Are women financially excluded from formal financial services? Analysis of some selected local government areas in Lagos State, Nigeria

Joseph A. OMOJOLAIBI, Adaobi Geraldine OKUDO, Deborah A. SHOJOBI

Abstract


Abstract. The preoccupation of this study is to investigate whether women are financially excluded from formal financial services in Lagos State. Four local government areas (Ikeja, Ifako- Ijaiye, Somolu-Bariga and Agege) were selected for the empirical enquiry. Perceptions of women about formal financial services were collected by means of questionnaires. Of the 280 questionnaires sent out, 202 were recovered and the data was analyzed using descriptive analyses techniques. Two major findings are reported:(i) women are excluded from financial services mostly because of their lower level of education which thus exclude them from being able to utilize financial products such as mobile and internet banking; and (ii)the older the respondents get, the lower their willingness to make use of internet or mobile banking, as the emergence of new products in that line is too sophisticated for them to understand, thus, they experience technical exclusion from financial services. The study recommends that: (i) there is need for specialized financial product for women and increased awareness of beneficial products by the financial institutions; and (ii) financial institutions should design specialized financial products for women and to embark on road-shows in markets where women are mostly aggregated in order to create efficient awareness of these financial products.

Keywords. Financial services, Financial exclusion, Financial institution, Nigeria.

JEL. G21, O40.

Keywords


Financial services; Financial exclusion; Financial institution; Nigeria.

Full Text:


References


Aker, J., Boumnijel, R., McClelland, A., & Tierney, N. (2015). Payment mechanisms and anti-poverty programs: Evidence from a mobile money cash transfer experiment in Niger. Tufts University. [Retrieved from].

AFI (2011). Maya Declaration: Commitment made by the Bank of Tanzania. AFI Global Policy Forum.

AFI (2013). Financial inclusion data tracking and measurement: Demand-side surveys to inform policymaking. Alliance for Financial Inclusion. [Retrieved from].

AFI (2014). Financial inclusion strategy peer learning group (FISPLG) fact sheet. Alliance for Financial Inclusion. (undated). A quick guide to the maya declaration on financial inclusion. [Retrieved from].

AFI (2015). Measurable goals with optimal impact: 2014 maya declaration progress report. Alliance for Financial Inclusion. Financial inclusion strategies: Global trends and lessons learnt from the AFI Network. Ppt. Robin Newnham. Bogota, Colombia, 28-29 April 2014.

Ashraf, N., Karlan, D., & Yin, W. (2010). Female empowerment: Further evidence from a commitment savings product in the Philippines. World Development, 28(3), 333–344. doi. 10.1016/j.worlddev.2009.05.010

Aterido, R., Beck, T., & Iacovone, L. (2011). Gender and finance in Sub-Saharan Africa are women disadvantaged? Washington: World Bank. [Retrieved from].

Babatz, G. (2013). Sustained effort, saving billions: Lessons from the Mexican government's shift to electronic payments. Better Than Cash Alliance Evidence Paper, Mexico Study.

Beck, T., Maimbo, S.M., Feye, I., & Triki, T. (2011). Financing Africa – Through the crisis and beyond. African Development Bank/BMZ/The World Bank. Washington, DC: World Bank.

Bijli, H.K. (2012). Financial literacy: An essential tool for empowerment of women through microfinance. Studies on Home and Community Science, 6(2), 77-85. doi. 10.1080/09737189.2012.11885370

Binaté F.N. (2009). Efficacy of micro-financing women’s rural activities in Cote d’Ivoire: Empirical analysis of women’s livelihood activities, productivity and income. [Retrieved from].

BMZ/GIZ. (2012). Gender differences in the usage of formal financial services in Botswana; - Malawi; -Namibia; - Rwanda; - Uganda; - Zambia. Eschborn: GIZ.

Blumenstock, J., Callen, M., & Ghani, T. (2015). Mobile-izing savings with automatic contributions: Experimental evidence on dynamic inconsistency and the default effect in Afghanistan. JPAL Working Paper, [Retrieved from].

