If financial institutions worldwide rethink the way they reach out to women when launching new products, growth opportunities will be boundless

The biggest consumer market in the world is neither China nor India, but women. While there are products developed for them in other areas, designing and delivery of financial products specifically for women still needs a lot of consideration. Creating financial products with women in mind is not “pink-washing” products to make them superficially inviting to women, nor is it targeting products exclusively for women. Financial inclusion is growing, yet the global gender gap has not budged. This because many financial products simply don’t work for women. So, how can institutions tap into this rich, overlooked market?

There are three elements of gender-inclusive design. First, it is important to go beyond “gender-neutral” and create designs and products focused on women. Financial institutions often don’t realise that ‘neutral’ products are often designed keeping in mind with men’s needs while they unintentionally put women off. However, the reverse is not true. When products are created with women’s specific needs in mind, data proves that men are just as or even more interested. Market research shows that women have different needs when deciding about a new product or service. They need more information than men. Women don’t assume that a new or innovative financial product will work for them, so they place a high value on the opinions of peers. If a product is able to meet women’s needs, it is most likely to exceed men’s expectations.

Second, it is important to segment by gender during the product design phase. Listening to women is key to taking their needs into account during this phase. Segmenting by gender in research makes this possible as women are less likely to voice different opinion during research sessions where men are also present. They often have different concerns than men. For example, they are cost-conscious and may face issues of affordability and access that men don’t.

Third, developing gender-inclusive products should be viewed as business and not a corporate social responsibility. Forward-thinking financial institutions are beginning to recognise the potential of the women’s market as a business growth strategy. To reap rewards, they will need to believe in gender-inclusive products as a smart business move. Institutions can continue to build this business case by monitoring the uptake of new gender-inclusive products and understand the impact of women clients. This will help them learn from missteps and develop even stronger products that can reach scale and better capitalise on this market opportunity.

There are three factors which are absolutely necessary for the development of gender-inclusive products.

Design: In the initial design phase, new products that address issues such as access and affordability, will have a greater chance at success with women. For instance, does the product involve monthly fees or a minimum account balance and can low-income women afford it? Does the bank have extensive KYC requirements that may keep away women who have low literacy or lack all the necessary documentation due to local social norms?

Marketing: In the marketing stage, financial institutions must prove to women how the product will improve their lives. Communication and education initiatives must be able to reach women effectively and must also close the emotional gap by communicating that product/service is for her. Since trusted opinions are important in women’s decision-making process, tools such as referrals, testimonials or ratings, can be a powerful lever for institutions to use in sales and marketing.

Delivery: In the delivery phase, the product must be able to fit seamlessly into women’s lives. For example, if it’s a savings account aimed at women, are there convenient places near home where clients can deposit, withdraw and transact? Financial institutions must train customer service staff in how to effectively interact with women clients and respectfully address all their questions. Since women depend on reliable support, especially when taking up a new product, a poor customer service experience is more likely to negatively impact them.

Let’s take an example of the Pafupi savings account  designed in Malawi, East Africa. In rural areas, women considered bank accounts aspirational, which were only available to the rich people. Pafupi allows small deposits, charges no monthly fees, and it operates through agents in conveniently located rural shops. If financial institutions worldwide rethink the way they reach out to women when launching new products, growth opportunities will be boundless. Financial products that deliberately take women’s needs into account, at every step of the process, are a win-win-win: For women, men, for every institution that makes a strong, unwavering commitment to gender inclusion.

(The writer is Assistant Professor, Amity University)