As we celebrate Women’s Month, it is worth reminding ourselves that despite advances, women still face persistent exclusion from formal banking systems.
According to the World Bank, the gender gap in account ownership across developing economies, though improved, still sits at six percentage points.
There are substantial benefits to closing this gap.
The NPO Innovations for Poverty Action, in its Women’s Economic Empowerment Through Financial Inclusion report, found that “Increasing access to and use of quality financial products and services is essential to inclusive economic growth and poverty reduction. Research shows that when people participate in the financial system, they are better able to manage risk, start or invest in a business, and fund large expenditures like education or a home improvement.”
Researchers Nidhi Parekh and Thokozile Malaza says: “Evidence suggests that greater control of household finances by women, either through cash transfers or increased personal earnings, can have significant positive effects on women themselves and their households. Studies show that access to financial products designed to help women retain control over resources can lead to more decision-making power, better risk management, smoother consumption in the face of shocks, and/or increased household welfare, such as through increased expenditure on education.”
Jonathan Holden, COO of SOLmate says, “An impactful development in the ability of women and other marginalised groups to access financial services has been the rise of digital wallets.”
A digital wallet, or mobile wallet, provides a secure and convenient way to make payments, transfer money, and manage financial transactions.
Digital wallets offer a cost-effective alternative to traditional bank accounts, enabling excluded populations to access essential financial services, including payments, savings, and remittances.
SOLmate’s app provides clients with a digital wallet facility that offers the option to link a virtual or physical debit card (powered by Mastercard) to their personal SOLmate account number. The platform offers secure online payment options and enables users to shop online safely and withdraw cash from some retail stores and any ATM countrywide. SOLmate allows for free or low-cost receipt and transfer of money.
“Financial inclusion plays a vital role in transforming lives and driving economic growth. Almost a third of SOLmate’s clients are women and we are proud to be playing a part in enabling greater financial inclusion for women across South Africa seeking to support families and create opportunities to lead more empowered lives. We are committed to bridging the financial divide and ensuring that everyone has equal access to financial services,” Holden said.
Digital wallets enable more affordable, convenient and secure international remittances – transfers from migrant workers to their families.
According to the World Economic Forum, migrants sent home $800 billion in remittances in 2022. Making remittances more accessible to foreign national women who come to South Africa to make a better life has a significant and wide-ranging impact on their well-being and that of their families.
A recent study by the World Bank found that the effects of cash transfers in curbing violence against women and children were comparable to stand-alone violence prevention interventions.
Researchers believe this is a result of increased women empowerment and social status when they are the recipients of transfers, strengthened support networks, and reduced conflict related to poverty and food insecurity.
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