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Examining the financial inclusion of women – the mobile money gender gap in Rwanda

05.05.2017Elisa Minischetti, Insights Manager, GSMA Connected Women

This post was originally posted on the GSMA website.

In a previous blog post, we outlined some of the barriers that affect women at a higher rate than men and that can help explain the origins of the mobile money gender gap in Rwanda. But do these barriers affect women regular and power users differently? What are the main drivers for mobile money usage among women? And finally, what can be done to bridge the mobile money gender gap?

These observations are based on 40 semi-structured interviews and five focus group discussions we conducted with men and women in Kigali. Participants were between 25 and 34 years of age. Each participant was either a regular user (sent or received at least one transaction via mobile money in the last three months) or a power user (sent or received at least one transaction a week via mobile money over the last three months). The barriers and potential opportunities to drive uptake of mobile money are also likely to vary with different demographic groups (e.g. for those in rural areas).

The barriers affect regular and power users in different ways

Transaction fees - a high price sensitivity to the fees associated with making a mobile money transaction was much more likely to be mentioned as an issue by female respondents across the usage groups. However, female power users were more likely than female regular users to value the convenience offered by mobile money, which seemed to compensate for the transaction fees.

Confidence and understanding - female regular users were more likely than female power users to mention poor confidence in their ability to make a transaction and low levels of understanding of the service as a barrier. While it is intuitive that lower exposure and understanding of the service may contribute to lower usage, this was never mentioned as an issue by men across usage groups. Also, while female power users were confident users, they claimed that women are shyer than men and don't believe in their ability to use the service effectively. This perception that women have low confidence in the ability to use mobile money, and that they are likely to not understand how the service works was also often mentioned by the men interviewed.

Trust - female regular users were more likely to report lower levels of trust in mobile money services than female power users. Female regular users were more likely to attribute low levels of trust in the mobile money service to the fact that agents tend to be mobile and not have permanent addresses. This meant that, when mistakes were made, women were unable to locate the same agent who helped them perform the transaction. While female power users were more likely than female regular users to trust the service with their money, once the amount of money on the mobile money account had reached a certain point, female power users tended to withdraw it and take it to a bank.

Trust in mobile money services was not particularly mentioned as an issue for the majority of the men interviewed - male regular and power users were indeed more likely than women to trust the service with their money.

What do women like about mobile money?

Throughout the qualitative research, women were consistently enthusiastic about the convenience offered by mobile money as it helped them save travel time and travel money.

Women also identified a saving opportunity in their mobile money account - all the women interviewed were consistently using their wallet to "store money for emergencies" (which was portrayed as different from saving money, which they were more likely to do at a bank as it was deemed safer than mobile money). Specifically, women noticed that when they kept their money in cash, they were more likely to spend it on what were seen as "unnecessary things", while as they started keeping it on their mobile money account, they were more likely to avoid misusing it. Women reported always keeping a certain amount of money on their mobile money account, which they could withdraw in case of emergency.

Finally, having a mobile money account gave women a sense of empowerment, as they felt able to manage their finances in a quick and secure way, while keeping this process private. Also, mobile money gave women a sense of independence. 100 per cent of the respondents said that it felt good when their transactions went through.

A few ideas for mobile money providers on how reach more women with their service

Make mobile money a competitive alternative to cash - as discussed in the previous blog post, women (both regular and power users) are more likely than men to be price sensitive, and to look for cheaper alternatives when making financial transactions. This is truer for female regular users than for female power users, who tend to value the convenience of the service over the transaction fees. With this in mind, mobile money providers need to be creative if they want to increase uptake of the service among women, for instance by creating targeted promotions that incentivise women to adopt and use the service.

Promote group savings via the mobile money - all the women interviewed during this research in Rwanda reported saving money via the bank or a local savings group. They also reported storing money away in case of emergencies, which happened primarily via the mobile money account. Providers seeking to improve the attractiveness of mobile money services for women should consider offering group savings products that target existing female savings groups. Introducing the mobile savings account to an already-existing and trusted savings group, would not only allow the provider to reach new women, but also to teach women how to use it in a network where they are supported and encouraged by their peers.

Consider women's preferences for distribution and marketing - women in our sample were more likely than men to report instances of poor customer service and to blame these instances for the poor trust they had in mobile money. Also, women suggested the creation of fixed locations and small houses where mobile money agents could host their customers, to enable customers to return when issues arise. From a marketing standpoint, it is also important that women are portrayed in billboards, TV ads, and radio ads, to avoid giving women the sense that the service is not for them.

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About the Author

Elisa Minischetti is the GSMA Connected Women Insights Manager. Before joining the GSMA, Elisa worked as an intern at the social enterprise WomenCraft in Ngara, Tanzania, where she contributed as Grant Manager and Budget Analyst. Prior to that, Elisa worked for Europe Direct, Forli', Italy, as a European Trainer and covered roles at the Italian Consulate and at a shipping firm in Germany. Elisa holds a Master's Degree from the Johns Hopkins University's School of Advanced International Studies in International Economics and Conflict Management. This degree was a complement to her MA in International Security and Politics from University of Bologna and BA in Political Science and International Relations from University of Siena.

