Abul Kalam Bhuiyan 

Explanation of topic: In the above topic we can find two parts but it involves three aspects, like financial inclusion, gender equality and women rights in banking sector. Without women inclusion in finance, gender equality never be come as we desire it. So, we have to give emphasis on financial inclusion as to establish gender equality. It is mentioned here that gender discrimination begins from familial behaviors, customs, norms, cultural and societal values.

Abstracts: Women are facing discrimination vigorously as vulnerable over the world. Unequal gender roles have an impact on the basic aspects of self-determination, dignity and freedom which in turn influence financial inclusion or rights. Gender perception has changed by this time. The financial services industry like bank can be both a reagent and barometer of gender equality. The reality is that financial inclusion does not result in gender equality. But women`s rights depend on financial inclusion. Only with equal access to the full range of needs-based financial services, savings, credit, insurance, payments, and financial education, do women stand a chance of achieving their rights as well as social and economic empowerment. It can be said, financial inclusion and education can play vital roles to achieve women`s rights in banking.

Introduction: Bangladesh achieved awards for financial inclusion and a rising literacy rate. Currently, the financial inclusion and literacy rate more than doubled. But women`s literacy rate exceeded the male. Now more than half of the population uses formal financial services like credit and debit, bkash, Rocket, Mcash, Nagod and upaya accounts as mobile banking. But Two-thirds of men have an account with the bank. The majority of women don`t use their accounts but men frequently use their accounts. As a result, gender discrimination in financial inclusion is growing at an alarming rate. At that stage, establishing gender equality is quite impossible in Bangladesh. So we have to analysis to the gender factors as a whole. It will reduce the women’sconstraints and gender inequality. The financial inclusion of women will accelerate our ongoing economic growth for individuals and families with women’s stronger protection. It will also increase the equity of women as they are equitable which brings out equality for women`s rights. If the women of Bangladesh don`t have equity, then they will not be equitable. As a result, never gender equality will not come. So women need to be brought under financial inclusion to establish their rights in the banking sector.

Concepts of financial inclusion for women: If we can bring more women under financial inclusion, then gender equality can be established. The concepts regarding financial inclusions are:

i. Access: Making financial services available and affordable to woman;

ii. Participation and engagement: Ensure the participation of women in the banking sector. Also they should be encouraged and enriched their engagement respective sectors;

iii. Practice: Getting women customers to use financial services frequently and regularly and creates awareness among them;

iv. Quality: Ensuring that financial services are improved to the needs of women clients;

v. Service Delivery: All sorts of allocation, allowances, assistances and facilities must be delivered through online banking to bank accounts.

vi. Mobile Banking Service: Now the whole world is running with digital systems. It`s main tool is Information and Communication technology. All functions are performed through an online basis like all sorts of banking transactions are operating through Mobile Financing Service, Internet banking, different types of cards, Apps based banking and agent banking etc.

vii. Governmental Incentives: Inclusion of women in any governmental incentives’ distribution program.

viii. Old thoughts: Bankers to be changed from old thinking of banking related affairs.

In the context of financial inclusion for women, it is necessary to examine each of these factors and consider their respective impacts.In recent years several international developmental and financial initiatives have been undertaken to monitor and promote the growth of financial inclusion.

Impediments of financial inclusion for women in Bangladesh:

Women in Bangladesh face so many obstacles to financial inclusion these are as under:

i. Lack of financial literacy;

ii. Poor knowledge of technology and technological instruments like mobile, computer which affects in mobile banking;

iii. Low provision of smart and android mobile and other technological support;

iv. No such product is planned or generated thinking inclusion of women in banking sector;

v. Poor knowledge regarding bank documents while running an account;

vi. Lack of exploring access and communication issues which will be reduced the financial inclusion gap;

vii. Low provision of investment for women in both government and banking sector such as women are encouraged to buy saving certificate instead of buying banking products;

viii. Familial behaviors, norms, customs, culture and religious affairs;

ix. No inclusion of women in any governmental incentives’ distribution program;

x. Banks have to provide loans for women around the country including rural entrepreneurs;

xi. Lack of opportunities for women entrepreneurs to set up agro-based industry;

xii. No agricultural loans given to the women;

xiii. Lack of female oriented products in banking sector;

xiv. Lack of personal guarantee;

xv. Lack of legal documents;

xvi. Lack of experiences to prepare loan proposal;

xvii. Lack of collateral;

xviii. High rate of interest;

xix. Lack of managerial capacity and ability;

xx. Lack of technological education;

xxi. Societal factors;

xxii. Absence of gender rights in laws and policies;

xxiii. Rural and marginalized women entrepreneurs don’t get loans due to shortage of legal documents as well as bankers aren’t interested in providing loans to such women clients.

