Access to financial services is one of many dimensions in which gender gaps are reflected and reproduced. On July 23 of this year, a regulatory resolution for credit institutions was published in the Official Gazette of the Federation, which will result in loans with lower interest rates for women. This responds to the fact that women are more likely than men to pay their debts in a timely manner, thus reducing the costs associated with the risk of non-payment. This is an important step towards reducing the observed gender gaps in terms of financial inclusion; however, it is a partial solution in that it does not address the presence of other barriers that women face in accessing the credit market.
Data from INEGI’s 2018 National Survey of Financial Inclusion reflect the intersection of gender gaps in paid work, the unequal distribution of resources, and differentiated access to credit and savings instruments. The following dynamics stand out:
Savings are differentiated by gender. Women are more likely than men to save, but they do so in batches, keeping money at home or with relatives, while men purchase goods, lend money or use savings accounts. Furthermore, while 45.9 percent of men have a savings account in some financial institution, only 35.2 percent of women have access to these services.
Greater general access to credit by men. 27.1 percent of men indicated that they had access to some type of credit (card, mortgage, personal, etc.), but only 20.5 percent of women were in this situation.
Paid work matters. Among the employed population, access to credit is slightly higher for women (32 percent) than for men (29 percent).
Not all credits are the same. These employed women have greater access to department store and automotive loans, while men have access to bank, payroll, mortgage and personal loans.
Reasons for rejection. More women than men see their credit applications denied due to not being able to verify income, not having sufficient documentation or not having a guarantee or endorsement, while men are more likely to report problems with the credit bureau.
The regulatory resolution that will reduce interest rates for women is to be celebrated, but the gender gaps go further. The barriers that prevent women from participating actively in paid work – such as the excessive burden of domestic work and care in the home – must be eliminated, and the employment and wage discrimination that women face must be fought. In addition, the requirements that many financial institutions have should be reviewed, such as the possession of movable and immovable property as collateral, since in general the property registry is not in the name of women. If efforts are not made in these other dimensions, initiatives such as the reduction of interest rates will reduce very little the gender gap in access and use of financial services in Mexico.
Mauricio Rodriguez
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