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Digital payments enabling financial inclusion

SDGs Impacted

Digitizing payment of public sector wages and social protection benefits has prompted millions of previously unbanked women to open accounts in recent years, a trend that accelerated during the COVID-19 crisis with the digital payment of emergency relief and private sector wages. As governments and companies take steps to recover from the economic impacts of the pandemic, prioritizing women’s digital financial inclusion will ensure stronger, more resilient economies that recognize and advance the strengths of women. We discuss the programs implemented in Bangladesh and Colombia as great examples of good practices and learnings on responsible digital payments to strengthen data protections and build inclusive digital ecosystems to reach the still substantial numbers of unbanked and underserved households in low- and middle-income countries.

Impact / Outcome
Approximately 1 billion women around the world are currently financially excluded, facing persistent barriers across digital value chains and without equal access to identification and digital devices. The COVID-19 pandemic accelerated the use of digital payments for emergency and social benefits that were fair, transparent and accountable and protected client data and funds. To increase women’s digital financial inclusion, development actors should support the collection and analysis of sex-disaggregated data to inform policy, design appropriate and affordable financial products for women, and enforce anti-discrimination and consumer protection laws.
Sector
Financial services
Intervention levers
Direct government, Policy
Target population
Women & girls

The EDISON Alliance

A World Economic Forum Initiative