The European Investment Bank and the European Commission have launched a first of its kind advisory program aimed at helping EU commercial banks improve access to finance for women-owned and women-led SMEs in Europe.
Women make up a third of Europe’s entrepreneurs and yet many of them face major financial barriers.
The InvestEU Gender Finance Lab, developed by the EIB Group with funding from the InvestEU Advisory Hub, aims to support financial intermediaries, including commercial banks and fund managers.
A tailored masterclass program is being launched to seize the opportunity of increasing investments in female entrepreneurs. It will help banks leverage the investment opportunities presented by women entrepreneurs, create more innovative and relevant financial products, and share good practice among fellow financial institutions to better serve women entrepreneurs and bridge the gender finance gap.
Research shows women-led and -owned businesses exhibit lower risk profiles, higher repayment rates, and greater customer loyalty. They also thrive in management, innovation, and environmental, social, and corporate governance (ESG). Globally, the women’s market represents a significant $700 billion global revenue opportunity. Beyond the business case, helping commercial banks close the gender finance gap will also address the potential economic impact of women-owned and women-led businesses.
EIB President Nadia Calviño said: “Partnering to nurture Europe’s potential is at the heart of what the EIB Group is doing here alongside the European Commission and our partners in Europe’s banking sector. Investing in women entrepreneurs is not only the right thing to do, but also the smart thing to do; driving growth, prosperity, and stability across the European economy.”
The Gender-Smart Finance Master Class will be delivered as an eLearning programme. Its first cohort will start in March 2025, bringing together representatives from EU commercial banks, including practitioners on SME business, product development, business strategy and Environmental, Social and Governance professionals. A second session is foreseen in Autumn 2025.
The program will include live webinars, interactive discussions, and access to a virtual knowledge hub.
Key components of the program include:
· Exploring the market potential of women-owned and women-led SMEs and their contributions to economic growth.
· Designing gender-responsive financial and non-financial products and services.
· Implementing gender-smart data analysis, result measurements, and reporting mechanisms.
· Staying informed about global gender finance initiatives such as Gender lens investing with the EIB Group, including the 2X Criteria as a global standard for gender-lens investing.
· Enhancing professional networks, building connections and gaining insights from distinguished professionals and experts in gender-smart SME banking
The program is financed by the EIB InvestEU Advisory Hub Gender Finance Lab and free of charge for participating institutions. Managed by the European Commission and funded by the EU, the InvestEU Advisory Hub connects project promoters with advisory partners, with the European Investment Bank Group as the main advisory partner under InvestEU.
About InvestEU
The InvestEU program provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. It helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU program brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. InvestEU has three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that invest in projects using the EU budget guarantee worth €26.2 billion. That guarantee will back investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilize at least €372 billion in additional investment.
By Team GT
