Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
How Fintech Firms Can Profit by Serving Women
Research | Aug 20, 2024
Image: Her Fintech Edge (IFC, World Bank Group)
New Insights Show Women Are Highly Profitable Fintech Segment That Can Boost Inclusion and Revenue
Women are the most profitable and devoted clientele but they are significantly underrepresented in fintech portfolios, according to a new publication from the IFC World Bank Group, "Her Fintech Edge: Market Insights for Inclusive Growth" (52 page PDF report), offering insights on how fintech companies may more effectively target women.
See: Trends in Reg CF for Minority and Women Founders
According to the research, focusing on this market could lead to big financial gains due to increased lifetime value, increased loyalty, and decreased default rates. The study is based on data from 114 fintech firms across 17 countries and interviews with 25 fintech leaders.
Top Survey Takeways
1. Women are (still) underrepresented especially in business loans
- 63% of fintech lenders stated that women account for less than 25% of their customers.
27% of companies said that women account for fewer than 25% of retail customers.
2. Women consistently perform better in terms of risk and loyalty
- 58% of fintech firms reported lower default rates for women than men.
- 69% of companies reported increased consumer loyalty among women.
- 49% of lending firms said that women had a greater customer lifetime value (CLV) than men.
See: Women’s Critical Role, Impact, and Empowerment in AI
3. Limited Tailored Products for Women
- Just 32% of businesses said they provide tailored products for female customers.
- Although 59% of these companies gather sex-aggregated data (SDD) to better understand customer behaviour, less than one-third of fintech companies actively build or personalize products for women.
4. Higher Acquisition Costs Offset by Higher CLV
- While focused marketing can increase customer acquisition costs (CAC) for women by up to 40%, their higher loyalty and CLV make the initial investment worthwhile.
Business Case and Strategy
- Lower risk and higher returns --> Women consistently have lower default rates than men, making them less dangerous borrowers, particularly for loans. For example, fintech lenders report non-performing loans (NPLs) for women as low as 2%, compared to 4-8% for men in emerging countries.
- Higher loyalty and lifetime value --> Women engage more regularly and stay loyal to financial service providers, resulting in a better client lifetime value. Loyalty means recurring business revenue which is a golden for fintechs building a sustainable platform.
See: Fintech Opportunities in Barter and Trade Marketplaces
- Targeted campaigns, products, and partnerships --> Despite higher initial acquisition costs, the long-term financial benefits of serving women make the expenditure worthwhile. Firms can effectively lower CAC by leveraging partnerships, grassroots organizations, or women-focused networks. Customized goods, such as microloans or women-specific savings programs, can help source and strengthen long-term partnerships.
- Expanding market share through inclusivity --> Fintech firms that provide inclusive and personalized offerings have a huge competitive advantage. Focusing on women diversifies customer portfolios and generates growth by catering to a market that traditional financial institutions frequently overlook.
Outlook
Firms that prioritize gender inclusivity in product design, marketing, and partnerships are well-positioned to capitalize on this potentially lucrative untapped market offering lower risk, greater loyalty and higher lifetime value.
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