Bradshaw, C., & Diop, B. (2013), Women's role in economic development: Overcoming the constraints. Sustainable Development Solutions Network. World Economic Development Initiative. May, 2013. [Retrieved from].

Buvinic, M., & Furst-Nichols, R. (2014). Promoting women’s economic empowerment: What works?, World Bank, Policy Research Working Paper, No.7087. [Retrieved from].

Castri, S., & Gidvani, A. (2014). Enabling mobile money policies in Tanzania: A “test and learn” approach to enabling market-led digital financial services. GSMA. [Retrieved from].

Center for Global Development. (2016). Financial regulations for improving financial inclusion: A CGD Task Force Report. [Retrieved from].

Centre for the Study of Financial Inclusion (CSFI). (2012). Microfinance Banana Skins 2012: Staying Relevant. London: CSFI. CGAP/FSD. 2012. Using Credit to Grow Savings: Results from a Mobile Pilot in Kenya. Washington/Nairobi.

Chami, O., Henrich, J., & Marija, K. (2011). Gender differences in the usage of formal finance in six Sub-Saharan countries. Unpublished Paper. Eschborn. [Retrieved from].

Chehade, N., & Nègre, A. (2013). Lessons learned from the Moroccan crisis. Brief. Washington, D.C.: CGAP. [Retrieved from].

Chen, G., Rasmussen, S., & Reille, X. (2010). Growth and vulnerabilities in microfinance. Focus, Note 61. Washington. [Retrieved from].

Chen, G., & Rasmussen, S. (2014). Kash Bangladesh: A fast start for mobile financial services. Brief. Washington. [Retrieved from].

Cihak, M. (2013). An analysis of national financial inclusion strategies. World Bank Blog. Clamara, Noelia, Ximena Peña and David Tuesta. February 2014. [Retrieved from].

Cihak, M. (2014). Factors that matter for financial inclusion: Evidence from Peru. BBVA Working Paper, No.14/09. Madrid. [Retrieved from].

Cohen, M., & Nelson, C. (2011). Financial literacy: A step for clients toward financial inclusion. Paper presented at 2011 Global Microcredit Summit, Valladoid, Spain, [Retrieved from].

Cole, S., Sampson, T., & Zia, B. (2014). Financial literacy, Financial decisions, and the demand for financial services: Evidence from India and Indonesia. Harvard Business School, 2009. Accessed 12 October, 2014. [Retrieved from].

Dabla-Norris, E., Ji, Y., Townsend, R., & Unsal, F.D. (2015). Identifying constraints to financial inclusion and their impact on GDP and inequality: A structural framework for policy. IMF Working Paper, No.15/22. Washington. [Retrieved from].

Dashottar, U. (2014). A report: Training of trainers programme on micro entrepreneurship development program for CRPs and block coordinators. Paper presented to the Indian School of Microfinance for Women in Udaipur, Rajsthan, 5-10 October, 2014.

Delavallade, C., Dizon, F., Vargas Hill, R., & Petraud, J.P. (2015). Managing risk with insurance and savings: Experimental evidence for male and female farm managers in the Sahel. World Bank Policy Research Working Paper, No.7176. [Retrieved from].

Demirguc-Kunt, A., Klapper, L., & Singer, D. (2013). Financial inclusion and legal discrimination against women. World Bank Policy Research Working Paper, No.6416. [Retrieved from].

Demirguc-Kunt, A., Klapper, L., Singer, D., & Van Oudheusden, P. (2015). The global findex database 2014 - Measuring financial inclusion around the World. World Bank Policy Research Working Paper, No.7255. [Retrieved from].

Demirguc-Kunt, A., & Klapper, L. (2013). Measuring financial inclusion: Explaining variation in the use of financial services across and within countries. Brookings Papers on Economic Activity, 46(1), 279-340.

Demirguc-Kunt, A., Klapper, L., & Singer, D. (2013). Financial inclusion and legal discrimination against women: Evidence from developing countries. Policy Research Working Paper, No.6416. [Retrieved from].

Demirguc-Kunt, A., Klapper, L., Singer, D., & Van Oudheusden, P. (2015). The global findex database 2014: Measuring financial inclusion around the World. Policy Research Working Paper, No.7255. [Retrieved from].

