Women and Wealth: Female-Led Initiatives are Reshaping the Financial Landscape

According to data from the World Economic Forum, it will take at least five generations (until 2158) to reach full gender parity. While this projection is disheartening, many female-led initiatives across the globe are actively driving changes, establishing systems to create wealth, and breaking barriers in traditionally male-dominated sectors such as finance and investment.

These groundbreaking efforts align with this year’s International Women’s Day campaign theme, Accelerate Action, which emphasizes the need for swift and stringent action to eliminate gender biases.

Over the past decades, advancements in technology and the rise of women-led projects have reshaped investment trends fostering more inclusive societies.

More women are taking up leadership roles and driving the needed change. They are creating female-led initiatives such as funds and private equity firms to support women in tech, entrepreneurship, finance, and beyond. Data shows that the number of female founders has doubled since 2010.

On the other hand, female-led businesses are still faced with funding challenges compared to those run by men. In Africa for example, 30% to 40% of businesses are run by women. However, there is a staggering $42 billion financing gap, crippling their full economic potential.

Thus, the importance of localized efforts in addressing local issues cannot be overstated.

Going Local is Key to Lasting Solutions

Lagos-based, female-founded, and led, Aruwa Capital Management is addressing these biases by investing in women-led businesses or rapidly growing companies that offer solutions to the female economy.

Japan’s Mpower Partners, founded by three women, aims to empower entrepreneurs with a global perspective by offering technology-driven solutions to address societal challenges aligned with the ESG (Environmental, Social, and Governance) model.

These efforts are backed by the local government. For instance, the government’s Startup Development Five-Year Plan (2015-2020) contributed to a 5% increase in female venture capitalists (VCs) and decision-makers by 2023.

UK’s first all-female angel investment fund, Pink Salt Ventures, is another firm dedicated to supporting female-led startups, just like America’s Female Founders Fund.

Female investors are not interested in just making money. They are also keen to invest in initiatives that promote sustainability. Research shows that there are more women than men mobilizing funds toward businesses that align with social and environmental values (ESG).

For example, India’s SEWA Bank (Self-Employed Women’s Association) goal is to provide microfinance loans to women entrepreneurs.

The 3.2 million women-member association was founded in 1974 to support informal workers in India. Up to 90% of India’s workforce is in the informal sector. Empowering such a large group, especially women, changes communities’ economic power overall.

In South Africa, what began as a microfinance program to fight poverty and empower rural women in the 90s, has metamorphosed over the years into the Women’s Development Bank Investment Holdings (WDBIH). The entity focuses on transforming the local business and social landscape. Since its establishment in 1991, over 200,000 rural female entrepreneurs have benefited from the bank’s programs.

Ellevest’s bold motto is to build and manage women’s wealth while making the world a better place for them. The American wealth management company invests in issues that disproportionately affect women such as water equity, reversing climate change, affordable housing, community development, and healthtech for women.

Emphasizing on the benefits of tailored solutions, Mirjana Englezou, Marketing Project Manager at FXGT said:

“For sustainability, solutions must be tailored to address the specific challenges of the community. Our Company endeavors to tailor our products to fit the needs of our clients both women and men in different regions.

Overall, tailor-made solutions, whether here at FXGT or in other organizations, lead to increased adoption, resulting in meaningful and long-lasting impact.”

The rise of digital finance and technology such as e-money, digital wallets, digital payment platforms, and blockchains continues to promote financial inclusion by reaching underserved markets, thus, driving innovation and transformation.

With internet penetration rates growing massively even in developing countries, more people, especially women in rural villages, can now access loans, savings, insurance, and investments.

Commenting on the importance of financial and digital literacy, Alexia Patouris, FXGT’s Head of Marketing, was quoted:

“As more women take the lead in shaping the future of finance and investment, their impact is undeniable. At FXGT.com, we are proud to support these transformative efforts by providing the tools and resources needed for women to access global markets and make informed, sustainable investment decisions.

Empowering women through financial literacy and investment opportunities is not just about growth – it is about building a more inclusive and resilient economic future for everyone.”

In Kenya, App-based solutions such as Mpesa and Tala are examples of mobile innovations providing e-banking and investment options for the under-covered including women. Asia’s Alipay Ant Fortune offers low-entry investment options, allowing those with limited funds to transform their financial future.

Despite these advancements, more women lack digital and financial literacy holding them back from accessing and utilizing financial services.

Organizations such as Global Women in Blockchain are working to bridge this divide by ensuring that women are included in the exploitation of blockchain and STEM technologies.

More women are now investing in blockchain whether as cryptocurrency traders or innovators creating solutions in healthcare, finance, and supply chain management.

Up to 70% of women prefer investing in real estate compared to other types of investments, according to a recent survey by a property consultancy firm in India. This is a growth of 13% since 2019.

This could be a result of the recent shake-up in the stock market pushing women to opt for more stable investment options.

Moreover, female-led real estate projects and groups are enabling more women to invest in property to expand their passive income options. Such organizations and networks include Women’s Property Network in South Africa, Women in Property in the UK, among other networks and projects.

Across the globe, women are driving economic transformation through various means ranging from venture capital to sustainable investments.

Despite the existing gender gaps, exposure to financial empowerment and digital literacy has allowed many more women to access funds, gain financial independence, and build long-term wealth for themselves and future generations.

From all of us at FXGT, we wish all women a Happy International Women’s Day.

May we all endeavor to bring the change needed to bridge the gaps in our societies. We need men and women on board to accelerate gender actions for a more equitable future.

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