Indian women are increasingly taking control of their finances, driven by education, awareness, and digital access. They’re investing in mutual funds and equities and pursuing entrepreneurship. However, limited access to credit and tailored products highlights opportunities for banks to innovate.
Scope
Indian women are rewriting the script of financial independence, stepping out of the shadows of familial tradition and asserting control over their economic destinies. This quiet revolution is driven by a confluence of factors – rising education levels, growing awareness, and improved access to banking services. In 2022, female enrolment in higher education grew to over 20 million, compared to 15.7 million in 2015. [1]Similarly, the female labour force participation rate has significantly climbed, reaching 37% in 2023 compared to just 23.3% in 2018. [2]These shifts are translating into greater autonomy. One survey revealed that 47% of female earners in Indian metros now make independent financial decisions. [3]Yet, the journey is far from complete. Another study found that 67% of working women still rely on male family members for financial choices, while only 22% navigate these decisions independently. [4] The numbers paint a picture of progress – but also underscore the road ahead in bridging the gap toward true financial independence for Indian women.
Women's inability to control their finances is deeply rooted in Indian culture, which (for multiple social, cultural, and historical reasons) places higher value on men. Indian families also believe in following traditional gender roles – 54% of Indian adults believed both men and women in families should be responsible for earning money, but 43% see this as mainly a man's job. [5] Experts point out that it's important to recognise a divide between different regions, economic classes, and social backgrounds when analysing women's ability to make independent financial decisions. Soumya Bhowmick, fellow and lead of world economics and sustainability at the Centre for New Economic Diplomacy at Observer Research Foundation, points to finer cultural nuances. "Women in West Bengal or northeastern states, for example, are more independent when it comes to making financial decisions from a young age. In northern India, women's finances tend to be managed by their fathers until they're old enough. Cultural nuance is very prominent in India," he says. [6]
Now, as more women seek financial independence, many feel that they're lagging behind when it comes to financial literacy. A survey by women-focused fintech platform LXME found that 49% of women in the country don't invest or are unaware of their investments due to a lack of awareness and financial education. Experts highlight a need for more women in financial planning roles who are able to guide women who are unable to seek financial advice due to social conditioning. [7]Companies like LXME have stepped up by building financial platforms designed especially for women. The LXME app, which has over 500,000 downloads and over 70,000 members on its Facebook community, is building a community for women investors and offers loans, insurance, and investment products such as mutual funds. It also offers one-on-one sessions with money experts who offer tailored financial advice. [8] What do Indian women need to feel empowered financially? And how can brands step in?
More women in white-collar jobs
White collar jobs for women in India grew by 56% in February 2024, compared to the previous year, with the IT and software sector leading in terms of opportunities. [9]A report by LinkedIn and consulting firm The Quantum Hub found that women's overall workforce participation in corporate India grew from 23.9% in 2016 to 26.8% in 2024. [10]The number of women venturing into business is also growing. Female entrepreneurship jumped by 50% between 2014 and 2023, and it has been boosted by more education, access to capital, and favourable policies. [11]
This has shifted financial priorities. A survey found that urban women with jobs consider supporting family members and funding their own businesses as top short-term financial priorities. Long-term priorities for women aged 25 to 35 include buying or upgrading their home, while those in the 35 to 45 age bracket prioritised children's education. [12]
However, many (even women in corporate jobs) still leave money matters to their husbands or other male relatives. The difference is more stark among women entrepreneurs in rural and semi-urban areas, where many find it difficult to get approved for loans because they might not own property or assets to show as collateral. In India, more men own property than women; only 13% of women own a house alone compared to 36.4% of men. [13]Even in the metros, 65% of self-employed women have not taken a business loan, and 39% rely on personal savings to fund their business. [14]
Financial inclusion
The number of women holding bank accounts has increased in India, helped by government-aided schemes like the Pradhan Mantri Jan-Dhan Yojana. Adopting digital banking during the pandemic also helped push financial inclusion for women. The World Bank says over 80 million Indians made their first digital merchant payment post-COVID. [15]
A report by Microsave Consulting says digitised government-to-people benefits accelerate financial inclusion in emerging economies like India, and direct transfers to women’s bank accounts, along with gender-sensitive social policies, can empower women's economic wellbeing. [16] "During the pandemic, women entrepreneurs across India were forced to learn about and use digital financial instruments, and now those have become business as usual,” says Bhowmick. ”I wouldn't say women have become completely financially independent and men have become progressive. But the circumstances are making women more financially independent." [6]
Even though more women are included in the financial system, their credit usage remains low. The share of women borrowers in India is only about 10% compared to 15% of men. According to the World Bank, this is important to note because access to credit has a considerable impact on women's income-generating opportunities. [17]A survey found that 47% of women still face challenges in accessing credit, while 95% said that they’re unaware of existing government financial schemes they can leverage to grow their business. A part of the reason financial institutions cannot support women entrepreneurs is a lack of reliable data by gender and region, especially in smaller cities and rural areas. [18] This presents an opportunity for fintechs and financial institutions to use alternative data sources to evaluate creditworthiness and expand access to credit.
