98 percent of domestic-violence victims also experienced financial abuse in 2020

Most domestic violence cases also involve financial abuse.

Domestic violence and financial abuse are some of the harsh borderless realities which many individuals face. However, most of these individuals are female, which points to a gendered aspect of this ailment. With millions confined in their homes due to the unprecedented global crisis unleashed by coronavirus, there has also been an increase in global domestic violence.

 According to a WHO report, violence against women is a global public health problem that affects approximately one-third of women globally. Many women suffer from domestic violence that goes unnoticed, especially in developing countries. Overall, the report shows that 30% of women worldwide have experienced physical and/or sexual intimate partner violence or non-partner sexual violence. The magnitude of the problem is globally widespread, noting several forms of perpetrating domestic violence against someone. One of the most pervasive forms of violence is financial abuse, and it is often the precursor of other types of violence that aims to give the perpetrator more power and control. 

SOURCE: citizensadvice.org.uk

What is financial abuse ?

Financial abuse can range from withholding money from a partner, controlling all the household spending, or refusing to include the other person in significant financial decisions that can affect the household. 

A study performed by the Center for Financial Security defines economic abuse as a type of family violence that controls a woman’s ability to acquire, use, and maintain economic resources. For example, abusive partners may forbid their partner from having a job or even intentionally sabotage their employment. Economic instability and the lack of self-sufficiency lead to dependence which then increases the control of the abuser on the victim. This chain of events results in the financial entrapment that makes some of these victims stay in relationships with abusive partners for longer and thus experiencing greater danger, harm, and in the worst scenario, even death.

How does financial abuse affect financial inclusion?

Improved and more meaningful financial inclusion can help reduce gender inequalities. Women who have access to bank accounts, savings mechanisms, and other financial services may be better able to control their earnings and undertake personal and productive expenditures, thus increasing their independence and autonomy over their own lives. These women are substantially better positioned to overcome the negative effects of toxic relationships that include financial abuse. Some might even start small businesses and thrive.

But what happens to those who do not have access to traditional bank accounts? 

Conforming to the 2017 Global Findex data, 65% of women worldwide have a financial account, compared to 72% of men. Another relevant indicator is that over 70% of women-owned small and medium enterprises (SMEs) have inadequate or no access to financial services.

The current infrastructure and the attitude of the banks do not allow for financial inclusion. Banks have no interest in onboarding clients that are not financially profitable for them. For example, half of the Philippines do not make enough money to be included in the financial system. 

Morten Nielsen CFO ARYZE

MAMA and MAMA Business can help these women

MAMA can help women who suffer domestic violence and often hide cash from their husbands in developing countries. Keeping digital cash instead of traditional cash has many advantages. Not only the ease of immediate transactions at zero fee payments but the level of privacy that comes with a wallet such as MAMA, thus ensuring that the cash is not exposed to being taken away. For those women who opt for entrepreneurship to escape poverty or domestic violence by starting small businesses, MAMA Business has also great benefits :

  1. Fast KYC and onboarding
  2. Zero fee payments
  3. Minimum creation and annual fees
Source: ARYZE 2021 deck

KYC processes are very analog, requiring a lot of manual work and time spent during onboarding with siloed data, captured through emails and papers. ARYZE offers uncomplicated KYC and fast onboarding as well as zero fee payments, minimum creation and annual fees. Moreover, it provides a Multi-level KYC approach that is inclusive and adaptive. Basically, when users reach their transaction limits, they are asked to increase their KYC level by uploading relevant identification documents. Users can also level-up by association with a known corporate MAMA account, such as being on a company payroll or being a contractor or freelancer. 

The Multi-modular aspect allows for 100% customization for integrations with third-party apps through APIs. This will enhance financing for small and medium-sized businesses and presents a catalytic opportunity with the potential to meet the US.5.2 trillion a year needed for SME financing in developing countries, which will benefit borrowers, entrepreneurs, and employees alike, creating more resilience and sustainable economies.

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