“You can’t have financial inclusion without financial literacy.” Silverhorn speaks with Enrich HK About Women Championing Financial Inclusion

In a special IWD fireside chat Saryu Kamra from our private debt team sat down with Executive Director Lucinda Pike of local charity Enrich HK to discuss why financial inclusion isn’t possible without financial literacy, how the largely female domestic worker population in Hong Kong faces an inordinate amount of discrimination and financial challenges, and how we can all champion financial inclusion.??

According to research by Enrich, Frost & Sullivan, and Experian, the employment of domestic workers contributed ~USD 12.6bn in 2019 to Hong Kong’s economy, representing 3.6% of the GDP. This contribution includes enabling over 110,000 mothers in Hong Kong to return to the workforce.

At Silverhorn, we proudly employ 50% women with equal representation on our management team. Through our work in private debt, we are building impact and ESG frameworks in order to continue to boost financial inclusion for women, and unbanked and underbanked populations.

In a financial hub like Hong Kong, migrant domestic workers contribute significantly to the economy, yet they are largely financially excluded from it.

Access to finance looks significantly different for the unbanked and underbanked population

Hong Kong employs over 300,000 helpers predominantly coming from Southeast Asia. A lack of financial knowledge and awareness, strict regulations for opening bank accounts, and a lack of funds are barriers for these women migrant workers to access financial services. For those that are unbanked, fees and interest rates also contrast dramatically for those that are banked. In Hong Kong, since domestic workers are unable to make formal investments, in finding alternative ways to invest, they are exposed and vulnerable to financial scams and schemes as well as interest rates up to a shockingly legal 48%.

The presence of digital tools doesn’t automatically solve the issue

The digital economy is driving future economic growth in Asia. But while innovation on fintech and digital tools is rapidly accelerating, these solutions are only accessible when financial and digital literacy exists. Among migrant workers, there is a wide gap between the technology available and their own capabilities in terms of financial knowledge and access to digital tools. Without this foundational literacy, which disproportionately affects women, there are overall less women climbing out of debt or starting businesses.

How all women can be more financially included

There are various ways more women can be financially included and bring financial inclusion to the forefront.

1.???????Financial literacy is important for all women. Broaden your view and don’t forget about the women you can’t see who work beyond the skyscrapers.

2.??????By equipping oneself with the education and tools to become more financially savvy, women are able to bring other women into conversations about finance and investing. In Hong Kong, any woman can reach out to GJWHF$-GIRLS JUST WANNA HAVE FUND$ or The Investor and Financial Education Council (IFEC).

3.??????Employers of migrant domestic workers can initiate the conversation about financial goals.?

Thank you Enrich HK for spending your IWD with us.