DBS Bank India & CRISIL Report: Half of Salaried Women Have Never Availed Loans

DBS Bank India, in collaboration with CRISIL, has conducted a pioneering study to understand how urban Indian women plan, prioritise and manage their money. The report, titled 'Women and Finance,' is the first of three in the series and provides insights into the financial behavior of over 800 women across 10 cities in India. The study covers various aspects, including their involvement in financial decision-making, goal setting, saving and investing patterns, adoption of digital tools and preferences for banking products.

The findings of the study are particularly relevant in the context of the stagnant rate of female participation in the workforce and the persistent gender pay gap. The report revealed that 98 per cent of salaried and self-employed Indian women actively participate in long-term family decision-making.

Factors such as age, income, marital status, presence of dependents, and home location were identified as major influencers of women's financial behavior. Women over 45, with their wealth of experience, emerged as leaders, with 65% making independent financial choices compared to 41 per cent of those aged 25-35.

The report provides insights into the evolving financial priorities of women across different age groups. Buying/upgrading a home is a top priority for those between 25 and 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. Retirement planning enters 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 at DBS Bank India, highlighted the importance of financial stability for independent female earners. He emphasized the growing role of women in financial decision-making, diverse investment choices, and the adoption of digital channels.

The study also delved into women's saving, borrowing, and investment behavior. Women earners in metros tend to be risk-averse, with a significant portion of their investments (51 per cent) in fixed deposits and savings accounts. Regional variations were observed, with Hyderabad and Mumbai leading in credit card usage. The study noted a cultural significance associated with homeownership in India, with the majority of women opting for home loans.

Additionally, the study explored women's usage of different banking and payment channels. It revealed that UPI is the preferred choice for various payment needs, signaling a decreasing dependency on cash. Regional nuances were observed, reflecting diverse preferences across cities.

In summary, the DBS Women and Finance study provides valuable insights into the financial behavior of urban Indian women, contributing to a better understanding of their relationship with finances and aiding businesses, regulators, and financial institutions in addressing relevant challenges.