Theme: Remittance Families and Development
This year’s International Women’s Day is a moment to reflect on the profound impact remittances have on women’s lives— from improving well-being and livelihoods, to shifting household dynamics due to migration, to addressing the persistent disparities between men and women in terms of access and control over these funds in some of the world’s most remittance-dependent countries.
Yet, these challenges also open doors for greater financial inclusion and economic empowerment, and it’s time to accelerate action!
IFAD’s recent work in The Gambia and Nepal highlights how targeted interventions with public and private sector partners can unlock opportunities. By making financial services more inclusive, we not only create a business case but also empower women to maximize remittances and improve their economic well-being.
Remittances are a vital lifeline for millions of families across LMICs
Migrant remittances form a vital financial lifeline that reduces the economic and social fragility of millions. These flows support over 800 million people worldwide, paying for household expenses, education, healthcare, and investments in income-generating activities.
In 2024, over 200 million migrants, nearly half women, sent over US$685 billion in remittances to LMICs[1]. Cumulatively these flows are forecast to reach US$5 trillion by 2030. While individual remittances average around US$200 per transfer, collectively they are three times Official Development Assistance and exceed foreign direct investment.
Yet disparities persist in terms of access and control over remittances by gender
Migration patterns significantly shape remittance flows. In nations such as India, Bangladesh, The Gambia, and Pakistan, over 60 per cent of migrants are men[2], and women are often left behind as de facto head of household and primary remittance recipients. It is in some of these remittance-receiving countries, where male outmigration is most common, that some of the largest gender gaps exist in terms of access to digital remittances, financial inclusion and gender equality (see graph – World Bank, Findex database).
These disparities and shifting household structures create an opportunity to focus efforts on digital financial services for women receiving-remittances and, in so doing, challenge and reshape social norms. By equipping women with the tools to receive and manage their money independently, we can enhance their financial autonomy and economic resilience.
Excluding women from financial services is not just a social issue—it’s a missed business opportunity. Empowering women in this way can help to foster economic prosperity and address the root causes of migration.
IFAD partners with the private sector to make case for gender-inclusive financial services
In The Gambia, where remittances are a lifeline and most migrants are men, women often face barriers to financial access. To bridge this gap, IFAD partnered with OnAfriq (a digital payment aggregator) and AfriMoney (a mobile money company) to digitize remittance access and financial services for rural women.
By digitalizing osusu savings groups—informal cooperatives traditionally used by women—AfriMoney created a platform for them to save, borrow, and receive remittances. This innovation has been a game-changer, especially in rural areas where mobility and banking access are limited.
“Women now have the liberty of saving discreetly, without anyone knowing about their finances,” shares Kalimatou Jallow, a program trainer. This newfound financial independence allows women to meet daily needs like school fees and household expenses.
Local female agents within their communities have further bridged accessibility gaps, enabling women to deposit savings, withdraw funds, and receive remittances without trips to financial institutions. With 134 savings groups established and over US$50,000 saved in the last two years, the model is proving its impact. Eighty percent of users now send and receive domestic remittances digitally, showcasing a strong business case for financial service providers to empower this often unreached and underserved segment.
Though still in its early stages, this pilot highlights the opportunity for financial service providers to bridge disparities and empower women by focusing on this underserved customer base.
IFAD supports remittance-receiving women in Nepal to leverage their remittances towards increase productivity, asset accumulation and prosperity
With remittances making up 25 per cent of Nepal’s GDP and a third of working-age men migrating for jobs, many women are left managing households with limited financial access. IFAD’s Samriddhi project, in partnership with Nepal’s Ministry of Industry, Commerce, and Supplies, is changing that by leveraging remittances to strengthen women’s financial resilience.
A key initiative by IFAD, the Gender Action Learning System (GALS), brought women together to empower women in financial planning, savings, and investment in income-generating activities. Since its launch, over 1,300 women have nearly doubled their income and a further 20,000 remittance-receiving women gained financial literacy and entrepreneurship training.
Asha Kumari, a participant, started running her own agricultural business. Through GALS training, she opened a bank account, learned new agricultural techniques and invested in vegetable farming, creating an independent income stream. Her husband now plans to return, demonstrating this type of intervention can reshape migration patterns.
Accelerating action – what needs to change?
- Improve data collection – Collecting gender-disaggregated remittance data is key to identifying financial service gaps. IFAD collaborates with central banks and the private sector to improve product uptake for women.
- Develop and scale inclusive financial products – Financial institutions create and expand inclusive, safe and cost-effective financial services that address disparities by integrating tailored product design, targeted outreach, financial education, and access points designed to meet the needs of women.
- Expand financial literacy and digital access to marginalised women receiving remittances – Financial literacy programs should target underserved women, especially in areas, addressing barriers like digital exclusion and social norms that limit financial independence.
- Advocate for policy and regulatory reform – Policies focussed on reducing barriers for women in financial services, including access to identification, streamlined and reduced KYC requirements, remote onboarding.
The future is about inclusivity
Investing in gender-inclusive financial services is key to economic growth. When women can access and control remittances, as well savings, credit, insurance and other financial services, they reinvest in their families, businesses, and communities, especially in rural areas where remittances count the most.
This International Women’s Day, let’s move beyond seeing remittances as transactions and recognize their potential in driving women’s financial inclusion and economic resilience. In many countries, women still represent an untapped market, and prioritizing inclusivity in financial services will unlock new business opportunities, drive household resilience as well as catalyze local economic growth.
[1] UNDESA migrant stock data (2020)
[2] https://blogs.worldbank.org/en/peoplemove/in-2024–remittance-flows-to-low–and-middle-income-countries-ar
