Despite significant progress, women continue to face systemic barriers to economic participation, education, and leadership opportunities. Empowering women is not only better for the individuals concerned. It’s also a crucial driver of economic growth and better for the community as a whole.

Women’s empowerment is a vital catalyst for achieving gender equality and fostering economic development. By prioritising financial inclusion, leadership development, and tailored financial products for women, values-based banks drive systemic change that benefits entire communities. Empowering women in this way equips them with the financial tools and resources needed to achieve their full potential, leading to more resilient families and stronger, more inclusive economies.

This approach challenges traditional banking norms, shifting the focus towards sustainable growth and equitable opportunities for all. And the significance of women’s economic empowerment transcends finance. It plays a key role in advancing women’s rights and achieving gender equality globally. 

Dismantling systemic barriers

Women’s empowerment involves dismantling systemic barriers that hinder women’s progress, such as discrimination, unequal pay, and limited access to education and financial services. It encompasses economic participation, political representation, educational attainment and social inclusion.  

Women living in rural areas, in particular, are often especially vulnerable due to limited access to education, healthcare and economic opportunities. These challenges make them more susceptible to poverty.  So targeted initiatives that support and empower women really matter, enabling them to support prosperous, stable families and contribute fully to resilient and flourishing communities. Ultimately, empowering women is about creating a world where half of the global population has the freedom to make choices and take control of their lives, contributing equally to the social, economic and political fabric of their communities and society. 

Addressing the pay gap and promoting leadership  

In the context of values-based banking, addressing gender pay gap and fostering women leadership is a key priority. Values-based banks take proactive steps to ensure pay equity by conducting regular audits to identify and rectify any disparities between male and female employees. This commitment to reducing pay gaps not only promotes fairness, it also enhances employee satisfaction and retention. 

GABV members such as Vancity in Canada, GLS in Germany, and Summit Credit Union in the US have advocated for equal pay and implemented internal policies that aim to create an inclusive workplace where all employees, regardless of gender, have equal opportunities for growth and advancement.  

This includes offering leadership development programmes specifically designed to support women’s progression to senior roles within the bank. For example, Summit Credit Union’s Equity in Money initiative focuses on increasing financial security for everyone, with a particular emphasis on women. Recognising the unique financial challenges women face—such as lower lifetime earnings, reduced retirement savings and a higher likelihood of retiring in poverty—Summit actively works to close the retirement savings gap and foster economic empowerment. Through programmes like Red SHOES and Financial Wellness for Employees, Summit empowers women with the knowledge and confidence to make informed financial decisions. By addressing their specific needs, Summit helps women build wealth, financial well-being building a secure future for themselves and their families. 

Summit’s commitment to gender equity extends to its comprehensive support for women’s homeownership and entrepreneurship. As Wisconsin’s leading mortgage lender and a top Small Business Administration (SBA) lender, Summit provides essential resources, education, and mentorship to help women achieve their financial goals. Initiatives such as the Summit Credit Union Fellowship for Women Entrepreneurs underscore a commitment to foster a supportive environment for women in business. By openly sharing pay practices and advocating for fair compensation, Summit champions the financial inclusion and advancement of women, and drives systemic change in the process. 

NMB Bank in Nepal has launched the “EmpowerHER” programme to develop women’s leadership skills, enabling women to take on leadership roles within the bank and beyond. This initiative addresses the low representation of women in leadership positions and promotes a more inclusive and equitable workplace. By providing specialised training, mentorship and leadership development opportunities, EmpowerHER boosts women’s confidence and equips them with the skills to succeed in leadership roles. 

The bank’s goal is to achieve a 50% female workforce by 2027. EmpowerHER has already positively impacted the bank’s leadership dynamics and workplace culture, leading to improved decision-making and productivity. The programme’s success has inspired NMB Bank to announce woman-led and women-only branches across all seven provinces of Nepal, further supporting women’s financial independence and fostering a more inclusive banking industry in Nepal. 

Another GABV member, Opportunity International Savings and Loans Ghana, teaches women about financial literacy, digital financial services, gender equity, reproductive and maternal health, family life and domestic violence. The bank also trains women in practical skills to help them develop stable livelihoods, generate income and save for a more secure future.  

Dedicated financial products and services 

Values-based banks support women entrepreneurs by offering special loans, mentorship, and financial education programs tailored to their unique needs. These products and services help women to overcome barriers to access capital, financial services and business networks. By providing targeted financial support, banks enable women to start and grow successful businesses which in turn fosters economic growth and innovation. 

TARA, a groundbreaking initiative by BRAC Bank in Bangladesh, marks a significant shift from traditional banking norms by introducing the country’s first comprehensive women’s banking solution. Launched in May 2017, TARA has supported over 300,000 women across various sectors by offering tailored financial products and services, including deposits, loans, and credit cards, as well as professional development training and networking opportunities. The programme directly addresses the low financial inclusion rates among Bangladeshi women.

TARA aims to build self-esteem and help women entrepreneurs make better decisions by providing access to banking information and services. 

By supporting women entrepreneurs, homemakers, students, and senior citizens, TARA fosters financial independence and economic empowerment. It’s an example of a more inclusive and sustainable form of banking that assists women to manage their finances better and provides the necessary tools for personal and professional growth. Through TARA, BRAC Bank has created a trusted partner for Bangladeshi women, that helps them navigate their financial journeys. 

In Latin America, GABV members address women’s empowerment as part of financial inclusion strategies that develop and offer dedicated products for women. Caja Arequipa, for example, currently serves more than 233,000 women entrepreneurs in Peru. To encourage their participation, the bank has launched a type of credit tailored to women’s needs, and a financial education programme which trains women in financial tools to strengthen their businesses.  

Banco Mundo Mujer in Colombia offers loans to women entrepreneurs who run small businesses, such as shops, garment stores, or coffee shops, to help them grow their businesses and continue to succeed. And with the Interamerican Development Bank’s support, BancoSol issued the first social gender bond in Bolivia. The bond is part of BancoSol’s gender-focused “Avanza Mujer” offering. It aims to finance at least 4,500 micro and small women-led enterprises in the country.

At the forefront of systemic change 

Empowering women in entrepreneurship contributes to a more diverse and dynamic economy, promotes job creation and encourages community development. Financial education is a key component of this empowerment, equipping women with the knowledge and skills needed to manage their finances effectively, invest in their futures and navigate financial systems with confidence. 

The commitment to gender equity and women’s empowerment in banking is not just a matter of social justice. It’s also a strategic imperative for economic progress. As values-based banks continue to innovate and implement inclusive practices, they set a powerful example for others within and outside the banking sector to follow. 

The transformative impact of empowering women in banking underscores the profound potential for creating a more equitable world, where everyone has the opportunity to succeed and contribute meaningfully to economic and social progress.