This report analyses innovations that help make finance more inclusive for women and more effective at driving gender equality. The study draws from interviews with over 100 experts in emerging markets and offers recommendations for expanding the reach of gender inclusion initiatives.

Innovation in finance can be broadly categorised into three types: (1) solutions that direct more capital to women, (2) solutions that promote gender inclusion while directing capital to appropriate investments, and (3) outcome-based solutions for women. The report delves into each of these categories and provides examples of successful innovations in each area.

Studies show current innovations closing gaps in financial inclusion for women and redirecting capital to women-led micro, small, and medium-sized enterprises. These innovations include the Women’s Livelihood Bond issued by the Impact Investment Exchange and efforts to expand the availability of gender bonds tied to social equity. Future innovations may include improvements to these bonds’ structures and the creation of an impact case for gender bonds to advance gender equality.

The report concludes by offering recommendations for innovators and first movers. This group must invest in innovations that go beyond credit to support people’s growth and must also cater to the specific financial needs of women entrepreneurs. Sharing experiences and learning from peers and newcomers alike will also foster breakthroughs in the field. Measurements will help better understand the impacts of gender bonds and other similar solutions. The use of the 2X Criteria assessment tool, among other metrics, will help investors and stakeholders alike track and monitor inclusive investing practices.

In summary, this report examines and analyses a broad range of innovations in finance as a tool to promote gender equity and financial inclusion for women. The study shows how these innovations improve access to capital for women and women-led enterprises and offers recommendations for innovators and investors. By using impact measurement tools and sharing experiences, the study aims to enhance the innovation ecosystem in finance to elevate gender equity and financial inclusion.