Financial literacy crucial for women's inclusion: Experts

Financial literacy can help women better understand banking, savings, and investment options, which can improve their access to and use of financial services in Bangladesh, bankers and experts said at a roundtable yesterday.

A2i, an initiative of the government, and UNDP organised the discussion in partnership with The Business Standard at the latter's office.

They said that enhanced financial literacy fosters confidence, encouraging women to engage with formal financial institutions, access credit, and contribute to economic growth through the inclusion of women.

Bangladesh Bank Executive Director Md Abul Bashar attended the roundtable as chief guest, while A2i Gender Specialist Nahid Sharmin presented a keynote paper.

Representatives from non-governmental organisations (NGOs) and banks, as well as an economist, also spoke. Sajjadur Rahman, deputy editor of The Business Standard, moderated the programme.

In her presentation, Nahid Sharmin said promoting financial literacy among women in Bangladesh paves the way for economic inclusion, empowerment, and equitable development.

Digital financial services and microfinance institutions helped women save more than men, taking microloans equally, she said, adding that in terms of frequency and magnitude of using the financial services, they significantly lag behind men, just like their backwardness in accessing technology—using mobile phones and data.

Professor Sayema Haque Bidisha, of economics at the University of Dhaka, said women are not actively using financial services like men, and their control and confidence in financial decision-making need widespread financial literacy.

The digital and urban-rural gap needs to be narrowed down along with making small entrepreneurs' lives easier through lots of process simplification, she added.  

Manusher Jonno Foundation Executive Director Shaheen Anam said if access to financial services or microfinance changes the position of women in their families and in society, which would be the most important thing.

There needs to be a change in how society looks at women, and treating women as equal partners is crucial, she added.

Shaheen Anam said, "A more women-friendly environment is the bottom line so that they have access to all the services."

The Bangladesh Bank, under its announced guidelines, has been offering huge low-cost funds to banks for lending to small and medium enterprises (SMEs) and women entrepreneurs, promoting their emergence, said Md Abul Bashar.

"However, most banks were not doing their best," said the central bank executive director, expressing his frustration.

Trust Bank Managing Director Humaira Azam stressed the need for policy relaxation for small borrowers for the sake of impactful finances.

Echoing other speakers, Oxfam Enterprise Development Programme Officer Sayeda Maksuda Jahan said financial literacy and women's economic empowerment have a strong relationship, and collaboration among regulators, NGOs, the private sector, and other stakeholders is important to strengthen it.