The UK’s financial inclusion gap means that nearly 11 million women don’t have access to mainstream financial products, according to new research by TotallyMoney and PwC.

The study also found that 53 per cent of women compared to 47 per cent of men are “underserved” by the financial services market.

Ahead of International Women's Day, the UK FinTech published a further report which analyses national credit report data to investigate Britain’s financial inclusion gender gap, finding that on average women have a 10 point lower credit score than men – a gap which exists throughout their lifetime.

The research reveals that lenders are 16 per cent less likely to provide women with pre-approved credit card offers, while women also find themselves eligible for 22 per cent fewer cards.

Meanwhile, women receive 0.8 per cent higher credit card APRs than men with a 31 per cent lower credit limit across all their card accounts.

The figures builds on research published by the Financial Conduct Authority (FCA) last year which found that women are more likely to have low financial resilience or be in financial difficulty than their male counterparts. The study found that 28 per cent had low financial resilience compared to the whole population average of 24 per cent.

“It is shocking that in 2023, such statistics exist, but this is a story told time and again across credit, pensions, and savings,” said Danielle Terharne, Financial Inclusion Commission.

Terharne said that the results "go beyond the gender pay gap" and warned that additional structural problems continue to exist in 21st century Britain, including interrupted work patterns, unaffordable childcare costs, and low levels of engagement with financial products.

The Financial Inclusion Commission has called for the introduction of a government-led national financial inclusion strategy and a "must have regard" to financial inclusion for the FCA.

The organisation says this will ensure government and regulator accountability on addressing financial exclusion affecting various groups, including women.

“As it stands, the credit system is flawed,” said Alastair Douglas, chief executive of TotallyMoney. “Half the population shouldn’t be struggling, and women shouldn’t be disproportionately disadvantaged. The financial services industry should be striving for equity, but in reality it’s struggling with transparency, and trust.”

Douglas said that while giving people the tools they need need and putting them in control of their own data through schemes like Open Banking can help tackle the issue, this won't address the gender pay gap of 14.9 per cent — the equivalent of women working two months free a year.

Instead, he said that senior management need to make sure women are represented at all levels of business and that processes are "debiased".

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