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Financial Inclusion and Compliance: The State of Women’s Access to Financial Services in Spain

By Pablo Hernández de Cos, Governor of the Banco de España

MADRID - Financial inclusion has become a priority for policymakers and financial institutions in Spain. This article discusses the current state of women’s access to financial services in Spain and highlights the need for continued efforts to promote equality.

Progress Made in Promoting Financial Inclusion

According to data from the Survey of Financial Competences (ECF) conducted by the Banco de España and the National Securities Market Commission (CNMV), Spain is making progress in promoting financial inclusion among its population. Key statistics include:

  • 96.8% of adult men and 97.4% of adult women have a bank account
  • The number of people with a bank account has increased significantly over the past few years

Challenges Remain, Particularly for Women

Despite this progress, significant challenges remain, particularly for women who continue to face barriers in accessing credit and other financial services. A recent study published in the journal “Pursuing Women’s Economic Empowerment” by the International Monetary Fund found that:

  • Female entrepreneurs in Spain are less likely to ask for a loan when starting a business
  • They are more likely to be rejected than their male peers

Gender Differences in Financial Knowledge and Understanding

The ECF survey revealed significant gender differences in knowledge and understanding of financial concepts. Women were found to be:

  • Less knowledgeable about inflation, compound interest, and risk diversification compared to men
  • More likely to overestimate the value of their home and underestimate the value of their financial assets

However, the study also highlighted some positive trends, including that women tend to provide higher estimates for the value of their home compared to men. Additionally:

  • Female loan officers in Spain were found to produce loans with a lower default rate than their male peers
  • They follow more often the recommendation of the scoring model

Addressing Career Progression and Promotions

The Banco de España has launched an ongoing project using anonymized personnel records from the institution to examine gender differences in career progression and promotions within central banking. The initial findings suggest that women are:

  • Less likely to apply for promotion
  • However, when they do, they have a higher probability of being selected conditional on having applied

Conclusion

While significant progress has been made in promoting financial inclusion among Spaniards, there is still much work to be done, particularly in addressing the specific needs and challenges faced by women. Policymakers and financial institutions must continue to prioritize initiatives that promote access to credit and other financial services for women entrepreneurs and address the persistent gender gaps in knowledge and understanding of financial concepts.

Sources

  • Banco de España (2016). Survey of Financial Competences (ECF)
  • International Monetary Fund (2018). Pursuing Women’s Economic Empowerment
  • De Andrés et al. (2019). Female Entrepreneurs’ Access to Credit in Spain: A Study Based on Data from a Large Spanish Bank.
  • Hospido et al. (2019). Gender Differences in Career Progression and Promotions in Central Banking.