Advancing Financial Inclusion and Resilience in Global Supply Chains: A Practical Guide for Financial Service Providers

Advancing Financial Inclusion and Resilience in Global Supply Chains: A Practical Guide for Financial Service Providers using Examples from Wage Digitalization in the Garment Sector

An estimated 60 million workers power the global garment industry, the majority of whom are women, under 35 years old and underbanked. Many are aggregated in large workplace settings which are easy to reach.  Expanding the financial inclusion and resilience of this significant market segment can lead to benefits for women and men workers, employers, financial service providers and the wider economy – a win-win all around.

Financial service providers can play a catalytic role in developing an active new market segment using wage digitalization as an effective entry point when coupled with relevant and affordable financial products and services (such as remittances and savings). This can drive revenue generation and long-term strategic benefits for financial service providers while expanding inclusion of women and men in the digital economy and improving their financial health.

RISE and Mastercard have demonstrated that wage digitalization, coupled with financial capability training that considers the needs of women has led to 91% of workers being paid into accounts (up from 46%); 85% of workers accessing mobile money accounts (up from 52%) and 81% of workers saving regularly (up from 56%).

In this guide for financial service providers developed by RISE and Mastercard, we share insights and recommendations to develop this garment sector segment:

1. Acquire new customers at scale through responsible wage digitalization;

2. Drive account usage of a range of financial products and services; and

3. Expand product offering to build financial security

A long-term and collaborative approach is critical to the segment; understanding customer needs, especially women and building trust and reputation through strong customer service. In doing this, financial service providers can unlock new opportunities for growth in this segment, creating sustained returns and advancing financial inclusion and resilience for garment workers.

Read the RISE Financial Services Guide in English