India is the world’s fastest-growing FinTech market today. But women in rural India have been excluded from this growth story for several reasons, ranging from lack of education to a cautious approach.
In 2021, the National Family Health Survey stated that 78.6 per cent of women in India have a bank account. That doesn’t mean all these women have equitable access to a physical bank. Women in rural India have to travel long distances to operate accounts in their bank branches. The GSM Association has released data stating that in 2024, of 536 million women in the age group of 15 years and older, only 37 per cent in India report using mobile internet. In semi-urban and rural areas, 57 per cent are not even aware of UPI-based offerings for merchants.
‘Facilitating transactions is just one aspect of what FinTech providers can do for women in rural India,’ says Radhika Swarup, who works for a Gujarat-based NGO. ‘In fact, women have been making UPI payments successfully, and it has seen a fair amount of penetration in both urban and rural India. However, there needs to be a deeper engagement with FinTech. Women entrepreneurs in rural India need to manage their own finances entirely, and with greater access to the digital tools available today.’
She cites an example. ‘Let’s say a woman is weaving and selling baskets. She may not be able to receive payments via UPI or Google Pay. Imagine how many customers she’d lose out on because of this. Let’s go one step further. Think of how high her sales and overall reach would be, if she was able to partner with a reliable e-commerce platform. These are just some of the ways in which adopting FinTech can be hugely beneficial to women in rural India. Microcredit has penetrated this sector effectively, so imagine the scope that FinTech has!’
Despite the fact that things are changing, India’s FinTech ecosystem presents several barriers to rural Indian women. The first is obviously a lack of formal education. One needs basic literacy to be able to navigate digital finance online by themselves. These are often denied to them. The second barrier is the lack of access to technology and dependency on other family members. In a nutshell, there is no financial autonomy – online or offline. Thirdly, procedures need to be simplified, with more efficient systems in place for KYC, loan collaterals, and so on. Lastly, there is a lack of confidence and trust while using FinTech.
Fortunately, there are a few steps policy-makers can implement to change this. Personal banker Rama Subramaniam shares these pointers:
1. Provide UPI Merchant Offerings for small women vendors and merchants. Once they jump onto the bandwagon, transactions are far quicker – thanks to instant authentication and payment. Anyone with a smartphone can just scan a QR code. However, it is important to provide ongoing training and support for women, guiding them if they encounter roadblocks or hurdles. This is crucial to build confidence in FinTech products.
2. Focus on safety and cybersecurity. Train women on safety features and create a programme that highlights dos and don’ts. This reassures even the most cautious of them. If they’re still hesitant, encourage the use of a Prepaid Payment Instrument or PPI. This allows them to load limited funds onto a digital wallet and use those funds, instead of linking their bank account.
3. Simplify onboarding procedures. If the process is too daunting or complex, they’re likely to feel intimidated and back out. Make things transparent and tangible at every step, including any fees or charges they may need to pay. The good thing is that FinTech is now accessible across regional languages as well. All this helps build trust and confidence.
4. Veer women towards digital savings and investments – mutual funds, stocks, or even gold! They can start small, and explore their options with advice and guidance from reliable and trusted platforms. Provide financial literacy programmes on saving and investing.
5. Don’t just focus on how many women are online. Also check out other metrics like engagement and impact, which tell the actual story. This will help you understand how and why women are using FinTech products.
For women in rural India to see value in FinTech, the buzzwords are accessible, affordable, and user-friendly. No doubt there are benefits, such as lesser costs and more freedom. It is great for their self-esteem, and allows them to feel empowered!