The role of AI in women’s financial inclusion

Anna Mara, Swiss Fintech Ladies

The role of AI in women’s financial inclusion

Over the past few years, we have seen AI spreading into various areas of our lives, and finance is no exception. AI-based solutions have the potential to improve women’s financial inclusion by facilitating access to financial services, education and investments in various ways.

One of the key applications of AI in women’s financial inclusion is in the provision of personalised financial advice and education. AI-powered platforms can help women make informed financial decisions. These systems analyse income, expenses and financial goals and provide tailored advice and educational content. This gives women the opportunity to increase their financial knowledge and better plan their financial future.

This also has an impact in the business world. A study by Goldman Sachs found that companies that included women on their boards increased their share price by 44% on average after the first year after going public. In contrast, companies with all-male boards were only 13% better off.

It is important that we end acceleration. Women might sometimes hesitate to make financial decisions because of societal expectations and stereotypes. AI can play a supporting role here by giving women the time they need to make informed decisions without being influenced by time pressure or uncertainty.

Difficulties in accessing credit and microfinance

Traditionally, it has often been more difficult for women to obtain credit, as they often did not have sufficient collateral or a verifiable credit score. However, AI can use alternative data sources to assess creditworthiness. This can include, for example, analysis of transaction histories, social behaviour and education levels. These data-based approaches enable women to access financial resources and become more economically independent.

In doing so, AI is helpful in identifying financial risks ahead of time and actively helping to minimise them. This can be done by monitoring spending habits and detecting warning signs of financial problems. When AI systems identify unusual spending patterns or financial bottlenecks, they can automatically provide advice on how to overcome these challenges. This is particularly important as women are often affected by unexpected financial burdens, whether due to medical expenses or family changes.

In some cultures, women still have limited access to financial services and are excluded from making financial decisions. AI can help overcome these barriers by making financial services available online and providing a degree of anonymity. Women can conduct financial transactions in their own privacy without being affected by social pressure or prejudice.

UNESCO has created its own network to prevent AI that is biased towards men. The Women4Ethical AI network is made up of women who have recognised expertise in the fields of regulatory agencies, civil society, business and academia.

However, it is important in doing so to carefully monitor AI systems. It is important to ensure that they are fair and equitable. And especially with regard to women, it is important that their needs are respected and that their respective life situations are also taken into account.

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