According to a joint study by DBS Bank and rating agency Crisil, women earners in India's metros are risk-averse, with 51% of their investments parked in fixed deposits (FD) and savings accounts, followed by 16% in gold, 15% in mutual funds, 10% in real estate, and only 7% in stocks.
Over 800 women were polled in 10 cities throughout India on a variety of topics, including their engagement in financial decision-making, goal setting, saving and investment patterns, use of digital tools, and preferences for various banking products.
According to DBS Bank India's customer analytics, 10% of female clients have an active fixed deposit, while only 5% of male customers have opened an FD. The presence of dependents has a significant impact on women's investment behavior. In particular, 43% of married women with dependents invest 10-29% of their income, whereas a quarter of married women without dependents choose to invest more than half of their income.
Credit card usage is highest in Hyderabad and Mumbai, with 96% of women in Mumbai using them, compared to 63% of women in Kolkata. Around 18% of working women do not use credit cards because they are concerned about trust and overspending. Other problems limiting credit card usage include difficulty organizing credit card payments, concerns about hidden fees, and a preference for cash purchases. Only 14% of urban women use cash for purchases. The rest choose digital, with 29% preferring UPI, 16% preferring mobile banking, 13% preferring credit cards, and 11% preferring net banking. In comparison, a slightly lower proportion use debit cards and digital wallets as their principal payment method.
Half of all salaried women said they had never taken out a loan. The majority of those who borrowed chose a home loan. Among salaried women, 55% mentioned not having enough personal funds to cover their financial needs, or high interest rates and stringent repayment terms, as the primary reasons for not taking out a loan.
In terms of bank account ownership, urban women favor both public and private banks equally. Kolkata, which is regarded as a significant representation of East India, is an outlier, with 95% of women preferring public sector banks. Their decision is based on their long-standing faith in these institutions. Within South India, more than 40% of women favor public sector banks in Coimbatore and Hyderabad, whereas less than 30% prefer them in Bengaluru and Chennai. Furthermore, email, WhatsApp, and SMS are the most favored ways for 75% of women to contact banks on a daily basis.
While 33% of those aged 25 to 35 prefer to utilize UPI for online purchasing, only 22% of those aged 45 and more do so. According to the survey, UPI is the preferred payment method for urban women for a variety of financial needs, including money transfers (38%), utility bills (34%), and e-commerce purchases (29%), indicating a decrease in reliance on cash. Although geographical differences were striking in several circumstances, with only 2% of women in Delhi preferring cash payments while 43% of women in Kolkata preferred this choice.
According to the survey, 98% of salaried and self-employed Indian women actively participate in long-term family decision-making. According to the statistics, around 47% of them make their own financial decisions. Age and wealth are important factors in these decisions. Women over 45 years old emerge as the leaders, with 65% making independent financial decisions compared to 41% of those aged 25-35 years.
A woman's top long-term financial priority develops with age across India. Buying/upgrading a home is the top priority for people aged 25 to 35, followed by children's education for those aged 35 to 45, and medical care for those aged 45 and up. Retirement planning is being considered for the first time in the 35-45 year age group.
Prashant Joshi, Managing Director and Head of Consumer Banking Group at DBS Bank India, stated, "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."
