I recently spoke with a friend in Kenya who highlighted the challenges women face in running for local elections, primarily due to the complexities involved in establishing a bank account. The initial hurdle is obtaining identification documents, a process complicated by cultural attitudes in some communities where men may oppose women seeking independent documentation. Additionally, many women live far from registration centers, struggle with literacy to fill out forms, and may not have the financial means to cover travel and documentation costs.
Moreover, a significant number of women lack birth certificates and proof of residence, especially if they live with male relatives. Processing delays are common, often necessitating multiple trips to distant registration centers. Without a bank account or the ability to independently manage and access funds, true freedom remains elusive. In many countries, having a bank account is essential for accessing government services, formal employment, registering to vote, and starting a business. Importantly, it is also a requirement for participating in local elections and engaging in local governance.
As a result, many women, particularly in developing nations, find their basic human rights constrained by an outdated financial system that is ill-suited for the 21st century. For instance, in Pakistan, only 13% of women have formal bank accounts compared to 34% of men. The process for women to open a bank account is often more complicated, frequently requiring additional identification and permission from a male relative. The situation is similarly bleak across South Asia, where only 37% of women have bank accounts compared to 55% of men.
In the Middle East, 45.5% of women have bank accounts, while in sub-Saharan Africa, the figure stands at 37% for women compared to 48% for men. Even when women do manage to open bank accounts in many developing countries, they are often viewed as less creditworthy than men. For example, in India, women receive credit amounting to only 27% of their deposits, whereas men receive credit equal to 52% of theirs. Furthermore, female entrepreneurs in India account for just 5.2% of the total credit extended to enterprises by public sector banks, despite having higher repayment rates than their male counterparts.
This perceived lack of creditworthiness is often linked to women’s lower ownership of property and other tangible assets that can serve as collateral for loans, which in turn is associated with lower banking rates. Given these circumstances, it is evident that there is a pressing need for an alternative to the traditional financial system. This existing system appears to perpetuate the biases and prejudices of those who manage it, making it clear that achieving financial equality for women requires a global social revolution that transforms perceptions of women.
