Mobile Money and Digital Identity for Women's Financial Inclusion in Rural Economies

Abstract

Mobile money and digital identity systems are enabling technologies that can help increase women's financial inclusion in rural economies where physical access to formal banking services, documentation, social and financial barriers are significant. This paper considers how mobile money services and digital identity infrastructure can enable rural women's access to savings, payments, credit, remittances, insurance as well as small business finance. The study highlights the need to reassess the need for physical bank branches, and how mobile money allows women to carry out secure financial transactions with ease, via simple mobile phones and digital applications. Digital identity also improves inclusion by means of account registration, customer verification, access to government transfers, and formal access to financial services. The findings show that women working in mobile money and verified digital identity services are more financially independent, better manage their household finances, more involved in business and have access to emergency funds. Some of the hurdles to full participation are digital illiteracy, gender differences in phone ownership, poor network coverage, privacy concerns, fraud concerns and lack of awareness. The paper concludes that, with low-cost technology, financial protection, financial education and gender-informed policy designs, the use of mobile money and digital identity can have a significant impact on improving women's financial inclusion in rural economies.