Financial Services for Women – Can FinTech Bridge the Gap?

FinTechs have been capturing market share at a rapid pace. BigTechs are equally investing resources in reinventing themselves for the global FinTech ecosystem. FinTech is thriving because it has remarkably increased the access to capital and finance for small business owners, including women, minorities, and immigrants, who were underserved before technology leveled the playing field. FinTech has capitalized on the available massive data on potential customers, buyers, and borrowers. The global FinTech market has reached its current potential by tapping the unserved and underserved customer segments. However, a lot is left to be done.

Dynamics of Women as Stakeholders of Global Financial Wealth

As per World Bank data, women constitute 49.58% of the world’s population. Women account for 49%–50.5% of the population in high- and low-income countries. Currently, the urban population constitutes 55.7% of the world’s population. As per the Women in Financial Services 2020 report, 40% of the total wealth is now owned by women; they (women) control two-thirds of global household spending. Financial services firms are missing at least a $700 billion revenue opportunity each year by not fully meeting the needs of women customers.

FinTech has successfully tapped new market segments and customer bases. However, it has left out women as the single largest underserved group of customers.

Problem Areas Offering Opportunity to FinTech