Duflo, E. (2012). Women empowerment and economic development. Journal of Economic Literature, 50(4), 1051-1079. doi. 10.1257/jel.50.4.1051

Dupas, P., & Robinson, J. (2013). Savings constraints and microenterprise development: Evidence from a field experiment in Kenya. American Economic Journal: Applied Economics, 5(1), 163–192. doi. 10.1257/app.5.1.163

Duryea, S., & Schargrodsky, E. (2008). Financial Services for the Poor: Savings, Consumption, and Welfare. Mimeo.

Elborgh-Woytek, K., Newiak, M., Kochhar, K. et al., (2013). Women, work, and the economy: Macroeconomic gains from gender equity. IMF Staff Discussion Note, No.13/10. [Retrieved from].

Field, E., Jayachandran, S., & Pande, R. (2010). Do traditional institutions constrain female entrepreneurship? A field experiment on business training in India. The American Economic Review, 100(2), 125-129. doi. 10.1257/aer.100.2.125

Financial Sector Deepening Trust. (2014). Financial capabilities baseline survey findings 2013. Dar-es-Salaam: Financial Sector Deepening Trust. FinScope Tanzania. [Retrieved from].

Financial Times. (2015). China tightens grip on internet lending platforms, Financial Times, 19 July. [Retrieved from].

Finnegani, G. (2015). Strategies for women's financial inclusion in the Commenwealth. Women's Financial Inclusion Ddiscussion Paper, No.2015. [Retrieved from].

FSB (Financial Stability Board). (2011). Shadow Banking: Scoping the Issues—A Background Note of the Financial Stability Board. Basel: FSB, April. [Retrieved from].

G20, (2012). Communique—G20 Finance Ministers and Central Bank Governors, Mexico, February. [Retrieved from].

Gajjala V. (2014). Debt burdens and a lack of financial literacy: Microfinance crisis in the State of Andhra Pradesh. Unpublished Paper. Accessed 5 November, 2014. [Retrieved from].

Gaurav, S., & Singh, A. (2012). An inquiry into the financial literacy and cognitive ability of farmers: Evidence from Rural India. Oxford Development Studies, 40(3), 358-380. doi. 10.1080/13600818.2012.703319

Global Partnership for Financial Inclusion (GPFI) and IFC. (2011). Strengthening access to finance for women-owned SMEs in developing countries. Washington, DC. [Retrieved from].

Global Partnership for Financial Inclusion. (2011). Global standard-setting bodies and financial inclusion for the poor. Toward proportionate standards and guidance. CGAP. [Retrieved from].

GSMA. (2014). Women and mobile: A global opportunity. [Retrieved from].

GSMA. (2015). Bridging the gender gap: Mobile access and usage in low- and middleincome countries. [Retrieved from].

GSMA. (2014). 2013 State of the industry report on mobile financial services for the unbanked. [Retrieved from].

Hallward-Driemeier, M., Hasan, T., & Rusu, A.B. (2013). Women’s legal rights over 50 years: What is the impact of reform?. Policy Research Working Paper, No.6617. [Retrieved from].

IFC. (2015). Achieving interoperability in mobile financial services: Tanzania case study. Washington, DC. [Retrieved from].

IMF. (2013). What is shadow banking, Finance & Development, June. [Retrieved from].

Jack, W., & Suri, T. (2014). Risk sharing and transactions costs: Evidence from Kenya's mobile money revolution. American Economic Review, 104(1), 183-223. doi. 10.1257/aer.104.1.183

Janis, W., & Shah, R. (2016). Accelerators to an inclusive digital payments ecosystem. Better Than Cash Alliance. [Retrieved from].

Karlan, D., Kendall, J., Mann, R., Pande, R., Suri, T., & Zinman, J. (2016). Research and impacts of digital financial services. NBER Working Paper, No.22633. doi. 10.3386/w22633

Karlan, D., McConnell, M., Mullainathan, S., & Zinman, J. (2016). Getting to the top of mind: How reminders increase saving. Management Science, 62(12), 3393-3411. doi. 10.1287/mnsc.2015.2296

Kast, F., & Pomeranz, D. (2014). Saving more to Borrow Less: Experimental evidence from access to formal savings accounts in Chile. NBER Working Paper, No.20239. doi. 10.3386/w20239

Klapper, L., & Dutt, P. (2015). Digital financial services to advance women's economic participation. The World Bank. [Retrieved from].

