Women in Finance: 47% of female Indian earners in metros take independent financial decisions, says survey

On January 15, 2024, DBS Bank India, in collaboration with CRISIL, released a report underscoring the significant involvement of 98 percent of employed and self-employed women in India in the process of making long-term family decisions.

The survey, aiming to explore a diverse array of behaviours such as participation in financial decision-making, goal-setting, saving and investing patterns, adoption of digital tools, and preferences for various banking products, engaged more than 800 women from 10 cities across India.

The survey results indicated that factors such as age, income, marital status, the presence of dependents, and home location are significant influencers on women’s financial behaviour.

Interpreting women’s understanding of finance

This marks the initial release of a trilogy of reports within the comprehensive study titled “Women and Finance”. It unveils the financial preferences of employed and self-employed women at different stages of their lives.

Additionally, the report offers insight into the increasing empowerment of urban women in the workforce, highlighting how a woman’s primary long-term financial priorities change with age. The report’s discoveries are important as elements such as marital status, career decisions, personal health, and unforeseen life events can notably influence the financial priorities of women across various stages of life.

For example, the report highlights how acquiring or upgrading a home takes precedence for individuals aged 25-35, shifting to children’s education for those between 35 and 45 years, and transitioning to medical care for those above 45 years of age. As anticipated, retirement planning makes its debut in the considerations of the 35–45-year age group.

Decisions are significantly influenced by age and financial status. Women aged 45 and above, drawing from their considerable experience, emerge as leaders, with 65 percent making autonomous financial decisions, in contrast to 41 percent among those aged 25-35. The results indicated that approximately 47 percent of women make self-reliant financial decisions, underscoring the increasing financial independence among women.

Prashant Joshi, Managing Director and Head of Consumer Banking Group, DBS Bank India, said, “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.” 

How do our women save, borrow, and invest money?

The financial paths of women are as varied as their individuality. The manner in which they save, borrow, and invest money depends on many factors such as age, income, cultural background, and access to resources.

As per the survey, women earning in metropolitan areas demonstrate a preference for low-risk investments, allocating 51 percent of their funds to fixed deposits (FD) and savings accounts. The distribution includes 16 percent in gold, 15 percent in mutual funds, 10 percent in real estate, and a mere seven percent in stocks.

This aligns with observations from DBS Bank India’s customer insights, revealing that 10 percent of female customers actively maintain a fixed deposit, in contrast to only five percent of male customers who have opened a fixed deposit.

The existence of dependents significantly influences investment behaviour. Approximately 43 percent of married women with dependents allocate 10-29 percent of their income to investments. In contrast, a quarter of married women without dependents opt to invest more than half of their income.

Understanding credit card usage

The report underscores intriguing regional differences in the financial choices of women across Indian metropolitan areas. Notably, Hyderabad and Mumbai lead in credit card usage, with a remarkable 96 percent of Mumbai women relying on them, in contrast to only 63 percent in Kolkata. This pattern extends to other spending behaviours related to money. According to the report, half of the employed women indicated that they have never taken a loan. Among those who did borrow, a significant majority chose to take out a home loan.

While these observations may be influenced by the closed-group survey, the findings illuminate the diverse financial preferences prevailing across various regions.

Choosing UPI over cash to shop and pay

The research also examined women’s utilisation of various banking and payment channels. Approximately 33 percent of individuals aged 25-35 in the study favour using UPI for online shopping, whereas only 22 percent of those above 45 years opt for UPI.

The report indicated that UPI emerges as the favoured option among urban women for various payment requirements, including money transfers (38 percent), utility bills (34 percent), and e-commerce purchases (29 percent). This trend signifies a diminishing reliance on cash. However, regional variations were notable; for example, only two percent of women in Delhi chose cash payments, while 43 percent of women in Kolkata preferred this option.