ACCESS Advisory

Inclusive Green Finance Series #1: Double Materiality and the Management of Climate Risks

Finance has become a key arena for climate action in recent years. The reason is that it is not just fossil fuel producers and users who are responsible for greenhouse gas (GHG) emissions. Institutions that provide finance to them are also being held responsible for emissions and the resulting impact on the climate. At the same time, changes in the climate can affect the profitability (or even the financial sustainability) of the companies that are clients of financial institutions, thus increasing the risk in a lender’s portfolio.

These two impacts––the impact of loans on the climate and the impact of the climate on the quality of the loan portfolio––is called “double materiality”, and it is at the heart of emerging regulatory reporting requirements for sustainable finance.

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Inclusive Green Finance Series #1: Double Materiality and the Management of Climate Risks | ACCESS Advisory Finance has become a key arena for climate action in recent years. The reason is that it is not just fossil fuel producers and users who are responsible for greenhouse gas (GHG) emissions. Institutions that provide finance to them are also being held responsible for emissions and the resulting impac...

Gender Issues in Financial Inclusion Series 7:

The “Three-Legged Stool” –– ACCESS’s recommended policy approach for promoting women’s financial inclusion

This blog series began its discussion of policy approaches by noting that one of the key challenges regulators face in promoting women's financial inclusion is a lack of buy-in from financial institutions. In the previous post, we noted three approaches for increasing FSP buy-in: financial support in Papua New Guinea, regulatory mandates in Pakistan, a combination of regulation, recognition, awards, and incentives in the Philippines.

The approach taken by the State Bank of Pakistan may be the most comprehensive, but many regulators may find it too heavy-handed, especially when there is limited buy-in from the industry. Absent significant funding as was provided in Papua New Guinea, regulators may consider the lighter-touch approach used in the Philippines, combining carrots (incentives) and sticks (mandates) to reward and encourage financial institutions to invest in increasing outreach to women.

Specifically, this approach would have three components:

1. Find and promote a champion that already serves women well
2. Provide incentives for other financial institutions to improve their outreach and service quality to women
3. Require sex-disaggregated data reporting

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Gender Issues in Financial Inclusion Series 7: The “Three Legged Stool” –– ACCESS’s recommended policy approach for promoting women’s financial inclusion | ACCESS Advisory This blog series began its discussion of policy approaches by noting that one of the key challenges regulators face in promoting women's financial inclusion is a lack of buy-in from FSPs. In the previous post, we noted three approaches for increasing FSP buy-in: In Papua New Guinea, the ADB-funded M...

Gender Issues in Financial Inclusion Series 6:

Policy approaches for promoting women’s financial inclusion (Part 2)

As discussed in the previous post, one of the key challenges regulators face in promoting women’s financial inclusion is a lack of buy-in from financial service providers (FSPs). So far, there is no clear or standard formula or even a set of effective actions that regulators and other stakeholders have taken to promote women’s financial inclusion among FSPs. Indeed, few regulators have been willing to mandate that financial institutions under their supervision expand outreach to women in the way that many have done for other marginalized groups, such as smallholder farmers.

This post reviews three approaches by regulators to encourage FSPs to increase outreach to women in Papua New Guinea, Philippines, and Pakistan.

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Gender Issues in Financial Inclusion Series 6: Policy approaches for promoting women’s financial inclusion (Part 2) | ACCESS Advisory As discussed in the previous post, one of the key challenges regulators face in promoting women’s financial inclusion is a lack of buy-in from financial service providers (FSPs). So far, there is no clear or standard formula or even a set of effective actions that regulators and other stakeholders...

Gender Issues in Financial Inclusion Series 5:

Policy approaches for promoting women’s financial inclusion (Part 1)

The key challenges regulators face in promoting women’s financial inclusion is a lack of buy-in from FSPs. Around the world, many financial institutions, even those whose mission and operations are geared toward financial inclusion, believe that they are already including women as their clients. Indeed, many already target women specifically. Since their portfolio performance and other business metrics are positive, they believe that they do not need to do anything more to effectively serve women. This indicates that even though promoting women’s inclusion and empowerment has been a major focus of the financial inclusion movement for more than a decade, the main message has not been well understood and internalized––that targeting women is not the same as serving women well.

This leaves regulators in a bind. As government officials, they have an interest in advancing women’s financial inclusion for the numerous social benefits it has for women as well as their families. As guardians of financial sector stability, they have an interest in advancing women’s financial inclusion because it diversifies risk in the sector’s loan portfolios. Yet, few regulators have been willing to mandate that financial institutions under their supervision expand outreach to women in the way that many have done for micro-entrepreneurs or smallholder farmers.

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https://www.accessadvisory.org/2024/08/14/gender-issues-in-financial-inclusion-series-5-policy-approaches-for-promoting-womens-financial-inclusion-part-1/

Gender Issues in Financial Inclusion Series 4:

Drivers of the Gender Gap in Financial Services, Part 3:

Limited or inappropriate non-financial services

Women need a broad range of non-financial products and services to meet their diverse needs throughout their lives. Some of these are the same as what a men need, but many are affected by the barriers and circumstances particular to women’s contexts. Gender transformative approaches such as Gender Action Learning Systems (GALS) and others, as well as training and advocacy can be used to overcome these deep-seated cultural norms.

A key driver of women’s financial inclusion is financial education, which focuses on building financial capability among people with low levels of education. The aim of financial education is to develop personal and household financial capabilities so that people can manage their personal and household income efficiently. Improved financial capability results in efficient management of income, increased savings, and enhanced economic self-reliance. Especially for women, economic self-reliance and control over financial resources can lead to an elevation of their status and influence within their household and community.

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Gender Issues in Financial Inclusion Series 4: Drivers of the Gender Gap in Financial Services, Part 3: Limited or inappropriate non-financial services | ACCESS Advisory Women need a broad range of non-financial products and services to meet their diverse needs throughout their lives. Some of these are the same as what a men need, but many are affected by the barriers and circumstances particular to women’s contexts. Gender transformative approaches such as Gender...

Gender Issues in Financial Inclusion Series 2

Drivers of the Gender Gap in Financial Services
Part 1: Gender Norms

In financial systems, as elsewhere, gender norms are pervasive and influence the behavior of all participants it, including consumers, financial service providers (FSPs), policymakers, and providers of supporting functions such as agent networks and credit registries. Deeply embedded behaviors and beliefs driven by gender norms shape the incentives and capacities of financial system actors that in turn influence (either positively or negatively) women’s financial inclusion and empowerment.

Successful women’s financial inclusion interventions therefore must start by understanding how and why women’s experiences in the household, community, and workplace are different than that of men. Successful approaches can either work within prevailing gender norms and their impact so that efforts to influence changes in the market system account for the different needs and capabilities of women that result from these norms (norm-informed interventions) or they can aim to change norms in order to enable behavior change that leads to increased women’s financial inclusion and economic empowerment (norm-transformative interventions).

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Gender Issues in Financial Inclusion Series 2: Drivers of the Gender Gap in Financial Services, Part 1: Gender Norms | ACCESS Advisory In financial systems, as elsewhere, gender norms are pervasive and influence the behavior of all participants it, including consumers, financial service providers (FSPs), policymakers, and providers of supporting functions such as agent networks and credit registries. Deeply embedded behaviors and b...