Onome Amuge
Financial experts have identified limited access to financial and nonfinancial services as a major impediment for women entrepreneurs, impacting their potential for economic growth and success.
This is as a recent global study revealed the enormity of the problem, with the SME finance gap for female entrepreneurs in developing countries amounting to $1.7 trillion. Urging the need for urgency, the experts called for concerted efforts to bridge the finance gap for women entrepreneurs and unleash their full potential.
According to reports, women represent the world’s largest and fastest-growing market—and one that has been largely overlooked by the incumbent and fintech sectors alike. It is believed that by overlooking the female economy opportunity, fintechs and other stakeholders are leaving trillions on the table.
In a concerted effort to unleash the full potential of the female economy and address the persistent gender gap in financial services, the Financial Alliance for Women,a non-profit organization working as an international consortium of financial institutions interested in the female economy, has taken on the challenge head-on.
Driven by a commitment to championing women’s economic empowerment, the alliance recently held its annual Hackathon, titled “Shaping Economies through Gender-Intelligent Fintech”. Sponsored by Moniepoint Inc and HSBC, the event brought together innovative fintech solutions that hold the potential to revolutionise the way women access and engage with financial services,
In a world where financial inclusion remains a significant challenge, the initiative provided a platform to tackle challenges which are not just theoretical; but real-world issues that women face daily.
The hackathon, now in its fifth year, attracted over 200 applications from fintechs worldwide.
Fifteen finalists were selected to compete, developing tech-based solutions to expand women business owners’ access to finance, provide non-financial services for business growth, support wealth-building, and address climate change adaptation.
Pilou, a women-focused platform offering personalised financial education and investment tools for women in Latin America, emerged as the winner, claiming the title of Female Economy FinTech of the Year 2024.
DREX, an Ecuadorian renewable energy financing platform linking women-owned businesses with women-owned solar farms, secured second place. Futa, which supports small businesses in Francophone Africa by leveraging payroll data to provide
employee financing, took third place.
Inez Murray, CEO of Financial Alliance for Women, highlighted the event’s significance: “We received a record number of entries this year. After careful consideration, we narrowed the field to 15 exceptional finalists who competed throughout early August, fine-tuning their solutions to facilitate women’s financial inclusion. Closing the financing gap for women-owned-businesses takes actions across the entrepreneurial ecosystem.
“We are privileged to bring together key actors from across the world to share innovative strategies that work to close that gap.”
Tosin Eniolorunda, CEO of Moniepoint Inc and a judge for the hackathon, emphasised the importance of women’s financial inclusion: “It’s not just a matter of equality – it’s a powerful catalyst for economic growth and societal progress. We’re committed to playing our part in unlocking the full potential of the female economy.”
The finalists received mentoring from industry leaders, including Edidiong Uwemakpan, Moniepoint’s VP of corporate affairs. They also participated in peer learning clinics and pitched their ideas to executives from global financial institutions.
The Financial Alliance for Women expressed gratitude to sponsors Moniepoint Inc and HSBC, noting the growing impact of the initiative: “Not only are we raising awareness within the fintech ecosystem, but we are also witnessing fintechs becoming increasingly gender-intelligent.
“By focusing on women’s financial inclusion, the Hackathon addresses a critical gap in the global economy. Women often face barriers to accessing financial services, which can hinder their ability to start and grow businesses, invest in their futures, and adapt to changing environmental conditions.
The solutions developed through this hackathon have the potential to break down these barriers, providing women with the tools they need to succeed.
This year’s Alliance Hack underscores the ongoing efforts to address the gender gap in financial services and harness the potential of the female economy, estimated to be worth trillions of dollars.
