Banking on equality: Closing the gender divide in Latin America's financial systems

Financial inclusion has emerged as a pivotal strategy for promoting inclusive economic growth, reducing poverty, and fostering social equity everywhere in the world. However, significant gender disparities persist in Latin America, where millions of women remain excluded from formal financial systems. The purpose of this study was to investigate the impact of gender disparities in financial access on overall financial inclusion in Latin American countries using panel data spanning 2011, 2014, 2017, and 2021 from the World Bank's global financial development database. Descriptive analysis revealed persistent gender gaps in financial access, with male populations consistently outperforming their female counterparts in account ownership, savings, credit, and credit/debit card usage. Among the countries studied, Costa Rica and Ecuador exhibited relatively wider gaps, while Uruguay showed more gender parity across indicators. Correlation analysis showed a significant negative relationship between the financial inclusion index and account ownership gap and the debit/credit card gap, suggesting that gender disparity in these areas is associated with lower overall financial inclusion. Results from the random effects panel regression model showed that account ownership gap (β = -6.283, p > 0.05), savings gap (β = -3.193, p > 0.05), credit gap (β = 0.1337, p > 0.05), and debit/credit card gap (β = 2.6216, p > 0.05) had insignificant effects on financial inclusion in the Latin American region. The results of this study can be utilised by policymakers, financial institutions, and international organisations in Latin America to develop targeted strategies aimed at reducing gender gaps in access to financial services and enhancing overall financial inclusion