Unlocking Opportunity: Women Entrepreneurs and Their Banking Relationships

Women entrepreneurs are vital to economic growth in Canada’s economy but they face significant barriers to accessing financing. While research shows that women entrepreneurs face a wide range of structural, cultural, and social barriers, there is limited knowledge about their experiences with financial institutions. As such, this report aims to explore their banking experiences by identifying the barriers they face and using the research insights to inform effective strategies that support women entrepreneurs. To do so, this report synthesizes current research and presents findings from an online survey and interviews with key informants. 

Findings

Survey and interview findings revealed key insights into barriers in the banking process as well as the needs and preferences of women entrepreneurs.

• Experiences with financing: Women entrepreneurs report facing gender bias in their banking experiences and specifically in the application process, where automated loan applications use data points that disadvantage women. Women entrepreneurs are also hesitant to seek financing due to fear of debt. Such challenges are compounded for women with intersecting identities.

• Banking needs: Women entrepreneurs generally prefer digital banking, with 84.6% of survey respondents reporting a daily or weekly use of online or mobile banking. Most of the participants (72%) also indicated a preference to work with bankers who understand their needs and challenges, while the majority of participants (61%) reported that they would be more likely to use business banking products and services that are tailored to women.

Recommendations

This report’s findings inform directions for future action. The following select recommendations identify key strategies for supporting women entrepreneurs and enhancing their banking experiences.

• Revise automated credit assessment tools to reduce unintentional gaps in the lending evaluation processes that have historically disadvantaged women.
• Leverage women-focused programs and initiatives that connect clients with industry-specific leaders and potential partners.
• Design tailored programs for women with intersectional identities, including inclusive eligibility criteria and culturally responsive services.
• Use data insights to refine services and identify new market opportunities.

For the full findings on women entrepreneurs’ banking experiences and recommendations for how to support their success, read the full report.