Abstract
Digital finance presents great hope for the financial inclusion of women. At last, more women may enter the world economy and benefit from financial products and markets as others have for generations before them. However, the risks of digital finance as a method to achieve financial inclusion are not insignificant – including personal security issues such as vulnerability to scams, and inappropriate products for their financial circumstances. There are also broader implications for communities and society. Despite increased financial inclusion globally and improved access to digital financial services, inequality and inequity across societies in both developed and emerging economies persists.
The risks and consequences of the growth and spread of digital finance must therefore be anticipated and mitigated in order for women to achieve financial inclusion and ultimately financial well-being.
Through an ethical analysis of digital finance as a method to achieve financial inclusion of women, this chapter concludes that policy makers, established financial institutions, new providers, NGOs, and philanthropists engaged in the development and promotion of digital finance should recognize a concurrent responsibility to actively mitigate the forces that could threaten the well-being of women. Women with money are set to grow as an economic force. Given the right protections, all of society stands to benefit from women finally gaining the power that money affords.
References
Acs ZJ (2013) Why philanthropy matters: how the wealthy give, and what it means for our economic well-being. Princeton University Press, Princeton
Allen F, Demirgüç-Kunt A, Klapper L, Martinez-Peria MS (2016) The foundations of financial inclusion: understanding ownership and use of formal accounts. J Financ Intermed 27:1–30
Atkinson A, Messy F-A (2013) Promoting financial inclusion through financial education. OECD working papers on finance, insurance and private pensions no. 34. https://www.oecd-ilibrary.org/docserver/5k3xz6m88smp-en.pdf?expires=1591316240&id=id&accname=guest&checksum=A2BC13CC9BAEA7B139845FA51677FBAA
Banerjee SB, Jackson LR (2017) Microfinance and the business of poverty reduction: critical perspectives from rural Bangladesh. Hum Relat 70(1):63–91
Betterment (2015) Data suggests women are better (behaved) investors. https://www.betterment.com/resources/investment-strategy/behavioral-finance-investing-strategy/data-suggests-women-are-better-behaved-investors/
Bracht C (2014) The 2014 G20 Brisbane summit commitments. G20 Information Centre, G20 Research Group. http://www.g20.utoronto.ca/analysis/commitments-14-brisbane.html
Braun V, Herstatt C (2008) The freedom-fighters: how incumbent corporations are attempting to control user-innovation. Int J Innov Manag 12:543–572
Brei M, Ferri G, Gambacorta L (2019) How finance affects income inequality. VOX, CEPR Policy Portal. https://voxeu.org/article/how-finance-affects-income-inequality
Chetty R, De Villiers L, Dudar B, Smit H (2018) What can behavioural science tell us about the financial decisions of women? Evidence from a systematic review of behavioural intervention. International Development Research Centre. https://idl-bnc-idrc.dspacedirect.org/bitstream/handle/10625/57159/IDL-57159.pdf?sequence=2&isAllowed=y
Clemons EK (2015) MAC – Philadelphia National Bank’s strategic venture in shared ATM networks. J Manag Inf Syst 7(1):5–25
Commonwealth of Australia (2015) 2015 Intergenerational report Australia in 2055. Commonwealth Treasury. https://treasury.gov.au/sites/default/files/2019-03/2015_IGR.pdf
Commonwealth of Australia (2017) Women’s workforce participation – an economic priority. Prime Minister and Cabinet. https://womensworkforceparticipation.pmc.gov.au/womens-workforce-participation-economic-priority.html#1
Consultative Group to Assist the Poor (2016) Fraud in mobile financial services. https://www.cgap.org/research/publication/fraud-mobile-financial-services
Costello M, Chung D, Carson E (2005) Exploring pathways out of poverty: making connections between domestic violence and employment practices. Aust J Soc Issues 40(2):253–267
