A recent joint study by DBS Bank India and Crisil sheds light on the financial behaviours and preferences of women earners in India’s metros. The study surveyed over 800 women across 10 cities, focusing on financial decision-making, investment patterns, digital adoption, and banking product preferences. Key findings include a significant proportion of women being risk-averse, with a majority of their investments in fixed deposits and savings accounts. The study also reveals insights into credit card usage, loan preferences, and the evolving financial priorities of women across different age groups.
What does it mean for us?
The study highlights important trends and considerations for various stakeholders, including financial institutions, policymakers, and individual women. Some key implications include:
- Investment Behavior: Women in metros tend to lean towards conservative investment options, primarily fixed deposits. Understanding this risk-averse approach is crucial for financial institutions seeking to design products tailored to women’s preferences.
- Credit Card Usage: Varied credit card usage across cities and concerns about trust and overspending indicate that financial institutions need to address these apprehensions to encourage broader credit card adoption among women.
- Loan Preferences: The majority of women opting for home loans suggests a focus on real estate investment. Financial institutions may explore tailoring loan products that align with women’s specific financial goals and preferences.
- Digital Adoption: The growing preference for digital channels, especially UPI, highlights the need for financial institutions to enhance their digital offerings. This includes user-friendly apps and interfaces catering to women’s diverse financial needs.
- Age-Related Financial Priorities: Recognizing the evolving financial priorities with age, from home buying to children’s education and medical care, is crucial for designing financial products and services that align with women’s life stages.
Recommended Action:
For Financial Institutions:
- Tailor investment products that address the risk-averse nature of women investors, providing a mix of security and growth potential.
- Develop credit card offerings with transparent terms, addressing trust issues and overspending concerns.
- Create loan products that align with women’s diverse financial goals, considering preferences for home loans and addressing concerns about interest rates and repayment terms.
- Enhance digital channels with user-friendly interfaces, ensuring accessibility and meeting the varied financial needs of women.
For Policymakers:
- Consider initiatives to educate and empower women with financial literacy to make informed decisions. For an efficient learning management platform refer https://finlabsindia.org/learngenie/ For building customized learning programs, talk to Finlabs: https://finlabsindia.org/contact-us/
- Explore policies that encourage financial institutions to develop products and services specifically catering to women’s financial needs.
For Women:
- Embrace financial literacy and explore diverse investment options to maximize returns while managing risk.
- Engage with digital channels for financial transactions, considering the convenience and security they offer.
- Plan for long-term financial goals, considering age-related priorities and evolving life stages.
- In conclusion, the study underscores the importance of recognizing and addressing the unique financial preferences and needs of women in India’s metros, offering an opportunity for stakeholders to contribute to their financial empowerment and stability.
Reference article: https://www.business-standard.com/industry/banking/rbi-asks-banks-audit-heads-to-take-pre-emptive-steps-to-mitigate-risks-124011100878_1.html