ACCESS Advisory

22/04/2025

Inclusive Green Finance Series #2: Typology of climate-related activities that need financing (part 1)

As discussed in the previous post, one of the key risks in climate finance derives from the fact that a financial institution’s loans could contribute to climate change. However, although it is critical that financial institutions ensure that their loans do not contribute to climate change, this is the minimum standard for green finance. Excluding such loans also does not help the financial institution grow its portfolio. Addressing climate issues and growing the portfolio requires financial institutions to proactively make loans.

There are many different types of climate related activities that need financing. Based on the draft EU sustainability reporting standards developed by the European Financial Reporting Advisory Group (EFRAG) and approved as of 22 November 2022, the typology of climate related loans includes:
- Mitigation
- Adaptation
- Promoting biodiversity and eco-systems, including water
and marine resources
- Reducing resource usage through circular practices
- Pollution prevention

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As discussed in the previous post, one of the key risks in climate finance derives from the fact that a financial institution’s loans could contribute to climate change. The most important factor, especially in the Asia-Pacific region, is when forests or other land is developed for farming (known ...

14/03/2025

Inclusive Green Finance Series #1: Double Materiality and the Management of Climate Risks

Finance has become a key arena for climate action in recent years. The reason is that it is not just fossil fuel producers and users who are responsible for greenhouse gas (GHG) emissions. Institutions that provide finance to them are also being held responsible for emissions and the resulting impact on the climate. At the same time, changes in the climate can affect the profitability (or even the financial sustainability) of the companies that are clients of financial institutions, thus increasing the risk in a lender’s portfolio.

These two impacts––the impact of loans on the climate and the impact of the climate on the quality of the loan portfolio––is called “double materiality”, and it is at the heart of emerging regulatory reporting requirements for sustainable finance.

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Finance has become a key arena for climate action in recent years. The reason is that it is not just fossil fuel producers and users who are responsible for greenhouse gas (GHG) emissions. Institutions that provide finance to them are also being held responsible for emissions and the resulting impac...

25/09/2024

Due to social norms, family responsibilities, and their responsibility for overall household financial management, women’s financial service needs differ from men. Most financial service providers (FSPs) do not take these different needs into account when designing product features and delivery processes. In fact, many FSPs consider women to be less valuable than male customers, and therefore do not invest in understanding and meeting their needs. At the same time, government officials do not have enough information about women’s place in the financial system to design policies and regulations.

S*x-disaggregated data is needed:

1) To enable policymakers to identify gender gaps, formulate of policies to accelerate women’s financial inclusion, and monitor progress toward inclusion goals

2)To enable financial sector supervisors to monitor FSP compliance with regulations

3) To encourage financial institutions to segment their clients by gender and identify business opportunities among women (e.g., through product bundling, strengthening of delivery channels, etc.)

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The following information is draw from an Alliance for Financial inclusion (AFI)-funded project in which ACCESS supported the National Bank of Cambodia to implement SDD in 2022. A. Concept and background to SDD Due to social norms, family responsibilities, and their responsibility for overall househ...

04/09/2024

Gender Issues in Financial Inclusion Series 7:

The “Three-Legged Stool” –– ACCESS’s recommended policy approach for promoting women’s financial inclusion

This blog series began its discussion of policy approaches by noting that one of the key challenges regulators face in promoting women's financial inclusion is a lack of buy-in from financial institutions. In the previous post, we noted three approaches for increasing FSP buy-in: financial support in Papua New Guinea, regulatory mandates in Pakistan, a combination of regulation, recognition, awards, and incentives in the Philippines.

The approach taken by the State Bank of Pakistan may be the most comprehensive, but many regulators may find it too heavy-handed, especially when there is limited buy-in from the industry. Absent significant funding as was provided in Papua New Guinea, regulators may consider the lighter-touch approach used in the Philippines, combining carrots (incentives) and sticks (mandates) to reward and encourage financial institutions to invest in increasing outreach to women.

