Financial inclusion is a crucial driver of economic growth and social empowerment. While India has made significant progress in expanding financial access, women continue to face systemic barriers that hinder their participation in the financial ecosystem. Socio-cultural norms, limited digital literacy, and inadequate infrastructure exacerbate these challenges, particularly in rural areas. However, with the rise of digital finance, fintech solutions, and targeted government initiatives, India has a unique opportunity to bridge this gap. Our report titled ‘Tech-driven pathways to women’s financial inclusion in India’ explores the current state of women financial inclusion in India, the key barriers they face, the role of fintech in addressing these challenges, and the road ahead for ensuring equitable financial access for all.

Bridging the gender gap in financial inclusion: challenges and opportunities for Indian Women

  • Significant growth in financial access: Over 86% of Indian women now own a bank account, largely due to initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY). However, many of these accounts remain inactive, limiting meaningful financial engagement.

  • Digital payment adoption remains unequal: Despite India’s booming digital payment ecosystem, only 28% of women actively use digital transactions, lagging behind men by 13 percentage points.

  • Challenges in credit access: Women-led businesses face a significant financing gap, with only 10% of female borrowers accessing formal credit. Limited credit histories and collateral restrictions further exacerbate this disparity.

  • Gaps in financial literacy for women: Many women in India lack awareness of financial products beyond savings accounts. Social norms also discourage them from independently managing finances.

  • Barriers in digital inclusion: Women are 19% less likely than men to own a mobile phone, restricting their access to mobile banking and fintech solutions.

Key challenges to women financial inclusion in India

Policymakers lack sufficient insights to design women-specific financial inclusion strategies.

Women often rely on informal financial systems, face mobility constraints, and are discouraged from making independent financial decisions.

Women entrepreneurs struggle to secure loans due to inadequate collateral, lower financial literacy, and restrictive lending practices.

Wage gaps, low property ownership, and informal employment limit women’s financial independence and access to financial services.

Limited access to mobile phones, the internet, and digital literacy restricts women’s participation in the fintech ecosystem.

FinTech’s contribution to women financial inclusion in India

1.

Fintech is a game-changer

India’s thriving fintech ecosystem is addressing key gaps by providing alternative credit scoring mechanisms, digital wallets, and investment platforms tailored for women, paving the way for the economic empowerment of women.

2.

Alternative credit scoring

Fintech firms like Kaleidofin and Lendingkart use transaction-based credit assessments, allowing women with limited credit histories to access loans.

3.

Women-focused financial platforms

Startups like LXME and Grameen Financial Services provide tailored financial products and investment solutions for women, thus leading to the economic empowerment of women.

4.

Simplified digital payments

The rise of UPI-based transactions and mobile wallets is enabling women to participate in digital finance with ease.

5.

Agent banking and last-mile connectivity

The Bank Sakhi model has brought financial services closer to women in rural areas, boosting account usage and financial literacy.

6.

Embedded financial education

Fintech platforms integrate financial literacy programmes, empowering women to make informed financial decisions.

The road ahead

To bridge the gender gap in financial inclusion, India must focus on:

Conclusion

Women financial inclusion in India is not just a matter of social equity but a critical enabler of economic growth. While India has made progress in expanding financial access, challenges remain in bridging gender disparities in credit, digital payments, and financial literacy. Leveraging fintech innovations, expanding targeted government initiatives, and adopting gender-focused policies will be key for the economic empowerment of women and unlocking the full potential of women in India’s financial landscape. By taking decisive action, India can ensure that financial inclusion becomes a reality for all women, driving economic resilience and sustainable growth.

Tech-driven pathways to women’s financial inclusion in India

Tech-driven pathways to women’s financial inclusion in India

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