Making Finance Work for Women Podcast

Introduction

• Host: Sonia Kelly, leading Women's World Banking's proprietary research.
• Focus: Addressing social and economic exclusion of women in finance.
• Goal: Accelerate women's economic empowerment.

Overview of the Episode

• Sponsor: Ernst & Young LLP (EY) - Global leader in Assurance, Consulting, Law, Strategy, Tax, and Transactions.
• Topic: Fintech (Financial Technology) and its impact on women's financial inclusion.

What is Fintech?

• Definition: Application of technology to financial services including mobile banking, digital payments, and cryptocurrency.
• Example: Paycode - African biometric digital identity and payments technology company.
  • Simplifies financial transactions in rural areas using biometric data for smart card issuance.

Case Study: Lisa from Zambia

• Background: Lisa is a farmer without ID or bank account due to rural and financial service barriers.
• Solution: Paycode provided her with a smart card that functions like a debit/credit card, facilitating transactions without a bank.
• Impact: Enabled her to manage finances securely despite low connectivity.

Challenges Faced by Women in Finance

• Time Poverty: Women spend more time on domestic tasks than men.
• Income Challenges: Need for affordable financial services.
• Mobility Limitations: Women often can’t travel far for financial services.
• Thin File Customers: Lack of information about women as potential credit customers.
• Unconscious Bias: Addressed using machine learning and AI.

Gender Disparity in Fintech

• Statistics:
  • 30% of fintech workforce are women.
  • 8% of fintech leadership roles held by women.
  • Only 1.5% of fintech founders are women.
  • Women receive only 1% of funding in the industry.

Guest Introduction: Nicole Casperson

• Background: Former finance reporter, founder of Fintech is Fem.
• Objective: Highlighting diverse female voices in fintech and financial services.
• Activities: Teaching financial management, speaker at industry events.

Importance of Diverse Voices in Fintech

• Media Influence: The narrative around women and finance often perpetuates inaccuracies.
• Misconceptions: Women are often portrayed as uninterested in finance; reality is different.
• Action: Amplifying women's stories can lead to better representation and funding.

Venture Capital and Funding Disparities

• Key Message: Venture capitalists should diversify their networks and funding practices.
• Strategies for Improvement:
  • Media literacy to challenge biases.
  • Individual assessment and community organization for better funding practices.
  • Advocating for policies that demand transparency in funding demographics.

Digital Wallets and Financial Inclusion

• Growth: Digital wallets have doubled in usage globally over the last five years.
• Opportunity: Wallets can be used to understand user behavior and enhance financial inclusion, especially for women without IDs.

Consumer Protection in Fintech

• Consumer Trust: Transparency and effective consumer protection are crucial for building trust.
• Regulation and Innovation: Both can coexist; protecting consumers will ultimately promote innovation.

Nicole's Upcoming Book: "Fintech Feminists"

• Focus: Women's role in shaping a more sustainable and equitable economy.
• Content: Profiles of women leading innovative fintech solutions, addressing various financial challenges.
• Goal: To inspire and guide future entrepreneurs using women’s insights and experiences.

Closing Thoughts

• Industry Leaders: Need to set measurable targets for diversity and inclusion in fintech.
• Networking: Encourage women to support each other and break operating silos.
• Engagement: Subscribe and provide feedback on the podcast to help grow the conversation.