SBP Podcast highlights importance of women financial inclusion

KARACHI: In the latest episode of SBP Podcast, State Bank of Pakistan informed about the importance of raising the financial inclusion of women and its potential impact on living standards, as well as, on national output.

The episode features Senior Joint Director, Financial Inclusion Support Department, SBP-BSC, Shahla Riaz and Deputy Director, Agriculture Credit and Financial Inclusion, SBP, Farah Farooqi.

This episode emphasises the benefits of bank accounts for women, and also how financial literacy translates into greater financial inclusion of women.

The episode highlights the obstacles and challenges that have historically limited women access to banking and finance. It also lists a number of steps taken by SBP in coordination with commercial banks, government and other stakeholders to overcome these challenges.

Demand-side issues that women face in access to bank accounts include cultural barriers, limited access to digital devices and the internet, restricted mobility, lack of financial literacy and absence of legal documentation. Historically, a number of supply-side issues have also limited women access to banking products and services.

These include low female representation among bank staff, lack of specialized products for women, and lack of gender sensitivity capacity among bank staff.

SBP has taken specific actions though the Banking on Equality Policy to attain women inclusiveness in banking sector. This strategy contributed to women empowerment by opening millions of active female bank accounts and offering subsidised loans and other products to facilitate female entrepreneurs.

The participants also shared success stories related to the Banking on Equality policy. Further, they mentioned that SBP has also conducted the National Financial Literacy Program (NFLP).

Among other objectives, this plan ensured that bank accounts were opened for participants via biometric verification and expedited approval process. It was ensured that at least half of the people facilitated through such services were women.

Through this program 58% target of bank account opening of women in underserved areas has been achieved where trainers were also female. Additionally, Asaan Mobile Accounts and Asaan Digital Accounts have also been introduced by SBP for encouraging mobile banking usage.

The episode highlighted that empowered and inclusive society couldn’t be shaped if half of the population is systematically excluded from the workforce. Gender intentional products are required to encourage a greater proportion of the female population to open and operate bank accounts and also to avail a wider spectrum of banking products and services.

Copyright Business Recorder, 2024