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IDB Invest Study Promotes Rethinking Financial Services for Women in Latin America and the Caribbean

A new study by IDB Invest and ConsumerCentriX collecting financial data from more than 240 institutions from 13 countries in Latin America and the Caribbean, shows that financial institutions in the region could be losing millions of dollars by not prioritizing the women's market and financial products tailored to them.


According to data from three countries that are highlighted in the report, serving the women's market in Mexico could add an additional annual income of approximately $1.8 billion, $756 million in Peru, and $283 million in Guatemala.


The study Women Rising: A Study of the Growing Financial Power of the Women’s Market in Latin America and the Caribbean, and What this Means for Financial Institutions, shows that  women's purchasing power is increasing.


Women own almost a quarter of the entrepreneurial companies and small and medium-sized enterprises (SMEs) in the region, making them a commercial segment full of potential, with significant collective purchasing power and growth prospects.


The study reaffirms that women are good clients, both for personal banking and business banking, their portfolios experience higher growth rates, and they are active users of non-financial services. This encourages loyalty and favors greater use of financial products and allows cross-selling of other products. Additionally, women pay off their loans in less time than men.


Financial institutions that analyze this and other data already available, such as delinquency rates, investment performance or profitability, and the size of the market segmented by gender, are positioning themselves and capturing a market of growing financial weight, and gaining a comparable advantage.


The study highlights several financial institutions that found the solution: designing banking strategies focused on women. Financial institutions are reaching out to the women's market integrate a gender perspective into product development, use sex-disaggregated data for decision-making, have efficient and easy-to-use online platforms, and consider credit approval processes that are inclusive, among other strategies.


Prioritizing this market, investing in understanding it, using gender-disaggregated data for decision-making and performance management, structuring women-centric products, offering value-added services, and leveraging global partnerships and alliances will help financial institutions in developing holistic strategies for the women's market and will provide guidance to others interested in improving their offerings for this market.


About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.


About ConsumerCentrix

ConsumerCentriX is a strategic consulting firm that works with financial services providers and policymakers to translate consumer insights into market strategies and policies to reach the underserved and underserved.