Motherhood frequently begins with labor pains and the difficulties can extend over a lifetime as women face complex financial decisions that are pivotal not only to their own lives but to their children’s and family’s. Despite the important roles that mothers play in households across geographies and income levels, Zambian women are largely excluded from the formal financial system—with only two out of five women having access to any type of formal financial service there. Gender barriers are deeply rooted in social and cultural norms that dictate roles and relationships, power and decision-making dynamics within households, access to resources, inheritance of assets, educational attainment and economic potential. While not a panacea, it is well documented that enhancing access to and development of digital financial services (DFS) plays an increasingly prominent part in smoothening gendered inequities and aiding women to realize their economic potential.

Based on the hypothesis that Zambian mothers constitute a unique user group like farmers, refugees or small-business owners and the reality that 75% of Zambian women between 15-49 years are mothers, UNCDF sought to learn more about this segment across income levels, age groups and geographies and deepen its knowledge of and enhance the data on Zambian mothers’ financial behaviors. By better understanding their specific financial and non-financial needs and challenges, providers can develop and refine DFS to better meet their unique requirements.

Between January 15 and February 22, 2018, the United Nations Capital Development Fund (UNCDF), interviewed more than 750 mothers across Zambia to gather information on their financial journeys, the challenges they face and the opportunities that exist for digital finance to address some of the identified challenges. ‘Labor Pains: Discovering the Financial Lives of Zambian Mothers’ summarizes the findings and insights from the research.

Customer Acquisition and Retention Opportunity: Discover Zambian Mothers

On December 12, 2018, UNCDF launched the findings and insights from the study to the Zambian DFS ecosystem at the event, “Customer Acquisition and Retention Opportunity: Discover Zambian Mothers.” Opening the event, Nandini Harihareswara, Regional Technical Specialist, remarked that, “This is an exciting time for women in Zambia as well as digital finance. As financial service providers are increasingly looking to expand their customer base, they may find the keys to unlocking a critical customer segment – women, through this research. Perhaps financial services can help ease the “labor pains” of being a Zambian mother.”

The keynote address at the research launch was given by Dr. Tukiya Kankasa-Mabula, Deputy Governor of Administration at the Bank of Zambia. Expressing the commitment of the Central Bank to improving financial inclusion for all Zambians, with a focus on women, who are largely excluded from the formal financial system, Dr. Kankasa-Mabula noted that, “The UNCDF report clearly highlights what we at the Bank of Zambia have always believed, that women should not be type cast into a singular model, but should rather be seen as individuals with independent needs. Not recognizing this individuality leaves an untapped market that could otherwise contribute to the bottom line for financial service providers and increase financial inclusion.”

Understanding the needs, wants and aspirations of Zambian mothers

The research findings indicate that the financial lives of Zambian mothers are dynamic and multifaceted, which means they require diverse types of financial services at various times in their lives. Some of the key findings shared at the launch event were:

All mothers save but mostly at home.

63% of Zambian mothers save. 38% do so at home, while 29% use mobile money. Of those that primarily store money at home, 69% were rural inhabitants. Living expenses, emergencies and school fees rank as the top three savings motivators, indicating that savings products that help mothers reach these goals could serve an important pathway for introducing financial services. Zambian mothers’ aspirations to save, even small amounts for various expenses and emergencies, present an opportunity for DFS providers to help formally bank them by offering affordable, accessible and easy-to-use products that help them reach their goals.

Mothers are the original ‘gig economy workers’ and rely on multiple income streams to meet the financial needs of the family.

Across all income levels, mothers take on various part-time jobs in the formal or informal sector in order to meet household expenses and support their children. 65% of mothers run their own business, typically in an informal setting, as their primary income, while 27% have an additional side business. Zambian mothers need DFS that address the challenges they face in accessing more-productive markets and dealing with seasonal inconsistencies, that allow flexibility in payments and that help them save and reduce risk.

Mothers may be the key to unlocking education payments via DFS.

Across all income levels and geographies, mothers valued education—both their own and that of their children—and saw it as a means to improve their family’s welfare. Even when women had to halt their education, 31% stated that they aspire to either improve their education or ensure their children are educated. The desire to learn and be educated could provide another pathway for financial service providers to help women become more financially literate and save towards education goals. This motivation, coupled with the time-poverty of mothers, make them potentially very good champions and providers-of-feedback for education-focused products.

What next?

Calling the DFS ecosystem to act on the insights shared from the research, DFS Expert Zerubabel Kwebiiha Junior noted that the Zambian market did not necessarily need “pink products” targeting only women, but rather a review of existing digital finance products that meet the needs of mothers as outlined in the study followed by the creation of marketing strategies that effectively target mothers.

Leveraging the findings from the research, UNCDF will be organizing a design sprint in Q2 2019 and inviting interested DFS providers and FinTech’s to participate and work towards the design and implementation of DFS products and marketing strategies tailored to suit the characteristics and needs of women, thereby contributing to the advancement of digital financial inclusion in Zambia.