Gender, savings and financial inclusion: international evidence

Purpose This study aims to investigate differences in the percentages of females and males that save across different countries and different income groups throughout time. Design/methodology/approach Employing survey data from the Global Findex Database and income classifications based on the World Bank, this study investigates gender-based differences in savings through informal and formal channels. The empirical analysis includes cross-sectional averages, paired t-tests, the Wilcoxon signed-rank test and traditional cross-sectional regressions based on gender and different income classifications across time. Findings The present study provides international evidence of a significant gender gap in savings that grows across time. The present study also provides evidence of a gender effect in access to mobile phones across different countries and different income groups. Applying traditional cross-sectional regressions, this study does not find evidence of a relationship between access to mobile phones and mobile money account savings after controlling for financial literacy. Rather, this study finds that financial literacy is positively associated with formal savings through mobile money accounts, irrespective of gender. In addition, this study finds that financial literacy exerts the highest impact on mobile money account savings in low-income countries. The findings of this study suggest that gaps in financial knowledge is a key mechanism driving the results: financial literacy interventions in low-income areas have a greater impact in generating change. Practical implications The findings in this study yield vital policy implications. A specific recommendation is to foster collaborations between governments, nongovernmental organizations and FinTech providers to implement integrated financial literacy initiatives alongside mobile money services. Social implications The findings of this study are intimately related to the policy objectives of Sustainable Development Goal (SDG) 5 and SDG 8. In terms of SDG 5, this study's findings provide insights on women's participation in economic life based on realized savings behavior over time. In terms of SDG 8, this study links realized savings behavior and access to financial services. Additionally, this study's findings imply that financial literacy initiatives can help to strengthen the capacity of financial institutions in encouraging and expanding access to banking and financial services, especially for women. Originality/value This study proposes a novel approach towards examining the relationship between gender and savings across different income groups and underlines the importance of expanding financial literacy across different countries.