Reorienting financial institutions to serve women entrepreneurs
Channel: Sankalp Forum
Date: 30/11/2021

Several recent publications have highlighted the need for financial institutions to look inwards to adjust their processes and products to better serve women entrepreneurs. Studies across Asia and Africa highlight that while women-led micro and small enterprises look for debt as a source of capital, most are either denied bank loans or end up availing expensive, informal debt. Almost 71% of women entrepreneurs need to self-finance their businesses. The inability to borrow is largely driven by the lack of collateral, low-risk appetite of financial institutions and unconscious gender bias from banking executives. These challenges demonstrate the need for targeted, alternative debt instruments, combined with a shift in the mindset of lenders to better align to the needs and operating conditions of women entrepreneurs. This session intends to bring out what progress has already been made on this front and highlight learnings from the process and opportunities for the institutions. Some of the key questions that the session would focus on include:

· What changes need to be made to the current evaluation and approval criteria for loan disbursement for women borrowers? 

· What financial innovations can encourage increased capital flow to women entrepreneurs?

· What are the challenges faced and risk perceptions of banks in lending to women entrepreneurs?

· What support does the banking industry need to promote lending to women entrepreneurs?

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