Specifically, this approach would have three components:

1. Find and promote a champion that already serves women well
2. Provide incentives for other financial institutions to improve their outreach and service quality to women
3. Require sex-disaggregated data reporting

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This blog series began its discussion of policy approaches by noting that one of the key challenges regulators face in promoting women's financial inclusion is a lack of buy-in from FSPs. In the previous post, we noted three approaches for increasing FSP buy-in: In Papua New Guinea, the ADB-funded M...

27/08/2024

Gender Issues in Financial Inclusion Series 6:

Policy approaches for promoting women’s financial inclusion (Part 2)

As discussed in the previous post, one of the key challenges regulators face in promoting women’s financial inclusion is a lack of buy-in from financial service providers (FSPs). So far, there is no clear or standard formula or even a set of effective actions that regulators and other stakeholders have taken to promote women’s financial inclusion among FSPs. Indeed, few regulators have been willing to mandate that financial institutions under their supervision expand outreach to women in the way that many have done for other marginalized groups, such as smallholder farmers.

This post reviews three approaches by regulators to encourage FSPs to increase outreach to women in Papua New Guinea, Philippines, and Pakistan.

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As discussed in the previous post, one of the key challenges regulators face in promoting women’s financial inclusion is a lack of buy-in from financial service providers (FSPs). So far, there is no clear or standard formula or even a set of effective actions that regulators and other stakeholders...

13/08/2024

Gender Issues in Financial Inclusion Series 5:

Policy approaches for promoting women’s financial inclusion (Part 1)

The key challenges regulators face in promoting women’s financial inclusion is a lack of buy-in from FSPs. Around the world, many financial institutions, even those whose mission and operations are geared toward financial inclusion, believe that they are already including women as their clients. Indeed, many already target women specifically. Since their portfolio performance and other business metrics are positive, they believe that they do not need to do anything more to effectively serve women. This indicates that even though promoting women’s inclusion and empowerment has been a major focus of the financial inclusion movement for more than a decade, the main message has not been well understood and internalized––that targeting women is not the same as serving women well.

This leaves regulators in a bind. As government officials, they have an interest in advancing women’s financial inclusion for the numerous social benefits it has for women as well as their families. As guardians of financial sector stability, they have an interest in advancing women’s financial inclusion because it diversifies risk in the sector’s loan portfolios. Yet, few regulators have been willing to mandate that financial institutions under their supervision expand outreach to women in the way that many have done for micro-entrepreneurs or smallholder farmers.

Read more at:
https://www.accessadvisory.org/2024/08/14/gender-issues-in-financial-inclusion-series-5-policy-approaches-for-promoting-womens-financial-inclusion-part-1/

13/08/2024

Gender Issues in Financial Inclusion Series 5:

Policy approaches for promoting women’s financial inclusion (Part 1)

The key challenges regulators face in promoting women’s financial inclusion is a lack of buy-in from FSPs. Around the world, many financial institutions, even those whose mission and operations are geared toward financial inclusion, believe that they are already including women as their clients. Indeed, many already target women specifically. Since their portfolio performance and other business metrics are positive, they believe that they do not need to do anything more to effectively serve women. This indicates that even though promoting women’s inclusion and empowerment has been a major focus of the financial inclusion movement for more than a decade, the main message has not been well understood and internalized––that targeting women is not the same as serving women well.

This leaves regulators in a bind. As government officials, they have an interest in advancing women’s financial inclusion for the numerous social benefits it has for women as well as their families. As guardians of financial sector stability, they have an interest in advancing women’s financial inclusion because it diversifies risk in the sector’s loan portfolios. Yet, few regulators have been willing to mandate that financial institutions under their supervision expand outreach to women in the way that many have done for micro-entrepreneurs or smallholder farmers.

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The key challenges regulators face in promoting women’s financial inclusion is a lack of buy-in from FSPs. Around the world, many financial institutions, even those whose mission and operations are geared toward financial inclusion, believe that they are already including women as their clients. I...

