial support Digital payments give women more visibility. This visibility leads to more control over both their business and household money. How has digital banking changed your business?

#FinTech Women of #Bharat report provides strategic recommendations and #innovation prompts for #financialservice providers to develop tailored solutions for diverse segments such as homemakers, #farmers, textile workers, and teachers. For Rural Women: • Homemakers (140 Million):     ◦ Microsavings tools for household budgeting and long/short-term goals.     ◦ Flexible credit for emergencies, aligned with local store credit cycles.     ◦ Homepreneur starter micro-loans for training, tools, and setup. • Farmers and Agricultural Workers (60+ Million):     ◦ Digital wage access + daily wage saver accounts.     ◦ Alternative credit scoring for farmers without land titles.     ◦ Income protection coverage.     ◦ Agribusiness starter loans for training, tools, and setup. • Livestock Rearers (14 Million):     ◦ Digital earnings access + cattle registration.     ◦ Collective enterprise starter packs: group capital for equipment, storage, and market access. • Shop Owners, Assistants and Retail Workers (3.8 Million):     ◦ Women-focused bulk purchase platforms for better supplier access and pricing.     ◦ Microcredit for stock replenishment without disrupting cash flow.     ◦ Earnings digitization and recognition for informal family helpers. • Textile Workers (3.6 Million):     ◦ Cash flow-linked working capital.     ◦ Earnings digitization and recognition for informal family helpers. • Handicraft Artisans (1.7 Million):     ◦ Market-linkage financing for bulk orders, fairs, and exhibitions.     ◦ Tools to manage cash flows, marketing, and scaling.     ◦ Earnings digitization and recognition for informal family helpers. • Mining and Construction Workers (4 Million):     ◦ Digital wage access + daily wage saver accounts.     ◦ Flexible income protection for job loss, accidents, and health risks. • Tutors and School Teachers (3 Million):     ◦ Employer-linked savings and retirement plans.     ◦ Income booster packages for private tutors, including credit and prepaid learning plans. For Urban Women: • Shop Owners, Assistants, and Retail Workers (4 Million):     ◦ Women-focused bulk purchase platforms for better supplier access and pricing.     ◦ Microcredit for stock replenishment without disrupting cash flow.     ◦ Earnings digitization and recognition for informal family helpers. • Cooks and Cleaners (5.4 Million):     ◦ Income-linked credit based on work history and employer references.     ◦ Income protection coverage. • School Teachers (3.4 Million) ◦ Employer-linked bridge loans for salary or healthcare gaps.     ◦ Specialized credit for upskilling and certification. • Textile Workers (3 Million):     ◦ Flexible income protection for job loss, accidents, health risks.     ◦ Employer-linked bridge loans for salary or healthcare gaps. • Clerks (2 Million):     ◦ Micro-investment tools for small, automated savings.     ◦ Career progression #credit for certifications or role transitions.

In Pakistan, where only 14% of women are financially included compared to 56% of men, generic digital financial services (DFS) fall short,true impact demands designs tailored to women's realities. The Gender Gap in Financial Inclusion Pakistan's labor force sees just 24.3% female participation, compounded by low digital literacy (women score 48 vs. men's 65) and minimal say in household finances (only 11%). Policies like the State Bank’s Banking on Equality exist, but barriers household restrictions, KYC hurdles, and fraud fears persist, limiting uptake to superficial access. Why Women Need Tailored DFS Women-centered DFS are essential because generic platforms overlook cultural, emotional, and practical barriers that stifle adoption. They must address security fears with simple fraud alerts and peer-trusted interfaces; prioritize family goals like education savings over abstract yields; and offer bite-sized, voice-guided tools in local languages for low-literacy users. Flexible micro-transactions suit irregular incomes from home-based work, while progression paths from basic wallets to investing ladders build lasting confidence and autonomy. Path to Real Adoption and Impact Tailored DFS transforms homes into financial hubs, boosting earnings control and resilience without requiring mobility or tech expertise. By embedding women's wants like community forums and halal-compliant options services achieve stickiness, turning one-time users into empowered decision-makers. This isn't optional; it's the key to equitable growth in Pakistan. #FinancialInclusion #WomenEmpowerment #DigitalFinance #PakistanEconomy Sources Catalyzing Women's Earnings via DFS - Karandaaz Pakistan