Council on Foreign Relations (2018) A conversation on financial inclusion with World Bank CEO Kristalina Georgieva. https://www.cfr.org/event/conversation-financial-inclusion-world-bank-ceo-kristalina-georgieva?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+publication%2Fvideo+%28Inside+CFR+Events+%28Video%29%29
Dasgupta I, Kanbur R (2011) Does philanthropy reduce inequality? J Econ Inequal 9:1–21
Datta S, Desai M (2018) Transforming financial inclusion using behavioral science from financial access to financial health. https://www.ideas42.org/wp-content/uploads/2019/04/I42-1020_ABPaper_FINAL-DIGITAL.pdf
Demirgüç-Kunt A, Klapper L, Singer D (2017) Financial inclusion and inclusive growth – a review of recent empirical evidence. Policy research working paper 8040. World Bank, Development Research Group Finance and Private Sector Development Team, Washington, DC
Demirgüç-Kunt A, Klapper L, Singer D, Ansar S, Hess J (2018) The Global Findex database 2017: measuring financial inclusion and the Fintech revolution. World Bank, Washington, DC. https://doi.org/10.1596/978-1-4648-1259-0. License: creative commons attribution CC BY 3.0 IGO
Department for International Development (DFID) (2004) Financial sector development: a prerequisite for growth and poverty reduction. Briefing (Policy Division)
Donovan K (2012) Mobile money for financial inclusion. Inf Commun Dev 61:61–73
Dupas P, Green S, Keats A, Robinson J (2012) Challenges in banking the rural poor: evidence from Kenya’s western province. NBER working paper 17851
Duvendack M, Mader P (2018) Impact of financial inclusion in low- and middle-income countries: a systematic review of reviews. Campbell Syst Rev 15:1. https://onlinelibrary.wiley.com/doi/full/10.4073/csr.2019.2
European Commission (2020) What is digital finance? https://ec.europa.eu/info/business-economy-euro/banking-and-finance/digital-finance_en
Fonseca R, Mullen KJ, Zamarro G, Zissimopoulos J (2012) What explains the gender gap in financial literacy? The role of household decision making. J Consum Aff 46(1):90–106
Global Partnership for Financial Inclusion (2013) G20 financial inclusion indicators, 2013. http://www.gpfi.org/sites/gpfi/files/G20%20Set%20of%20Financial%20Inclusion%20Indicators.pdf
Goldin C, Rouse C (1997) Orchestrating impartiality: the impact of “blind” auditions on female musicians. NBER working paper no. 5903. https://www.nber.org/papers/w5903
Guellec D, Paunov C (2017) Digital innovation and the distribution of income. NEBR working paper no. 23987. https://www.nber.org/papers/w23987
Gujral V, Malik N, Taraporevala Z (2019) Rewriting the rules: succeeding in the new retail banking landscape. Global Banking, McKinsey & Company, New York
Haskel J, Westlake S (2017) Capitalism without capitalism: the rise of the intangible. Princeton University Press, Princeton. https://press.princeton.edu/books/hardcover/9780691175034/capitalism-without-capital
Hasler A, Lusardi A (2017) The gender gap in financial literacy: a global perspective. Global Financial Literacy Excellence Centre, George Washington University, Washington, DC
Hendriks S (2019) Banking on the future of women, finance and development. https://www.gatesfoundation.org/TheOptimist/Articles/Women-gender-equality-digital-financial-services
Hernaes C (2017) Is technology contributing to increased inequality? TechCrunch. https://techcrunch.com/2017/03/29/is-technology-contributing-to-increased-inequality/
Hossein J, Kirkpatrick C (2005) Does financial development contribute to poverty reduction? J Dev Stud 41:636–656
International Finance Corporation (IFC) (2011) Mobile money study 2011. http://www.ifc.org/ifcext/globalfm.nsf/Content/Mobile+Money+Study+2011
International Labor Organisation (ILO) (2017) World employment social outlook – trends for women 2017. https://www.ilo.org/global/research/global-reports/weso/trends-for-women2017/lang%2D%2Den/index.htm
International Labor Organisation (ILO) (2018) World employment social outlook – trends for women 2018. https://www.ilo.org/wcmsp5/grouceps/public/%2D%2D-dgreports/%2D%2D-dcomm/publ/documents/publication/wcms_619577.pdf