Way to overcome the obstacles of financial inclusion for women:

i. To take Initiative and necessary steps for women`s financial inclusion in Bangladesh.

ii. To make accounts and financial products more accessible;

iii. To work with financial service providers partners;

iv. To identify inspiration of World Bank over bank;

v. To identify financial inclusion expertise, leadership, and targeted solutions;

vi. To ensure the quality of products and marketing which are issued by the bank for the women.

vii. In the early stages of the Corona pandemic, the government took the initiative to reach out to the helpless and the needy men and women for financial assistance through Bkash, Rocket, Mcash, Nagod and Upaya accounts. In the same way, in every case, it should be made compulsory for women to transact through bank accounts.

viii. To change the old patriarchal mentality and think about the global progressiveness of women.

ix. Organises special funds for women entrepreneurs like poor small trade as roadside tea-stall, hawker, mobile van traders, fruits and grocery, micro, small and medium entrepreneurs.

Gender Equality:

Gender equality is the equal access to resources and opportunities, including economic participation and decision-making process. Determining the value of different aspirations and behaviors and also distribute it equally among the males and females.

It denotes women having the same opportunities in life as men , including ability to participate in the public sphere.

Goals of Gender Equality:

i. Moves beyond equality of opportunities by requiring transformative change.

ii. Recognizes women and men have different needs, preferences and interests.

iii. Equality of outcomes may require different treatment of men and women.

iv. All development policies and involvements needed to be analyzed for their impact on gender relations.

v. It requires a rethinking of policies and programs to take account of men’s and women’s different realities and interests. 

vi. Women`s participation in information technology should be increased. Because, the empowerment of women is increasing through the use of information technology. Achieving the goals of the SDGs is to bring about gender equality and ensure the use of information technology for the empowerment of all women. In particular, 80% of young people and 40% of young women have their own phone. In other words, the rate of women`s access to the Internet is much lower.

vii. There are very few employment opportunities for women in the field of information technology. As a result, gender equality needs to be brought into line with state policy and the mainstream of the economy in order to improve their quality of life.

viii. Organises special funds for women entrepreneurs, like small cottages and agro-based industries entrepreneurs, traders of roadside tea-stall, hawker, mobile van traders, fruits and grocery and other shopkeepers micro, small and medium entrepreneurs.

Gender Equality in Banking:

According to the prevailing laws, rules, regulations, policies and social norms, customs, and culture of the country, the kind of facilities, scope, and advantages that men and women are supposed to get from the banking sector, if everyone gets it equally, it is called gender equality in banking. There are four concepts in Gender Equality which are as under:

i. At the Leadership and Governancelevel:

Banks can gain economic, management, and reputational benefits from mainstreaming gender equality as a value in all aspects of their business, promoting women into board and senior positions, and increasing transparency on gender-related statistics, policies, and action plans.

ii. In their Workplace Practices:

Bank can raise profits, reduce costs, and achieve greater innovation by embracing women’s perspectives, ensuring equal pay for equal work, and prioritizing women’s professional advancement, well-being, and work-life balance.

iii. Through their Consumer Protection and Promotion:

Bank can become innovators and brand leaders by designing new products and services for women, expanding their market reach and women’s financial access while ensuring gender-sensitive consumer protections.

iv. In their Due Diligence of Clients:

Bank can proactively avoid costs and build their reputation by financing good business, implanting into their lending and investment decisions social risk analysis methods that engage women’s perspectives and address harms to women both as workers and as community members impacted by banks’ transactions.

v. Lending to Women: Considering lending and investment decisions covering women’s perspectives.

vi. Products and Service: Creates new products and services for women.

vii. Promoting women quota: Promoting women into board and management levels creating quota, ensuring its implementation and maintaining.

viii. Pay and facilities: Equal pay, allowance, bonus, incentives and facilities must be provided to the women.

ix. Sanction special funds: To provide special funds for women entrepreneurs, such as small cottages and agro-based industry entrepreneurs and traders of roadsides, grocery, other small shopkeeper and micro, small, medium entrepreneurs.

Strategies Theory Changes:

1. Context: Weaken access of women on credit delivery due to gender discrimination information.

2. Intervention: To give priority to women access to financial services by setting targets to advance credit.

3. Strategy:

i. Separate reporting on women’s share of credit in bank lending with details on employment, organisation.

ii. Try to achieve the target of increasing investment for the women by the bank.

iii. Spread preaching for women oriented services and products.

