A recent study published by the UN Development Programme (PNUD) and the Financial Inclusion Observatory (OIF) has highlighted the significant barriers to financial inclusion faced by women and young people in central and southern Tunisia. The study, conducted in seven governorates, found that the financial inclusion rate among these two population groups is only 41%. The report attributes this low rate to social, economic, and cultural obstacles, as well as a lack of trust in financial institutions.
The study found that cash remains the dominant form of payment, with 98% of women and 99% of young people using it daily. This preference is driven by mistrust of bank fees, the complexity of financial products, and concerns about credit, particularly among those with strong religious convictions. Additionally, over half of the women surveyed cited lack of resources and economic dependence as major obstacles to accessing formal financial services.
Young people, on the other hand, often view banks as institutions reserved for the most affluent. The adoption of digital financial services is also limited, due to concerns about fraud, lack of financial education, and limited acceptance of electronic payments by merchants. The report notes that the banking network is heavily concentrated in urban areas, with limited coverage in rural areas, reaching only 12% of the targeted regions.
The study also highlights the role of the postal service and microfinance institutions in promoting financial inclusion. The Tunisian Post has a significant presence, with 27% of accounts, thanks to its extensive network and more accessible tariffs. However, its services are often limited to basic transactions. Microfinance institutions play a vital role in serving vulnerable populations, but their average interest rates, estimated at 31%, can be a significant deterrent.
The report identifies a significant gap in financial products tailored to the specific needs of women, with only three banks and one microfinance institution offering services designed for women. To address these shortcomings, the PNUD and OIF recommend rethinking communication strategies and approaches to reach the target populations. They suggest using Tunisian dialect, social media, and local radio to raise awareness and promote financial inclusion.
The study's recommendations also include simplifying account opening procedures, combating discriminatory practices, and developing links between financial services and non-financial services, such as vocational training and mentorship. These measures aim to establish trust and facilitate access to formal services. The report is part of the "Green Economy: Women's Economic Empowerment in Tunisia" project, implemented by the PNUD with financial support from Canada.
The study's findings will inform the implementation of the National Financial Education Program 2023-2027. The report is based on a mixed methodology combining over 2,000 quantitative surveys and 14 focus groups conducted in seven governorates. The conclusions of this study aim to provide insights and guidance for promoting financial inclusion and empowering women and young people in Tunisia.
Key points
- Women and young people in central and southern Tunisia face significant barriers to accessing formal financial services, with a financial inclusion rate of only 41%.
- The study recommends rethinking communication strategies and approaches to reach the target populations, including using Tunisian dialect and social media.
- The report highlights the need for more financial products tailored to the specific needs of women and young people, as well as the importance of simplifying account opening procedures and combating discriminatory practices.