International Monetary Fund (IMF) (2019) Financial access survey – 2019 trends and developments. https://data.imf.org/?sk=E5DCAB7E-A5CA-4892-A6EA-598B5463A34C&sId=1460040555909
UNESCAP (2018) Chapter 4. Technology and inequality. In: Inequality in Asia and the Pacific in the era of the 2030 Agenda for Sustainable Development. UN Economic and Social Commission for Asia and the Pacific, UNESCAP, United Nations publication, Bangkok, Thailand
Kauflin J, Adams S (2019) The $100 trillion opportunity: the race to provide banking to the world’s poor. Forbes. https://www.forbes.com/sites/jeffkauflin/2019/09/23/the-100-trillion-opportunity-the-race-to-provide-banking-to-the-worlds-poor/#5e86c5efd015
Laskowski K (2011) Philanthropy and inequality: what’s the relationship? National Committee for Responsive Philanthropy. https://www.ncrp.org/publication/philanthropy-inequality-whats-relationship#_ed.20
Levine R (1997) Financial development and economic growth. J Econ Lit 35:688–726
Macri M (2018) Speech at the World Economic Forum, Davos, 25 Jan 2018
Mader P (2018) Contesting financial inclusion. Dev Chang 49(2):461–483
Malala Fund (2018) Full force – why the world works better when girls go to school. https://indd.adobe.com/view/dd1081b1-39b6-4637-9c61-ac0cbb275b45
McKinsey & Company (2015) The power of parity: how advancing women’s equality can add $12 trillion to global growth. McKinsey Global Institute. https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Employment%20and%20Growth/How%20advancing%20womens%20equality%20can%20add%2012%20trillion%20to%20global%20growth/MGI%20Power%20of%20parity_Full%20report_September%202015.ashx
McKinsey & Company (2020) The case for accelerating financial inclusion in black communities. https://www.mckinsey.com/industries/public-sector/our-insights/the-case-for-accelerating-financial-inclusion-in-black-communities
Molinier H, Quan A (2019) Leveraging digital finance for gender equality and women’s empowerment. UN Women. Working paper. https://www.unwomen.org/en/digital-library/publications/2019/09/discussion-paper-leveraging-digital-finance-for-gender-equality-and-womens-empowerment
Morgan Stanley Institute for Sustainable Investing (2015) Sustainable signals: the individual investor perspective. https://www.morganstanley.com/sustainableinvesting/pdf/Sustainable_Signals.pdf
Muir K, Hamilton M, Noone JH, Marjolin A, Salignac F, Saunders P (2017) Exploring financial wellbeing in the Australian context. Centre for Social Impact & Social Policy Research Centre, University of New South Wales Sydney, for Financial Literacy Australia, Sydney
Napier M, Melamed C, Taylor G, Jaeggi T (2013) Promoting women’s financial inclusion: a toolkit. Department for International Development (DFID). https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/213907/promoting-womens-financial-inclusion-toolkit.pdf
Nobel Prize (2006) The Nobel Peace Prize for 2006. https://www.nobelprize.org/prizes/peace/2006/press-release/
OECD (2011) OECD economic surveys: India. https://www.oecd-ilibrary.org/economics/oecd-economic-surveys-india-2011_eco_surveys-ind-2011-en
OECD (2018) Bridging the digital gender divide: include, upskill, innovate. http://www.oecd.org/internet/bridging-the-digital-gender-divide.pdf
Preston A, Wright RE (2019) Understanding the gender gap in financial literacy: evidence from Australia. Econ Rec 95:1–29
Qureshi Z (2019) Inequality in the digital era. In: Work in the age of data. BBVA, Madrid. https://www.brookings.edu/wp-content/uploads/2020/02/BBVA-OpenMind-Zia-Qureshi-Inequality-in-the-digital-era.pdf
Riemer L (2013) More women own their own home. Domain/Fairfax. https://www.domain.com.au/news/more-women-own-their-own-home-20130729-2qtl8/
Robinson A (2019) Microfinance and women: assumptions and reality for empowerment impact. Australian Institute of International Affairs. http://www.internationalaffairs.org.au/australianoutlook/microfinance-women-assumptions-reality-empowerment-impact/
Rogers R (2013) Philanthropy and inequality. Stanford Social Innovation Review. https://ssir.org/books/reviews/entry/philanthropy_and_inequality
