Francis Malige, Managing Director for Financial Institutions at the European Bank for Reconstruction and Development (EBRD), highlighted that female entrepreneurs demonstrate higher performance in loan repayment compared to male counterparts. Speaking at the regional conference "Women in Business," organized by the EBRD on December 10, he emphasized the need to reassess the conventional risks associated with financing women. According to Malige, women manage their ventures with greater responsibility and exhibit stronger financial discipline.
Malige stated that such analyses are encouraging banks to view lending to women not as a risk but as a business opportunity. He cited an example from Turkey, illustrating changes in bank policies regarding loans for women. Initially, banks were reluctant to lend to women, but with guarantees provided by the EBRD, women received support and achieved repayment results that exceeded expectations.
Similarly, in Central Asia and Mongolia, assisting female entrepreneurs has led to significant growth in financial flows. Under the financing initiative for women entrepreneurs, 315 million euros have been allocated, reaching nearly 100,000 women. Over time, this data is contributing to the acknowledgment of its importance in the global economy.
Both Malige and Wendy Teleki stressed that financing alone is not sufficient. Support, advice, and professional networks play a crucial role for entrepreneurs. Additionally, they cautioned about the introduction of artificial intelligence (AI) technologies, as algorithms based on historical data might perpetuate existing biases against women. Malige warned of such risks and underscored the need to improve these systems to reduce risks in lending.
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