Just like details are lost in a blurry photograph, relying on aggregate financial data for insights provides only a general idea of reality – supply-side gender-disaggregated data (SGDD) can sharpen the picture, exposing financial behaviors and disparities that would otherwise remain hidden. Particularly when collected and analyzed with the help of technology, SGDD is a crucial tool for financial supervisors to enable more inclusive, stable financial systems.
From data to insight: the need for a deeper analysis
The world is complex, and so are people’s financial behaviors. Individual choices are shaped by social, economic, and demographic traits—factors that can only be fully analyzed through a multi-dimensional lens. With the right data, supervisors can examine how these dimensions interact and influence financial patterns across different market segments.
In this context, adopting a gender-informed view by leveraging supply-side gender-disaggregated data (S-GDD) is essential. By including gender as a core dimension in financial analysis, authorities can ensure their policies benefit all consumers and financial systems (see figure below). S-GDD enables a deeper evaluation of disparities in financial inclusion, providing valuable insights for financial authorities, policymakers, and funders working toward inclusion goals. It also helps industry players expand market opportunities and supports other mandates of financial authorities, such as consumer protection and financial stability.
Financial supervisors need to collect and use both granular and aggregate S-GDD actively
S-GDD can be a game-changer in building more inclusive, safe, and stable financial systems.
S-GDD can take two forms: granular or aggregate. Granular data captures financial behaviors at the individual level, offering the highest analytical potential. It enables supervisors to analyze specific market segments, like age, location, or income. For example, it might be able to answer questions like: how do low-income young rural women access credit? What types of credit do they use, and under what conditions? How much do middle-income urban men save for retirement?
In contrast, aggregate S-GDD is compiled by financial service providers (FSPs) before being reported to supervisors. This means that supervisors receive gender-disaggregated data only at the portfolio level. Aggregate data helps answer broader questions such as: Do women save more than men? Do they hold more or fewer loans on average? Are there disparities in loan amounts, non-performing loan ratios, and interest rates paid? By analyzing these patterns, financial authorities can assess whether—and how—gender influences financial service usage, financial firms’ performance and systemic stability (not just in terms of volume and value but also in terms of conditions), quality, and outcomes such as financial health and resilience.
Yet, gender-based financial analysis is often overlooked by financial sector authorities. For example, gender disparities—both within the customer base and among FSPs and regulatory bodies—are rarely considered, despite growing evidence of the macroeconomic significance of gender diversity and its role in fostering more resilient financial systems. Similarly, gender-blind consumer protection indicators may fail to detect harmful market practices that disproportionately affect women.
Learning from pioneer countries
CGAP is committed to helping change the landscape of S-GDD collection and use. Our research has uncovered key lessons from countries such as Brazil, Chile, Colombia, Malaysia, Mexico, Peru, and Rwanda, which are working to collect and use S-GDD more effectively and systematically. Some key takeaways from that research include:
- Data collection doesn’t have to be costly for FSPs and FSAs. When financial service providers already collect granular data, the additional burden of gender disaggregation is minimal.
- Strong ID systems are essential. Reliable customer identification systems make it easier to collect and use S-GDD effectively.
- Supervisory mandates matter. Clear regulatory expectations encourage financial institutions to prioritize gender-disaggregated reporting.
The role of technology in advancing SGDD
Technology is critical in enabling financial authorities to collect, analyze, and act on S-GDD. Digital reporting systems, automated data collection, and advanced analytics can reduce costs and improve accuracy, but most emerging markets still rely on manual reporting and might not be equipped to deal with the privacy concerns such automated systems require, or the technological capabilities needed to put them in place.
Despite these challenges, the value of granular data justifies the investment in solutions to address them. Countries that have successfully done so, often with the help of advanced technological tools, are increasingly demonstrating the value of using this data in shaping policies, designing products, and tracking progress toward a more inclusive and responsible financial sector. The rest of the blogs in this series will explore use cases for financial authorities and other stakeholders, more about how technology can enable effective S-GDD collection and analysis, and critical issues of data governance and privacy. Stay tuned!
