International Conference on Financial Inclusion in Bangladesh: Gender Perspectives
On March 9, 2024, at Hotel InterContinental, Dhaka a daylong conference was held titled Financial Inclusion in Bangladesh: Gender Perspectives. The conference was organized by Centre for Research and Development (CRD), an independent research organization, based in Bangladesh. This was primarily research finding sharing conference, funded by the Bill and Melinda Gates Foundation, USA. The conference was attended by key stakeholders, policymakers, academics, and experts from relevant fields from both home and abroad to explore strategies for bridging the gender gap in financial inclusion. The research was conducted by a research team, led by Dr. Ayesha Banu, Professor, Department of Women and Gender Studies, University of Dhaka, Dr. Lila Rashid, Former Executive Director, Bangladesh Bank, Dr. Sayema Haque Bidisha, Professor, Department of Economics, University of Dhaka and Dr. Md Mokhlesur Rahman, Managing Director, CRD.
Dr. Atiur Rahman, Former Governor of Bangladesh Bank, served as the Chief Guest in the inaugural session, and the conference concluded with Dr. Mustafa K. Mujeri, Executive Director of the Institute for Inclusive Finance and Development (InM), as the chief guest for the concluding session. The session was attended by Ms. Hillary Miller-Wise, Deputy Director, Inclusive Financial Systems; Ms. Lynn Eisenhart, Deputy Director, Strategic Investment Fund, the Bill and Melinda Gates Foundation and Representatives from the Foundation.
During the second session, findings from a two-and-a-half-year research project on the gender gap in financial inclusion in Bangladesh were presented. The session was moderated by Ms. Snigdha Ali, Bangladesh Country Lead, Inclusive Financial Systems, Bill & Melinda Gates Foundation. The project included quantitative data from a nationwide survey of 7,560 individuals across 3,300 households in 220 clusters spanning 56 districts. Qualitative data comprised 64 focus group discussions, 49 in-depth interviews with financial service consumers and non-consumers, and 56 interviews with experts from various fields.
The quantitative data shows that the gender gap in financial inclusion in Bangladesh stands at 6.90 percentage points in favor of men where the gender gap is highest in mobile financial services at 35.42 points and in the case of banking services the gap is 17.28 points (in favor of men). On the other hand, in microfinance gender gas is 56.37 percentage point in favor of women. A more detailed analysis shows that not only a higher proportion of women are financially excluded, but also that women account for a smaller proportion in the ‘high inclusion’ category – a category having banking services which are more formalized and offer most of the financial services. Additionally, there is also a clear difference in the use of services among men and women. Further analysis shows that about three-fourths of the gap (76 percent) may be attributed to a host of variables like demographics, economic status, education, employment, and marital status, whereas a quarter (24 percent) remains unexplained.
Qualitative analysis delves into the nuanced aspects of the gender gap, unravelling the layers and extent of the gender gap, and revealing that restrictive gender and social norms significantly impede women's financial inclusion. Women face derogatory remarks and social sanctions rooted in restrictive norms, limiting their roles within and outside the household. These norms influence the mindset of financial service providers and recipients, constraining access to core prerequisites of financial inclusion such as asset control and employment opportunities. Institutional structures and policy frameworks are likewise influenced by these norms, shaping both their design and implementation.
Despite the myriad of hurdles, some women attained a certain level of financial inclusion that proved to be transformative, bringing about changes in their lives and those around them. However, these enabling factors seem to work only when women are driven by compelling causes such as shocks, natural disasters, or financial crises.
In the second half of the conference at the plenary session, experts from home and abroad shared experiences on financial inclusion.
The study recommends a wide range of initiatives including the availability of data and women’s access to a digital device, having gender friendly business environment at bank branches and gender-friendly terms in case of loans and other services, formulation of a detailed action plan to reduce the gender gap, extending and effectively implementing fiscal incentives to small women entrepreneurs, emphasizing capacity building trainings addressing awareness and skills for financial and digital literacy, sustained campaigns and advocacy to raise awareness etc. In addition to the above-mentioned recommendations, the study also focused on women’s access to employment and income, which plays a crucial role in their access to financial services. Moreover, women’s lack of right to property, absence of compensation for unpaid care work, child marriage, and gender-based violence are also potential contributors to women’s exclusion, that need to be addressed from the top.
The concluding session was chaired by Dr. Mustafa K. Mujeri and participated by Executive Director of the Institute for Inclusive Finance and Development (InM) and participated by Mr. Mohammad Yakub Hossain, Executive Director, Microcredit Regulatory Authority (MRA); Ms. Bibi Russell, Founder of Bibi Productions; Ms. Maria Alexandra May, Senior Program Officer, Digital Financial Services, Bill and Melinda Gates Foundation.