Gender and Digital Financial Inclusion: Assessment of Rural/Urban Dichotomy in Microfinance and Table Banking Operations in ECOWAS

Various national financial inclusion strategies (NFIS) and measures have been put in place by the government of Economic Community of West African States (ECOWAS) countries for promoting financial service access and affordability for all with most strategies emphasising the benefit of digital savings and payment in enhancing gender equality and women empowerment. Recent activities of digital finance operators through fintechs, blockchain, agent network managers, and technology service providers have been recognised in driving digital financial inclusion. Traditional microfinance and table banking operators focusing on the rural dwellers and the women’s society have embraced digital financing, and despite significant strides made, systemic barriers hamper the pace and speed of fostering synergies and harmonisation between digital finance and local financial institutions. As traditional microfinance institutions and operators of table banking in ECOWAS strive to compete with specialised digital finance services operators amidst a competitive market, women and poor households are left behind as they fail to conform to technological advancement. This chapter using selected ECOWAS countries’ experiences assesses the challenges, benefits, and risks faced by the traditional microfinance institutions and operators of table banking platforms in their digitalisation process towards enhancing gender equality in financial services. It considers ways of bridging the gender divide in assessing financial services through the partnership of microfinance and table banking operators in rural communities with digital financial services operators given the rise in recognition of the need to include women and the large unbanked society in rural communities. Furthermore, it addresses factors that can advance women’s access to digital financial services, build trust in its effectiveness, and promote equality of opportunities in rural areas.