Financial inclusion of women is very important for gender equality in Pakistan. It empowers women and gives them upper hand over their financial life. Also it can have a positive impact on an entire family household. Digital financial services offered through mobile phone platforms and agent banking. It allow women to make transactions safely and conveniently from their own homes, villages, businesses places. This can allow women to receive or transfer money without travelling to deposit a check/Cash to the bank or pay a bill, or pay fee.
Digitization also can make it safer and more convenient for women to save for a child’s education, child’s marriage, a medical emergency, or an unexpected family need. Moreover, it can protect those savings from family members who may demand a share of the money. Besides this Digital financial services can help women build a good credit history, opening doors to bank loans that can help women start a business. Digital financial services also can give women greater opportunities to work from their homes or local villages, and operate their own businesses. Finally, digitization can help existing women-owned businesses grow and succeed by increasing their access to financial markets and formal loans.
How Digital Finance Empower Women to increase their economic participation
These are the benefits of digital financial inclusion to provide a powerful basis for women to increase their economic participation
- Digital financial solutions can make a significant difference in linking the gender gap in account ownership. They also can increase women’s participation in the financial system both in terms of the volume and value of transactions.
- Digital financial services can provide women with better privacy, confidentiality, and control over their finances. Giving women more financial independence can have a positive impact on an entire household.
- Digital financial services give women the opportunity to save formally, eliminating the high cost associated with saving informally.
- Digital financial services can improve women’s access to formal credit.
- Digitization of financial services can reduce time spent on travelling to access banks or make utility payments.
- Digital financial services can be an effective way to reduce various risks associated with women’s work and business such as agricultural insurance, security from theft and harassment, commitment products can prevent misuse and ensure timely action
- Digital financial services also promote women’s empowerment by improving women-owned businesses’ ability to lower banking costs.
- Digital records can help entrepreneurs better manage their inventory stock and make more efficient procurement decisions.
Many of the social and systemic barriers that women face in accessing traditional formal financial services are widely known realities for women in Pakistan, low financial independence and lower financial literacy. These barriers also contribute to the specific challenges that limit demand for and use of digital financial services.
Working together government, financial services industry, large business and Local development community can take steps to overcome barriers to women’s digital financial inclusion and significantly increase women’s economic participation. Digital financial services are instrumental to achieving country’s economic goal. And if the actions are taken swiftly to increase women’s access to these services, they will make an important contribution toward Pakistan’s economy. That would benefit individuals and households and the economy.
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