Serious investors
Research has found that women are increasingly taking charge of their financial planning with investments in multiple financial instruments, including mutual funds, equities, as well as gold and real estate. India also saw an 80% increase in women buying term insurance plans. [19]Meanwhile, a 2024 report by the National Stock Exchange said female investors make up 22% of India's stock market investors, a 6.8 times surge compared to 2015. [20]
According to Radhika Gupta, managing director and CEO at Edelweiss AMC, the trend of women taking control of their own money and investing in stocks and mutual funds reflects an increase in aspirations and desire for financial growth. [21] Besides, digital adoption, easy accessibility of financial information and fintech platforms that are focused on women are helping them start their financial planning journey. [22][23]However, women are disadvantaged due to the gender pay gap, which means their investment sizes are comparatively smaller, and there's delayed wealth accumulation. [24]
Experts also believe women like to play it safe while investing. "When it comes to decisions like stock market investments, a very small percentage of women will go into risky asset classes; women look at relatively safer asset classes – fixed income instruments, bonds, post office deposits, mutual funds, etc. But there are some women who are looking at entering direct investment and equity markets," says Prakash Singh, a professor of banking and start-up valuation at the Indian Institute of Management, Lucknow. [25] A report by asset management company Axis Mutual Fund found that women were showcasing a preference for a longer-term outlook on their investments and investing more money in mutual funds compared to men. "During periods of market volatility and upheavals, women investors exhibit resilience by staying invested despite downturns. Moreover, they demonstrate cautious optimism during upswings, unlike their male counterparts," says the report. [26]
Insights and opportunities
Offer products designed for women
As more women make independent financial choices, there’s an opportunity for companies and financial institutions to offer products tailored to their needs. "There has to be product innovation; we can't rely solely on the existing products," says Bhowmick. [6] Chennai-based financial technology platform Kaleidofin, for example, supports under-banked consumers, with a special focus on women, and offers them tailored financial solutions, such as goal-based savings solutions, which could be used to cover a child's education, expanding a small business or home renovation. [27]Since 2020, the company has disbursed over $2.7 billion in loans to over 4.7 million customers and small enterprises. [28] Meanwhile, investment platform Altcase is making it easier for risk-averse investors to put their money in fixed deposits (FDs), which are considered a safe investment avenue, by curating FDs offering higher interest rates. It offers women and senior citizens additional interest rates on FDs. [29]
Make existing products more inclusive
Bankers believe tweaking existing products to meet women’s financial needs and goals is vital in empowering them financially. "These tweaks could include more flexible repayment schedules for loans, concession in collateral requirements, providing financial literacy programs targeted at women, etc.” A Manimekhalai, managing director and CEO at Union Bank of India, told ET Brand Equity. [30] Companies across the board that can identify women’s unique challenges and solve them are gaining traction among women. According to Singh, as more women choose to wait longer to be married and buy cars or homes, banks should consider broadening the scope of their offerings to cater to women’s specific needs. "For women in the early stages of their careers or even those with small children, there could be products which help them buy assets like cars or houses. These loans could have longer tenures, lesser EMI, etc," he says. [25] Notably, Indian banks are designing credit cards targeted at women. Union Bank’s women-only credit card – Divaa, offers an annual health checkup package with Pap Smear and blood tests, besides personal accident insurance and other offers. [31]
Offer women in rural locations access to financial markets
Bhowmick points to the specific needs of rural women. India has about 13.5 to 15.7 million women-owned enterprises, a vast majority of which are micro-businesses, which face a huge credit gap. [32] Bhowmick notes women in certain rural areas also face debt distress, becoming responsible for paying off loans accrued by family members or farming-related debt. "Urban women have access to the same financial instruments as urban men. But for rural women, there should be some kind of instruments where they can save money to pay off debts," he says. [6] According to the National Statistical Office, Indian women hold 20.8% of the total money in bank accounts; notably, 16.5% of the total deposits in urban areas belong to women, but it’s much higher at 30% in rural areas. [33]Sonata Finance is a non-banking finance company that advances microfinance loans to groups and individuals belonging to economically weaker sections, especially women, for various income-generating activities. In 2023, it was acquired by one of India's largest private sector lenders – Kotak Mahindra Bank, which is looking to become a significant player in the financial inclusion segment. [34]
