Using Digitalization to Support Financing of Women-owned Businesses in the Pacific Islands

We are aiming to identify a solution (s) that will support the collection and analysis of business data for women-owned small- and medium-sized enterprises (WSMES) in the Pacific which ultimately will help banks and financial institutions to make informed lending decisions that are gender considerate.

Through this challenge, we aim to support WSMEs to be able to access necessary finance to grow their businesses.

 

ELIGIBILITY

 Formally registered technology-based start-up firms with at least 3 years of operations, technology providers, and corporate partners that primarily serve the financial services industry (Fintech)

> Fintechs with experience and goal to support solutions for the female economy

> Possess a minimum viable product (MVP) or a product available on the market or ready to be rolled out in the market which can be tailored based on challenge requirements

> Mature enough to drive to POC stage with financial institutions

> Preference for gender-diverse teams and female-founded/-managed

> Experience in the Pacific, specific knowledge of Papua New Guinea preferred

Constraints faced by WSMEs growing their businesses and accessing financing have been largely documented: a combination of gender-biased norms (e.g. misperceptions/ bias of loan officers), lack of access to collateral and tangible assets (often not owned by women), and lack of access to opportunities due to prevailing gender inequalities. These constraints are further exacerbated in times of external shocks, such as natural disasters or the one provoked by the coronavirus disease (COVID-19) pandemic. COVID-19 also made apparent that under the new normal business environment, a digital economy becomes even more important.

 

An added constraint is that in the Pacific region, often, internet or telecommunication infrastructure is less available and that they are prone to natural disasters like cyclones, earthquakes, and risks due to climate change.

 

This challenge provides the chance to close the data gap which precludes women’s businesses to access finance as they cannot provide proof of business transactions and turnover as often, smaller businesses transact in cash without proper recording. Banks rely on transaction data to be able to analyze a business’ cash flow to make a credit decision.

 

 

With your ideas and innovations, we believe that we can make a difference by providing WSMEs with the tools they need to run their businesses (and record their business transactions) and give financial institutions the data they need to make low-risk loans to the sector.

Your out-of-the-box ideas are what we need to promote access to finance for WSMEs and convince banks that women’s businesses are a good business potential; we must keep in mind it must be online and offline for feature phones and smartphones, easy to install and implement, simple to use, as well as intuitive for people with lower literacy and digital literacy capabilities.