​​Annual fintech competition seeking tech solutions for underserved women

A competition focused on leveraging technology to address inequality in financial services is on the hunt for the next game-changing innovation. 

Entries are now being accepted for the Women's World Banking 2023 Fintech Innovation Challenge, a global competition created to highlight and advance tech solutions that close the gender gap through digital financial services. 

Now in its fourth year and billed as the only women-centered fintech competition, the 2023 Innovation Challenge gives a platform to later-stage fintechs that are working to solve problems associated with serving low-income women around the world. 

And according to the latest Global Findex Report, now is the time for such solutions. The report finds that the number of women adopting digital financial services has risen dramatically since 2017 with the gender gap shrinking from 9% to 6% in key emerging markets. But 742 million women worldwide are still excluded from the formal financial sector, and women were found to be 31% more likely than men to have an inactive bank account.

According to Women's World Banking, low-income women represent a large and untapped market opportunity for digital financial services providers — particularly fintechs turning to technology to increase access. Digital financial services can provide a conduit for low-income women to adopt and use a large suite of formal financial products and services, expanding women's choices and their financial and resilience.

"To achieve the promise of inclusive growth for the global economy, women need equal access to financial products, services, skills and technology," said Mary Ellen Iskenderian, president and CEO of Women's World Banking. "Fintechs are uniquely positioned to help close the digital financial services gap because they have the ability to provide products and services differently and can efficiently meet the needs of low-income women in ways that traditional financial services providers can't or won't."

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Studies also show that funding is far more difficult to come by for female-led fintechs. According to Congresswoman Maxine Waters, chair of the U.S. House Committee on Financial Services, just 2% of venture capital funding goes to women founders, only 1% to Black founders and only 1.8% to Latinx founders.

Marina Dimova, global head of financial industry and network advocacy for Women's World Banking, said the challenge attracts more than 100 applicants around the world each year who are developing new approaches and products for underserved women.

The goal is to create a pathway for entrepreneurs to fast-track innovations that support women's economic prosperity and empowerment.

"The faster we get these products to market, the quicker we can close the gender gap and connect women to the formal financial sector," Dimova said in an email to Financial Planning.

She added that fintechs are created because founders see an unmet need or an underserved community, and women entrepreneurs are absolutely an underserved community. 

"By one estimate, there's a $700 billion revenue opportunity each year for fintechs by designing products and services for women and engaging women as customers. By calling on innovators around the world and inviting them to present their best ideas, we can advance women's financial inclusion and scale growth," Dimova said. "This work is essential and ongoing. And we look forward to discovering the solutions that will get us closer to achieving an inclusive economy. 

"Women-owned and women-focused fintechs aren't a 'nice to have.' They are urgent and critical to achieving gender equity across the board."

Rachel Freeman, chief growth officer at 2020 Fintech Innovation Challenge Winner Tyme, said taking part in the Women's World Banking Fintech Innovation Challenge drove her organization to learn more about how to better serve women.

Headquartered in Singapore with offices in Hong Kong and Ho Chi Minh, Tyme is a digital banking group focused on financially empowering underserved consumers and small businesses through digital banking in emerging markets. 

Tyme's flagship operation is TymeBank which has grown to more than 5 million customers in South Africa since its launch in February 2019. The 2 million customers it attracted in its first 17 months of operation made it the world's fastest-growing independent digital bank.

"It gave us global recognition at a crucial time in our expansion into the Asian market and during our recent capital raise," Freeman said of the competition. "And we got valuable feedback from the judges that helped us refine our proposition."

Applications for the Challenge will be open through Sept. 15. More information can be found on the Women's World Banking website, and the link to apply can be found here. 

The top four finalists of the Innovation Challenge will participate in an in-person pitch competition i in February 2023 in Dubai. They'll be fast-tracked for participation in the Women's Economic Empowerment Accelerator powered by the Miller Center for Social Entrepreneurship at Santa Clara University. They will also receive pitch advice and a UX design consultation. 

The grand prize winner will receive access to 2023 fintech events like Point Zero, Elevandi Connects and the Singapore Fintech Festival, as well as an invitation to speak at a Women's World Banking Making Finance Work for Women event.

In addition, all female-founded fintechs that crack the top 12 will be part of the first-ever Female Founders Circle. The Circle is described as "an exclusive network of like-minded female-founded fintechs," and will be promoted through an integrated communications, marketing and media campaign. 

"Anyone who has been part of a start-up or tech company knows that networks with capital and funds are critical to growth," Dimova said. "We're building a new one here, just for women."

The top 12 finalists and the Female Founders Circle participants will be announced on Oct. 26, 2022. The top four finalists will be named on Jan. 9, 2023. The grand prize winner will be announced in Dubai on Feb. 16, 2023, following the in-person pitch competition.