4. Outcome: Increased financial inclusion for women leading to gender equality and women’s empowerment.

Women Rights in Banking Sector

Generally, women`s rights are associated with entering public and private sectors to get jobs, to work, to fair wages or equal pay,  to gain property, to education, to get fair justice, to enter into legal contracts, the right to biological integrity and autonomy, to be free from sexual violence, to have reproductive rights, and have to cast a vote. In addition, women reserve the right to enter financial sectors such as banking. Due to patriarchal behaviours and feminization poverty, women`s rights are very limited in our country. That is why women are being deprived of their fair rights. Women are also being deprived of their rights in the banking sector.

Women’s Rights in Banking:

Promising equal pay, allowances, bonus, incentives and opportunity as well as freedom from discrimination and harassment in the workplace to all persons, whether they are men, women, married, single or pregnant, and gender equality in essence promotes the equitable and respectable advancement of men and women together. Since existing laws, rules, regulations and policies women have rights to get equal rights like male. But women rights in banking sector are:

I. Account opening:

i. World Scenario: Globally more than half of all eligible women don’t participate in the labor forces, compared to 75% of men. Women are also more likely to work in informal employment and in vulnerable, low-paid or undervalued jobs. They also do not enjoy the same access to financial services as men. 56% of women are without a bank account. Those who have an account with a bank do not necessarily have control over their finances, nor have much wealth, but it is a starting point for financial inclusion.

ii. Opening Bank Account: Men and women in Bangladesh, everyone likes to make cash transactions. People in rural areas in particular have a bad idea about banks, and if you deposit money in a bank, you are likely to lose it. So very few people in rural areas open bank accounts. Moreover, most of the rural women in our country are uneducated and they do not want to open a bank account due to the complexity of the account opening process. It is mentioned here that most women are out of the workforce, so very few women own an account.

When employers of working women decide to pay their salaries electronically, they usually open a bank account. Two-thirds of Bangladeshi women do not have a bank account and are losing control of their finances. That is why they cannot make financial decisions. The power of financial control goes into the hands of men.

According to the World Bank Global Findex Database-2017, there is a large gender gap in bank account ownership in Bangladesh, which is one of the top in the world. Since 2014, women`s bank account ownership in the country has increased from 10 to 38 percent. However, it is still 62 percent behind the lag. More than half of the country`s men have bank accounts.

ii. Getting job opportunity:

According to the report of The NEWAGE Business as on September 26, 2019 and Bangladesh Bank report on gender equality in banks and non-bank financial institutions for January-June, 2019 The percentage of women employees against male staff in banks was 17.88 percent at the end of June, 2020 as 25,771 women were working in the banking sector while the number of male employees was 1,44,104 at that time, In December, 2019 the women’s participation was 17.45 per cent with 24,991 female employees against 1,43,201 male staff. It`s highlighted that women are getting fewer jobs in the banking sector in comparison with men. The number of female employees in the country’s banking sector has been increasing at a snail’s pace as the number is still below 18 per cent. In the above, data provided the truth that women in our country are getting fewer jobs in the banking sector than men. It created a great gender gap, distress, suppression, and discrimination between men and women. They are deprived from getting jobs in the banking sector. Steps should be taken to create employment opportunities for women at various levels in the banking sector and to provide employment. It is mentioned that there were no female employees in the banking sector before our independence.

iii. Getting promotion timely:

In our country, working women have to take care of the household, and to perform their jobs duly. Even in a labor-intensive sector like banks, women perform their professional duties well. But due to biological and environmental reasons, from time to time they face obstacles in performing their duties. Therefore, their annual performance report is not good as they are not always able to perform their duties properly as per the instructions of the higher authorities. But some senior officials do not understand the feminine and family issues of women and give them worse reports without giving importance. So that they are deprived of timely promotion. As a result, they deprive banks of many financial benefits.

iv. Sexual Harassment:

Sexual harassment can be written, verbal or physical and can happen in person or online. school, or university, it may amount to sex discrimination. It can happen in any kind of workplace, school, college and university as well as religious educational institutions. It can come from co-workers just as much as it can come from the boss. Most importantly, it’s against the law. Being sexually harassed affects people in different ways. Apparently, complaints of sexual harassment in the workplace do not rise much in our country. So, the real scenario doesn’t come to light. The woman does not complain for fear of public embarrassment. Such incidents are unwelcome, inhumane and contrary to corporate culture. In order to keep the reputation of the organization intact, all the institutions including the banking sector should pay attention so that such incidents do not happen. Strict disciplinary action should be taken in case of sexual harassment.

