Bridging the Gender Gap in Financial Inclusion: The Rise of Herconomy

Women make up half of the world’s population, yet they face significant barriers in accessing financial products and services that can enhance their well-being and economic empowerment. According to UNCTAD, based on World Bank Financial Inclusion data, in 2017, 72% of men globally had a financial account, compared to only 65% of women—a concerning gap of 7 percentage points.

The Nigerian Context

In Nigeria, the issue of gender parity in financial inclusion is particularly pressing. Despite progress over the years, statistics reveal a troubling trend. A report by EfiNA, a financial sector development organization, indicated that in 2008, only 15% of women were banked, compared to 27% of men, resulting in a 12 percentage point gender gap. By 2018, while the percentage of banked women increased to 33%, the gap had widened to 13 percentage points. The Global Gender Gap Index 2020 ranked Nigeria 128 out of 153 countries, underscoring the economic disenfranchisement of women.

The Role of Herconomy

In response to these challenges, Herconomy, Africa’s first women-focused digital platform, aims to change the narrative surrounding financial exclusion and the underrepresentation of women in the economy. Formerly known as AGS Tribe, Herconomy has repositioned itself as a financial technology (Fintech) service provider dedicated to democratizing economic opportunities for women.

“If we positively impact a woman’s life, we create value not just for her, but for the entire community,” says Ifedayo Durosinmi-Etti, the founder and CEO of Herconomy. This philosophy drives the organization’s mission to empower women economically.

From Community to Platform

Ifedayo’s journey began with her 2018 book, “Accessing Grants for Startups,” which sparked a demand for community support among entrepreneurs and professionals seeking to enhance their skills and access global opportunities. Recognizing a significant knowledge gap, she established AGS Tribe as a pan-African female-focused network.

Initially hosted on Telegram, the community quickly grew, necessitating a migration to a more flexible mobile application. This transition allowed Herconomy to introduce a free tier, granting members access to various opportunities without cost, alongside a premium tier offering discounts on services across multiple sectors, including fashion, travel, and wellness.

By mid-2021, the community had expanded to over 15,000 members, showcasing the demand for such a platform.

Success Stories and Community Impact

Herconomy has facilitated numerous success stories, including that of Mariam Adebola-Salami, founder of Mobaby Care Nigeria. With the support of AGS, Mariam secured grants totaling $1,000 and N1,000,000, leading to a 10.5% growth in her business within ten months. The community has also seen members win international grants and secure jobs abroad, demonstrating the tangible benefits of collective empowerment.

In a poignant example of community support, after the tragic death of a member due to domestic violence, the community raised over N26 million to establish a trust fund for her children’s education. This illustrates the profound sense of solidarity within the Herconomy network.

Innovative Financial Solutions

In 2021, Herconomy launched the Herconomy Cooperative Multipurpose Society, marking a significant step toward establishing a female-focused bank in Nigeria. To fund this expansion, the community initiated a capital-raising exercise that exceeded expectations. Initially targeting $500,000, Herconomy raised an astonishing $5.7 million within 24 hours, with 70% of the funding coming from community members.

This influx of capital will be directed toward hiring an in-house tech team, enhancing product offerings, and expanding marketing efforts, solidifying Herconomy’s position in the fintech landscape.

Investor Confidence

The enthusiasm surrounding Herconomy has attracted notable investors, including Nkiru Ayemere, Ehi Onwudiwe, and Olanrewaju Smith. Their commitment underscores the belief in Herconomy’s mission to create financial products tailored for women, who have historically been underserved by traditional financial services.

Ehi Onwudiwe, an investor, remarked, “I have followed the Herconomy story from the AGS Tribe days and witnessed tremendous growth. I chose to invest in the future where women thrive.”

Future Aspirations

Herconomy is not resting on its laurels. With ambitious plans to create Africa’s largest digital bank focused on financing women and elevating their status in the economy, the organization is poised for significant growth. Ifedayo emphasizes that Herconomy is dedicated to enabling women to learn, network, and earn high interest on their savings as they spend.

About Herconomy

Herconomy is a women-focused community that empowers women for success, impacting over 80,000 women through capacity building, mentorship, and funding. As a fintech platform, it aims to provide financial opportunities that foster financial freedom and wealth creation for women.

Recently, Herconomy announced a recruitment partnership with Amazon, opening doors for African women to be recruited across Europe. This initiative is just the beginning of a broader mission to transform the lives of millions of women and their families in Nigeria.

For more information about Herconomy, visit their website or follow them on Instagram and Twitter.