{"id":240781,"date":"2023-05-03T19:34:58","date_gmt":"2023-05-03T14:04:58","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=240781"},"modified":"2023-05-03T19:34:58","modified_gmt":"2023-05-03T14:04:58","slug":"the-financial-inclusion-of-women-is-set-for-a-tech-leap","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-financial-inclusion-of-women-is-set-for-a-tech-leap\/","title":{"rendered":"The financial inclusion of women is set for a tech leap"},"content":{"rendered":"\n

Source: <\/strong>The post is based on the article\u00a0\u201cThe financial inclusion of women is set for a tech leap\u201d <\/b><\/strong>published in the Livemint <\/strong>on 3rd\u00a0May 2023<\/b><\/strong><\/p>\n

Syllabus<\/strong>: GS 3 \u2013 Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.<\/p>\n

Relevance<\/strong>: About the financial inclusion of women.<\/p>\n

News<\/strong>: 56% of all these new bank accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY)<\/a><\/strong> are owned by women. This highlights the remarkable financial inclusion of women.<\/p>\n

What are the findings of analysis of women’s bank accounts under PMJDY?<\/h2>\n

According to a report by Women\u2019s World Banking, a)<\/strong> most women only access their PMJDY accounts to withdraw the benefit transfers that they receive in them from the various government initiatives that they are eligible for, b)<\/strong> most of them do not use these accounts for savings, to build a credit history, or avail of any financial products such as insurance and loans.<\/p>\n

This highlights the need for women to actively engage in the formal financial industry.<\/p>\n\n\n\n
Read more: About improving financial inclusion: Breaking barriers, building inclusion<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What are the challenges faced by women while entering the formal financial industry?<\/h2>\n

-Most women tend to work and shop within a four-kilometre radius of their homes. This means the majority of the industries are beyond the reach of most women, particularly in the rural hinterland.<\/p>\n

-Women tend to have concerns around privacy and confidentiality and as a result, they hesitate to discuss personal financial matters with strangers.<\/p>\n

-Even though women tend to live longer, they have higher medical expenses. This renders traditional retirement planning poorly suited to the needs of the average woman.<\/p>\n\n\n\n
Read more: Financial inclusion is integral to holistic development<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What can be done to facilitate women’s participation in the formal financial industry?<\/h2>\n

Promote the use of digital payments among women<\/strong>: This will reduce physical and financial risks for women associated with travelling to the bank branch. Thereby, reducing the time and effort required to manage their finances. Further, they offer a level of privacy, confidentiality and a sense of control over women’s financial information.<\/p>\n

Design dedicated services to address the needs of women<\/strong>: A private research has found that the women-specific financial services industry is worth roughly $700 billion. This represents roughly 5-20% of the total revenue of the industry. This amount far exceeds the annual revenue of most of the world\u2019s leading financial institutions.<\/p>\n

So, fintech firms and financial institutions need to make a concerted effort to address the challenges faced by women while using formal finances. They need to bring a gendered approach in each stage of the product delivery cycle to make sure that they are serving the genuine concerns around limited mobility and access to information.<\/p>\n

Nurture the ecosystem of business correspondents in rural areas<\/strong>: To ensure women have digital and financial capabilities, India should nurture the ecosystem of business correspondents in rural areas. The correspondents should offer a broader range of services than just plain banking. Such as overdrafts for emergencies, micro-insurance, micro-pension and other similar products.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cThe financial inclusion of women is set for a tech leap\u201d published in the Livemint on 3rd\u00a0May 2023 Syllabus: GS 3 \u2013 Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Relevance: About the financial inclusion of women. News: 56% of all these… Continue reading The financial inclusion of women is set for a tech leap<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-240781","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/240781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=240781"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/240781\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=240781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=240781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=240781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}