v. Female members of Board of Directors in the Banking Sector of Bangladesh:

As per a report of the daily Star, March 08, 2018 described that approximately 12 percent of the board members of different banks in Bangladesh are women, a development that can give them a sense of pride. In 48 public and private local banks, 74 out of the 618 directors are women and 30 out of 40 private commercial banks have at least one female director in their boards. In the fourth generation banks that came in the market in 2013, women have 15 percent seats on the boards. The development said that the move would empower women more than before. Before liberation of Bangladesh no female member was included in the board of directors as a member in the banking sector. But Banks are including more female directors in their boards than any time before. But Islami Bank, the country`s largest private bank, has no female director. Now is the time to think that gender inequality needs to be addressed through greater inclusion of women on bank boards including Islami banks. (The daily Star, March 08, 2018)

vi. Increasing Percentages of Women on Boards of Directors:

In our country only 12% women hold their office in the board of directors in a bank board. But American, European and some developing Asian countries have mandatory clauses to maintain a certain percentage of women on the boards of banks. Norway pioneered the quota system for women directors keeping 40 percent seats in the board in 2008. According to The Economist many other countries like Belgium, France, Italy and the Netherlands followed suit and introduced a quota system, keeping 30 percent to 40 percent of the board seats for women.

It is quite tough for a woman to buy expensive shares in bulk to become a bank`s director in Bangladesh. It is mentioned here that many women have inherited the seats on boards of the banks. But the number of women in the boards of banks in Bangladesh has increased over the years without any such mandatory or legal provision. However, the government has initiated various measures to empower women economically and politically, which is reflected through the appointment of women directors in the boards of state-owned banks. The central bank has also taken various measures to empower women financially by introducing a refinancing scheme, collateral-free loan, low interest facility etc. The BB also compelled banks to open a dedicated desk for women entrepreneurs. Bangladesh Bank introduced a quota system for appointing women in banks after the independence, and now they are also taking their place in the boards which is a good sign. It is hoped that as a result of these measures, women`s participation in the banking sector boards in Bangladesh will gradually increase. (The daily Star, March 08, 2020)

vii. Lending scenarios:

People in our country start-up businesses, import-export, set up industries, import capital machinery, continuing production, people from various walks of life including small and medium entrepreneurs, traders, producers, and farmers take out a loan from the banking sector. The types of loans are as follows: housing, profession, brokerage house, merchant bank, stock dealers, continuous, demand, fixed term, and short-term and agriculture and micro credit, livestock, dairy, poultry, fish farming, crop production, and other loans. Women do not get the same opportunities as men when it comes to getting loans. Gender gap of loan recipients of the cottage, micro, small, and medium enterprises (CMSME) in Bangladesh2010 to 2018 show an image in the following:

 From the above table, it shows that compared to men a few women are getting in nominal debt but women participation are increasing for getting loans.

 (Reference: Original Article: Financing female entrepreneurs in cottage, micro, small, and medium enterprises: Evidence from the financial sector in Bangladesh 2010–2018 by Chowdhury Dilruba Shoma.)

In these area banks can provide opportunities to the women such as under:

a. To provide loans on traditional and local production and export commodities beyond securities.

b. To provide loans on conventional products manufacturing and export without any collaterals.

c. Banks can invest in such women entrepreneurs in terms of joint ventures with banks.

d. Mandatory securities and collateral should ease for the women entrepreneurs.

e. Banks provide new and modern technologies to the women entrepreneurs for improving their products quality and give facilities to market their produce items.

f. Banks that provide loans to women engaged in rice warehousing, rice mills, and other cottage industries in rural areas can provide employment, lifestyle, and livelihood improvement to them.

viii. Issuing different electronic devices:

In the past, people in our country used to deposit money in banks for the sake of money security. But in order to withdraw money from the bank, the deadline had to be withdrawn. People may need money at any time. People are currently withdrawing money from bank booths using electronic devices to meet their immediate needs by avoiding the hassle of bank accounts.

