The Proportion of Women Engaging in Digital Transactions Surges from 14% to 28% Over Seven Years
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Synopsis
A recent Crisil report reveals a remarkable increase in women's participation in digital transactions in India, rising from 14% to 28% from 2014 to 2021. This growth highlights women's increasing tech-savviness and their vital role in the financial inclusion landscape.
Key Takeaways
- Women's digital payment participation doubled in 7 years.
- 200 million women are potential digital payment users.
- Financial Inclusion Index rose to 64.2 in March 2024.
- Majority of bank accounts under PMJDY are for women.
- Increased tech-savviness drives women towards mutual fund investing.
New Delhi, March 31 (NationPress) The digital payment landscape in India has undergone a remarkable shift, with women swiftly narrowing the gap with their male counterparts in recent years, as reported by Crisil.
From the financial years 2014 to 2021, the proportion of women conducting or receiving digital payments has increased from 14 percent to 28 percent, surpassing the growth among men, who rose from 30 percent to 41 percent, according to the report.
The data also emphasizes that this surge in digital payment usage among women is not confined to urban settings, as women in rural areas are also playing a vital role.
The potential market for digital payments among women in India is estimated at an astounding 200 million, with mobile internet usage among women rising to 37 percent in 2023, up from 30 percent in 2022.
The report further reveals that the latest Financial Inclusion Index (FI Index) by the Reserve Bank of India indicates a financial inclusion rate of 64.2 in March 2024, an increase from 60.1 in March 2023. This demonstrates the effectiveness of ongoing financial inclusion initiatives.
Importantly, women are leading this transformative change, as shown by two key indicators. Firstly, out of 53.13 crore bank accounts established under the Pradhan Mantri Jan Dhan Yojana (PMJDY), a majority of 29.56 crore belong to women, and secondly, most women now have access to banking services, as stated in the report.
In the last decade, countless unbanked households have integrated into the financial ecosystem, becoming a powerful force for women's empowerment.
The report asserts that the significant rise in digital payments by women can be linked to their increasing technological proficiency, allowing them to embrace digital transactions effortlessly.
As women become more adept with technology, the e-KYC process has also become more accessible, enabling them to easily navigate digital payment platforms and participate in the formal financial sector, the report notes.
This enhanced digital connectivity could lead women towards mutual fund investments, as they grow more comfortable with online transactions and seek to diversify their investment portfolios, according to the report.
As women gain entry into the formal financial sector, they are poised to become a prominent demographic in the mutual fund market and a key growth driver. This shift will empower women to take charge of their financial decisions, invest in their futures, and contribute to the nation's economic growth, the report concluded.