West Africa is digitalising its trade systems. The majority of its cross-border traders are not in the design room. Women constitute an estimated 60-80% of informal cross-border traders in our region. Ghana Statistical Service's maiden Informal Cross-Border Trade Survey revealed that informal trade accounts for 61.2% of commerce with Togo, 55.7% with Côte d'Ivoire. Most of these traders are women moving perishable goods, livestock, and agricultural products across borders daily. Yet as Pan-African Payment & Settlement System - PAPSS payment systems, digital customs platforms, and AfCFTA e-documentation protocols take shape, women trader associations report minimal involvement in system design decisions. The Cross-Border Women Traders Association's call for a Women Traders Border ID Card reflects a fundamental gap: the people who understand border realities best are designing solutions from the outside. The stakes for getting digital systems right are considerable. Consider perishable goods spoilage: digital fast-tracking could reduce the delays that cause tomatoes and fish to rot at borders. But smartphone-only interfaces could exclude the majority who use basic mobile phones, leaving them in slower manual queues. Digital documentation creates paper trails and accountability for harassment and informal payments. Yet systems available only in English or French exclude traders who operate in Twi, Hausa, Yoruba, or Wolof. Digital transaction records could build the credit histories women traders lack for formal financing. Or platforms requiring smartphones and bank accounts could deepen financial exclusion instead. From our recent engagements with the Cross-Border Women Traders Association, several practical solutions have emerged: trader ID systems designed for basic mobile technology; multi-language interfaces including major West African languages; transaction logging that builds credit profiles even for small-value trades; formal advisory seats for women trader associations on national e-commerce committees and regional system design bodies; training programmes structured around market hours and women's operational contexts. The AfCFTA's projected continental market cannot reach its potential while excluding the majority of grassroots traders who actually move goods across borders. World Bank survey data shows over 40% of traders along West African corridors face bribery exposure. Digital systems designed with women's input could reduce this vulnerability. Systems designed without them risk automating existing inequities. The design choices being made now in Accra, Abuja, and Abidjan will shape whether digital trade narrows or widens the gender gap in regional commerce for years to come.

For years, millions of women in rural communities have been locked out of formal finance simply because they lacked paperwork, credit history, or access to traditional banking systems. Now, that is starting to change. The Mann Deshi Foundation and Algorand Foundation are using blockchain technology to create verified digital identities and alternative credit scores for women entrepreneurs in India. Instead of carrying paper files for months during loan applications, women can now access secure digital records through a smartphone-based wallet. This is bigger than crypto hype. It is about financial inclusion at scale. When someone gains access to credit for the first time, they gain access to opportunity. A loan can mean a new business, stable income, education for children, or long-term independence. Blockchain is often discussed in terms of speculation, but this is what real-world utility actually looks like. Technology is solving a structural problem that traditional systems failed to fix for decades. The future of finance will belong to systems that are accessible, portable, and built for everyone, not just people already inside the system. What do you think? Could blockchain become one of the biggest tools for financial inclusion globally? ✍️ #blockchain #financialinclusion #web3 #womeninbusiness

Effective women’s financial inclusion requires moving beyond one-size-fits-all financial products and grounding design in country-specific diagnostics of gender norms. Gender norms diagnostics surface the root causes of women’s financial exclusion by pinpointing which social expectations and behaviors—across clients, households, providers, and regulators—are blocking access, usage, and benefits from finance. These diagnostics map norms, identify which market actors are influenced, and reveal how “gender-neutral” rules or practices systematically default to men’s realities. This evidence helps ensure interventions target causes rather than symptoms, and turn invisible constraints into actionable insights that align product design, supervision, and policy with women’s actual needs – including tiered KYC, alternative credit assessment methodologies, provider guidance, etc. The payoff is higher uptake, safer and sustained usage, and measurable gains in women’s agency and economic empowerement. Read more about how Rwanda and Tanzania have used such diagnostics for effective action: https://lnkd.in/gbVssyS6 Antonique Koning, Sophie Mills, Gayatri Murthy 

How can we achieve women’s economic inclusion? As we reflect on the intersection of #gender and #poverty this March, I want to highlight the experiences of Haiti’s Madan Sara—women who are the driving force of local markets, yet face barriers like limited credit access, unsafe working conditions, and economic instability. The newly launched Haiti Gender Scorecard (part of The World Bank Poverty and Equity LAC Country Gender Profiles) shows that while Haitian women have high labor force participation, many remain trapped in informal jobs with little security. This challenge isn’t unique to Haiti. Women in informal economies worldwide need better access to jobs, finance, and infrastructure. The World Bank’s Gender Strategy (2024-30) provides a roadmap to accelerate gender equality and drive economic empowerment. Supporting women like the Madan Sara is key to unlocking economic potential and reducing poverty. #IWD2025 #InternationalWomensDay - Explore the Haiti Gender Scorecard: https://bit.ly/4bDzgia  - Read about the World Bank’s Gender Strategy (2024-30): https://bit.ly/41ELyCk   - Learn more about the Madan Sara: https://bit.ly/3Dv4WJZ