Access denied: Outdated credit models sideline women

Women in South Africa carry a disproportionate burden of economic inequality — and the numbers tell a sobering story.

Despite being 10% more likely to pass matric and 70% more likely to have a degree, young women are still 13% less likely to be employed than men and, when they are, they earn 20% less per hour on average.

This inequity is compounded by the weight of family responsibilities, with women often serving as primary caregivers and financial anchors in their households. It is no surprise then that they are more likely to require credit to bridge income gaps, handle emergencies, or invest in their families’ wellbeing.

When women thrive, communities benefit. Research shows that women spend up to 90% of their income on their families, compared to 30% to 40% for men. Investing in women’s economic inclusion is not just about equity or equality, it is also about building a better, more resilient nation. Yet women are often met with outdated credit protocols that fail to account for the realities of their lives.

Credit as a gateway to empowerment

Access to credit is more than a financial transaction. For many women, it is the first meaningful chance to prove their financial behaviour; to show reliability, resilience and responsibility. It is a tool for agency. But it only works if access is fair, inclusive, and designed for their lived experiences.

With 60% of our database being female we can clearly see that these women are digitally savvy, responsible and highly engaged

This is where fintech is helping to close the gap. By removing the red tape and introducing greater flexibility, digital financial providers are offering women smarter, faster ways to manage their money. Whether for self-employed women needing working capital, mothers managing household expenses or single professionals juggling life’s demands, fintech enables access to the right products at the right time.

With more than 30% growth in digital disbursements last year, our Finchoice data suggests that as female responsibility grows, so does their reliance on accessible credit.

What the data tells us

With 60% of our database being female we can clearly see that these women are digitally savvy, responsible and highly engaged: 95% of our customers transact online, logging in an average of seven times a month to monitor and manage their financial standing. They are not passive users. They are proactive financial participants.

And they use credit purposefully — for their families, for education, for stability — with family commitments and home improvements remaining the most common reasons that women take out digital loans. This is a reflection of how women use credit for empowerment, rather than for luxuries.

Women also represent the majority of users when it comes to our short-term loan product, which offers three- to six-month loans with low fees and fast approvals. These features are not just convenient. They are essential for bridging gaps and managing financial stability.

Rethinking financial models for women

If the financial services industry is to truly enable women’s economic participation, it must stop treating women as an afterthought. It needs to design with women in mind, accounting for the systemic barriers they face and offering products that are not only accessible but also adaptive.

This means creating credit models that reward responsible behaviour. It means building in affordability buffers and tailoring products to women’s financial circumstances. Putting trust into action and delivering on it meaningfully includes pre-qualifying customers, disbursing funds within 24 hours and following a "‘low and grow” strategy that starts customers on smaller credit limits and increases the available amounts based on responsible financial behaviour.

This is why the future of financial services must be digitally inclusive, contextually relevant and fundamentally human. Lenders and merchants must rethink how they engage with female consumers — not as a trend but as a transformation.

• Edwards is senior marketing and brand manager at digital financial services provider Finchoice