Financial technology, including the use of alternative data to generate credit scores, has enabled many underserved customers around the world to access financial services for the first time.
But to ensure that women benefit, governments, financial service providers, and the development community must consider “what data are being collected and how those data [falling] ... along gender lines could unintentionally or intentionally have an impact on women’s access to credit,” said Sonja Kelly, global lead for research at Women’s World Banking, a nonprofit focused on financial inclusion for women.
Women are more likely than men to lack credit history information. They are also less likely to own mobile phones or smartphones, meaning they might not see as much benefit from alternative credit scoring algorithms that rely on these devices. The mobile gender gap is just one example of how women could have either the most to gain or the most to lose as digital tools open up new opportunities for access to credit.
About the author
Catherine Cheneycatherinecheney
Catherine Cheney is the Senior Editor for Special Coverage at Devex. She leads the editorial vision of Devex’s news events and editorial coverage of key moments on the global development calendar. Catherine joined Devex as a reporter, focusing on technology and innovation in making progress on the Sustainable Development Goals. Prior to joining Devex, Catherine earned her bachelor’s and master’s degrees from Yale University, and worked as a web producer for POLITICO, a reporter for World Politics Review, and special projects editor at NationSwell. She has reported domestically and internationally for outlets including The Atlantic and the Washington Post. Catherine also works for the Solutions Journalism Network, a non profit organization that supports journalists and news organizations to report on responses to problems.
