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The United Nations Capital Development Fund (UNCDF) supports governments to drive ongoing refinements to policies and regulations related to digital financial services. We believe that governments can make better policy decisions when they (1) rely on credible data and research and (2) consult with all relevant stakeholders across government, industry and consumer groups.

This is our first blog post on enabling policies and regulations for digital financial services and women’s economic empowerment.

In this blog series, we will explore what governments can do in practice to design better policies and regulations to increase the number of women who benefit from digital financial services. We believe that governments can achieve this by integrating a gender perspective into every step of the policymaking process (known as ‘gender mainstreaming’). While this approach is relevant to all types of public policy, we are looking to build on CGAP’s work on the four basic regulatory enablers for digital financial services: non-bank e-money issuance, use of agents, risk-based customer due diligence, and consumer protection.

Over the next three years, we will share examples of ‘what worked’ and ‘what didn’t work’ from our experiences alongside policymakers and regulators in 18 countries across Africa. We’re exploring two avenues to boost women’s digital financial inclusion:

1. Gather evidence on women’s experiences with financial services. While women are not a homogenous group, their needs are systematically overlooked. Across the board, governments could do more to collect and use sex-disaggregated data to better understand women’s experiences and shape policies and regulations accordingly. So how can governments do this in practice? We plan to learn more from partners including Data2X and the Women’s Financial Inclusion Data Partnership about the best options for governments in low-resource environments, and work with governments to plan and implement the most suitable solutions.

2. Increase the representation of women in policymaking. Policy decisions are still mostly made by men and therefore can be male-biased. Women are usually underrepresented in senior management teams across government. They often miss out on training and leadership opportunities (especially if they take time away from work to raise a family). When it comes to consultation, governments are not deliberate about hearing from female representatives of industry and consumer groups. And when they do participate, women are known to speak less in meetings. So what does it take to bring women to the table?

We’re already seeking solutions to these problems. For example, UNCDF is supporting the Bank of Sierra Leone (BSL) to develop a new consumer protection framework for retail financial services in line with the National Strategy for Financial Inclusion 2017-2020.

Firstly, we’re partnering with IPA to use research methodologies such as SMS-based surveys and mystery complaints handling to understand current provider practices through the eyes of different consumers (including women). If the evidence shows that women in Sierra Leone face specific challenges, the BSL can keep this in mind while designing requirements related to disclosure and transparency, dispute resolution mechanisms, etc.

Secondly, we’re working with UN Women to bring consumer voices such as women’s marketing associations into the BSL’s consultation process. Once they issue new requirements for providers, the BSL also plans to run a public awareness campaign on consumer protection to speak to both providers and consumers. We hope these two processes will help empower consumers (particularly women) to understand their rights and how the government will safeguard these rights.

Stay tuned for more details from Sierra Leone and beyond. We look forward to joining the discussion!

Things we’re reading:

Toronto Centre – Advancing Women’s Digital Financial Inclusion

GSMA – From Benin to Zimbabwe – Reflections on Connected Women’s Capacity Building engagement

African Development Bank – What does AFAWA (Affirmative Finance Action for Women in Africa) do?

Caribou Digital – Which DFS features matter more to women than men?

UNCDF – Capital Musings (podcast) – Leaving No Woman Behind in the Digital Era