How Do Urban Indian Working Women Navigate Their Money?

Do you know how urban working women in India manage their finances? A study by the private bank DBS India and non-profit organisation CRISIL reveals the nitty-gritty details about how most salaried and self-employed women in Indian cities spend, save, or invest their money. The first of three reports, titled 'Women and Finance', which was released today, surveyed 800 women across 10 (undisclosed) cities in India on a wide range of behaviours that showed how involved they are in money matters.

The study puts a spotlight on the degree to which Indian women aspire to be involved in financial matters, despite misconceptions and the gender pay gap. It reveals the relationship that women have with money across society and also points out factors like age, income, marital status, the presence of dependents, and home location as major influencers of the financial behaviour of women. 

Glistening Hope: Women's Involvement In Finances

The Women and Finance report states that 98% of salaried and self-employed women are actively involved in their family's long-term financial planning and decision-making. Independently, women make 47% of financial decisions, manifesting a hopeful future for women's financial autonomy.

In the context of family investments, children's educational paths, or any more similar decisions, urban Indian women, specifically those who are working, are no longer sidelined. They are, in fact, a crucial part of the decision-making process for the family's finances, contrary to earlier notions.

The report states that 65% of urban Indian working women over 45 are making independent financial choices. Meanwhile, those aged 25-35 are taking 41% of independent decisions. This shows that age, experience, and influence have a significant role in the financial behaviour of these women.

Factors That Affect Patterns

• Age: The DBS-CRISIL report shows the difference in investment and spending patterns across different age groups. Reportedly, urban Indian women between 25 and 35 years old prefer buying or upgrading property or homes. Meanwhile, those aged 35–45 prioritise children's future and education. Those over 45 years old invest and save in healthcare.
• Dependants: Women, stereotypically known for their 'giving' nature, also consider dependents (parents, children, spouses, etc.) while investing. The Women and Finance report revealed that 43% of married urban women allocate only about 10–29% of their income to investing if they have dependents. In contrast, a quarter of married women without dependents choose to invest over 50% of their income.
• Regional and cultural: The study also shows differences in patterns depending on the region. For example, Hyderabad and Mumbai lead the way in credit card usage, with 96% of women in Mumbai relying on credit cards, while only 63% of women in Kolkata use them.

Risk Consideration While Investing

When it comes to risk aversion, the study showed that working women in urban India are cautious about investments and prefer fixed deposits and savings accounts over stocks or mutual funds. The data revealed that 51% of women's investments go into fixed deposits (FD) and savings accounts, followed by 16% in gold, only 15% in mutual funds, 10% in real estate, and just 7% in stocks.

DBS Bank India stated another interesting detail-- while 10% of their female customers had active fixed deposits, only 5% of males have opened an FD. 

The study also reveals that a large chunk, about 50%, of salaried women are apprehensive about taking loans. Among those who have borrowed, the majority have taken the safe route and opted for a home loan.

Usage Of Banking and Payment Facilities 

The DBS-CRISIL study also shed light on the patterns of payment channel usage. The study reveals the popularity of UPI over card or cash payments in today's market. It showed that 38% of money transfers, 34% of utility bill payments, and 29% of online shopping were done through UPI. 

The study also showed that 33% of urban working women in the 25–35 age bracket prefer to use UPI for online shopping, in contrast to only 22% of those over 45 years old. Regional differences played a role here too—only 2% of women in Delhi opted for cash payments, while 43% of women from Kolkata still favour cash.

Speaking about the trends noticed in women's financial behaviour, Prashant Joshi, Managing Director of DBS Bank India told Business Today, “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."