Vritti May 2017 | Page 21

vritti Changing Lives May 2017 21 Regulatory Constraints: Social Constraints: According to the 2016 report of World Bank Group's “Women, Business and Law Project”, about 90 percent of 173 economies covered in the project have at least one law impeding women's economic opportunities. For example, in some countries such as Saudi Arabia, women are not allowed to open the bank account. In some countries the women are required to furnish specific permission or documentation which is very difficult to obtain. Property or land is normally not titled in the name of women, which is considered a preferred form of collateral among banks. Bank account opening procedure requires identity documents, thus becoming a major barrier for undocumented women in developing countries. Gender gap related to identity document is significant in Middle East and South Asian countries. Women in developing nations have lesser control over economic resources. According to a study by United Nations in 2015, one-third women in these economies do not have control over household spending on major purchases. They remain dependent upon their husbands and one-tenth of women are not even consulted over how their own earnings are spent. Therefore, the bargaining power and social status of women within their household is significantly low. Further, women have less access to formal education and are mostly involved in lower-paying economic activities or are not working. Women are more sensitized towards privacy. A study by GSMA in 2015 reveals that women are 14% less likely to own a mobile phone than men and even if they do they are less likely to use it due to privacy issues. Supply Side Constraints: One example of this barrier is that women find it difficult to interact with male point of contact in banks as female point of contact is less. Women find uncomfortable to visit bank branches which predominantly has significant male population coming for their banking needs. Very few banks have women only branches. The product offerings are not targeted for women in developing nations, considering their lesser ability to manage the risk and high cost of bank account ownership. The access channels are also constrained. Women are burdened with household related work and do not have much time to travel to bank branches. The ATMs are sometimes not guarded that prohibit women to withdraw money as possibility of theft is higher. Further, the ATMs located in isolated places prohibit women from venturing there. There are lower rates of cell phone ownership among women so they again are constrained to access digital financial products such as mobile banking.