In this case, using a debit or credit card meets their needs. In this case, many people in our country, including working women, do not use the card due to a lack of technological knowledge. Again, the bank can`t issue more cards for women as they do not know the conditions or cannot collect all the documents required for card issuance. So women in our country are reluctant to use cards. Because our woman has in behind in this matter. So the bank needs to take more lenient steps in issuing cards by which that women become enthusiastic about using the card and banks can issue debit and credit cards for the women

ix. Investment of the women:

Usually, when a woman goes to a bank to invest in savings certificates, the bank officials harass her in various ways such as have no form, savings certificates are now closed and women are mistreated and returned. The latest urges women to invest in bank branches.

x.Establishing Women bank separately:

There are nominal female branches of various banks in our country. These branches have not been able to contribute to the financial inclusion of women. Moreover, it is not able to play any role in empowering women and eliminating gender inequality. Therefore, in our country, it is very important for women to be self-reliant, creates employment, creates job opportunities for women in the banking sector, creates the development mindset, cultural mindset, increase moral excellence, increase decision-making ability, establish financial control, empower to the women, for this reason, it most important to establish separate banks for women.

For example, I would like to mention First Women Bank Limited of Pakistan. The Bank has been making significant contributions to the establishment of women`s rights, women`s empowerment and elimination of gender inequality. This bank`s innovative initiatives are very remarkable as the women`s Savings Plan Insurance Program designed around the needs of women is appreciable. Whether a housewife or a working woman, the plan ensures that their savings continue to grow every year, allowing them to remain confident in every step of life in collaboration with an insurance company. The insurance plan initiative offers various benefits for the women among them some of which are as under:

i. Death benefit;

ii. Maturity benefit;

iii. Inflation protection;

iv. Waiver of premium;

v, Life-care benefit;

vi. Accidental death and disability benefits;

vii. Medical recovery benefits;

viii. Family income benefits;

ix. Provide training for women employees to enhance their skills;

x. Given loans to women those who are involved in agricultural activities and industry;

xi. Promoting loans for rural areas female farmers and entrepreneurs of agro-based industry;

xii. Provide service delivery on insurance policy selling.

Women’s barriers to access in the Banking:

i. Women have lower incomes than men because of the kind of work they do;

ii. Low levels of education means women are often less literate than men, affecting their financial capability;

iii. Constraints on mobility;

iv. Lack of access to android and smart mobile phone;

v. Lack of decision-making power and self-esteem;

vi. Poor access to information, poor social networks and risk hatred;

vii. Loyalty to informal products due to their social dimension may prevent women from exploring formal sector alternatives;

viii. Statutory formal laws, which may explicitly inhibit women`s access to commercial credit;

ix. Customary laws that undermine incentives to invest;

x. Lack of financial literary knowledge;

xi. Lack of promotion of high-quality financial services;

xii. Lack of data and analysis ability;

xiii. Lack of comprehensive technical assistance, capacity building support and knowledge;

vix. Gaps in financial literacy;

xv. Low rates of quality mobile-phone ownership;

xvi. Absence of products created with women in mind;

xvii. In the private bank, the board members appointed the relatives or political fellows without any test or nominal test.

Solutions:

i. Meet the credit needs of women;

ii. Separate data on credit flow to women and submit quarterly reports to regulator to create a separate database;

iii. Banks should assess the extent of financial assistance given to women;

iv. Access to credit opportunities for women and bank accounts;

v. Creates a comprehensive database measuring how people save, borrow, and manage risks;

vi. Creating better supply channels;

vii. Creating an environment through positive economic and social policies for full development of women to enable them to realise their full potential;

viii. Equal access to participation and decision-making of women in the social, political and economic life of the nation;

ix. Creating economic empowerment of women;

x. Providing collateral free loan for women entrepreneurs;

xi. Allocation the funds of the refinancing scheme for women;

xii. Allocation industrial plots and preserve fund for women entrepreneurs;

xiii. In house training for women on self-employment;

xiv. Provide vocational training on different aspects;

xv. Prevent dropout of school going girls;

xvi. Action Plan for credit delivery to women;

xvii.. Fostering an enabling environment for female youth;

xviii. Promoting self-employment through women entrepreneurship;

xix. Make a joint collaboration with bank and women entrepreneurs;

xx. Provide loans for non-traditional items like Neel production and meet up indigenous demand and export.

Conclusion:

In the above discussion, I would like to conclude that in order to establish gender equality and women`s rights in the banking sector, women need to be brought under financial inclusion on a large scale. For this reason, men have to develop a mentality and culture to give equal rights to women. Women need to come out of such old meditative notions of helplessness, dependable on men, the content of men`s enjoyment, childbirth, upbringing, and care of the household from captivity within four walls, to be socially and culturally valued, and to recognize women`s rights. Moreover, gender inequalities, causes and ways to eliminate them must be searched and women`s rights, barriers and solutions must be found through research. Government and non-government level individuals and institutions should be involved in establishing the full rights of women. In addition, the establishment of separate banks for women in the field of women`s rights and gender equality needs to be considered by the government and at the entrepreneurial level.