Klapper, L., El-Zoghibi, M., & Hess, J. (2016). Achieving the sustainable development goals: The role of financial inclusion. CGAP Working Paper, [Retrieved from].

Lauer, K., & Lyman, T. (2015). Digital financial inclusion: Implications for customers, regulators, supervisors, and standard-setting bodies. Brief. Washington. [Retrieved from].

Ledgerwood, J., Earne, J., & Nelson, C. (2014). The New Microfinance Handbook: A Financial Market System Perspective. Washington, DC: World Bank.

Loiseau, J., & Walsh, C. (2015). Where credit is due." J-PAL and IPA Policy Bulletin. Cambridge.

Love, I., María Soledad Martínez Pería & Singh, S. (2013). Collateral registries for movable assets: Does their introduction Spur firms’ access to bank finance?. Policy Research Working Paper, No.6477. [Retrieved from].

Mas, I., & Elliott, A. (2014). Where’s the cash? The geography of financial access points in Tanzania financial access maps Dar es Salaam: Financial Sector Deepening Trust. [Retrieved from].

McIntyre, V. (2016). The surprising reason why savings boosts income: New research reveals an unexpected benefit of financial inclusion. NextBillion. [Retrieved from].

Muralidharan, K., Niehaus, P., & Sukhtankar, S. (2014). Payments infrastructure and the performance of public programs: Evidence from biometric smartcards in India. NBER Working Paper, No.1999. doi. 10.3386/w19999

Owens, J. (2014). Highlights on the mobile financial services landscape in Tanzania and lessons for regulators. Alliance for Financial Inclusion. [Retrieved from].

Prina, S. (2015). Banking the poor via savings accounts: Evidence from a field experiment. Journal of Development Economics, 115(C), 16-31. doi. 10.1016/j.jdeveco.2015.01.004

Saho, A. (2016). Three banks share three lessons about serving low-income women. Women's World Banking, [Retrieved from].

Schaner, S. (2016). The persistent power of behavioral change: Long-run impacts of temporary savings subsidies for the poor. J-PAL Working Paper, [Retrieved from].

Tarazi, M., & Breloff, P. (2010). Nonbank e-money issuers: Regulatory approaches to protecting customer funds. Focus Note, No.63. [Retrieved from].

United Nations Statistics Division. (2015). The World's women 2015: Trends and statistics. United Nations. [Retrieved from].

Women’s World Banking. (2011). Solutions for financial inclusion: Serving rural women. New York: Women’s World Banking. [Retrieved from].

Women’s World Banking. (2013). Savings: A gateway to financial inclusion. New York: Women’s World Banking. [Retrieved from].

Women’s World Banking. (2014). African leaders commit to economic empowerment for low-income women. [Retrieved from].

Women’s World Banking. (2014). Global Best Practices in Banking Women-Led SMEs. New York: Women’s World Banking. [Retrieved from].

World Bank IFC. (2013). Ready for growth: Solutions to increase access to finance for women-owned businesses in the Middle East and North Africa. Washington, [Retrieved from].

Zimmerman, J.M, & Baur, S. (2016). Understanding how consumer risks in digital social payments can erode their financial inclusion potential. CGAP Brief. [Retrieved from].

Zollmann, J., & Sanford, C. (2016). A buck short: What financial diaries tell us about building financial services that matter to low-income women. Bankable Frontier Associates/Omidyar Network. [Retrieved from].




DOI: http://dx.doi.org/10.1453/jest.v6i1.1846

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Journal of Economic and Social Thought - J. Econ. Soc. Thoug. - JEST - www.kspjournals.org

ISSN: 2149-0422

Editor: jest@ksplibrary.org   Secretarial: secretarial@ksplibrary.org   Istanbul - Turkey.

Copyright © KSP Library