Steinert J, Zenger J, Filipiak U, Movsisyan A, Cluver LD, Shenderovich Y (2018) Do saving promotion interventions increase household savings, consumption, and investments in sub-Saharan Africa? A systematic review and meta-analysis. World Dev 104C:238–256
Stewart H (2015) OECD: large banking sectors widen inequality and slow growth. The Guardian. https://www.theguardian.com/business/2015/jun/17/oecd-report-large-financial-banking-sectors-slow-growth-wider-inequality
Sustainable Development Goals Knowledge Platform (2020) Sustainable development goals. https://sustainabledevelopment.un.org/?menu=1300
The Economist (2020) How digital financial services can prey on the poor. https://www.economist.com/finance-and-economics/2020/01/30/how-digital-financial-services-can-prey-upon-the-poor
Thomas B, Natarajan S (2018) Behavioural factors that influence the continued usage of formal financial services among the low income households. Int J Mech Eng Technol 9(7):22–36
United Nations Educational, Scientific and Cultural Organization (UNESCO) (2016) Incheon Declaration and Framework for Action for the implementation of Sustainable Development Goal 4. https://unesdoc.unesco.org/ark:/48223/pf0000245656
Vanguard (2015) Vanguard examines 401 (k) behaviour/outcome gender paradox. https://pressroom.vanguard.com/content/news/Press_Release_Women_and_DC_plans_CRR_paper_110315.html
Vanguard (2019) How America Saves 2019: the retirement savings behavior of 5 million participants. https://institutional.vanguard.com/VGApp/iip/site/institutional/researchcommentary/article/HowAmericaSaves2019
Wallace J, Ironfield D, Orr J (2000) Analysis of market circumstances where industry self-regulation is likely to be most and least effective. Tasman Asia Pacific. https://treasury.gov.au/sites/default/files/2019-03/ch1.pdf
Wei S-J (2019) How can digital technology tackle inequality? World Economic Forum. https://www.weforum.org/agenda/2019/11/how-can-digital-technology-tackle-inequality
White A (2015) The digital economy is no leveller, it’s a source of inequality. The Conversation. https://theconversation.com/the-digital-economy-is-no-leveller-its-a-source-of-inequality-36714
Wijland R, Hansen P, Gardezi F (2016) Mobile nudging: youth engagement with banking apps. J Financ Serv Mark 21:51–63
Wong G, Zane N, Saw A, Ka Ki Chan A (2013) Examining gender differences for gambling engagement and gambling problems among emerging adults. J Gambl Stud 29(2):171–189
World Bank (2010) President Zoellick’s speech at the MDG3 conference, Copenhagen
World Bank (2014) World development report – mind, society and behavior. https://issuu.com/world.bank.publications/docs/9781464803420
World Bank (2017) Financial inclusion overview. https://www.worldbank.org/en/topic/financialinclusion/overview
World Bank (2018a) Women’s financial inclusion and the law. https://www.worldbank.org/en/news/infographic/2018/11/07/womens-financial-inclusion-and-the-law-infographic
World Bank (2018b) Women, business and the law. https://elibrary.worldbank.org/doi/full/10.1596/978-1-4648-1252-1_FinancialInclusion
World Bank (2018c) Missed opportunities: the high cost of not educating girls. https://www.worldbank.org/en/topic/education/publication/missed-opportunities-the-high-cost-of-not-educating-girls
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Section Editor information
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this entry
Cite this entry
Kofman, P., Payne, C. (2020). Digital Financial Inclusion of Women: An Ethical Appraisal. In: San-Jose, L., Retolaza, J.L., van Liedekerke, L. (eds) Handbook on Ethics in Finance. International Handbooks in Business Ethics. Springer, Cham. https://doi.org/10.1007/978-3-030-00001-1_34-1
Download citation
DOI: https://doi.org/10.1007/978-3-030-00001-1_34-1
Received:
Accepted:
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-00001-1
Online ISBN: 978-3-030-00001-1
eBook Packages: Springer Reference Religion and PhilosophyReference Module Humanities and Social SciencesReference Module Humanities