In a pioneering effort to understand the way urban Indian women plan, prioritise and manage their money, DBS Bank India, in partnership with CRISIL, has undertaken a comprehensive study entitled ‘Women and Finance’. The survey findings pointed to factors like age, income, marital status, presence of dependants, and home location as major influencers of the financial behaviour of women.
About 47% of female earners in Indian metros make independent financial decisions, while 98% actively participate in long-term family decisions, highlighting their increasing financial independence. Women, especially those aged over 45, emerge as leaders in decision-making, prioritising goals like children’s education and retirement planning. In terms of investments, working Indian women are often risk-averse, favoring low-risk instruments like FDs (51%) and savings accounts. The investment pattern is influenced by dependents, with those having dependents adopting a more conservative approach. Home loans are the preferred borrowing choice, and women exhibit a growing preference for digital payment methods like UPI. This underscores the evolving role of Indian women as proactive planners in financial matters.
“As shown, the traditional financial landscape has been impacted by the growing proportion of women making independent financial decisions. In the past, the major reason for women not taking control of their financial decisions was due to the lack of awareness, financial literacy, and knowledge but times are changing in the modern world. These days, women’s roles in financial affairs are changing, with a shift toward independence and autonomy. Financial independence among women can be further promoted by financial literacy, societal support and an environment that encourages women’s involvement in decision-making. This will lead to the overall social and economic development of the country,” said Palka Arora Chopra, Director, Master Capital Services Ltd.
The report provides a fascinating glimpse into the growing empowerment of earning, metropolitan women. Across India, a woman’s primary long-term financial priority evolves with age. Buying/upgrading a home is priority number one for those between 25-35 years, while it evolves to children’s education for those in the 35-45 year category and to medical care for those above 45 years of age. Expectedly, retirement planning is seen entering the consideration set for the first time in the 35-45-year age cohort.
Prashant Joshi, Managing Director and Head of the Consumer Banking Group, DBS Bank India, said “The insights from the survey highlight the importance of financial stability in the aspirations of independent female earners across India. Ownership of financial decision-making, diverse investment and borrowing choices, and growing adoption of digital channels are all evidence that the modern Indian woman is not just a participant, but a planner of her journey.”
The study also deep-dived into women’s usage of different banking and payment channels. 33% of those in the 25-35 age bracket prefer to use UPI for online shopping, while only 22% above 45 years use UPI.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 17 Jan 2024, 03:12 PM IST