05/08/2024

Gender Issues in Financial Inclusion Series 4:

Drivers of the Gender Gap in Financial Services, Part 3:

Limited or inappropriate non-financial services

Women need a broad range of non-financial products and services to meet their diverse needs throughout their lives. Some of these are the same as what a men need, but many are affected by the barriers and circumstances particular to women’s contexts. Gender transformative approaches such as Gender Action Learning Systems (GALS) and others, as well as training and advocacy can be used to overcome these deep-seated cultural norms.

A key driver of women’s financial inclusion is financial education, which focuses on building financial capability among people with low levels of education. The aim of financial education is to develop personal and household financial capabilities so that people can manage their personal and household income efficiently. Improved financial capability results in efficient management of income, increased savings, and enhanced economic self-reliance. Especially for women, economic self-reliance and control over financial resources can lead to an elevation of their status and influence within their household and community.

Read more at:
https://www.accessadvisory.org/2024/08/05/gender-issues-in-financial-inclusion-series-4-drivers-of-the-gender-gap-in-financial-services-part-3-limited-or-inappropriate-non-financial-services/

05/08/2024

Gender Issues in Financial Inclusion Series 4:

Drivers of the Gender Gap in Financial Services, Part 3:

Limited or inappropriate non-financial services

Women need a broad range of non-financial products and services to meet their diverse needs throughout their lives. Some of these are the same as what a men need, but many are affected by the barriers and circumstances particular to women’s contexts. Gender transformative approaches such as Gender Action Learning Systems (GALS) and others, as well as training and advocacy can be used to overcome these deep-seated cultural norms.

A key driver of women’s financial inclusion is financial education, which focuses on building financial capability among people with low levels of education. The aim of financial education is to develop personal and household financial capabilities so that people can manage their personal and household income efficiently. Improved financial capability results in efficient management of income, increased savings, and enhanced economic self-reliance. Especially for women, economic self-reliance and control over financial resources can lead to an elevation of their status and influence within their household and community.

Read more at:

Women need a broad range of non-financial products and services to meet their diverse needs throughout their lives. Some of these are the same as what a men need, but many are affected by the barriers and circumstances particular to women’s contexts. Gender transformative approaches such as Gender...

29/07/2024

Gender Issues in Financial Inclusion Series 3:
Drivers of the Gender Gap in Financial Services, Part 2:

Supply side gaps

While gender norms affect financial inclusion from the demand side, how financial service providers (FSPs) respond to those norms has a dramatic impact on women’s inclusion. There are two main factors on the supply side that negatively affect how FSPs serve women. The first is that FSPs do not invest enough in serving women. Many consider women less bankable than men because women-owned businesses are often smaller, as are their profits. Women are also considered to be more risk averse than men.

Second, even when FSP claim to target women, it is often with “gender-neutral” processes that work against women. For example, loan or deposit withdrawal applications that require their husband’s signature, or loan terms that include mandatory savings or require attendance at training, can discourage women. Marketing materials that do not directly target women or show women as clients reinforces the perception that financial services are for men.

Financial sector interventions that support FSPs to proactively focus on women as clients cover both product design and operations.

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23/07/2024

Gender Issues in Financial Inclusion Series 2

Drivers of the Gender Gap in Financial Services
Part 1: Gender Norms

In financial systems, as elsewhere, gender norms are pervasive and influence the behavior of all participants it, including consumers, financial service providers (FSPs), policymakers, and providers of supporting functions such as agent networks and credit registries. Deeply embedded behaviors and beliefs driven by gender norms shape the incentives and capacities of financial system actors that in turn influence (either positively or negatively) women’s financial inclusion and empowerment.

Successful women’s financial inclusion interventions therefore must start by understanding how and why women’s experiences in the household, community, and workplace are different than that of men. Successful approaches can either work within prevailing gender norms and their impact so that efforts to influence changes in the market system account for the different needs and capabilities of women that result from these norms (norm-informed interventions) or they can aim to change norms in order to enable behavior change that leads to increased women’s financial inclusion and economic empowerment (norm-transformative interventions).

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In financial systems, as elsewhere, gender norms are pervasive and influence the behavior of all participants it, including consumers, financial service providers (FSPs), policymakers, and providers of supporting functions such as agent networks and credit registries. Deeply embedded behaviors and b...