Taking a look at women’s financial inclusion via mobile money – Barriers and drivers to the mobile money gender gap in Rwanda

24.04.2017Elisa Minischetti, Insights Manager, GSMA Connected Women

This post was originally posted on the GSMA website.

The widespread nature and affordability of mobile makes it the perfect vehicle to bridge the infrastructure gap that people in low- and middle-income countries often face. Mobile is also the gateway to life-enhancing services such as mobile money, which is undoubtedly contributing to increasing financial inclusion in emerging markets.

However, women tend to be consistently left out of the picture. Data from the Global Findex 2014 shows that women in low- and middle-income countries are 36 per cent less likely than men to access and use mobile money, which translates to 1.9 billion women worldwide. But this number masks greater imbalances at both the regional and country level. For instance, while in Sub-Saharan Africa the gender gap in mobile money ownership stands at 19.5 per cent, in Niger it is 60 per cent. In South Asia women are 67 per cent less likely than men to have a mobile money account.

How mobile money is contributing to financial inclusion in Rwanda

Rwanda is a dynamic mobile money market and the existence of a formal national ID system has contributed to financial inclusion via mobile money. To date, 37 per cent of Rwandan adults are considered financially included. 23 per cent of Rwandan adults or nearly two thirds of those who are financially included, have a mobile money account. 17 per cent of Rwandan adults are 90-day active mobile money users, at the same level of Ghana and not too far behind Uganda. In Rwanda, mobile money is catching up rapidly in spite of low literacy levels and handset ownership. This is impressive, especially if we consider that the first mobile money service in Rwanda was launched in 2010, while in Kenya and Ghana mobile money has been live since 2007 and 2008, respectively.

Source: FII data

In Rwanda, women are 20 per cent less likely than men to have a mobile money account. To better understand the origins of this gender gap, we decided to focus on the barriers that prevent women from accessing and using mobile money at the same rate as men. Also, in order to understand how the barriers affect different female mobile money users, we decided to assess what separates a regular female mobile money user (here defined as a user who has carried out at least one P2P/month on average over the last three months) from a power mobile money user (here defined as a user who has carried out at least one P2P/week on average over the last three months).

These insights allowed us to come up with some concrete suggestions on how to better reach women with mobile money in Rwanda. In order to do this, we conducted 40 semi-structured interviews and five focus group discussions, with women and men that are regular and power users of mobile money. Men and women were kept in separate groups to ensure that the opinions shared during the discussion were unbiased. All the interviewees lived in Kigali and were between 25-34 years of age, so the results may look different in rural areas.

Some barriers prevent women from accessing and using mobile money at the same rate as men

Price sensitivity

Our research showed that the women in the study tended to be more price sensitive than men to the fees associated with making a mobile money transaction. This can be partly explained by the fact that women often have a lower disposable income than men - as they were much more likely than men to do unpaid housework, they had lower income levels. Also, when women worked outside of the house, they were more likely to be employed in jobs that earn lower wages.

While men were more likely to value the convenience offered by the service over the fees, the opposite was true for women. Women therefore tended to find ways to avoid what they felt were unnecessary charges. Also, women were more likely to send mobile money more frequently and in lower amounts than men, leaving them more exposed to transaction fees. This pattern may be explained by women's lower levels of disposable income compared to men, as mentioned earlier on.

Lower confidence and understanding

Women in the study were much less confident than their male counterparts in their ability to make a mobile money transaction. There was a widespread perception, both among men and women that finance and technology are not traditionally female domains leading to the perception that women are less knowledgeable and less confident in these areas. Also, women were less mobile than men, meaning that they were less likely to be exposed to people who transact regularly and to opportunities to learn how to use the service, which fuelled the perceived sense, of both men and women, of lower understanding.

Low levels of trust

Lower levels of understanding of how the mobile money service works, make women less likely to trust the service with their money. Also, women who reported having low trust in the service were likely to complain about negative customer service experiences, or of the negative customer service experienced by others. Finally, more so than men, women preferred to use the bank for larger amounts of money, as banks were perceived to be safer than mobile money. As such, women seemed to be more likely than men to store money on their mobile money account up to a certain amount, at which point they would withdraw the money and deposit it into a bank, deemed more trustworthy with larger sums than mobile money.

In the next blog, I'll explore the reasons why women like using mobile money, and I will compare regular and power users of mobile money, to understand how the barriers impact them differently.

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About the Author

Elisa Minischetti is the GSMA Connected Women Insights Manager. Before joining the GSMA, Elisa worked as an intern at the social enterprise WomenCraft in Ngara, Tanzania, where she contributed as Grant Manager and Budget Analyst. Prior to that, Elisa worked for Europe Direct, Forli', Italy, as a European Trainer and covered roles at the Italian Consulate and at a shipping firm in Germany. Elisa holds a Master's Degree from the Johns Hopkins University's School of Advanced International Studies in International Economics and Conflict Management. This degree was a complement to her MA in International Security and Politics from University of Bologna and BA in Political Science and International Relations from University of Siena.

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